Document:

Basic Credit Line Contract

 

Reference: Xing Yin Shen Longgang credit
zi (2013) No. 0430

Creditor: Industrial Bank Co., Ltd., Shenzhen
Longgang Branch

Address: Parkland, Longxiang Road, Longgang
town, Shenzhen

Legal Representative / CEO: Jinkui Li

Contact:

Address:

	Postal Code:	Fax :
	Tel: 0755-33837817	Fax:

 

Debtor: Springpower Technology (Shenzhen)
Co., Ltd.

Address: Building
A, Chaoshun Industrial Zone, Renmin Street, Danhu, Guanlan Road, Baoan, Shenzhen

Legal Representative / CEO: Dangyu Pan

Contact:

Address:

	Postal Code:	Fax :
	Tel: 0755-89686939	Fax:

 

Contract Location: Industrial Bank Building,
Industrial Bank Co., Ltd. Shenzhen Branch

 

Important Prompt

 

For protecting your rights and interests,
please read, check and confirm the following items carefully before signing:

 

1. You have the right to sign this contract
or you have been given sufficient authority legally.

 

2. You have read and understood this contract
carefully and sufficiently, and have paid attention on assuming, exempting or limiting responsibilities of Industrial Bank Co.,
Ltd., and the content with bold font.

 

3. Your company and you understand the
meaning of this contract and the relevant legal consequences, and agree to accept these provisions.

 

4. The contract provided by Industrial
Bank Co., Ltd. is a model contract. There is space for modifying, supplementing and deleting.

 

5. If you have further questions on this
contract, please consult Industrial Bank Co., Ltd.

 

After application, creditor agrees to provide
a basic credit line to debtor. To clarify the rights and obligations of both parties, and abide by credit, the contracting parties
sign this contract agreed together according to relevant state laws and regulations.

 

Clause 1 Definitions and interpretation

 

Except agreed in writing by the contracting
parties, the following words in this contract will be explained as follows:

 

1. Basic credit line: based on comprehensive
evaluation of management and risk of debtor, creditor will decide the maximum amount of comprehensive financing principal of debtor,
including but not limited local foreign currency, various trade financing (issuing letter of credit, trust receipt, packing loan,
export bill purchase, export bill purchase under collection and advanced against inward documentary bills, etc.) bank acceptance
bill, notes discounted, notes repo, guarantee (including independent guarantee, demand guarantee, standby letter of credit, etc.)
and so on.

 

2. Valid period of credit line is one uninterrupted
period, during which the debtor can conduct business transactions stipulated under the basic credit line, with creditor’s
consent. The basic credit line expires when the valid period of credit ends.

 

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3. Balance: creditor will manage and control
the balance of various businesses of debtor. The balance is the sum of used credit line, including undue balance and expired outstanding
balance, as follows:

 

(1) Undue balance: the sum of undue outstanding
debts which are used by debtor according to this contract.

 

(2) The due unpaid balance is the debt
principal balance that the Creditor granted the Debtor, or is entitled for to perform certain legal responsibilities, but remained
unpaid at the expiry date.

 

4. Macro contract: Basic credit line contract,
which is signed by creditor and debtor.

 

Sub-contract: the specific business contract
signed by two parties voluntarily. This contract is the macro contract of any sub-contracts, any sub-contract is an inalienable
part of this contract, and has the same legal effect.

 

5. Principal debt: debt principal, interest
and expense resulting from conducting various business transactions under this contract applied by debtor, including but not limited
local foreign currency, various trade financing (such as issuing letter of credit, trust receipt, packing loan, export bill purchase,
export bill purchase under collection and advanced against inward documentary bills, etc.) bank acceptance bill, notes discounted,
notes repo, guarantee (including independent guarantee, demand guarantee, standby letter of credit, etc.) and so on. (Including
principal, interest, punitive interest, compound interest, liquidated damages, damage awards, expenses for realizing financial
claim, etc.)

 

Expenses for realizing a financial claim:
the money which creditor spends for realizing a financial claim by litigation, arbitration, etc. such as court (arbitration) costs,
attorneys’ fees, traveling fees, execution fees, maintenance costs, and other necessary costs for realizing a financial claim.

 

6. Important transaction which is mentioned
in clause 8 (including but not limited): anything which might have a bad effect on the basic organization of debtor’s company,
changes of stockholders, contingent liabilities, cash flows, profitability, core business secrets, important assets, significant
claims and debts, repayment ability, other transactions which are considered as significant transactions by creditor and/or debtor.

 

7. Important transaction which is mentioned
in clause 8 (including but not limited): anything which may have bad effect on executives’ operational capability, employment
and termination of core staff, core business secrets, core competence, basic organization, legality, stability, development, profitability,
repayment ability, other things which are considered as significant things by creditor and/or debtor.

 

8. Workday mentioned in this contract refers
to a banking day. If the drawdown date or the repayment date is on a legal holiday, then it is delayed to the first working day
after the holiday.

 

Clause 2 Credit Line

 

1. The maximum amount of basic credit line
is RMB (in words) FIFTY MILLION YUAN ONLY. If debtor uses foreign currency in specific business, the foreign currency will be converted
to RMB according to the exchange rate announced by creditor on the date when the applicable sub-contract is signed, and will be
included in credit line.

 

2. Decomposition of credit line

 

(1) Working capital loan: RMB 20,000,000

 

(2) Bank acceptance: RMB 50,000,000

 

(3) Standby letter of credit: RMB 50,000,000

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(1), (2), (3) can transfer the amount among
them.

 

3. If the Debtor repays the used line of
credit within valid period of credit line, the equivalent amount of credit line recovers automatically.

 

4. The financing balance should not be
more than RMB 50,000,000, including all debts used by debtor according to this contract, and the single credit line cannot be more
than RMB 50,000,000.

 

Clause 3 Valid Period and Adjustment
of Credit Line

 

1. Valid period of credit line under this
contract is from July 24th 2013 to July 24th to 2014.

 

2. This contract is not the definite obligation
of creditor, in any circumstance, creditor has the right to adjust or cancel the credit line and valid period under this contract
partly or completely without the consent of debtor. Foregoing “any circumstance” includes but not limited following
situations:

 

(1) debtor has significant operational
difficulties and risks;

 

(2) debtor has significant changes in ownership
or contingent debt;

 

(3) debtor has significant changesin its
operational mechanism (including but not limited discrete, merger, termination, etc.);

 

(4) debtor gets hit with credit downgrade
and which increasesrisk of repayment;

 

(5) the situation and conditions of one
transaction, which Debtor works on, have significant changes;

 

(6) the statements and commitments of debtor
mentioned in clause 7 become invalid;

 

(7) other creditors think it is necessary
to change, adjustment or canceldebtor’s credit line.

 

3. If debtor needs to increase temporary
the credit line because of a change of situation or special project, debtor can apply for special credit line from creditor, which
can only be used for special project, and should not be used as cycle.

 

Clause 4 Repayment and adjustment of
advance in cash and receipt under different credit line

 

Creditor has the right to use the funds
received under one or more of the lines to repay the advanced money which is used according to this contract, without the consent
of debtor and guarantor.

 

Clause 5 Guarantee Measures

 

1. The following contracts are guarantee
contracts of this contract and sub-contracts.

 

(1)REF: Xing Yin Shen Longgang credit (guarantee)
zi (2013) No. 0430

"Maximum Amount Guaranty Contract"
(the name of the contract), guarantor: Shenzhen Highpower Technology Co Ltd, mode: guarantee;

 

(2) REF: Xing Yin Shen Longgang credit
(guarantee) zi (2013) No. 0430A "Maximum Amount Guaranty Contract" (the name of the contract), guarantor: Dangyu Pan,
mode: guarantee;

 

(3)REF: Xing Yin Shen Longgang credit (guarantee)
ying zhi zi (2013) No. 0430

"Maximum Amount Accounts Receivable
Pledge Contract" (the name of the contract), guarantor: Springpower Technology (Shenzhen) Co., Ltd., security as a pledge;

 

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2. Before the signing of guarantee contracts
and completing the guarantee procedures, creditor has the right to refuse handling an application for using the credit line under
this contract, and providing the loans under this contract and sub-contracts.

 

3. The maximum guarantee for all debts
under the credit line should be provided by the above guarantors (guarantor, mortgagor or pledger), except as agreed by creditor,
debtor and guarantor.

 

4. If following things happen to the guarantor
under this contract, creditor has the right to take measures according to clause 9 of this contract.

 

(1) Guarantor violates the maximum guarantee
contract; a deterioration of guarantor’s credit position; or other things, which may damage guarantee ability happen;

 

(2) Mortgager violates the maximum mortgage
contract; damages mortgage intentionally; the value of mortgage might has been reduced obviously; or other things which damage
the hypothecation of creditor;

 

(3) Pledger violates the maximum pledge
contract; the value of pledge has been reduced obviously; or the right of pledge has to be cashed in advance; or other things which
damage the pledge of creditor.

 

Clause 6 The Rights and Obligations
of Creditor

 

1. During credit period, if the accumulated
total balance used by debtor is less than the maximum capital limit, creditor will review a loan application which is within the
limit from debtor.The application will be accepted if it meets each of the conditions and requirements requested by creditor. If
Creditor is unable to make a substantive examination because of debtor or any other reasons, it should not constitute a defense.
Debtor and guarantor give up considering it as a defense.

 

2. Creditor has the right to acquire the
accounting statements and other operational information of debtor.Debtor should provide its marketing plan, investment plan and
demand for funds.Creditor will keep debtor’s business secret.

 

3. In order to achieve the purpose of financing
under this contract, the debtor should provide a full, effective guarantee, which is recognized by creditor. If debtor or guarantor
violates the contract, creditor has the right to seize any form of assets of the Debtor or Guarantor that the Creditor possesses

 

Clause 7 Representations and Commitments
of Debtor

 

Debtor makes the following representations
and commitments voluntarily, and assumes legal responsibility for the reality of the content.

 

1. Debtor is a legal representative, which
is established according to the laws of People’s Republic of China, with full capacity for civil conduct. Debtor promises
to provide related information requested by creditor.

 

2. Debtor can perform all obligations and
responsibilities under this contract, and will assume the repayment responsibility in any conditions.

 

3. Debtor has the right to sign this contract,
and has acquired all legal approvals and authorities.

 

4. Signing this contract is allowed by
debtor’s articles of association, internal decisions and resolutions of shareholders and board of directors. This contract
will not conflict with the articles of association, internal decisions and resolutions of shareholders and board of directors and
policies of debtor.

 

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5. Signing and performing this contract
is the true willing decision of debtor. Signing and performing the above contract will not violate the laws and regulations, rules
and agreements which can limit debtor. This contract is legal and enforceable, and if this contract become invalid because debtor
does not have full capacity to sign this contract, debtor should repay all losses of creditor.

 

6. All documents, financial statements
and other information, which are provided by debtor under this contract, are true, complete, accurate and effective.

 

7. Debtor agrees that bank business under
this contract is limited to the regulations, conventions and practices of creditor, and the power of interpretation belongs to
creditor.

 

8. Debtor cannot change its equity structure
or major executives without written consent of creditor.

 

9. If debtor does not perform obligations
according to this contract and sub-contract, debtor grants creditor the right to obtain relevant money from any account which is
opened in creditor by debtor.

 

10. In any transactions after signing this
contract, if the debtor submits any documents related to a specific transaction to creditor for auditing, debtor promises all documents
are true.Creditor neither participates in nor knows the essence of transaction, and will not take any responsibility.

 

11. The debtor confirms it has no further
litigation, arbitration, or administrative litigation in property, liquidation or issues with going out of business, except situations
which have been disclosure in writing to creditor.

 

12. If creditor is involved in litigation,
arbitration or another dispute because of performing the obligations under this contract,the litigation or arbitration fees, legal
fees and other expenses of creditor will be borne by the debtor.

 

13. All settlement businesses under this
contract should be handled through the settlement account open in creditor.

 

14. The debtor provides full, effective
or other appropriate acceptable guarantee approved by the creditor. For the house mortgage, if the house will be removed, the debtor
shall promptly inform the creditor to fulfill obligations; if mortgage houses were demolished, the creditor has the right to require
the debtor to pay off the debt in advance, or reset the mortgage and sign a new security agreement. During the loss of the original
guarantee and the new mortgage registration has not been completed, the debtor should provide the secured party as guarantees;
For the way of compensation to compensate for the demolition of real estate, the creditor will be responsible for requesting relocation
compensation as guarantee through the opening margin accounts or certificates of deposit , etc.

 

Clause 8 Debtor has the obligation to
disclosure significant transactions and events to creditor.

 

1. Debtor should inform creditor of significant
transactions and events of debtor in writing timely.

 

2. If debtor is a group company, debtor
should inform creditor of its related transactions which are more than 10% of creditor’s net assets, including but not limited
to :

 

(1) the relationship of the parties in
the transaction;

 

(2) transactions and transaction properties;

 

(3) the amount of transaction and relevant
proportion;

 

(4) pricing policy.

