Document:

Exhibit 10.3(a)

 

Loan Contract

 

    	 

    	 

    

 

Loan Contract

 

Contract No.: PYSXZDZ 20141020 No. 005

 

(   ) Out of the line

 

(√) Within the line   Line Contract Name: Comprehensive
Credit Line Contract

 

  Line Contract No.: PYSXZZZ 20141020 No.
005

 

Party A (Lender): PINGAN BANK CO., LTD. SHENZHEN BRANCH

 

Address: NO.1099 Shennan Road, Shenzhen

 

Legal Representative (Principal): Yao
Guiping                               

 

Tel.:  _____________________________________________

 

Party B (Borrower): SHENZHEN HIGHPOWER
TECHNOLOGY CO., LTD.

 

Address:Shanxia Villiage, Pinghu
Town, Longgang District, Shenzhen 

 

Legal Representative: Pan Dangyu                          

 

Tel.: _____________________________________________

 

Whereas Party B applies Party A for
a loan, in accordance with the Contract Law and other relevant laws and regulations, Party A and Party B hereby make and
enter into this Contract upon consensus through consultation.

 

Article 1 Loan

 

1.1 Loan amount: (currency) USD(in
figures) ¥1,625,000(in words) one million six hundred twenty five thousand Dollar only.

 

1.2 Loan purpose follows the following
(1):

 

(1) Specifically, for purchasing
raw materials.

 

(2) Borrowing for repaying (on-lending)/restructuring,
specifically as follows: repaying the credit line under _________________(contract No. and name).

 

1.3 The loan term is applicable to the
following (2):

 

(1) From  ____MM ___DD,  ____YYYY to ____MM ____DD,  ____YYYY.

 

(2) One (    ) days (    ) months (  
√ ) years.

 

The actual loan amount and the start
and ending date shall accord with the receipt for a loan within the scope specified in this Contract.

 

In the event that Party B has any event
of default and Party A demands Party B to immediately repay the loan in advance, the loan shall be deemed matured when the event
of default occurs.

 

If the loan is paid in installment,
the due date for payment of a loan shall not be later than the corresponding date when a loan is paid for the first time.

 

    	 

    	 

    

1.4 Loan interest rate

 

1.4.1 The loan interest rate of this
Contract shall be determined according to the following standard. The loan interest rate for the first period shall follow that
indicated in the receipt for a loan (please express with “√” in front of the option):

 

(    ) 25% (    ) higher / (    ) lower than
the benchmark interest rate for the same-grade loan issued by the People’s Bank on the date of payment of the loan.

 

(    ) Benchmark interest rate for the
same-grade loan issued by the People’s Bank on the date of payment of the loan (    ) + /(    ) - / (floating points).

 

(    ) Benchmark interest rate for the
same-grade loan issued by the People’s Bank on the date of payment of the loan

 

(    ) (    ) LIBOR ( ) HIBOR on the date
of payment of the loan (    ) + /(    ) - / (basic points) (applicable to foreign exchange loans only).

 

Interest shall be charged according
to the actual days of the loan. Daily interest rate of loans in pound and Hong Kong dollar = annual interest rate /365; Daily interest
rate of loans in other currencies = annual interest rate /360.

 

1.4.2 The method for adjustment of the
loan interest rate under this Contract is as follows (please express with “√” in front of the option):

 

(   ) Adjusted by ________  (month /quarter
/half a year/ year). The adjustment date of interest rate is the following ____ 

 

		j	The
                                         date of  ________ (every month /every three months /every half a year /every year)
                                         corresponding to the date of payment of the loan; where there is no corresponding day
                                         in a month, the last day of the current month shall be taken as the adjustment date of
                                         interest rate.

 

		k	Each January 1.

 

(√ ) A fixed interest rate is
executed hereunder during the loan term.

 

If the loan interest rate is adjusted,
interest shall be calculated and charged according to the new interest rate after adjustment from the adjustment date of interest
rate. However, if the loan is repaid by installment (including matching the repayment of principal and interest by period, and
matching the principal repayment by period), interest in the current period shall be calculated and charged according to the interest
rate before adjustment and interest after the current period shall be calculated and charged according to the interest rate after
adjustment.

 

1.4.3 In case of adjustment of the benchmark
interest rate for several times, Party A shall make adjustment according to the latest benchmark interest rate on the adjustment
date. If the loan interest rate specified above is lower than the lower line of the interest rate stipulated by the People’s
Bank of China after the People’s Bank of China adjusts the floating range of the benchmark interest rate, the loan interest
rate hereunder shall be adjusted to be the lower line of the interest rate stipulated by the People’s Bank of China. If the
People’s Bank of China does not publish the benchmark interest rate any longer, the loan interest rate hereunder shall be
adjusted to the inter-bank interest rate for same-grade loans recognized or commonly used in the corresponding period, unless otherwise
agreed by both Parties.

 

    	 

    	 

    

 

1.4.4 In case of any national change
to the interest rate determination methods, adjustment methods and interest charging methods, the relevant national provisions
shall prevail.

 

1.4.5 Where there is any adjustment
of interest rate mentioned above, Party A may not give a notice to Party B additionally.

 

1.5 The expiry date of interest shall
be the 20th day of each month. Party B shall pay interest by (   ) month (√ ) quarter (   ) year (   ) others__ /_
. The maturity date of the loan shall be the last expiry date of interest, clearing with the principal and interests.

 

Article 2 Payment of the Loan

 

2.1 Party A shall, prior to payment
of the loan, have the right to review the following items and decide whether to pay the loan according to the review results:

 

(1) whether Party B has handled and
completed all the legal formalities for government licensing, approval, registration and delivery in connection with the loan hereunder
in accordance with relevant laws and regulations(if any);

 

(2) whether the related guarantee contract
is effective (if any);

 

(3) whether Party B has fully paid the
expenses in connection with the execution of this Contract (if any);

 

(4) whether Party B has met the conditions
for loans specified in this Contract;

 

(5) whether there is any adverse change
to the business and financial conditions of Party B and the guarantor (if any);

 

(6) whether there is any change to Party
B’s repayment willingness and the guarantor’s guarantee willingness (if any);

 

(7) whether Party B has any breach of
contract hereunder.