 

3. During valid period of this contract,
stock transfers, reorganizations, mergers, discrete, shareholding reforms, joint ventures, cooperations, joint operations, contracts,
leases, business scope, change of registered capital, major asset transfers, contingent liabilities, or anything which may affect
debtor’s ability to assume responsibility should be reported to creditor in writing 30 days in advance.

 

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4. A termination of business, going out
of business, bankruptcy, dissolution, cancellation of business license, deterioration of financial situation or involvment in a
major business dispute, or anything may affect debtor’s ability to assume responsibility should be reported to creditor in
7 days by writingfrom the date the above thing took place.

 

5. When debtor becomes involveed in major
litigation or arbitration with any third party, or any other significant thing which may affect debtor’s ability to assume
responsibility occurs, creditor should be notified in writing within 7 days from the date debtor receives relevant notice.

 

6. The debtor promises that it will not
use its legal dispute with a third party to damage creditor’s rights.

 

Clause 9 Default and default Liability

 

1. After this contract comes into force,
the creditor and the debtor should perform the obligations as agreed in the contract. If any one party fails to perform or not
completely fulfill its obligations of this contract, it should bear the corresponding liability for breach the contract.

 

2. If any of the following situations occur,
creditor has the right to terminate the unused credit line under this contract, and ask the debtor to repay all financing, payable
interest and other expenses under this contract immediately.The date the creditor asks the debtor to repay the money is the advanced
expiration date:

 

(1) any information provided by debtor
or the statements and commitments stated in clause 7 of this contract are false, inaccurate, incomplete or misleading;

 

(2) deterioration of debtor’s credit
status and obvious weakening of repayment ability (including contingent liability);

 

(3) the cross default agreed in clause
10 of this contract occurs to the debtor, the affiliated enterprise of the debtor, the guarantor, or the affiliated enterprise
of the guarantor;

 

(4) the debtor violates the obligations
agreed to in a sub-contract of this contract;

 

(5) the debtor fails to repay the principal,
interest and expenses of one financing under this contract on schedule;

 

(6) the debtor stops repaying its own debt,
or cannot repay due debt;

 

(7) stopping doing business, going out
of business, being announced bankruptcy, dissolution, cancellation of business license, involving in major business dispute, and
deterioration of finance condition and so on;

 

(8) other thing which may damage creditor’s
right.

 

3. If the debtor defaults, creditor has
the right to take one or more following measures:

 

(1) suspending or reducing the sum of financing,
until cancelling all agreed line of financing;

 

(2) announcing complete or part of debtor’s
debt expirein advance;

 

(3) terminating this contract, and asking
debtor to repay all debt and pay relevant expenses;

 

(4) the debtor should pay punitive interest
for overdue debt;

 

(5) the debtor should pay punitive interest
for misappropriation of the loan;

 

(6) requiring the debtor to pay full compensation
for losses.

 

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Clause 10 the cross-defaulting

 

If one of the following events occurs to
the debtor or affiliated enterprises of the debtor, and the guarantor or the affiliated enterprises of the guarantor, it will be
considered that debtor default as well, the creditor have the right to recover loan in advance according to this contract or its
sub-contract, and require the debtor to be liable for breach of contract according to the contract:

 

(1) any loan, financing or debt defaults
or may default, or be called for repayment in advance;

 

(2) any guarantee or similar obligation
fails to be performed or might fail;

 

(3) the non-performance or violation of
the relevant debt guarantee and other similar obligations of legal document or contract or might;

 

(4) failure to repay due debts or borrowing/financing;

 

(5) be declared bankrupt by the legal procedure
or may be so declared;

 

(6) other situations that endanger the
safety of the money under this contract.

 

Clause 11 the continuity of obligation

 

All obligations of the debtor under this
contract have the same effect on its heir apparent, agent, receiver, orassignee, even after a merger, reorganization, or change
of name.

 

Clause 12 accelerated maturity terms
of principal and interest

 

The debtor and the guarantor agree that
once the debtor fails to perform the statements and commitments of Clause 7, or the debtor fails to perform any obligation under
this contract, the creditor has the right to decide that any other obligations include all outstanding principal, interest (including
punitive interest and compound interest) and relevant expenses become due immediately.

 

Clause 13 The Priority Right of Subrogation
Arrangement

 

The debtor states herein, once the debtor
defaults or is unable to repay due principal, interest and fees, and doesnot have enough property to repay advanced money to creditor,creditor
has the right of subrogation on any claim, accounts receivable and other property rights of the debtor. The debtor and the guarantor
are willing to give up the defense to creditor according to article 28 of “Guarantee Law”.

 

Clause 14 Offset Arrangement

 

1. If the debtor or the guarantor fail
to repay maturing debt or pay the debt upon early maturity, the creditor has the right to directly withhold money on any account
of the debtor to repay the debt. If the currency in the debtor’s account is different from the currency of principal debt,
the withholding money will be calculated on the rate of withholding day.

 

2. Creditor’s rights under this contract
will not be offset by any reason or any third party’s offset right.

 

3. Creditor’s rights under this contract
will not be offset by any offset right of the debtor, the guarantor or any third party.

 

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Clause 15 Applicable Law, Jurisdiction
and Dispute Resolution

 

1. Signing, effectiveness, performance,
termination, interpretation and dispute settlement of this contract is applicable for the laws of People’s Republic of China.

 

2. For any dispute of this contract, the
debtor and the creditor should resolve through friendly negotiations. If negotiation fails, both parties agree to solve by the
following section (2) way:

 

(2) Applying for arbitration to the Shenzhen
Arbitration Commission, resolving the dispute by applicable rules of the Arbitration Commission, the arbitration award is final
and binding on both parties. The site selection is in Shenzhen.

 

3. In the dispute period, the provisions
which are not involved in the dispute still should be carried out according to this contract.

 

Clause 16 Files, Communications and
Notifications

 

1. Any documents, communications and notifications
under this contract will be sent to each partyaccording to the address, phone number or other contact methods on the cover of this
contract.

 

2. If the contact method of one party changed,
the other party should be informed immediately, otherwise the party which does not inform its change to the other must bear full
responsibility for all the consequences.

 

3. Any documents, communications and notifications
are sent according to above address, shall be deemed to arrive on the following dates:

 

(1) by post (including speed post, ordinary
letter, registered mail), it will be deemed to arrive on the sending day after five working days;

 

(2) by facsimile or other electronic communication,
it will be deemed to arrive on sending day;

 

(3) by personal service, the date of signing
is deemed to be arriving date.

 

Notifications by the way of website, online
banking, telephone banking or business outlets announcement should be deemed to arrive on day. The creditor does not need to borne
any responsibility for any transmission errors, omissions, or delays of mail, fax, telephone or any other communication system.

 

4. The two sides agree that the seal of
the office seal, financial seal, contract seal, receive seal and credit seal is the effective seal for the documents, communications
and notifications. All staff of the debtor have right to receive files, communications and notifications.

 

Clause 17 Effectiveness, Modification
of This Contract and Other Matters

 

1. The contract will take effect from the
date of signature or stamp of both parties.

 

2. During the effective period of this
contract, the creditor’s giving to the debtor and the guarantor ofany tolerance, forgiveness, or delay to use the rights
and interests, shall not damage, impact or limit the creditor to share the rights and interests in accordance with relevant laws
and regulations and this contract, or be deemed giving up the rights and interests, also do not affect the debtor to borne any
obligation under this contract.

 

3. As a result of national laws and regulations
or regulatory policy change, which leads to loan obligations of the creditor under this contract not conforming to the laws and
regulations or regulatory requirements, the creditor has the right to unilaterally terminate the contract, announceall of the loan
is due in advance, and the debtor should pay off the loan immediately.

 

4. If the creditor cannot issue the loan
or pay on time because of force majeure, the failure of communication or network, or the failure of creditor’s system, the
creditor does not assume any responsibility, but should promptly notifythe debtor.

 

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5. The creditor shall have the right to
authorize or entrust other branches of industrial bank to perform rights and obligations under this contract (including but not
limited to authorized or entrusted bank branches of other related contracts, etc.) according to the debtor’s operation and
management, or the loan under this contract as other branch’s to undertake, which is approvedby the debtor, and without prior
consent of the debtor.

 

6. The debtor agrees that the creditor
has the right to unilaterally reduce or cancel the unused loan under the contract according to the debtor’s production and
operation situation, situation of payment orcredit of other financial institutions. The creditor should notify the debtor five
working days before reduce or cancel the loans, without prior consent of the debtor.

 

7. At any time, any provision of this contract
in any way is or becomes illegal, invalid or unenforceable, the legality, validity or enforceability of other provisions under
the contract is not affected.

 

8. The heading of this contract is just
for the convenience of reading, which shall not be used for interpretation or any other purposes.

 

9. The attachment is an integral part of
this contract, and the attachment of this contract is equally valid.

 

10. This contract is triplet, the creditor
holds two copies, the debtor holds one copy, with equal legal effect.

 

Clause 18 The Notarization and Voluntarily
to Accept Compulsory Execution

 

1. The contract should be notarized by
the state notary office for if any party request notarization.

 

2. The notarized contract have the enforcement
effect, if the debtor fails to perform the debt, or the creditor realize creditor's rights according to laws and regulations and
this contract, the creditor shall have the right to directly apply the people's court with jurisdiction for enforcement.

 

Clause 19 The Supplementary Terms and
Conditions:

 

After Shenzhen Highpower
Technology Co Ltd.( Maximum Amount Guaranty Contract, REF: Xing Yin Shen Longgang credit (guarantee) zi (2013) No. 0430) and Dangyu
Pan (Maximum Amount Guaranty Contract, REF: Xing Yin Shen Longgang credit (guarantee) zi (2013) No. 0430A) provide joint liability
guarantee to creditor, the credit risk exposure RMB 10,000,000 can be used by the debtor. Remaining RMB 10,000,000 can be used
after providing accounts receivable of Springpower Technology (Shenzhen) Co., Ltd (Maximum Amount Accounts Receivable Pledge Contract,
REF: Xing Yin Shen Longgang credit (guarantee) ying zhi zi (2013) No. 0430) as a pledge. Due date of the credit under this contract
is unified, on July 24th, 2014.

 

/s/ [COMPANY SEAL]

The Creditor (official seal):

The legal representative (signature):

 

The Debtor (official seal):

The legal representative (signature):

/s/ Dangyu Pan

 

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Maximum Amount Guarantee Contract 

Natural person as a guarantor

 

(Apply to lines of credit)

 

REF: Xing Yin Shen Longgang credit (guarantee)
zi (2013) No. 0430A

Lender: Industrial Bank Co., Ltd., Shenzhen
Longgang Branch

Address: Parkland, Longxiang Road, Longgang
Town, Shenzhen

Legal Representative / CEO: Li Jinkui

Contact: Huang Jinlong

Address:

	Postal Code:	Fax :
	Tel: 0755-33837817	Fax:

 

Guarantor: Dangyu Pan

Address: Building A1, 68 Xinxia Street,
Pinghu, Longgang, Shenzhen.

Legal Representative / CEO: Pan Dangyu

Contact:

Address:

	Postal Code:	Fax :
	Tel: 0755-89686939	Fax:

 

Contract Location: Industrial Bank Building,
Industrial Bank Co., Ltd. Shenzhen Branch

 

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Important notes:

 

For protecting your rights and interests,
please read, check and confirm following items carefully before signing:

 

1. You have the right to sign this contract.
Or you have been given sufficient authority legally.

 

2. You have read and understood this contract
carefully and sufficiently, and have paid attention on assuming, exempting or limiting responsibilities of Industrial Bank Co.,
Ltd., and the content with bold font.

 

3. Your company and you have understood
the meaning of this contract and relevant legal consequence, and agree to accept these provisions.

 

4. The contract provided by Industrial
Bank Co., Ltd. is a model contract. There is space for modifying, supplement and deleting.

 

5. If you have further questions to this
contract, please consult Industrial Bank Co., Ltd. 

 

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The guarantor voluntarily agrees to be
a financier ("creditor") to provide security for the line of credit of the applicant, Springpower Technology (Shenzhen)
Co., Ltd. (or "debtor"). In order to clarify the rights and duties, and abide by credit, the contracting parties sign
this contract obeyed together according to relevant state laws and regulations.

 

Article 1 Definition and interpretation

 

Except agreed in writing by the contracting
parties, the following words in this contract will be explained as follows:

 

1. Definitions and Interpretations agreed
in the master contract (defined as below) are applicable to this contract.

 

2. The "claims" or called the
principal debt, means the debt approved and provided by the lender, including loans, lending, trade finance (including but not
limited to issuing letters of credit, trust receipts, packing loans, export financing, export collection bills and import bills,
etc.), bankers' acceptances, discounted bills , bills buyback, guarantees (including the Independent guarantees, see demand guarantees
and standby letters of credit, etc.) and other financing business (including principal, interest, penalty interest, compound interest,
liquidated damages, damages, cost of achieving the claim).

 

Under this contract, the claim of the financier
and the debt of the applicant mean the same content.

 

3. The "principal" refers to
the principal debt made by the business transacted by the financier, including but not limited to the principal loans, trade finance
capital, bankers' acceptances fare, bill discounting, money advanced for credit of letter, the principal part of guaranteed by
the creditor for the debtor.

 

4. The "guaranteed maximum principal"
means the amount agreed by both parties in order to clarify the scope of the claims guaranteed by the covenant. Regardless of times
and sum of the debt, the guarantor takes joint liability for all debt under the guaranteed maximum principal.

 

5. The "validity of guarantee"
refers to a continuous uninterrupted period agreed by both parties in order to clarify the scope of the claims by the covenant.
The debt happened during the period, whether the settlement deadline is over that period or not, the guarantor takes joint liability
for all debt under the guaranteed maximum principal.

 

6. "The cost of the claim for the
creditor" refers to the necessary fees of achieving the credit, including take litigation, arbitration and other ways to pay
litigation (arbitration) fees, legal fees, travel expenses, execution fees, security fees, and other expenses.

 

7. "Master Contract" means credit
contract (that is, "General Agreement") and all sub-contract signed by the financier and the applicant.

"Sub-contract" means based on
the basic or special contract, the contract signed by both parties after getting approval of the lender, include the content of
each sum, the due date and other rights and obligations. The sub-contract is an integral part of the basic or special contract,
with the same legal effect. The forms of contract can be different according to business needs, as the application of L/C, bills
or other manner considered fit by the lender. If the master contract and sub-contract has different part, the sub-contract will
be effective.

 

8. This "working day" refer to
the bank business day, If a withdrawal or repayment date is not a Business Day, delay to the next business day.

 

Article 2 The master credit contract
of guarantee

 

The master contract of guarantee is Basic
Credit Line Contract (No. Xing Yin Shen Longgang credit zi (2013) No. 0430), and its sub-contracts. The sum of credit is RMB fifty
million only, credit period is from July 24th 2013 to July 24th 2014.

 

The guarantor will be borne joint liability
for all debts under the master contract.

 

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Article 3 Maximum guarantee principal

 

1. Under this contract, maximum guarantee
principal is RMB (in word) FIFTY MILLION YUAN ONLY.

 

2. Under the maximum guarantee principal,
the guarantor is borne joint liability for all debt balance (including principal, interest, penalty, compound interest, liquidated
damages, damages, realization of claims).

 

Article 4 Validity of guarantee

 

1. Valid period is from July 24th
2013 to July 24th 2014.

 

2. The loan under the contract can be used
only when during the period of validity, but the guarantor is borne joint liability for each debt whether the debt is in or over
the validity of the guarantee contract.

 

Article 5 Guarantee responsibility

 

1. The guarantor is borne joint liability
under this contract. For whatever reason, if the applicant fails to fulfill due debts under the master contract (including but
not limited to early recovery of debts because of the default of the applicant or the guarantor's request), the guarantor shall
perform the repayment obligation on behalf of the debtor.

 

2. If there are several guarantors under
this contract, all guarantors shall jointly bear joint responsibility.

 

3. Main debts expire, the debtor fails
to repay the debt and interest, the guarantor shall perform the repayment obligation.

 

4. During the period of the main debt,
if the lender recovers the debt in advance according to the master contract, the guarantor shall bear joint responsibility for
this and other debts under the guarantee contract.

 

Article 6 Scope of guarantee

 

1. The financial claims under this contract
("the secured claims") refers to all debts provided by the lender to the debtor, including but not limited to the principal
debt, interest (including default interest, compound interest), breach of contract , damages , expenses of claims.

 

2. On the due date, if the applicant refused
to repay the loan, which lead to the debt rights also in the range of the guarantee.

 

3. The principal , interest and other costs,
the time of performance, usage, rights and obligations of the parties as well as any other relevant matters under the contract
shall prevail by relevant agreements, contracts, application, notice , various certificates and other records, all kinds of certificates
and other relevant legal documents issued or signed without guarantor’s confirmation.

 

4. In order to avoid ambiguity, all fees
of prepare, improve, perform or enforce the contract (including, but not limited to attorney’s fees, litigation or arbitration
costs etc.) constitute a part of the secured debt.

 

Article 7 Warranty period

 

The warranty period under the contract:

 

1. The warranty period under the contract
is calculated according to each financing applied by the applicant. For each financing, the warranty period is ended after two
years of the expiration.

 

2. If there are several financings in one
master contract, the warranty period of each financing is ended after two years of the expiration.

 

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3. If the principal debt is repayable in
installments, there are several financings in one master contract, each warranty period is calculated in installments, and the
guarantor shall bear responsibility for two years from the date of expiry.

 

4. If any extension agreement is signed
by financier and debtor without agreed by the guarantor, the guarantor will still bear responsibility for all financing under the
contract within two years from the date of extension expiry.

 

5. If the financier decides to recover
the debts in advance, the warranty period is two years since the date of expiry noticed by the financier.

 

6. The warranty period of bankers' acceptances,
letters of credit and letters of guarantee is two years from the date of advance payments. If advance for several times, warranty
period is calculated from each advance payment.

 

7. The warranty period of commercial bills
is two years from the date of discount maturity.

 

Article 8 On demand

 

As long as financiers submitted notification
of debt collection to the guarantor with the contract number and the amount of debt, the guarantor shall immediately perform the
repayment and give up all reasons of defense.

 

Article 9 Declaration and commitment
of guarantor 

 

The guarantor voluntarily made ​​the
following statement and commitment, and liable for its truthfulness:

 

1. The guarantor is established under the
laws and a validly existing legal company, with full civil capacity. The guarantor follows the lender's request to provide relevant
evidence, permits, certificates and other documents required by the lender.

 

2. The guarantor has sufficient capacity
to fulfill all the obligations and responsibility under the contract, not because of any instruction, financial conditions change,
or any agreement with any party to reduce or waive their commitment to settle the obligation.

 

3. The guarantor has sufficient power,
authority and legal right to sign this contract, the guarantor has obtained and fulfilled all necessary approvals and authorizations
of its internal or other relevant procedures to make the contract execution and performance, and has achieved and fulfilled any
government department or other authority's approval, registration, authorization, consent, license or other relevant procedures
for this contract, and signed this contract with all the necessary approvals, registrations, consents, licenses , authorizations
and other related procedures remain fully valid.

 

4. The guarantor signed the contract in
full compliance with the relevant Articles of the guarantor, the internal decisions, shareholders and board resolution. The contract
does not conflict with any charter, internal decisions, shareholders resolutions, board resolution and the guarantor's policies.

 

5. The execution and performance of this
contract is based on the guarantor's true intention. Loan facility is compliance with legal and regulatory requirements, execution
and performance of this contract does not violate any binding law, regulation, ordinance or the contract. This contract is valid
and enforceable, as a result of the guarantor’s defects in the execution and performance of this contract to result in the
contract is invalid, the guarantor will immediately and unconditionally make compensation for all losses to the lender.

 

6. Under this contract, all the documents,
financial statements and other information provided by the guarantor is true, complete, accurate and effective, and continue to
fulfill the lender’s request of the financial indicators.

 

7. Such as a change in ownership structure
or key management personnel or other significant events and significant transactions, the guarantor shall require the prior written
consent of the financer.

 

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8. If the guarantor fails to fulfill the
contract obligations, the guarantor hereby authorizes the lender recover the funds from all branches accounts of the guarantor
without going through the judicial process.

 

9. When the guarantor has fulfilled the
guarantee responsibilities, the guarantor has the right to recover the money from the applicant without prejudice the repayment
in the future. However, if the applicant has the claim of the guarantor and the requirement of repayment from the financier at
the same time, the guarantor agreed the applicant to repay the debt of the financier first.

 

10. If the applicant and the guarantor
have or will sign a counter- guarantee contract in respect of the obligations under the contract, the counter-guarantee contract
shall not prejudice any rights of the financier in law or in fact under the contract.

Eleven, before pay off the debts, regardless
of any reason lead to reduce the guarantee ability of guarantor, the financier has the right to require the guarantor to provide
a new full and effective guarantee.

 

12. When he applicant fails to fulfill
obligations, regardless of the financier has other guarantee right of the debts, (including, but not limited to warranties, mortgage,
pledge, guarantees, standby letters of credit and any other form of guarantee), the guarantor shall bear full responsibility to
ensure the security and waive all defenses on law and property law.

 

13. There was no any litigation, arbitration
or administrative proceedings for the guarantor’s outstanding or known to occur on the guarantor, and there was no events
of liquidation or other similar proceedings whether it comes forward by the guarantor or by a third party.

 

14. If the lender is forced into disputes
between the guarantor and any other party because of fulfilling the obligations under the contract, the guarantor should pay litigation
or arbitration costs, legal costs and other expenses.

 

15. During warranty period, the guarantor
undertakes not to transfer, conceal property, or give up, passive exercise claims in any way.

 

Article 10 Obligations of disclosing
important transactions and events

 

1.Guarantor should inform financer of significant transactions and events of guarantor in written timely.

 

2. During valid period of this contract,
stock transfer, reorganization, merger, discrete, shareholding reform, joint venture, cooperation, joint operation, contract, lease,
business scope, change of registered capital, major asset transfer, contingent liability, or anything which may affect guarantor’s
ability of assuming responsibility should be notified to financer in writing 30 days in advance.

 

3. Termination of business, going out of
business, bankruptcy, dissolution, cancellation of business license, deterioration of financial situation or involving in major
business dispute, or anything may affect guarantor’s ability to assume responsibility should be noticed to financer in 7
days by written since the date above things take place.

 

4. When guarantor involves in major litigation
or arbitration with any third party, or other significant thing which may affect guarantor’s ability to assume responsibility,
financer should be notified by written in 7 days since the date guarantor receives relevant notice.

 

5. The guarantor promises that it will
not use its legal dispute with third party to damage financer’s right.

 

Article 11 Events of default and breach
of contract

 

1. Since this contract comes into force,
the financer and the guarantor shall perform the obligations as agreed in the contract, any one party fails to perform or not completely
fulfill the obligation of this contract, shall bear the corresponding liability for breach of contract.

 

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2. One of the following circumstances occurs,
the financier has the right to require the guarantor immediately to fulfill the repayment obligations:

 

(1) Any information provided by guarantor
and the statements and commitments stated in clause 9 of this contract are false, inaccurate, incomplete and misunderstood.

 

(2) Deterioration of guarantor’s
credit status and obvious weakening of repayment ability (including contingent liability);

 

(3) The guarantor violates of the foregoing
provisions of Article 10, not disclose the significant transactions and events;

 

(4) Stopping doing business, going out
of business, being announced bankruptcy, dissolution, cancellation of business license, involving in major business dispute, and
deterioration of finance condition and so on;

 

(5) Other thing which may damage financer’s
right.

 

3. If the guarantor defaults, financer
has the right to take one or more following measures:

 

(1) Require the guarantor to remedy;

 

(2) Require the guarantor to provide a
new full and effective guarantee;

 

(3) Require the guarantor to perform guarantee
obligation in advance;

 

(4) Require the guarantor to repay all
direct or indirect losses for breach of contract.

The guarantor shall make the implementation
of the above measures and waive all defenses.

 

Article 12 The independence of the guarantor’s
obligations

 

1. The guarantor's obligations under this
contract have independence with no effect of the relationship between any party and the third party, except there are stipulates.

 

2. The guarantee contract has independence,
regardless of any conditions; the guarantee contract is effective even if the master contract is not effective. If the master contract
is confirmed as invalid, then the guarantor still bear the joint liability for the debtor’s debts.

 

3. If the applicant violates the master
contract (including but not limited to the applicant fails to use the loan under the sub-contract) , shall not affect the liability
of guarantee, the guarantor cannot require to reduce or waive the responsibility of guarantee.

 

4. The main creditor under the contract
expires or the guarantor fails to perform under this contract, the financier has the right to directly deduct the funds from any
account of the guarantor.

 

5. As under the master contract , there
are other guarantees ( including but not limited to guarantee , mortgage , pledge, standby and any other form of security ) , the
guarantor agrees that one can give up part of security interest or security interest subordinated ( including the collateral is
based on the collateral provided by the debtor) , financier and any mortgagor / pledgor (including the mortgagor / pledgor artificially
is the debtor himself) can be varied by agreement and subordinated security interest, the amount of the secured creditor and other
content, even if financiers made ​​the above act, the guarantor is still voluntary to bear all responsibility of this
contract.

 

6. The guarantor agrees and acknowledges:
the financer and the applicant agree to alter the master contract are deemed to have the prior consent of the guarantor, the guarantor
cannot reduce the responsibility because of this.