 

2.2 If Party A discovers during the
payment process of the loan, that Party B’s credit status declines, main business profitability is not strong or there is
any abnormal situation during use of the loan money, Party A shall have the right to change the loan payment method or stop payment
of the loan money.

 

2.3 If, before the payment of the loan,
Party A is unable to pay the loan under this Contract due to change of national macro-control policies, or request for control
of credit scale or credit orientation present by Party A’s regulatory department to Party A, or due to other causes not attributable
to Party A, Party A shall have the right to stop payment of the loan or cancel this Contract, to which Party B shall have no objection.

 

2.4 Payment method

 

Party A and Party B agree to take the
following method for payment of the loan money:

 

(   ) Payment in full by Party A upon
authorization: Party A pays the loan money through Party B’s account to Party B's transaction objects which are compliant
with the agreed purpose according to Party B’s application for money withdrawal and payment authorization.

 

    	 

    	 

    

 

(   ) Payment in part by Party A upon
authorization: if the transaction objects are specific and the single payment amount is more than RMB _____  Yuan ( _____
Yuan included), Party A pays the loan money through Party B’s account to Party B's transaction objects which are compliant
with the agreed purpose according to Party B’s application for money withdrawal and payment authorization; Party A pays
the remaining loan money to Party B’s account according to Party B’s application for money withdrawal and Party B
himself pays the money to his transaction objects which are compliant with the agreed purpose.

 

(   ) Payment in full by Party B himself:
Party A directly releases the loan money to Party B’s account according to Party B’s application for money withdrawal
and Party B himself pays the money to his transaction objects which are compliant with the agreed purpose.

 

2.5 Payment management

 

Party A and Party B agree to make the
following management on payment of the loan money:

 

If the method of payment upon authorization,
Party B may demand Party A to pay the loan money when Party B meets the following conditions for payment:

 

(1) Party B has submitted a repayment
application and relevant supporting materials, including business contract according to Party A’s requirements, and the information
about the transaction objects and payment amount, etc. listed in the payment application complies with that indicated in the supporting
materials;

 

(2) The payment application complies
with the loan purpose specified in this Contract;

 

(3) Party B authorizes Party A to pay
the loam money to specified transaction objects;

 

Party A shall have the right to check
whether the information about the transaction objects and payment amount, etc. listed in the payment application provided by Party
B complies with that indicated in relevant supporting materials, including business contract, and shall have the right to refuse
the payment application which does not comply with the loan purpose specified in this Contract.

 

If the method of payment by Party B
himself is adopted, after payment of the loan, Party B shall give a written summary and notice to Party A to report the payment
situation of the loan money by month, and provide the information about the transaction objects and payment amount, etc. and the
relevant supporting materials including business contract according to Party A’s requirements. Party A shall have the right
to check whether payment of the loan money complies with the agreed purpose through account analysis, examination of vouchers and
site investigation, and Party B shall provide coordination.

 

2.6 Conditions for change and sudden
change of payment method

 

Under any one of the following circumstances,
Party A shall have the right to adjust the standard of amount paid upon authorization or change the payment method to payment in
full upon authorization:

 

    	 

    	 

    

 

(1) If the method of payment by Party
B himself is adopted, and Party B fails to give a written summary and notice to Party A to report the payment situation of the
loan money according to the stipulations or refuses to provide coordination for Party A for checking whether independent payment
of the loan complies with the specified purpose through account analysis, examination of vouchers or site investigation;

 

(2) Party B violates this Contract and
evades payment by Party A upon authorization through breaking up the whole into parts;

 

(3) Party B’s credit status declines
and its main business profitability is not strong;

 

(4) There is abnormal situation in the
use of the loan money;

 

(5) The regulatory department adjusts
the standard of payment upon authorization.

 

2.7 Account management

 

Through consultation between Party A
and Party B, Party B agrees to open the following account with Party A to accept Party A’s monitoring:

 

1. Party B agrees to open a loan payment
account with Party A according to Party A’s requirements. Account name: SHENZHEN HIGHPOWER TECHNOLOGY CO., LTD.;
account No.:_________________________  Payment and withdrawal of the loan money shall be handled through this account. Party A shall have the right to
carry out dynamic monitoring of this account. Where there is any abnormal situation detected, Party A shall have the right to
take relevant actions, including but not limited to freezing and stop payment, etc.

 

2. Party B agrees to open a capital
return account with Party A according to Party A’s requirements (please express with “√" in the (    ) in front
of the option)

 

(    ) The capital return account is the
same as the loan payment account as set forth in sub-clause 1 of this Article.

 

(      ) Capital return account name: _______________________________;
account No.: ______________________ .

 

Capital return in this account shall
comply with the following provisions: __________________________________

	 	 
	 	

 

If Party B fails to timely repay Party
A the loan, Party A shall have the right to deduct money for repaying the loan principal and interest from the capital return account
opened by Party B with Party A and from other accounts opened by Party B with Party A and Party A’s subordinate branches.

 

3. Party B agrees that Party A is entitled
to take back the loan in advance according to the capital return situations of Party B.

 

Article 3 Repayment 

 

3.1 Party B shall repay the loan principal
according to the following (2):

 

(1) Repayment of principal in installment:

 

(    ) Repayment of principal by (   ) month
(   ) quarter (   ) year. The amount repayable each period is  ___/___ .

 

    	 

    	 

    

  

(    ) Repayment of principal in installment
according to the date and amount of repayment listed in Annex 1 of this Contract.

 

(    ) Others ________________/________________ .