 

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7. Before the maximum guarantee claims
determined, the financer has the right to transfer part or all guarantee rights without the prior consent of the guarantor.

 

Article 13 the continuity of obligation

 

1. All the guarantor's obligations under this
contract have continuity, for his heir apparent, agent, receiver, the assignee and the main company after merger, reorganization,
change the name is completely and equally binding.

 

2. The guarantor hereby acknowledges, financiers
can continuously and cyclically to provide financing to the applicant under the contract, the guarantor has joint for liability
of all claims, regardless of the times and sum of each financing.

 

3. The contract is a continuing guarantee,
the guarantor shall bear responsibility of guarantee until the debts is paid off.

 

4. All or part of the release or discharge
of the secured creditor based on any payments, guarantees or other disposition which have been declared invalid or must be repaid,
the guarantor’s responsibility will be remain in force.

 

Article 14 Priority subrogation arrangements

 

The guarantor states that, once the guarantor
cannot assume security responsibility, and the guarantor itself has not sufficient property to be repaid, the financier has priority
right of any claims against third parties, accounts receivable and other property interests. The guarantor will voluntarily relinquish
the defenses against the financier under Article 28 of "security law".

 

Article 15 Offsetting arrangements

 

The right of the financier under the contract
cannot offsetting by the guarantor’s or any other party’s right of offsetting.

 

Article 16 Applicable Law, Jurisdiction
and Dispute Resolution

 

1. Effective performance, termination,
interpretation and dispute settlement etc. of this contract is applicable for china laws.

Second, for any dispute about this contract,
guarantors and lenders should resolve through friendly consultations; If friendly negotiation fails, the both parties agree to
solve by the following section (2) way:

 

(2) To Shenzhen Arbitration Commission
for arbitration, to resolve the dispute by the rules of the Arbitration Commission, that the arbitration award is final and binding
on both parties. The site selection is in Shenzhen.

Third, in the disputed period, the part
of not involved has still to be carried out.

 

Article 17 Files, communications and notifications

 

1. Any documents, communication and notification
under this contract shall be sent to the other party by the way of address, phone number or other contact methods listed in the
cover of this contract.

 

2. If any above contact method of any party
changed, one should notice the other party by any quick way immediately. If one does not notice, one should be borne for the documents,
communication and notification sent through old address, phone number or other contact methods listed in the cover of this contract.

 

3. Any documents, communications and notifications
sent by the way of the above address, shall be deemed to arrive on the following dates:

 

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(1) By post (including speed post, ordinary
letter, registered mail), it will be deemed to arrive on the day after five working day;

 

(2) By facsimile or other electronic means
of communication, it will be deemed to arrive on day;

 

(3) By personal delivery, the date of recipient
is deemed to be arriving date.

 

Notifications by the way of website, online
banking, telephone banking or business outlets announcement should be deemed to arrive on day. The lender does not need to borne
any responsibility for any transmission errors, omissions, or delays of mail, fax, telephone or any other communication system.

 

4. The two sides agreed that the seal of
the office seal, financial seal, contract seal, receive seal and credit seal is the effective seal for the documents, communications
and notifications. All staves of the borrower have right to receive files, communications and notifications.

 

Article 18 The contract effectiveness
and other matters

 

1. The contract shall take effect from
the date of signature or stamp of both parties.

 

2. Any modification and supplement to this
contract is effective, through the guarantor and financiers made mutual consent in writing by the legal representative
/ responsible person or his authorized representative signature and official seal.

 

3. After the effective of this contract,
the master contract signed by the financier and the applicant does not need to be confirmed by the guarantor.

 

4. During the effective period of this
contract, the lender gives to the borrower and the guarantor any tolerance, forgiveness, or delay to use the rights and interests,
shall not damage, impact or limit the lender to share the rights and interests in accordance with relevant laws and regulations
and this contract, or to be deemed giving up the rights and interests, also do not affect the guarantor to borne any obligation
under this contract.

 

5. The lender shall have the right to authorize
or entrust other branch of industrial bank to perform rights and obligations under this contract (including but not limited to
authorized or entrusted bank branches of other related contracts, etc.) according to the borrower’s operation and management,
or the loan under this contract as other branch’s to undertake, without prior consent of the guarantor, and the guarantor
still bear the responsibility of guarantee.

 

6. The attachment is an integral part of
this contract, and the attachment of this contract is equally valid.

 

7. During the period of the line of credit,
if the series of contracts, agreements and other legal documents are not explicitly for the contract of guarantee, that shall be
deemed as a guarantee by the guarantee contract.

 

8. This contract is triplet, the lender
holds two copies, the borrower holds one copy, with equal legal effect.

 

Article 19 The notarization and voluntarily
to accept compulsory execution

 

1. The contract should be in the provisions
of the state notary office for notarization if any party request notarization.

 

2. The notarized contract have the enforcement
effect, if the borrower fails to perform the debt or the lender shall realize creditor's rights according to laws and regulations
and this contract, the lender shall have the right to directly apply the people's court with jurisdiction for enforcement.

 

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Article 20 Supplement:

 

The lender (official seal): /s/ [COMPANY
SEAL]

The legal representative (signature):

6/24/2013

 

The borrower (official seal): /s/ Danyu
Pan

The legal representative (signature):

6/24/2013

 

    	10

    	 

    

 

Maximum Amount Guaranty Contract

 

(Apply to lines of credit)

 

Reference: Xing Yin Shen Longgang credit
(guarantee) zi (2013) No. 0430

Creditor: Industrial Bank Co., Ltd. , Shenzhen
Longgang Branch

Address: parkland, longxiang road, longgang
town,shenzhen

Legal Representative / CEO: Jinkui Li

Contact: Huang Jinlong

Address:

	Postal Code:	Fax :
	Tel: 0755-33837817	Fax:

 

Guarantor: Springpower Technology ( Shenzhen
) Co., Ltd.

Address: Building A1, 68 Xinxia Street,
Pinghu, Longgang, Shenzhen, Guangdong, China

Legal Representative / CEO: Dangyu Pan

Contact:

Address:

	Postal Code:	Fax :
	Tel: 0755-89686939	Fax:

 

Contract Location: Industrial Bank Building,
Industrial Bank Co., Ltd. Shenzhen Branch

 

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Important notes:

 

For protecting your rights and interests,
please read, check and confirm following items carefully before signing:

 

1. You have the right to sign this contract.
Or you have been given sufficient authority legally.

 

2. You have read and understood this contract
carefully and sufficiently, and have paid attention on assuming, exempting or limiting responsibilities of Industrial Bank Co.,
Ltd., and the content with bold font.

 

3. Your company and you have understood
the meaning of this contract and relevant legal consequence, and agree to accept these provisions.

 

4. The contract provided by Industrial
Bank Co., Ltd. is a model contract. There is space for modifying, supplement and deleting.

 

5. If you have further questions to this
contract, please consult Industrial Bank Co., Ltd.

 

The guarantor is voluntary as a financier
("creditor") to provide security for the line of credit of the applicant Springpower Technology (Shenzhen) Co., Ltd.
(or "debtor"). In order to clarify the rights and duties, abide by credit, the contracting parties signed this contract
in accordance with relevant laws and regulations to comply with.

 

Article 1 definition and interpretation

 

In addition to agreed in writing by both
parties, then:

 

1. The master contract (as defined below)
agreed definitions and interpretations applicable to this contract.

 

2. The "claims" or called the
principal debt, means the debt approval and provided by the creditor, including loans, lending, trade finance (including but not
limited to issuing letters of credit, trust receipts, packing loans, export financing, export collection bills and import bills,
etc.), bankers' acceptances, discounted bills , bills buyback, guarantees (including the Independent guarantees, see demand guarantees
and standby letters of credit, etc.) and other financing business (including principal, interest, penalty interest, compound interest,
liquidated damages, damages, cost of achieving the claim).

 

Under this contract, the claim of the financier
and the debt of the applicant mean the same content.

 

3. The "principal" refers to
the principal debt made by the business transacted by the financier, including but not limited to the principal loans, trade finance
capital, bankers' acceptances fare, bill discounting, money advanced for credit of letter, the principal part of guaranteed by
the creditor for the debtor.

 

4. The "guaranteed maximum principal"
means the amount agreed by both parties in order to clarify the scope of the claims guaranteed by the covenant. Regardless of times
and sum of the debt, the guarantor takes joint liability for all debt under the guaranteed maximum principal.

 

5. The "validity of guarantee"
refers to a continuous uninterrupted period agreed by both parties in order to clarify the scope of the claims by the covenant.
The debt happened during the period, whether the settlement deadline is over that period or not, the guarantor takes joint liability
for all debt under the guaranteed maximum principal.

 

6. "The cost of the claim for the
creditor" refers to the necessary fees of achieving the credit, including take litigation, arbitration and other ways to pay
litigation (arbitration) fees, legal fees, travel expenses, execution fees, security fees, and other expenses.

 

7. "Master Contract" means credit
contract (that is, "General Agreement") and all sub-contract signed by the financier and the applicant.

 

    	2

    	 

    

  

"Sub-contract" means based on
the basic or special contract, the contract signed by both parties after getting approval of the creditor, include the content
of each sum, the due date and other rights and obligations. The sub-contract is an integral part of the basic or special contract,
with the same legal effect. The forms of contract can be different according to business needs, as the application of L/C, bills
or other manner considered fit by the creditor. If the master contract and sub-contract has different part, the sub-contract will
be effective.

 

8. This "working day" refers
to the bank business day, If a withdrawal or repayment date is not a Business Day, delay to the next business day.

 

Article 2 the main credit contract of
guarantee

 

The master contract of guarantee is
Basic Credit Line Contract (No. Xing Yin Shen Longgang credit zi (2013) No. 0430), and its sub-contracts. The sum of credit
is RMB fifty million only, credit period is from July 24th 2013 to July 24th 2014.

 

The guarantor will be borne joint liability
for all debts under the master contract.

 

Article 3 Maximum guarantee principal

 

1. Under this contract, maximum guarantee
principal is RMB (in word) FIFTY MILLION YUAN ONLY.

 

2. Under the maximum guarantee principal,
the guarantor is borne joint liability for all debt balance (including principal, interest, penalty, compound interest, liquidated
damages, damages, realization of claims).

 

Article 4 validity of guarantee

 

1. Valid period is from July 24th
2013 to July 24th 2014.

 

2. The loan under the contract can be used
only when during the period of validity, but the guarantor is borne joint liability for each debt whether the debt is in or over
the validity of the guarantee contract.

 

Article 5 guarantee responsibility

 

1. The guarantor is borne joint liability
under this contract. For whatever reason, if the applicant fails to fulfill due debts under the master contract (including but
not limited to early recovery of debts because of the default of the applicant or the guarantor's request), the guarantor shall
perform the repayment obligation on behalf of the debtor.

 

2. If there are several guarantors under
this contract, all guarantors shall jointly bear joint responsibility.

 

3. Main debts expire, the debtor fails
to repay the debt and interest, the guarantor shall perform the repayment obligation.

 

4. Furthering the period of the main debt,
if the creditor recovers the debt in advance according to the master contract, the guarantor shall bear joint responsibility for
this and other debts under the guarantee contract.

 

Article 6 scope of guarantee

 

1. The financial claims under this contract
("the secured claims") refers to all debts provided by the creditor to the debtor, including but not limited to the principal
debt, interest (including default interest, compound interest), breach of contract , damages , expenses of claims.

 

2. On the due date, if the applicant refused
to repay the loan, which lead to the debt rights also in the range of the guarantee.

 

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3. The principal , interest and other costs,
the time of performance, usage, rights and obligations of the parties as well as any other relevant matters under the contract
shall prevail by relevant agreements, contracts, application, notice , various certificates and other records, all kinds of certificates
and other relevant legal documents issued or signed without guarantor’s confirmation.

 

4. In order to avoid ambiguity, all fees
of prepare, improve, perform or enforce the contract (including, but not limited to attorney’s fees, litigation or arbitration
costs etc.) constitute a part of the secured debt.

 

Article 7 warranty period

 

The warranty period under the contract:

 

1. The warranty period under the contract
is calculated according to each financing applied by the applicant. For each financing, the warranty period is ended after two
years of the expiration.

 

2. If there are several financings in one
master contract, the warranty period of each financing is ended after two years of the expiration.

 

3. If the principal debt is repayable in
installments, there are several financings in one master contract, each warranty period is calculated in installments, and the
guarantor shall bear responsibility for two years from the date of expiry.

 

4. If any extension agreement is signed
by financier and debtor without agreed by the guarantor, the guarantor will still bear responsibility for all financing under the
contract within two years from the date of extension expiry.

 

5. If the financier decides to recover
the debts in advance, the warranty period is two years since the date of expiry noticed by the financier.

 

6. The warranty period of bankers' acceptances,
letters of credit and letters of guarantee is two years from the date of advance payments. If advance for several times, warranty
period is calculated from each advance payment.

 

7. The warranty period of commercial bills
is two years from the date of discount maturity.

 

Article 8 on demand

 

As long as financiers submitted notification
of debt collection to the guarantor with the contract number and the amount of debt, the guarantor shall immediately perform the
repayment and give up all reasons of defense.

 

Article 9 declaration and commitment
of guarantor 

 

The guarantor voluntarily made the
following statement and commitment, and liable for its truthfulness:

 

1. The guarantor is established under the
laws and a validly existing legal company, with full civil capacity. The guarantor follows the creditor's request to provide relevant
evidence, permits, certificates and other documents required by the creditor.

 

2. The guarantor has sufficient capacity
to fulfill all the obligations and responsibility under the contract, not because of any instruction, financial conditions change,
or any agreement with any party to reduce or waive their commitment to settle the obligation.

 

3. The guarantor has sufficient power,
authority and legal right to sign this contract, the guarantor has obtained and fulfilled all necessary approvals and authorizations
of its internal or other relevant procedures to make the contract execution and performance, and has achieved and fulfilled any
government department or other authority's approval, registration, authorization, consent, license or other relevant procedures
for this contract, and signed this contract with all the necessary approvals, registrations, consents, licenses , authorizations
and other related procedures remain fully valid.

 

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4. The guarantor signed the contract in
full compliance with the relevant Articles of the guarantor, the internal decisions, shareholders and board resolution. The contract
does not conflict with any charter, internal decisions, shareholders resolutions, board resolution and the guarantor's policies.

 

5. The execution and performance of this
contract is based on the guarantor's true intention. Loan facility is compliance with legal and regulatory requirements, execution
and performance of this contract does not violate any binding law, regulation, ordinance or the contract. This contract is valid
and enforceable, as a result of the guarantor’s defects in the execution and performance of this contract to result in the
contract is invalid, the guarantor will immediately and unconditionally make compensation for all losses to the creditor.

 

6. Under this contract, all the documents,
financial statements and other information provided by the guarantor is true, complete, accurate and effective, and continue to
fulfill the creditor’s request of the financial indicators.

 

7. Such as a change in ownership structure
or key management personnel or other significant events and significant transactions, the guarantor shall require the prior written
consent of the financer.

 

8. If the guarantor fails to fulfill the
contract obligations, the guarantor hereby authorizes the creditor recover the funds from all branches accounts of the guarantor
without going through the judicial process.

 

9. When the guarantor has fulfilled the
guarantee responsibilities, the guarantor has the right to recover the money from the applicant without prejudice the repayment
in the future. However, if the applicant has the claim of the guarantor and the requirement of repayment from the financier at
the same time, the guarantor agreed the applicant to repay the debt of the financier first.

 

10. If the applicant and the guarantor
have or will sign a counter- guarantee contract in respect of the obligations under the contract, the counter-guarantee contract
shall not prejudice any rights of the financier in law or in fact under the contract.

 

11. Before pay off the debts, regardless
of any reason lead to reduce the guarantee ability of guarantor, the financier has the right to require the guarantor to provide
a new full and effective guarantee.

 

12. When he applicant fails to fulfill
obligations, regardless of the financier has other guarantee right of the debts, (including, but not limited to warranties, mortgage,
pledge, guarantees, standby letters of credit and any other form of guarantee), the guarantor shall bear full responsibility to
ensure the security and waive all defenses on law and property law.

 

13. There was no any litigation, arbitration
or administrative proceedings for the guarantor’s outstanding or known to occur on the guarantor, and there was no events
of liquidation or other similar proceedings whether it comes forward by the guarantor or by a third party.

 

14. If the creditor is forced into disputes
between the guarantor and any other party because of fulfilling the obligations under the contract, the guarantor should pay litigation
or arbitration costs, legal costs and other expenses.

 

15. During warranty period, the guarantor
undertakes not to transfer, conceal property, or give up, passive exercise claims in any way.

 

Article 10 Obligations of disclosing
important transactions and events

 

1. Guarantor should inform financer of significant transactions and events of guarantor in written timely.

 

2. During valid period of this contract,
stock transfer, reorganization, merger, discrete, shareholding reform, joint venture, cooperation, joint operation, contract, lease,
business scope, change of registered capital, major asset transfer, contingent liability, or anything which may affect guarantor’s
ability of assuming responsibility should be notified to financer in writing 30 days in advance.

 

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3. Termination of business, going out of
business, bankruptcy, dissolution, cancellation of business license, deterioration of financial situation or involving in major
business dispute, or anything may affect guarantor’s ability to assume responsibility should be noticed to financer in 7
days by written since the date above things take place.

 

14. When guarantor involves in major litigation
or arbitration with any third party, or other significant thing which may affect guarantor’s ability to assume responsibility,
financer should be notified by written in 7 days since the date guarantor receives relevant notice.

 

15. The guarantor promises that it will
not use its legal dispute with third party to damage financer’s right.

 

Article 11 events of default and breach
of contract

 

1. Since this contract comes into force,
the financer and the guarantor shall perform the obligations as agreed in the contract, any one party fails to perform or not completely
fulfill the obligation of this contract, shall bear the corresponding liability for breach of contract.

 

2. One of the following circumstances occurs,
the financier has the right to require the guarantor immediately to fulfill the repayment obligations:

 

(1) Any information provided by guarantor
and the statements and commitments stated in Article 9 of this contract are false, inaccurate, incomplete and misunderstood.

 

(2) Deterioration of guarantor’s
credit status and obvious weakening of repayment ability (including contingent liability);

 

(3) the guarantor violates of the foregoing
provisions of Article 10, not disclose the significant transactions and events;

 

(4) Stopping doing business, going out
of business, being announced bankruptcy, dissolution, cancellation of business license, involving in major business dispute, and
deterioration of finance condition and so on;

 

(5) Other thing which may damage financer’s
right.

 

3. If the guarantor defaults, financer
has the right to take one or more following measures:

 

(1) require the guarantor to remedy;

 

(2) require the guarantor to provide a
new full and effective guarantee;

 

(3) require the guarantor to perform guarantee
obligation in advance;

 

(4) require the guarantor to repay all
direct or indirect losses for breach of contract.

 

The guarantor shall make the implementation
of the above measures and waive all defenses.

 

Article 12 the independence of the guarantor’s
obligations

 

1. The guarantor's obligations under this
contract have independence with no effect of the relationship between any party and the third party, except there are stipulates.

 

2. The guarantee contract has independence,
regardless of any conditions; the guarantee contract is effective even if the master contract is not effective. If the master contract
is confirmed as invalid, then the guarantor still bear the joint liability for the debtor’s debts.

 

    	6

    	 

    

  

3. If the applicant violates the master
contract (including but not limited to the applicant fails to use the loan under the sub-contract) , shall not affect the liability
of guarantee, the guarantor cannot require to reduce or waive the responsibility of guarantee.

 

4. The main creditor under the contract
expires or the guarantor fails to perform under this contract, the financier has the right to directly deduct the funds from any
account of the guarantor.

 

5. As under the master contract , there
are other guarantees ( including but not limited to guarantee , mortgage , pledge, standby and any other form of security ) , the
guarantor agrees that one can give up part of security interest or security interest subordinated ( including the collateral is
based on the collateral provided by the debtor) , financier and any mortgagor / pledgor (including the mortgagor / pledgor artificially
is the debtor himself) can be varied by agreement and subordinated security interest, the amount of the secured creditor and other
content, even if financiers made ​​the above act, the guarantor is still voluntary to bear all responsibility of this
contract.

 

6. The guarantor agrees and acknowledges:
the financer and the applicant agree to alter the master contract are deemed to have the prior consent of the guarantor, the guarantor
cannot reduce the responsibility because of this.

 

7. Before the maximum guarantee claims
determined, the financer has the right to transfer part or all guarantee rights without the prior consent of the guarantor.

 

Article 13 the continuity of obligation

 

1. All the guarantor's obligations under this
contract have continuity, for his heir apparent, agent, receiver, the assignee and the main company after merger, reorganization,
change the name is completely and equally binding.

 

2. The guarantor hereby acknowledges, financiers
can continuously and cyclically to provide financing to the applicant under the contract, the guarantor has joint for liability
of all claims, regardless of the times and sum of each financing.

 

3. The contract is a continuing guarantee,
the guarantor shall bear responsibility of guarantee until the debts is paid off.

 

4. All or part of the release or discharge
of the secured creditor based on any payments, guarantees or other disposition which have been declared invalid or must be repaid,
the guarantor’s responsibility will be remain in force.

 

Article 14 priority subrogation arrangements

 

The guarantor states that, once the guarantor
cannot assume security responsibility, and the guarantor itself has not sufficient property to be repaid, the financier has priority
right of any claims against third parties, accounts receivable and other property interests. The guarantor will voluntarily relinquish
the defenses against the financier under Article 28 of "security law".

 

Article 15 offsetting arrangements

 

The right of the financier under the contract
cannot offsetting by the guarantor’s or any other party’s right of offsetting.

 

Article 16 Applicable Law, Jurisdiction
and Dispute Resolution

 

1. Effective performance, termination,
interpretation and dispute settlement etc. of this contract is applicable for china laws.

 

    	7

    	 

    

  

2. For any dispute about this contract,
guarantors and creditors should resolve through friendly consultations; If friendly negotiation fails, the both parties agree to
solve by the following section (2) :

 

(2) To Shenzhen Arbitration Commission
for arbitration, to resolve the dispute by the rules of the Arbitration Commission, that the arbitration award is final and binding
on both parties. The site selection is in Shenzhen.

 

3. at the disputed period, the part of
not involved has still to be carried out.

 

Article 17 Files, Communications and
Notifications

 

1. Any documents, communication and notification
under this contract shall be sent to the other party by the way of address, phone number or other contact methods listed in the
cover of this contract.

 

2. If any above contact method of any party
changed, one should notice the other party by any quick way immediately. If one does not notice, one should be borne for the documents,
communication and notification sent through old address, phone number or other contact methods listed in the cover of this contract.

 

3. Any documents, communications and notifications
sent by the way of the above address, shall be deemed to arrive on the following dates:

 

(1) by post (including speed post, ordinary
letter, registered mail), it will be deemed to arrive on the day after five working day;

 

(2) by facsimile or other electronic means
of communication, it will be deemed to arrive on day;

 

(3) by personal delivery, the date of recipient
is deemed to be arriving date.

 

Notifications by the way of website, online
banking, telephone banking or business outlets announcement should be deemed to arrive on day. The creditor does not need to borne
any responsibility for any transmission errors, omissions, or delays of mail, fax, telephone or any other communication system.

 

4. The two sides agreed that the seal of
the office seal, financial seal, contract seal, receive seal and credit seal is the effective seal for the documents, communications
and notifications. All staves of the debtor have right to receive files, communications and notifications.

 

Article 18 the contract effectiveness
and other matters

 

1. The contract shall take effect from
the date of signature or stamp of both parties..

 

2. Any modification and supplement to this
contract is effective, through the guarantor and financiers made ​​mutual consent in writing by the legal representative
/ responsible person or his authorized representative signature and official seal.

 

3. After the effective of this contract,
the master contract signed by the financier and the applicant does not need to be confirmed by the guarantor.

 

4. During the effective period of this
contract, the creditor gives to the debtor and the guarantor any tolerance, forgiveness, or delay to use the rights and interests,
shall not damage, impact or limit the creditor to share the rights and interests in accordance with relevant laws and regulations
and this contract, or to be deemed giving up the rights and interests, also do not affect the guarantor to borne any obligation
under this contract.

 

    	8

    	 

    

  

5. The creditor shall have the right to
authorize or entrust other branch of industrial bank to perform rights and obligations under this contract (including but not limited
to authorized or entrusted bank branches of other related contracts, etc.) according to the debtor’s operation and management,
or the loan under this contract as other branch’s to undertake, without prior consent of the guarantor, and the guarantor
still bear the responsibility of guarantee.

 

6. The attachment is an integral part of
this contract, and the attachment of this contract is equally valid.

 

7. During the period of the line of credit,
if the series of contracts, agreements and other legal documents are not explicitly for the contract of guarantee, that shall be
deemed as a guarantee by the guarantee contract.

 

8. This contract is triplet, the creditor
holds two copies, the guarantor holds one copy, with equal legal effect.

 

Article 19 the notarization and voluntarily
to accept compulsory execution

 

1. The contract should be in the provisions
of the state notary office for notarization if any party request notarization.

 

2. The notarized contract have the enforcement
effect, if the debtor fails to perform the debt or the creditor shall realize creditor's rights according to laws and regulations
and this contract, the creditor shall have the right to directly apply the people's court with jurisdiction for enforcement.