 

(2) Repayment of principal in a lump
sum at maturity.

 

3.2 If Party B repays the loan principal
by month, the date of repayment of principal shall be the expiry date of interest each month after the loan is released; if Party
B repays principal by quarter, the date of repayment of principal shall be the expiry date of interest every three months after
the loan is released; if by year, the date of repayment of principal shall be the expiry date of interest every twelve months after
the loan is released.

 

3.3 Party B shall open an account in
Party A and deposit the amount repayable to this account prior to the specified date of repayment.

 

3.4 Party B shall repay the loan principal
and interest under this Contract on time and in full. If Party B fails to repay loan money in any period on time and in full, Party
A shall have the right to demand Party B to repay the total loan and charge default interest for the loan not repaid from the date
of overdue.

 

3.5 Party B hereby irrevocably authorizes
Party A to deduct loan principal and interest due and related expenses from any account opened by Party B in any banking branch
of Pingan Bank.

 

3.6 Should Party B make repayment in
advance, Party B shall present a written application to Party A thirty (30) days in advance and obtain Party A’s written
consent. The written application for early repayment shall be deemed irrevocable upon Party A’s written consent.

 

(    ) If Party B makes repayment in advance,
Party B shall pay Party A compensation. Party B shall pay such compensation while Party B pays Party A the loan principal and interest
payable in advance. The amount of compensation shall be calculated according to the amount of prepayment × number of days
prepaid × interest rate specified in this Contract. If Party B prepays the loan for less than thirty (30) days in advance,
compensation shall be calculated according to the actual days and half shall be charged; if for more than thirty (30) days, compensation
shall be calculated according to thirty (30) days.

 

Article 4 Party B’s Representations
and Warranties

 

4.1 Party B is a company with good reputation
duly established and validly existing within the jurisdiction of the location where it is located. Party B has all corporate rights
and has obtained the government license and approval for conducting its current business.

 

4.2 Party B has completed all the authorizations
and approvals necessary for the signature of this Contract. This Contract is the presentation of Party B’s true meaning and
may not result in violation of any agreement or commitment concluded with any a third party. When this Contract is concluded and
signed, Party B has not violate any law, regulation and rule for environmental protection, energy conservation and emission reduction,
and pollution reduction, and Party B promises to strictly abide by such laws, regulations and rules after the conclusion of this
Contract.

 

    	 

    	 

    

 

4.3 Party B is not involved in any litigation,
arbitration execution, appeal and reconsideration procedure and other incident or case which may have major adverse impact on the
execution of this Contract, unless otherwise Party B notified Party A in wiring prior to the conclusion of this Contract.

 

4.4 Party B shall, within the time limit
requested by Party A, provide its financial statements, number of all opening accounts, loan balance and other relevant materials
requested by Party A. Party B shall ensure the genuine, completeness and objectivity of all the documents and materials provided,
which shall have no false record, misleading representation or material misstatement. The financial statements shall be prepared
strictly in accordance with the Accounting Standards of China.

 

Article 5 Party B’s Rights and
Obligations 

 

5.1 Party B shall have the right to
demand Party A to pay Party B the loan according to the conditions specified in this Contract. However, if Party A is unable to
pay the loan under this Contract due to change of national macro-control policies, or request for control of credit scale or credit
orientation present by Party A’s regulatory department to Party A, or due to other causes not attributable to Party A, Party
A shall have the right to stop payment of the loan or cancel this Contract.

 

5.2 Party B shall use the loan according
to the purpose specified in this Contract and repay the loan principal and interest on time and in full. 5.3 Party B shall open
an account in Party A and handle deposit, settlement and other related services firstly in Party A.

 

5.4 If Party B is a customer
group, it shall give a written report to Party A within ten days after the date of affiliated transaction of over 10% of net
assets. The report contents shall include the affiliated relation between the transaction parties, transaction item and
nature, transaction amount or relevant proportion, and the pricing policy (including no-money involved transaction or only
symbolic-money involved transaction).

 

A customer group as mentioned herein
shall mean an enterprise or public institution legal person who has the following features:

 

(1) It directly or indirectly controls
or is directly or indirectly controlled by another enterprise or public institution legal person in respect of stock right or management;

 

(2) It is jointly controlled by a third
party enterprise or public institution legal person;

 

(3) Its principal individual investor,
key manager or a close family member (including lineal blood relationship within three generations and collateral blood relationship
within two generations) commonly directly or indirectly controls;

 

(4) It has other affiliated relationship
and may transfer the assets and profits not on the basis of fair price, which should be deemed as credit management by a customer
group.

 

5.5 If Party B has any one of the following
circumstances, it shall notify Party A thirty days in advance. If Party A thinks it will cause significant impact on the performance
of the Contract, Party B shall obtain Party A’s written consent in advance:

 

    	 

    	 

    

 

(1) material change to Party B’s
operating system, equity structure, property organizational form and primary business, including but not limited to implementation
of contracting, lease, joint operation, reform of shareholding system, merger, acquisition, joint venture (cooperation), division,
establishment of a subsidiary, trusteeship (takeover), sales of enterprise, transfer of property rights and reduction of capital,
etc.;

 

(2) disposal of important assets, of
which the value exceeds 10% of the net assets, by selling, gifting, lending, transferring, mortgaging (pledging) or other means;

 

(3) its dividends exceed 30% of the
net profits after tax of the current year or exceed 20% of the total undistributed profits;

 

(4) it adds external investment of over
20% of its net assets after the credit line becomes valid;

 

(5) it changes the debt clauses with
other bank and pay off other long-term debt in advance;

 

(6) Party B repays its shareholder debt;
or

 

(7) it applies other bank for a credit
line, or provides a third party with security, or reduces or exempts a third party’s debt, with the debt amount concerned
exceeding 20% of its net assets.