 

Article 20 supplement:

 

The creditor (official seal): /s/ [COMPANY
SEAL] 6/24/2013

the legal representative (signature):

 

The guarantor (official seal): /s/ [COMPANY
SEAL] 6/24/2013

the legal representative (signature):

 

    	9Working capital loan contract

 

Reference: Xing Yin Shen Longgang loan zi
(2013) No. 0430

Lender: Industrial Bank Co., Ltd., Shenzhen
Longgang Branch

Address: Parkland, Longxiang Road, Longgang
Town, Shenzhen

Legal Representative / CEO: Jinkui Li

Contact: Jinlong Huang

Address:

	Postal Code:	Fax :
	Tel: 0755-33837817	Fax:

 

Borrower: Springpower Technology (Shenzhen)
Co., Ltd.

Address: Building
A, Chaoshun Industrial Zone, Renmin Street, Danhu, Guanlan Road, Baoan, Shenzhen

Legal Representative / CEO: Dangyu Pan

Contact:

Address:

	Postal Code:	Fax :
	Tel: 0755-89686939	Fax:

 

Contract Location: Industrial Bank Building,
Industrial Bank Co., Ltd. Shenzhen Branch

 

Important notes:

 

For protecting your rights and interests,
please read, check and confirm following items carefully before signing:

 

1. You have the right to sign this contract.
Or you have been given sufficient authority legally.

 

2. You have read and understood this contract
carefully and sufficiently, and have paid attention on assuming, exempting or limiting responsibilities of Industrial Bank Co.,
Ltd., and the content with bold font.

 

3. Your company and you have understood
the meaning of this contract and relevant legal consequence, and agree to accept these provisions.

 

4. The contract provided by Industrial
Bank Co., Ltd. is a model contract. There is space for modifying, supplement and deleting.

 

5. If you have further questions to this
contract, please consult Industrial Bank Co., Ltd. 

 

After application, the lender agrees to
provide working capital loan to the borrower. To clarify the rights and obligations of both parties, and abide by credit, the contracting
parties sign this contract obeyed together according to relevant state laws and regulations.

 

Lender and Borrower confirm that the loan
under the contract belongs to the following situation (1):

 

(1) The contract is the sub-contract of
the Basic Credit Line Contract (the master contract, Contract No. Xing Yin Shen Longgang credit zi (2013) No. 0430). The amount
under the master contract is RMB FIFTY MILLION YUAN ONLY, valid period is from September 5, 2013 to September 4, 2014. The foreign
currency loans will be converted to RMB according to the exchange rate announced by lender on the date when the contract be signed,
and will be included in credit line.

 

Article 1 definition and interpretation

 

Except agreed in writing by the contracting
parties, the following words in this contract will be explained as follows:

 

    	1

    	 

    

 

 

 

1. The "working capital loan"
refers to the borrower’s application from the lender for payment, which is used for the daily production operations for the
borrowers.

 

2. The "claims" or called the
principal debt means the borrower (borrower) receives debts (Including principal, interest, punitive interest, compound interest,
liquidated damages, damage awards, expenses for realizing financial claim, etc.) provided from the lender after verification and
approval.

 

Expenses for realizing financial claim:
the money which lender spend for realizing financial claim by litigation, arbitration, etc. Such as court (arbitration) cost, attorney
fees, traveling fees, execution fees, maintenamce costs, and other necessary costs for realizing financial claim.

 

3. The terms of Article five under this
contract defined and interpreted as follows:

 

"Fixed rate" means the interest
rate remain unchanged during the period of the loan.

 

"Floating rate" means the interest
rate will change by the defined period agreed by both parties.

 

"Float period" means both lenders
and borrowers agree loan rate changes frequency. During a floating period, the loan rate is determined by the benchmark interest
rate under the contract, and the rates remain unchanged; on the next floating period, the borrowing rate is determined by a new
benchmark interest rate under the contract, and the rates remain unchanged.

 

"LIBOR" means interest rate of
the London interbank market, currencies including the U.S. dollar, EURO, etc., specific numerical values are subject to the forward
of Industrial Bank.

 

"HIBOR" means interest rate of
Hong Kong financial market inter-bank lending, specific numerical values are subject to the forward of Industrial Bank.

 

4. The contract stipulated in Article XIII
"significant transaction" means ( including but not limited): anything which might have badly effect on basic organization
of borrower’s company, changes of stockholder, contingent liability, cash flow, profitability, core business secret, important
assets, significant claims and debts, repayment ability, other transactions which are considered as significant transactions by
lender and/or borrower.

 

5. The contract stipulated in Article XIII
"significant event" means ( including but not limited): anything which may have badly effect on executives’ operational
capability, employment and termination of core staff, core business secret, core competence, basic organization, legality, stability,
development, profitability, repayment ability, other things which are considered as significant things by lender and/or borrower.

 

6. "Working day" means banking
day, If the drawdown date or the repayment date is in legal holidays, then it is delayed to the first working day after the holidays.

 

Article 2 loan amount

 

Lender agrees to issue loan to borrower,
The currency of the loan hereunder is Renminbi and the amount is TEN MOLLION YUAN ONLY.

 

Article 3 the usage of loan

 

The loan is used for current capital
turnover, and shouldn’t be used for any other purposes without written consent of the lender.

 

Article 4 loan period

 

1. The term of the loan hereunder is from
July 24th 2013 to July 20th 2014.

 

    	2

    	 

    

  

 

 

2. If one-time loan, the actual loan date
is as the date of IOU, such as the actual payment date later than the loan payment date described in the preceding paragraph, the
loan maturity date shall be extended accordingly.

 

3.

 

4. In line with Article 6 of this contract
under the conditions precedent stipulated withdrawal, the lender agreed under Article 7 of the contract payment of loan funds.

 

5. The lender has the right to change the
use plan based on the borrower meets the relevant laws, regulations, policies and provisions of this contract withdrawals prerequisite
conditions for borrowing funds to pay the guarantee contract signed contracts and guarantees corresponding formalities as well
as time and other factors.

 

6. The several use of the loan has the
same maturity, which is the date in the first IOU.

 

7. If the lender recovers the loan in advance
accounting to the situation under this contract, the loan is deemed due in advance.

 

Article 5 loan rate and interest

 

		1.	RMB loan interest rates

 

(1) RMB loan interest rates shall be determined
according to the following (A)

 

A. Fixed interest rate. Annual interest
rate shall be 7.2% equal the one year benchmark lending rate promulgated by the People’s Bank of China, plus 20%, and will
not change during the duration.

 

(2) under this contract by several times with
the use of borrowing corresponding benchmark interest rate, shall be issued to each actual borrowing countries during the same
period the same benchmark interest rates in order to determine the standard.

 

(3) the RMB loan under this contract, in
case of cancelling the benchmark interest rate, the lender shall be entitled to the same period, according to the national interest
rate policy, according to the principle of fair and honest, and with reference to industry practices, rates and other factors,
to determine the borrowing rates after notify the borrower. Borrowers have objection, should negotiate with the lender. The lender
within five working days from the date of the notice if consultation fails, the lender shall have the right to recover the loan
ahead of schedule, the borrower shall immediately pay off the rest of the loan principal and interest.

 

		2.	foreign exchange loan interest rates

/

		3.	Repayment of the interest on the loan

 

Interest is repaid according to the following
(A):

 

A. The interest on the loan hereunder is
settled monthly and the settlement date is the 20th of each month.

 

4. The penalty of interest and compound
interest

 

(1) If the Borrower uses the loan for any
purpose other than that specified herein, the Lending Bank shall have the right to charge loan misappropriation penalty rate; misappropriation
penalty rate is 50% of the loan interest rate specified in the contract until the loan principal and interest are repaid in full.
If the borrower fails to repay the loan in accordance with the provisions herein, or can’t reach an extending agreement with
the lender, the lender shall have the right to charge penalty rate; penalty rate is 50% of the loan interest rate specified in
the contract, until the loan principal and interest are repaid in full.

 

    	3

    	 

    

  

 

 

(2) The methods of collecting penalty interest
rates is the same with loan interest rates.

 

(3) The methods of collecting penalty interest
and compound interest are in accordance with specified herein.

 

5. The loan interest calculation hereunder
is based on 360 days a year, starting on the date when the loan is disbursed.

 

Article 6 preconditions of withdrawal

 

1. The Lending Bank shall have no obligation
to provide the loan hereunder to the Borrower unless the following preconditions are satisfied:

 

(1) The Borrower has provided all the followed
documents requested by the Lending Bank:

 

A. The loan application, the main contents
including but not limited: the project name, the amount sum, purpose, duration, plan and source of repayment;

 

B. The borrower passed the annual examination
of the business license or certificate of legal institutions, annual examination of the tax registration certificate, organization
code certificate, Articles of Association, the previous verification report, the credit card and password in the administrative
department for industry and commerce registration of the legal representative and the Board members and the principal responsible
persons in charge of finance lists and specimen signatures, legal representative or authorized representative of a valid identity
document, other necessary corporate documents;

 

C. The borrower held the Board or the shareholders'
meeting, or other necessary documents which is in accordance with legal procedures, and a quorum of directors or shareholders by
vote, the real, legitimate and effective application to the lender on the consent of the borrower under the contract and expressly
accepted by the borrower;

 

D. The lender approved the nearly three
annual reports (attached audit report and notes) and the latest financial statements of the borrower. If the company is less than
three years, the borrower has to submit all annual reports since its inception;

 

E. Information of related company;

 

F. If apply for temporary liquidity loans,
need to provide procurement contracts, contract orders, debts and other related contracts, documents or data ;

 

G. To be taken against/pledge of collateral,
required to provide arrival/proof of ownership of collateral materials, assess the value of the report, and in accordance with
relevant laws and regulations should be handled arrived/pledge registration formalities have been properly handled, relevant title
documents, registration original documents and other requirements in accordance with the lender to lender store; intends to take
third-party guarantee is required of section 2-4 of the requested materials related guarantees, which ensure that the contract
has entered into force; said guarantee shall remain in force;

 

H. As required by the lenders on the arrival/collateral
insured, the first beneficiary of the Lender Insurance formalities have been completed and the original insurance policy has been
handed over to the lender store; and the insurer remain valid; borrowers arrived/pledge, the borrower will be at this event because
the insurance is entitled to claim the insurance money transferred to the lender;

 

I. Special industries and enterprises issued
by the department shall provide the authority to approve a special industry production license or enterprise qualification certificates;

 

J. If either party of the contract requests
for notarization or other formalities, the duly notarized;

 

    	4

    	 

    

 

 

 

K. The borrower has been requested to open
an account at the lender’s bank, the lender voluntarily accepts credit monitoring and supervision of payment and settlement;

 

L. If apply for foreign exchange project
loan, borrowers are required to provide proof of the effective use and the document of relevant departments, and in accordance
with the relevant foreign exchange management policy;

 

M. VAT, business tax and income tax returns
required by the lender;

 

N. Other documents, reports, documents
and other information required by the lender.

 

(2) The borrower is legally established,
production and operation of legal, compliance, has continued viability and a legitimate source of repayment;

 

(3) The use of loan is clear, legal compliance;

 

(4) The statement and commitment made by
the borrower in Article XI of this contract are sustained real and effective; before loan application date, there is no any event
of default or potential event of default ;

 

(5) The borrower has completed IOU or relevant
evidence with the lender. IOU or loan documents is an integral part of this contract, and this contract has the same legal effect.
If the amount of loan, loan term, loan interest rates and other loan documents are inconsistent with IOU or inconsistent, then
IOU or voucher records shall prevail;

 

(6) Borrowers in good standing, no major
bad record; If a new company, its controlling shareholder should have good credit, no major bad record;

 

(7) Other withdrawals prerequisites required
by the lender.

 

2. The precondition to fulfill the lender’s
obligations under this contract is the prerequisite met by the borrower. The lender has the right to unilaterally decided to reduce
or abandon partial withdrawal prerequisite, which will not to be a reason of defense to the lender.

 

3. The lender has the right to adjust the
loan according to if the loan meets the relevant laws, regulations, policies, requirements or not, the prerequisite required by
the lender, the time of signing the guarantee contract.

 

4. The Borrower hereby agree that: after
signing this contract, if the borrower does not meet prerequisite of withdrawal or the pay conditions for any withdrawal, the lender
has the right to stop the loan or discharge the loan contract, the resulting liability or loss is borne by the borrower. If the
lender terminates the contract, it shall notify the borrower. The borrower's objection period is five working days from the notice
to the borrower. If the borrower has no objections, the contract will be automatically stopped. If the borrower has objections
but the two sides within five working days after the expiry of the period is still in the dispute, the lender has the right to
recover the loan in advance.

 

5. Audited by the lender, if the borrower
meets the prerequisites for contract withdrawal, the lender pay the loan under Article VII of the contract.

 

Article 7 monitoring of accounts and
repayment of loan funds

 

		1.	Monitoring of accounts

 

According to "Interim Measures on
Management of liquidity loans" promulgated by the CBRC, the borrower promises to meet the prerequisite under the contract
before issuing loan, and use the loan according to the agreed purposes. The lender has the right to monitoring the borrower’s
basic deposit accounts, general deposit accounts, special deposit accounts, the release, payment and repayment of loans according
to the contract.

 

    	5

    	 

    

 

 

  

The following account provided by the borrower
is specially designated account for funds withdrawn from circulation, and the borrower should provide the situation of the funds
in this account:

 

Account Name: Springpower Technology (Shenzhen)
Co., Ltd.

Account Number:

Bank: Industrial Bank, Shenzhen Longgang
Branch

 

Based on the borrower’s Business
Standing and financial condition, the lender can sign the other account management agreement with the borrower to manage the funds
of the borrower. The lender has the right to recover the loan in advance according to the funds situation of this account.

 

2. Repayment of the Loan

 

(1) The lender has the right to manage
and monitor the loan through the methods of entrusted payment by lenders or direct payment by borrowers.

 

(A) Entrusted payment by lenders refers
to authorize the lender to pay the loan to the counterparty conform to the use of loan under the contract.

 

Adopting the way of entrusted payment by
lenders, before the issue of loans, the borrower should provide information of the transaction for the use of purpose. After examination
and approval by the lender, the lender shall pay the loan to the counterparty through the borrower's account.

 

Adopting the way of entrusted payment by
lenders, if the loan has been paid to the counterparty, and the paid funds is returned for the reasons of invalid contract, the
lender has the right to recover loans in advance according to Article XII of the contract.

 

(B) Direct payment by borrowers means the
lender will release the funds to the borrower's loan account, and paid by the borrower to the counterparty conform to the use of
loan under the contract.

Adopting the way of direct payment by borrowers,
the borrower shall periodically report to the lender the situation of paying funds, and the lender has the right to check the use
of loans through account analysis, inspection certificate, or field surveys.

 

(2) Entrusted payment by lenders

 

The Borrower agrees that the Lending Bank
shall have the right to use the entrusted payment method if meet the below situation:

 

A. The loan relationship with the Borrower
is new and the Borrower's credit grade is just in Class B3 (included) or less.

 

2. The working capital loans used for replacement;

 

3. The recipient of the payment is very
clear and the amount of single loan payment is larger than RMB10 million Yuan;

4. Other: /

 

(3) During the course of paying the loan
amount, if the Borrower experiences any of the following, the Lending Bank shall have the right to discuss with the Borrower to
supplement the conditions for loan release and payment or change the loan payment method or even suspend the release and payment
of the loan amount:

 

A. the credit situation of the Borrower
deteriorates;

 

    	6

    	 

    

 

 

  

B. the Borrower’s profit-making ability
is weak;

 

C. there is abnormalities in the use of
the loan funds;

 

D. other situations the Lending Bank considered
appropriate.

 

Article 8 repayment of principal and
interest

 

1. The loan principal under this contract
is repaid by the way of the following section (B):

A. /

B. All loans are repaid in full and in
one lump sum when maturity.

C. /

 

2. The Borrower shall repay the principal
and interest on the date of maturity and the interest settlement date.

 

3. Withdrawal date, repayment date for
non-banking days, will be postponed to the next bank business day. The borrower shall repay both the loan principal and interest
on the last repayment date, with no constraints of Article V under the contract.

 

4. If the Borrower is unable to repay the
loan hereunder on time and desires to extend the term of the loan, the Borrower must submit an application for extension in writing
to the Lending Bank 30 business days in advance. Upon the Lending Bank’s approval, the two parties must execute a loan extension
contract as a supplement hereto.

 

5. Repayment in advance

 

The Borrower shall repay the loan principal
and interest on the due date under the contract.

 

If the Borrower desires to repay the loan
ahead of the schedule, the Borrower must submit an application to the Lending Bank 30 business days in advance for approval.

 

For the part of repayment in advance, the
lender has the right to request 0.01% interest as compensation.

 

6. If the borrower fails to perform the
contract or breach of this case, the borrower hereby irrevocably authorizes the lender can recover the funds from accounts of all
branches of the Industrial Bank without going through the judicial process, including but not limited to loan principal and interest
(including default interest, compound interest), related expenses under this contract. The Borrower agrees that the lender has
the right to determine the specific sequence to deduct.

 

Article 9 guarantees

 

1. The following contracts as guarantee
contracts for this contract:

 

(1) REF: Xing Yin Shen Longgang credit
(guarantee) zi (2013) No. 0430

"Maximum Amount Guaranty Contract"
(the name of the contract), guarantor: Shenzhen Highpower Technology Co Ltd, mode: guarantee;

 

(2) REF: Xing Yin Shen Longgang credit
(guarantee) zi (2013) No. 0430A "Maximum Amount Guaranty Contract" (the name of the contract), guarantor: Dangyu Pan,
mode: guarantee;

 

(3) REF: Xing Yin Shen Longgang credit
(guarantee) ying zhi zi (2013) No. 0430

"Maximum Amount Accounts Receivable
Pledge Contract" (the name of the contract), guarantor: Springpower Technology (Shenzhen) Co., Ltd., security as a pledge;

 

    	7

    	 

    

 

 

  

2. Before the guarantee contracts are signed
or completed, the lender has the right to withhold performance under this contract, including the obligation to lend.

 

Article 10 the rights and obligations
of both sides

 

1. Lender's rights and obligations

 

(1) The lender’s rights:

 

A. The right to require the borrower to
repay the loan principal and interest;

 

B. The right to require the borrower to
provide all information relating to loans;

 

C. The right to know the borrower's production
operations and financial condition;

 

D. The right to supervise the purpose of
the loan;

 

E. The right to supervise the use of loans
and make requests;

 

F. The right to recover the funds for principal,
interest and related fees from accounts of all branches of the Industrial Bank without going through the judicial process;

 

G. The lender has the right to transfer
whole or part of the debt and a security interest to a third party without obtaining the consent of the borrower at any time under
this contract. If the lender transfer whole or part of the debt and a security interest to a third party, the borrower still bear
all the obligations under the contract;

 

H. If the borrower fails to repay the loan
in accordance with the contract or the implementation of debt, the lender has the right to disclose at the Credit Information Center
of People's Bank of China or the news media, and to take legal measures like litigation or arbitration;

 

I. The right to return loans in advance
based on the borrower’s circumstances of funds unilaterally;

 

J. The right to own other tights ruled
by laws, regulations, rules and regulations of this contract.

 

(2) The lender’s obligations:

 

A. Issue and pay loan funds according to
this contract;

 

B. Keep the borrower's debt, finance, production,
operation secrecy, but the following exceptions:

(a) Laws and regulations;

 

(b) Regulatory requirements or requirements;

 

(c) The disclosure for lender's partner.

 

2. The borrower's rights and obligations

 

(1) Borrower shall enjoy the following
rights:

 

A. Drawdown and use loans according to
the terms under this contract;

 

B. The right to request the lender to keep
the information provided in accordance with this agreement secret.

 

(2) Obligations of the borrower:

 

    	8

    	 

    

 

 

  

A. The lender shall provide the requested
documents, as well as all Bank, account number, deposit and loan balances, and to meet the lender's investigation, examination
and inspection;

 

B. To accept monitored by lenders for its
use of funds and related production management, financial activities or inspection, and promptly take reasonable action for the
lender’s requests;

 

C. To use the loan for the purpose according
to this contract, not for other purposes, and to ensure that investment in fixed assets shall not be used; shall not be used for
the banned production, management and areas; shall not be used for other investment like equity capital; shall not be used for
securities, futures, real estate, etc.; shall not be used for lending activities among companies and illegal activities restricted
by other countries; not allowed to make misappropriation or diversion of loans;

 

D. Agreed to accept the lender to monitor
the accounts and repayment of loans according to Article VII of the contract;

 

E. To timely and fully repay loan principal
and interest according to this contract;

 

F. Without the written consent of the lender,
the borrower shall not transfer all or part of debt to a third party;

 

G. Does not in any way to reduce the registered
capital;

 

H. Before the happening of the merger,
division, equity transfer, foreign investment, substantial increase in the debt financing and other major issues, the borrower
should provide a written notice to the lender at least 30 days and obtain the written consent of the lender, and actively implement
the requirements of the lender under the contract to repay full of loan principal and interest on schedule safeguards, including
but not limited to:

 

(a) Apply for loans from banks or other
third party, or provide loans to third parties, or guarantee the debt of a third party, or substantial increase in debt financing,
affect or may affect the repayment of the loan principal and interest;

 

(b) Make significant changes in ownership
and production(including, but not limited to, with foreign, Hong Kong, Macao and Taiwan signed a joint business cooperation contract;
withdraw, close, stop, converting; separation, merger, amalgamation, annexation; reorganization, the formation or converted into
a joint stock company; foreign investment; with housing, equipment and other fixed assets or trademarks, patents, proprietary technology,
land use rights and other intangible assets invested in shares or stock companies or investment firms to leasing, contracting,
joint custody approach to property rights, management rights transactions);

 

(c) A change of 30% in shareholding (including
but not limited to, equity transfer, hosting, hosting, pledge, etc.).

 

I. The Borrower shall notice the lender
with written application from the date of the following conditions occur or may occur in 7 working days, and actively make safeguards
required by the lender to ensure the loan and interest under the contract be repaid timely:

 

(a) Significant financial loss, loss of
assets or other financial crisis;

 

(b) Closure, revocation or cancellation
of business license, apply for or filed for bankruptcy, dissolution and other circumstances;

 

(c) Its controlling shareholder and other
related company or a major crisis in the financial aspects, affecting its normal operation;

 

(d) The borrower's legal representative,
directors or senior management of important personnel changes, affecting its normal operation;

 

    	9

    	 

    

 

 

 

(e) A change of 30% in the guarantor’s
equity (including, but not limited to, equity transfer, hosting, hosting, pledge, etc.);

 

(f) The Borrower and its controlling shareholder
and other related company make related party transactions and affect its normal operation;

 

(g) Any litigation, arbitration or criminal,
administrative penalties make its operations or financial status has significant adverse consequences;

 

(h) Other occurrence that may affect its
solvency.

 

J. To accept the lender's requirements
(the request in a reasonable manner prior notice to the borrower, unless the Event of Default or Potential Event of Default or
due to the occurrence of specific environmental causes without the need for prior notice), allows the lender's behalf during normal
office hours engaged in the following activities:

 

(a) Access to the borrower’s office
of carrying out business activities;

 

(b) Check the borrower's premises, facilities,
plant and equipment;

 

(c) Check the books of records and all
other records;

 

(d) Ask the borrower's employees, agents,
contractors, sub-contractors about information needed by the lender.

 

K. /.

 

L. Collection letters sent by the lender
to the borrower, the borrower must carry out after receipt and take acknowledgment to the lender.

 

Article 11 Representations and
Commitments of the borrower

 

Borrower makes following representations
and commitments voluntarily, and assumes legal responsibility for the reality of the content.

 

1. Borrower is a legal representative,
which is established according to the laws of People’s Republic of China, with full capacity for civil conduct. Borrower
promises to provide related information requested by lender.

 

2. Borrower can perform all obligations
and responsibilities under this contract, and will assume the repayment responsibility in any conditions.

 

3. Borrower has the right to sign this
contract, and has achieved all legal approvals and authorities.

 

4. Signing this contract meet borrower’s
the articles of association, internal decisions and resolutions of shareholders and board of directors. This contract will not
conflict with the articles of association, internal decisions and resolutions of shareholders and board of directors and policies
of borrower.

 

5. Signing and performing this contract
is true willing of borrower. Signing and performing above contract will not violate the laws and regulations, rules and agreements
which can limit borrower. This contract is legal and enforceable, if this contract become invalid result from borrower does not
have full capacity to sign this contract, borrower should repay all losses of lender.

 

6. All documents, financial statements
and other information, which are provided by borrower under this contract, are true, complete, accurate and effective.

 

    	10

    	 

    

 

 

 

7. Borrower agrees about that bank business
under this contract is limited to the regulations, conventions and practice of lender, the power of interpretation belongs to lender.

 

8. If borrower does not perform obligations
according to this contract and sub-contract, in here borrower grant lender to obtain relevant money from any account which are
opened in lender by borrower.

 

9. In any transactions after signing this
contract, if the borrower submit any documents related to specific transaction to lender for auditing, borrower promises all documents
are true, lender neither participate in nor know the essence of transaction, and will not take any responsibility.

 

10. The borrower confirms that, except
the situations written to the lender known, the borrower does not withhold any of the following events that had happened or may
be happened to make the lender not be willing to grant loans under the contract:

 

(1) The borrower 's debt or contingent
liabilities, including but not limited to the borrower's mortgage, pledge, lien and other debt burden in assets or income undisclosed
to the lender;

 

(2) The borrower or borrower's important
management personnel have been implicated in a major discipline, illegal or event of a claim;

 

(3) The borrower defaults with any other
lender;

 

(4) There was no any litigation, arbitration
or administrative proceedings for the borrower’s outstanding or known to occur on the borrower, and there was no events of
liquidation or other similar proceedings whether it comes forward by the borrower or by a third party;

 

(5) Other situations potentially affect
the borrower's financial situation and solvency.