 

5.6 Party B shall notify Party A within
seven working days as of the date of occurrence or possible occurrence of the following matters, and Party A shall have the right
to decide whether to request Party B to add guaranty or directly take back all the loans as the case may be:

 

(1) Party B or the guarantor’s
business or financial status is worsened, or there is significant financial loss, loss of assets (including but not limited to
loss of assets caused due to external guarantee) or other financial crisis;

 

(2) Party B encounters administrative
punishment or criminal sanction or is involved in any significant legal dispute due to its illegal business behavior;

 

(3) Party B, its shareholder or de facto
controlling person, or the legal representative or key manager of the guarantor is involved in an important case, or its main asset
goes under property preservation or other compulsory measures, or encounters administrative punishment or criminal sanction, or
there is any other incident which causes Party B impossible to perform its duties normally;

 

(4) Party B or the guarantor provides
a third party with guarantee, causing significant adverse impact on its financial condition or on the performance of its obligations
under this Contract;

 

(5) Party B or the guarantor has the
following changes, such as division, consolidation, major merger, acquisition and reconstruction, disposal of major assets, reduction
of capital, winding-up, cease of business for rectification, liquidation, reorganization, being revoked, being dissolved, bankruptcy,
or its business license is revoked;

 

(6) there is obvious reduction or loss
of the guaranty value, or dispute about the ownership of the guaranty; or the guaranty is sealed up, detained, frozen, deducted,
detained or sold by auction; or

 

(7) any other important event or default
event which may affect the business activities of Party B or the guarantor and the loan safety of Party A.

 

    	 

    	 

    

 

5.7 If Party B changes its domicile,
mailing address, telephone number, business scope, legal representative or other relevant items, it shall notify Party A in writing
within seven working days after the change. In the event that Party B fails to perform the said notification obligation, the notices
and documents given by Party A according to the original mailing address shall be deemed to have been served.

 

5.8 Party B shall keep reasonable financial
ratios within the loan term.

 

(    ) The financial indicators shall reach
the following standard within the loan term:

 

	 	 
	 	 
	 	 

 

Article 6 Party A’s Rights and
Obligations 

 

6.1 Party A shall have the right to
take back the debt principal and interest (including compound interest, and default interest for overdue and appropriation) and
charge the expenses payable by Party A, and shall be entitled to deduct the said principal, interest and expenses directly from
Party B’s account.

 

6.2 From the second year after the effectiveness
of a over one-year (excluding one-year) loan, Party A shall have the right to evaluate the business and financial conditions of
Party B and the guarantor and the specific project progress according to the conditions for loans specified in this Contract when
the loan is released, and adjust the loan amount, term and interest rate according to the evaluation result.

 

Where there is any mortgaged (pledged)
property, Party A shall have the right to ask for reevaluating the mortgaged (pledged) property by an appraisal agency accepted
by Party A each year. If the value of the mortgaged (pledged) property is declined obviously and is not enough for guaranteeing
the debt under the Main Contract, Party A shall have the right to ask Party B to repay part of the loan or provide other guarantee
measures accepted by Party A.

 

6.3 Party A shall have the right to
ask Party B to provide materials related to the loan, enter Party B’s business site, investigate, review and check the use
of the credit line and the assets, financial and business conditions of Party B, for which Party B shall provide coordination.
Party A shall also have the right to supervise Party B to use the loan for the purpose specified herein.

 

6.4 Party A shall bear confidentiality
obligation for the materials provided by Party B, except otherwise prescribed by laws and regulations, or specified by a regulatory
authority or by both Parties, or non-confidential information provided by Party B.

 

Article 7 Breach of Contract 

 

7.1 Any one of the following cases shall
be deemed as a default event referred to herein:

 

(1) Party B fails to use the loan money
according to the method specified herein or evades payment upon authorization as set forth in sub-clause 2.5 of this Contract through
breaking up the whole into parts;

 

(2) There is overdue interest, overdue
repayment or advance of the credit hereunder, or the credit funds are used not for the purpose specified by both Parties;

 

    	 

    	 

    

 

(3) Party B violates some of its representations,
warranties and commitments;

 

(4) Party B violates some of its obligations
performable hereunder;

 

(5) Party B conceals some genuine important
information;

 

(6) Party B or the guarantor evades
bank claims through affiliated transactions or by other means;

 

(7) Party B or the guarantor has any
one of the following behaviors, being negligent in managing and claiming the creditor’s rights due, or disposing and transferring
its main properties free of charge, or at unreasonable low price or by other improper means, or escaping debts;

 

(8) Party B illegally get funds or credit
from Party A or other banks by using a false contract and arrangement with a third party, including but not limited to pledge or
discount of the notes receivable and other claims without actual trading background.

 

(9) Party B or the guarantor violates
any other contract (including but not limited to credit contract, loan contract and guarantee contract) signed with Party A or
other banks or any securities with the nature of debt it issued;

 

(10) Party B’s guarantor violates
the guarantee contract (including but not limited to guarantee contract, mortgage contract and pledge contract) or has any breach
of the guarantee contract, or the guarantee contract has not taken effect, is invalid or is cancelled; or there is obvious reduction
or loss of the guaranty value, or dispute about the ownership of the guaranty, or the guaranty is sealed up, detained, frozen,
deducted, detained or sold by auction; or

 

(11) There is any case which should
be notified under sub-clauses 5.5 and 5.6 herein that Party A thinks effective on the safety of its creditor’s rights.

 

7.2 In case of any one of these default
events listed in the preceding clause, Party A shall have the right to take the following actions:

 

(1) To stop or terminate the release
of any loan money not released under this Contract;

 

(2) To announce acceleration of maturity
of the credit line; to ask Party B to repay part or all the credit principal, interest and expenses immediately, and pay default
interest for the total credit principal released at the default interest rate from the date of occurrence of the default event
until Party B pays off the total credit principal;

 

Expenses shall include but not be limited
to the attorney fee, legal cost, arbitration fee, traveling expenses, announcement cost, service fee, execution fee, transfer fee
and other relevant expenses of Party A for realizing its creditor’s rights.

 

(3) To ask Party B to provide new guarantee
measures accepted by Party A;

 

(4) To adjust the loan amount, term
and interest rate according to the conditions of loan risks, and change the loan payment method to payment upon authorization;

 

(5) To make deduction directly from
the account of Party B and the guarantor to repay all the debts under this Contract and the specific business contract (including
the debts Party A requests for prepayment), without obtaining Party B’s consent in advance;

 

    	 

    	 

    

 

(6) To exercise the guarantee right,
ask the guarantor to perform guarantee liability, or realize creditor’s rights through disposal of the mortgaged property
and/or pledged property;

 

(7) If Party B fails to repay the loan
according to the stipulations when the loan is matured or is matured earlier, Party A shall have the right to charge additional
50% of the interest rate specified herein as default interest for the loan principal from the date of overdue according to the
actual days of overdue. If Party B fails to use the loan according to the specified purpose, from the date when Party B uses the
loan in violation of this Contract, Party A shall have the right to charge additional 100% of the interest rate specified herein
as default interest for the loan amount which is appropriated.

 

In case of any interest which cannot
be paid on time, compound interest shall be charged according to the default interest rate. Meanwhile, default interest and compound
interest shall be recharged for delayed and appropriated loans.

 

If the loan is delayed for less than
ninety (90) days (including ninety (90) days), the priority for repayment of the loan principal and interest is as follows: (1)
costs and expenses; (2) interest (including default interest and compound interest); (3) principal. If the loan is delayed for
more than ninety (90) days, the priority for repayment of the loan principal and interest is as follows: (1) costs and expenses;
(2) principal; (3) interest (including default interest and compound interest).

 

(8) Party A claims Party B’s debtor
for the right of subrogation or appeal to the court to revoke Party B’s waiving of the creditor’s right due or Party
B's transfer of property free of charge or at an obviously unreasonable low price. Party B shall provide all necessary coordination
and assistance according to Party A’s requirements, and all the costs and expenses caused to Party A arising therefrom shall
be borne by Party B; or

 

(9) Other remedial measures prescribed
by laws and regulations and specified in the Contract.

 

Article 8 Other Provisions 

 

	 	 
	/	 
	 	 

 

Article 9 Supplementary Provisions

 

9.1 If the credit line under this Contract
belongs to the line under the Line Contract, the guarantee method under the Line Contract shall also be applicable. 9.2 ( ) Both
Parties agree to handle compulsory enforcement notarization for this Contract.

 

If Party B fails to completely pr partly
perform the obligations specified herein when compulsory enforcement notarization is handled by both Parties for this Contract,
Party A shall have the right to apply the original notary public for an enforcement certificate, and apply the competent people’s
court (the people’s court at the location where the person subject to enforcement lives or where the property of the person
subject to enforcement is located) for enforcement holding the original notarial certificate and the enforcement certificate.

 

    	 

    	 

    

 

(√) No compulsory enforcement
notarization shall be handled for this Contract.

 

9.3 The application for single credit,
credit contract, receipt for a loan and credit vouchers related hereto, other relevant documents and materials confirmed by both
Parties, and the commitment letter and declaration issued by Party B unilaterally to Party A shall be deemed as an integral part
of this Contract and shall have the same equal legal force as this Contract.

 

9.4 Party B hereby agrees and authorizes
Party A to, during Party B’s credit business application period and the business duration period, inquire Party B’s
credit information which has been entered into the financial credit information database and other credit agencies established
legally. for Party B's credit business application and follow-up management. Party B hereby agrees and authorizes Party A to, according
to the provisions of the Regulations on Administration of Credit Information Industry, report Party B’s enterprise
information and credit information, including but not limited to credit information and the information constituting adverse impact
on the credit status of the information agents, to the financial credit information database and other credit agencies established
legally.

 

9.5 Please confirm the options with
√ in the brackets before the selected items.

 

9.6 Any and all disputes arising from
the execution of the Contract shall be settled by both Parties through consultation. Where consultation fails, the following (2)
shall be adopted for dispute settlement:

 

(1) To apply ______/__________
for arbitration in accordance with the current arbitration rules of the commission. The award of the arbitration shall be final
and binding upon both Parties.

 

(2) To initiate a lawsuit in the people’s
court at the location where Party A is located;

 

(3) To initiate a lawsuit in the people's
court of  _____/_____ .

 

9.7 This Contract shall be governed
by the laws of the People's Republic of China.

 

9.8 This Contract shall come into force
upon the signature of all the parties hereto (signed or sealed by the authorized signatories and affixed with official seal). If
the loan hereunder is actually not released within three months as of the date of effectiveness of this Contract, Party A shall
have the right to cancel this Contract unilaterally.

 

9.9 This Contract shall be made out
in three (3) originals for Party A holding two (2) and Party B, (    ) the guarantor and (    ) the registration authority each
holding one (1).

 

Party B hereby represents that it has
fully understood all the terms and conditions of this Contract (especially the bold fonts), and the clauses of the related guarantee
contract and other relevant documents and has taken independent legal consultation (where necessary).

 

    	 

    	 

    

 

Annex 1:

 

Loan Principal Repayment Schedule

 

	Time 	Date of repayment	Amount of repayment (in words)
	1	 	 
	2	 	 
	3	 	 
	4	 	 
	5	 	 
	6	 	 
	7	 	 
	8	 	 
	9	 	 
	10	 	 

 

Party A (Seal): PINGAN BANK CO., LTD. SHENZHEN XINZHOU
BRANCH (Seal)

Legal Representative (Principal) or Authorized Agent (Signature):
Yao Guiping(Seal)

Date of Signature: Oct. 20, 2014

 

Party B (Seal): SHENZHEN HIGHPOWER TECHNOLOGY CO., LTD.
(Seal)

Legal Representative (Principal) or Authorized Agent (Signature):
Pan Dangyu (Seal)

Date of Signature: Oct. 20, 2014Exhibit 10.3(b)

 

Maximum Guarantee Contract

 

Contract No.: pingyinshenxinzhouebaozi 20141020
No. 003

 

Party A (Creditor): PINGAN BANK CO.,
LTD. SHENZHEN BRANCH

 

Address: NO1099 shennanzhonglu
road, shenzhen

 

Tel.: 23480048              
Fax: 23480054

 

Principal: Yao Guiping       
Position: President

 

Party B (Guarantor): Pan Dangyu  

 

Certificate Type *:ID Certificate No. *:430104196803184316

 

(The contents expressed with “*”
may not be written if Party B is an unit)

 

	Address:                                                                                             
	Tel.:                                                 	Fax:                                         
	Legal Representative **: 	Position **:

 

(The contents expressed with “**”
may not be written if Party B is an individual)

 

    	 

    	 

    

 

Whereas Party B is willing to act as the
Guarantor of Party A and provide Party A with maximum joint liability guarantee in order to ensure the execution of the contract
between Party A and SHENZHEN HIGHPOWER TECHNOLOGY CO., LTD. (hereinafter referred to as the Debtor), IN WITNESS WHEREOF,
Party A and Party B hereby agree to conclude and sign this Contract upon consensus through consultation between both Parties. Both
Parties shall abide by the following terms and conditions.

 

Article 1 Guarantee and Guarantee Liability

 

1.1 Scope of guarantee

 

The scope of guarantee hereunder is as
follows (expressed with “√” in front of the option):

 

 (√) The
principal, interest, compound interest and default interest of all the debts (including contingent debts), and the expenses for
realizing the creditor’s rights which shall be borne by the Debtor under the Comprehensive Credit Line Contract of
pingyinshenxinzhouzongzi 20141020 No. 001 (hereinafter referred to as “the Main Contract”). The maximum principal
(balance) of the debts shall be (converted into) RMB (currency) (in words) seventy million Yuan only.

 

( ) (Converted into) (currency) (in words)
of the principal of all the debts (including contingent debts) (converted into) (currency) (in words) , and the corresponding interest,
compound interest and default interest, and the expenses for realizing the creditor’s rights which shall be borne by the
Debtor under the Contract of PY No. (hereinafter referred to as “the Main Contract”). Party A shall
have the right to ask Party B to bear guarantee liability for the debt balance within the aforesaid scope of guarantee as long
as the debts under the Main Contract are not fully repaid. 

 

    	 

    	 

    

 

( ) Performance of the debts under all
the credit line contracts and specific credit business contracts (hereinafter referred to as “the Main Contract”) concluded
and signed by and between the Debtor and Party A dated from YYYY MM DD to YYYY MM DD. The date of signature of the Main
Contract shall be within this period and the execution period of the Main Contract is not limited to this period. The scope of
Party B’s maximum guarantee shall include the principal, interest, compound interest and default interest of all the debts
(including contingent debts), and the expenses for realizing the creditor’s rights which shall be borne by the Debtor under
the Main Contract. The maximum principal (balance) of the said debts shall be (converted into) (currency) (in words) .

 

( ) The principal of the debts not fully
repaid by the Debtor (converted into) (currency) (in words) , and the interest, compound interest and default interest thereof,
and the expenses for realizing the creditor’s rights under the Contract of PY No. (hereinafter referred to
as “the Main Contract”).

 

 (     )

 

    	 

    	 

    

 

Interest, default interest and compound
interest shall be calculated according to the stipulations of the Main Contract until the debts are fully repaid. The expenses
for realizing the creditor’s rights shall include but not be limited to announcement cost, delivery fee, appraisal fee, attorney
fee, legal cost, traveling expenses, evaluation fee, auction fee, property preservation cost and enforcement fee. 

 

The exchange rate of currencies other than
RMB shall be converted according to the foreign exchange rate published by Party A when the specific business occurs.

 

1.2 Guarantee period of this Contract:

 

(√) The guarantee period hereunder
shall be from the date of effectiveness of this Contract to two years after the expiration of the debt performance term specified
in the Main Contract. The guarantee period of each specific credit business shall be calculated separately. In case of extension
of any specific credit, the guarantee period shall be extended to two years after the expiration of the extended term.

 

(    ) The guarantee period
hereunder shall be from the date of release of the loan under the Main Contract to the date when handles and completes the procedures
for real estate mortgage registration taking Party A as the mortgagee and the relevant ownership certificates are submitted to
Party A.

 

    	 

    	 

    

 

(    ) The guarantee
period hereunder shall be from the date of effectiveness of this Contract to                                                

 

(   
) 

 

If Party A transfers its creditor’s
rights to a third person by law during the guarantee period, Party B hereby agrees to bear guarantee liability within the original
scope of guarantee.

 

1.3 If the Debtor transfers its credit
line granted by Party A to a third party to use, Party B hereby agrees to bear guarantee liability for the transferred part according
to the stipulations of this Contract. The specific credit-transferred object and amount are as follows:

 

1.                                         
(the transferee), amount: (converted into)              (currency)
(in words) ;

 

2.                                         
(the transferee), amount: (converted into)             (currency)
(in words) ;

 

3.                                         
(the transferee), amount: (converted into)             (currency)
(in words) ;

 

4. 

 

    	 

    	 

    

 

1.4 Party B shall bear guarantee liability
hereunder independently. Party A shall have the priority to ask Party B to bear guarantee liability no matter whether there is
any security or guarantee provided by the guarantor (including the debtor of the Main Contract). If Party A waives the guarantee
right for the guaranteed property (including the guaranteed property provided by the Debtor) or for other guarantors, Party B shall
also take full guarantee liability according to the stipulations of this Contract. 

 

1.5 This Contract is an irrevocable
contract. 

 

1.6 The validity of this Contract is
independent from the Main Contract. In case of invalidity of the Main Contract or any clause of the Main Contract, this Contract
shall remain in force.

  

Article 2 Performance of Guarantee Liability

 

2.1 If the Debtor fails to perform any matured
debt (including matured in advance, same below) under the Main Contract, Party B ensures to repay the debt unconditionally after
the receiving of a written payment notice from Party A. Any document about the Debtor’s failure to perform any matured debt
given by Party A shall be deemed as a written payment notice that Party A asks Party B to make payment.

 

    	 

    	 

    

 

2.2 Party B hereby irrevocably authorizes
Party A to deduct the principal and interest of the Debtor’s matured debt and related expenses directly from any and all
accounts opened by Party B in any banking branch of Pingan Bank. Party A shall notify Party B in writing after this deduction and
shall have the right to continuously claim Party B for the insufficient part. If the amount deducted is not enough to repay
all the matured debts and the Debtor delays for less than 90 days (including 90 days), the repayment priority of principal and
interest is as follows: (1) expenses; (2) interest (including default interest and compound interest); (3) principal. If the Debtor
delays for more than 90 days, the repayment priority of the principal and interest of the advance payment is as follows: (1) expenses;
(2) principal; (3) interest (including default interest and compound interest).

 

Article 3 Guarantor’s Warranties
and Commitments 

 

3.1 Party B has completed all the authorizations
and approvals necessary for the signature of this Contract. This Contract is the presentation of Party B’s true meaning and
may not result in violation of any agreement or commitment concluded with any a third party. When this Contract is concluded and
signed, Party B has not violate any law, regulation and rule for environmental protection, energy conservation and emission reduction,
and pollution reduction, and Party B promises to strictly abide by such laws, regulations and rules after the conclusion of this
Contract.

 

3.2 Party B is not involved in any litigation,
arbitration, execution, appeal and reconsideration procedure and other incident or case which may have major adverse impact on
the execution of this Contract, unless otherwise Party B notified Party A in wiring prior to the conclusion of this Contract.

 

    	 

    	 

    

 

3.3 The following provisions are applicable
if Party B is a legal person:

 

3.3.1 Party B is a company with good reputation
duly established and validly existing within the jurisdiction of the location where it is located. Party B has all corporate rights
and has obtained the government license and approval for conducting its current business.

 

3.3.2 Party B shall, within the time limit
requested by Party A, provide its financial statements, number of all opening accounts, loan balance and other relevant materials
requested by Party A. Party B shall ensure the genuine, completeness and objectivity of all the documents and materials provided,
which shall have no false record, misleading representation or material misstatement. The financial statements shall be prepared
strictly in accordance with the Accounting Standards of China.

 

3.4 The following provisions are applicable
if Party B is an individual:

 

3.4.1 Party B has provided his personal
and family incomes and properties, and other relevant materials required by Party A, and Party B warrants the genuine, completeness
and accuracy of the documents and materials that Party B has provided.

 

3.4.2 Party B warrants coordinating Party
A to supervise and inspect the incomes and credit conditions of Party B. If Party A thinks the loan guarantee conditions worsened
during the execution period of this Contract, Party B shall provide other guarantee measures accepted by Party A.

 

    	 

    	 

    

 

Article 4 Guarantor’s Rights and
Obligations

 

4.1 Party B shall have the right to ask Party
A to bear confidentiality obligation for the materials provided by Party B, except otherwise prescribed by laws and regulations,
or specified by a regulatory authority or by both Parties, or non-confidential information provided by Party B.

 

4.2 Party B has carefully read the Main
Contract and confirmed all the clauses of the Main Contract. Party B may not confirm the single credit contract or IOU or other
credit business voucher under the Main Contract which does not exceed the specification of the Main Contract. 

 

Party A and the Debtor may not obtain
Party B’s consent for change of the Main Contract. Party B shall continuously bear joint guarantee liability for the Main
Contract after change. However, if the principal of the debit is increased and the loan term is extended without Party B’s
written consent, Party B shall continuously bear guarantee liability according to the amount and term originally specified in the
Main Contract. 

 

4.3 Party B shall accept and ensure to
coordinate Party A to supervise and inspection Party B’s management situations and guarantee capacity. Party B shall allow
Party A to enter Party B’s business site for inspecting Party B’s assets, financial status and management situations.

 

    	 

    	 

    

 

4.4 ( ) In case of transfer of major property
rights, system change or transfer of claims and debts occurring to Party B, Party B shall notify Party A of the relevant issues
in advance and obtain Party A’s written consent prior to such change.

 

( ) If Party B has any one of the following
circumstances, it shall notify Party A thirty days in advance. If Party A thinks it will cause significant impact on the performance
of the Contract, Party B shall obtain Party A’s written consent in advance:

 

(1) material change to Party B’s
operating system, equity structure, property organizational form and primary business, including but not limited to implementation
of contracting, lease, joint operation, reform of shareholding system, merger, acquisition, joint venture (cooperation), division,
establishment of a subsidiary, trusteeship (takeover), sales of enterprise, transfer of property rights and reduction of capital,
etc.;

 

(2) disposal of important assets, of which
the value exceeds 10% of the net assets, by selling, gifting, lending, transferring, mortgaging (pledging) or other means;

 

(3) its dividends exceed 30% of the net
profits after tax of the current year or exceed 20% of the total undistributed profits;

 

(4) it adds external investment of over
20% of its net assets after the Contract becomes valid;

 

    	 

    	 

    

 

(5) it changes the debt clauses with other
bank and pay off other long-term debt in advance;

 

(6) Party B repays its shareholder debt;
or

 

(7) it applies other bank for a credit
line, or provides a third party with security, or reduces or exempts a third party’s debt, with the debt amount concerned
exceeding 20% of its net assets.

 

4.5 Party B shall notify Party A within
seven working days as of the date of occurrence or possible occurrence of the following matters, and Party A shall have the right
to decide whether to request Party B and the Debtor to add guaranty or directly take back all the loans as the case may be:

 

(1) business or financial status is worsened;

 

(2) Party B is highly fined by a competent
authority or is involved in major legal dispute;

 

(3) Party B, its shareholder, its legal
representative or key manager is involved in an important case, or Party B’s main asset goes under property preservation
or other compulsory measures; or there is any other incident which causes Party B’s legal representative or key manager impossible
to perform his duties normally;

 

(4) Party B provides a third party with
guarantee, causing significant adverse impact on its financial condition or on the performance of its obligations under this Contract;

 

    	 

    	 

    

 

(5) Party B goes into winding-up, ceasing
of its operation for reorganization, dissolution, closedown or bankruptcy, or its business license is revoked;

 

(6) its economic conditions become bad,
such as unemployment, unit bankruptcy, or major loss of personal property, major adverse change of personal physical health, divorce
with spouse, and other matters which may affect Party B’s capacity to perform this Contract; or

 

(7) any other important event or default
event which may affect the business activities of Party B and the loan safety of Party A.

 

4.6 If Party B changes its domicile, mailing
address, telephone number, business scope, legal representative (work unit) or other relevant items, it shall notify Party A in
writing within seven working days after the change. In the event that Party B fails to perform the said notification obligation,
the notices and documents given by Party A according to the original mailing address shall be deemed to have been served.

 

4.7 ( ) Party B shall keep reasonable financial
ratios within the loan term.

 

( ) The financial indicators shall reach
the following standard within the loan term:

  

Article 5 Breach of Contract 

 5.1 Any one
of the following cases shall be deemed as a default event referred to herein:

 

    	 

    	 

    

 

(1) Party B fails to perform the compensative
liability on time and in full;

 

(2) Party B violates some of its warranties
and commitments or has any other behavior not performing the obligations hereunder;

 

(3) Party B transfers its property or draws
out capital;

 

(4) Party B has breach of contract under
other contracts signed and concluded with Party A or any other banks; or

 

(5) there is any major adverse change of
Party B’s business and financial status.

 

5.2 In case of any one of these default
events listed in the preceding clause, Party A shall have the right to take the following actions:

 

(l) To ask Party B to perform the compensative
liability immediately;

 

(2) To ask Party B to provide new guarantee
measures accepted by Party A;

 

(3) Party A claims Party B’s debtor
for the right of subrogation or appeal to the court to revoke Party B’s waiving of the creditor’s right due or Party
B's transfer of property free of charge or at an obviously unreasonable low price. Party B shall provide all necessary coordination
and assistance according to Party A’s requirements, and all the costs and expenses caused to Party A arising therefrom shall
be borne by Party B; or

 

(3) Other remedial measures prescribed
by laws and regulations.

 

    	 

    	 

    

 

Article 6 Other Provisions 

 

( ) The Bank Enterprise Guarantee Business
Cooperation Agreement (hereinafter referred to as the Agreement) concluded and signed by and between Party A and Party B is
a fundamental legal document for standardizing the relation of rights and obligations between both Parties. In case of any discrepancy
between this Contract and the Agreement, the Agreement shall prevail.

 

 

 

Chapter 7 Supplementary Provisions

 

7.1 ( ) Both Parties agree to handle compulsory
enforcement notarization for this Contract.

 

If Party B fails to completely or partly
perform the obligations specified herein when compulsory enforcement notarization is handled by both Parties for this Contract,
Party A shall have the right to apply the original notary public for an enforcement certificate, and apply the competent people’s
court (the people’s court at the location where the person subject to enforcement lives or where the property of the person
subject to enforcement is located) for enforcement holding the original notarial certificate and the enforcement certificate.

 

(√) No compulsory enforcement notarization
shall be handled for this Contract.

 

    	 

    	 

    

 

7.2 Party B authorizes Party A to inquire
Party B’s credit standing including information about social insurance from the credit information database of the People’s
Bank of China, the credit database established upon approval by the competent credit investigation authorities, or relevant institutions,
departments and individuals. The credit report acquired through inquiry may be used only within the scope prescribed by the interim
measures for administration of credit information database issued by the People’s Bank of China and other relevant laws and
regulations. As agreed by Party B, Party A may provide Party B’s credit information for the credit information database of
the People’s Bank of China and the credit database established upon approval by the competent credit investigation authorities.

 

7.3 Please confirm the options with √
in the brackets before the selected items.

 

7.4 Any and all disputes arising from the
execution of the Contract shall be settled by both Parties through consultation. Where consultation fails, the following (2)
shall be adopted for dispute settlement:

 

(1) To apply                    
/               for arbitration in accordance with the
current arbitration rules of the commission. The award of the arbitration shall be final and binding upon both Parties.

 

(2) To initiate a lawsuit in the people’s
court at the location where Party A is located;

 

    	 

    	 

    

 

(3) To initiate a lawsuit in the people's
court of             /           .

 

7.5 This Contract shall be governed by
the laws of the People's Republic of China.

 

7.6 This Contract shall come into force
upon the signature of all the parties hereto (if one party is a natural person, the Contract shall be signed by the party; if one
party is a legal person or other organization, the Contract shall be signed or sealed by the authorized signatory and affixed with
the official seal).

 

7.7 This Contract shall be made out in
three originals for Party A holding two and Party B, ( ) the Debtor and ( ) the registration authority each holding one.

 

 Unit Seal of
Party A: PINGAN BANK CO., LTD. SHENZHEN BRANCH:

Signature of
Legal Representative or Authorized Agent:

  

Seal of
Party B (if an unit):

Signature
of Legal Representative or Authorized Agent:

 

Signature
of Party B (if an individual) In person: Dangyu Pan

or Authorized
Agent:

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