 

11. The borrower undertakes to use the
loan for the purpose under the contract, and not used for other purposes or used for any purposes in violation of the contract.
The borrower is ready to accept and cooperate with lenders for loan payment management, loan management and related inspection,
as well as the lender’s inspection and inventory of the borrower's loan funds and production management, financial activities,
materials inventory, assets and liabilities, bank deposits, cash inventory, etc., or other necessary or appropriate requirements
deemed by the lender.

 

12. The borrower provide full, effective
or other appropriate acceptable guarantee approved by the lender. For the house mortgage, if the house will be removed, the borrower
shall promptly inform the lender to fulfill obligations; if mortgage houses were demolished, the lender has the right to require
the borrower to pay off the debt in advance, or reset the mortgage and sign a new security agreement. During the loss of the original
guarantee and the new mortgage registration has not been completed, the borrower should provide the secured party as guarantees;
For the way of compensation to compensate for the demolition of real estate, the lender will be responsible for requesting relocation
compensation as guarantee through the opening margin accounts or certificates of deposit, etc..

 

13. The borrower shall not reduce the registered
capital in any way. Without obtaining the prior written consent of the lender, the borrower shall not transfer the part or all
debt under this contract to the third party. Before all of the obligations under the contract clear up, without obtaining the written
consent of the lender, the borrower is forbidden to repay any debts of other lenders (excluding other branches of Industrial Bank).

 

14. Significant adverse events effect the
solvency of the borrower should be known promptly by the lender. The borrower should get the written consent of the consent of
the lenders before the merger, division, equity transfer, foreign investment, substantial increase in the debt financing and other
important matters.

 

15. If the lender is forced into disputes
between the borrower and any other party because of fulfilling the obligations under the contract, the borrower should pay litigation
or arbitration costs, legal costs and other expenses.

 

    	11

    	 

    

 

 

  

16. The settlement of the loan under the
contract must be settled through the account of the borrower opened in the lender.

 

17. /

 

Article 12 recovering loans in advance

 

1. During the loan period, the borrower
or guarantor (surety or mortgagor or pledger) has one of the following events, the lender has the right to unilaterally decide
to stop the unused loan and to recover part or all of the loan principal and interest in advance. For amortization loans, if the
lender recovers one term loan, the other outstanding will considered to be due in advance:

 

(1) The borrower provides false materials
or withholds important financial facts; any statement and document made by The borrower or any representation and warranty under
the contract, proves to have been untrue, inaccurate, incomplete or misleading on purpose;

 

(2) The borrower’s failure to use
the loan proceeds for the prescribed purpose without the prior consent of the bank, or misappropriation of loans, or engagement
in illegal or irregular transactions;

 

(3) The borrower’s use of false contracts
signed with related parties to obtain bank funds or credit through discounting or pledging notes receivable and accounts receivable
at bank without actual trade background;

 

(4) The borrower refuses to accept the
supervision and inspection about the usage of credit funds, involved operation and financial activities;

 

(5) The borrower’s being subject
to merger, split, acquisition, reorganization, equity transfer, external investment, substantive increase of debt financing and
any other major event, that the bank believes might affect the safety of the loans;

 

(6) The borrower’s evasion of bank
debts on purpose through related party transactions;

 

(7) credit deterioration, solvency (including
contingent liabilities) decreased significantly;

 

(8) The borrower, the guarantor, or their
related parties involve in significant cross-default under the contract;

 

(9) The borrower’s failure to repay
the principal, interest and expenses timely according to the contract and the specific contract;

 

(10) The borrower’s suspension of
payment, or failure or indication that it is unable to repay the debt due;

 

(11) The borrower’s termination of
its business, liquidation, declared bankrupt, dissolution, or its business permit is revoked or canceled; The borrower’s
involvement in major business dispute or deteriorated financial situation;

 

(12) The borrower or the guarantor’s
violation of any obligations in the contract;

 

(13) Any pledged or mortgaged property
has been or may be devalued obviously, or any rights of the pledge must be fulfilled before its maturity;

 

(14) The occurrence of a major event to
The borrower or the guarantor’s legal representative, major individual investor, director, supervisor, key management member,
being subject to an abnormal change, disappearance, or investigation or restriction by the judiciary, which have or may affect
The borrower’s performance of obligation under the contract;

 

    	12

    	 

    

 

 

  

(15) The emergence of the situation that
otherwise provided for in the contract, or the actual situation of capital recovery that may endanger, damage, or may endanger,
damage the bank’s rights and benefits.

 

2. One of the above circumstances occurred,
the lender shall give a grace period according to production operations, financial condition and capital returns, etc. If the lender
gives a grace period, during the grace period the borrower is unable to take remedial measures or remedial measures do not meet
the requirements of the lender, the lender has the right to unilaterally decided to recover the loan in advance; or the lender
may not give a grace period, directly to recover the loan in advance.

 

3. Recovering loans, the lender has the
right to make appropriate measures in accordance with the second paragraph of Article XIV under the contract.

 

Article 13 Obligations of disclosing
important transactions and events 

 

1. The borrower shall promptly report in
writing to the lender the significant transactions and events.

 

2. If the borrower belongs to group clients,
the borrower shall promptly report to the lender of related transactions more than 10% of net assets accordance with the relevant
provisions, including but not limited to:

 

(1) The transaction relationship of transactions;

 

(2) Trading program and nature of the transaction;

 

(3) The sum of the transaction or the corresponding
proportion;

 

(4) The price policy (including the transaction
with no amount or only nominal amounts).

 

Article 14 the liability for breach of
contract

 

1. Since this contract comes into force, the
lender and the borrower should perform the obligations as agreed in the contract, any one party fails to perform or not completely
fulfill the obligation of this contract, should bear the corresponding liability for breach the contract.

 

2. The borrower use the loan for false purpose,
does not pay the loan accordance with the contract, not comply with the declaration and the promises, the distortion of credit
information, break through the conventions of financial indicators, a major cross default event, one of above occurred, the lender
shall have the right to take one or more of the following measures:

 

(1) Correct default within limit time;

 

(2) Stop to issue the loan under this contract,
and stop the payment unpaid under this contract;

 

(3) Require the borrower to supplement the
issue and payment conditions to meet the requirements of the lender, or cancel the borrower "independent payment" to
use the loans;

 

(4) Unilaterally decide to all or part of
the debt maturity in advance;

 

(5) To terminate this contract unilaterally,
require the borrower to repay loan principal and interest due or not due, and pay or compensation for losses;

 

(6) If overdue, to require the borrower to
pay overdue penalty; If the borrower appropriates loan, require the borrower to pay appropriate penalty; Require the borrower to
pay compound of unpaid interest;

 

(7) Require the borrower to add or replace
surety, mortgage, pledge rights;

 

    	13

    	 

    

 

 

  

(8) Make implementation about any rights under
any guarantee;

 

(9) To recover the funds from any accounts
of the borrower in industrial bank without through the judicial process, or entrust the bank of the borrower's account to recover
the funds, including but not limited to loan principal and interest (including penalty interest and compound interest) and related
fees under this contract. If payment currency is different from borrowing money in the account, the lender shall have the right
to change it to the loan currency to pay off the loan principal and interest;

 

(10) The lawsuit or arbitration for requiring
the borrower to repay loan principal and interest, the borrower will borne the expenses of lenders;

 

(11) The lender shall have the right to make
measures to any movable or immovable property, physical property or intangible property of the borrower controlled by the lender,
like as to seize or lien;

 

(12) Other measures by laws and regulations
or agreed in the contract.

 

3. In accord with the drawings prerequisites
and conditions under the contract, if the lender fails to provide the loan at the date agreed in the contract, the lender shall
compensate the borrower thus caused direct economic losses. But no matter how, any foreseeable or unforeseen indirect losses will
not be borne for the lender.

 

4. In the process of the performance of this
contract, the lender will not borne for the losses of the borrower, which is caused by providing untrue, inaccurate, incomplete
material or there are other defects lead to the lender make mistakes about the payment.

 

5. The lender will not borne for the losses
of the borrower, which is caused by the loan account is frozen or other reasons.

 

6. One of the following events happened for
the guarantor under this contract (the guarantor, the mortgagor, the pledgor), the lender shall have the right to take measures
according to the second paragraph of this article:

 

(1) The guarantor fails to fulfill its guarantee
contract, or deterioration of credit conditions, or other events of guarantee ability weakened;

 

(2) The mortgagor fails to perform the stipulations
of the mortgage contract, or deliberately damaged collateral, or value of the mortgaged property may be or has been significantly
reduced, or other events of destroying mortgage rights;

 

(3) The pledgor does not fulfill the pledge
contract, or the pledged property value has been or may be significantly reduced, or the right of the pledge must be cashed before
the payment of the loan, or other events of destroying mortgage rights.

 

Article 15 the cross-defaulting

 

If one of the following events occurs to the
borrower or affiliated enterprises of the borrower, and the guarantor or the affiliated enterprises of the guarantor, it will be
considered that borrower default as well, the lender have the right to recover loan in advance according to article 12 of this
contract, and require the borrower to be liable for breach of contract according to article 14 of this contract:

 

(1) Any loan, financing or debt occur or might
default or be recovered in advance;

 

(2) Any guarantee or similar obligation fail
to be performed or might;

 

(3) The non-performance or violation of the
relevant debt guarantee and other similar obligations of legal document or contract or might;

 

    	14

    	 

    

 

 

  

(4) Failure to repay due debts or borrowing/financing;

 

(5) Be declared bankruptcy by the legal procedure
or may;

 

(6) Transfer the assets or property to other
lenders;

 

(7) other situations endanger the safety of
the money under this contract.

 

Article 16 the continuity of obligation

 

All obligations of the borrower under this
contract have the same effect on its heir apparent, agent, receiver, the assignee, even after merger, reorganization, change of
the name.

 

Article 17 accelerated maturity terms
of principal and interest

 

The borrower and the guarantor agree that
once the borrower fails to perform the statements and commitments of the Clause 7, or the borrower fails to perform any obligation
under this contract, the lender has the right to decide that any other obligations include all outstanding principal, interest
(including punitive interest and compound interest) and relevant expense become due immediately.

 

Article 18 applicable law, jurisdiction
and dispute resolution

 

1. Signing, effectiveness, performance,
termination, interpretation and dispute settlement of this contract is applicable for the laws of People’s Republic of China.

 

2. For any dispute of this contract, the
borrower and the lender should resolve through friendly consultations; If negotiation fails, both parties agree to solve by the
following section (2) way:

 

(2) Applying for arbitration to Shenzhen
Arbitration Commission, resolving the dispute by applicable rules of the Arbitration Commission, the arbitration award is final
and binding on both parties. The site selection is in Shenzhen.

 

3. In the dispute period, the provisions
which are not involved in the dispute still should be carried out according to this contract.

 

Article 19 files, communications and
notifications

 

1. Any documents, communication and notification
under this contract will be sent to each other according to the address, phone number or other contact methods on the cover of
this contract.

 

2. If the contact method of one party changed,
the other party should be informed immediately, otherwise the party which does not inform its change to the other must bear full
responsibility for all the consequences.

 

3. Any documents, communications and notifications
are sent according to above address, shall be deemed to arrive on the following dates:

 

(1) by post (including speed post, ordinary
letter, registered mail), it will be deemed to arrive on the sending day after five working day;

 

(2) by facsimile or other electronic communication,
it will be deemed to arrive on sending day;

 

(3) by personal service, the date of signing
is deemed to be arriving date.

 

    	15

    	 

    

 

 

  

Notifications by the way of website, online
banking, telephone banking or business outlets announcement should be deemed to arrive on day. The lender does not need to borne
any responsibility for any transmission errors, omissions, or delays of mail, fax, telephone or any other communication system.

 

4. The two sides agreed that the seal of
the office seal, financial seal, contract seal, receive seal and credit seal is the effective seal for the documents, communications
and notifications. All staves of the borrower have right to receive files, communications and notifications.

 

Article 20 effectiveness, modification
of this contract and other matters

 

1. The contract will take effect from the
date of signature or stamp of both parties.

 

2. During the effective period of this
contract, the lender gives to the borrower and the guarantor any tolerance, forgiveness, or delay to use the rights and interests,
shall not damage, impact or limit the lender to share the rights and interests in accordance with relevant laws and regulations
and this contract, or to be deemed giving up the rights and interests, also do not affect the borrower to borne any obligation
under this contract.

 

3. As a result of national laws and regulations
or regulatory policy change, which leads to loan obligations of the lender under this contract does not conform to the laws and
regulations or regulatory requirements, the lender have the right to unilaterally terminate the contract, announced that all of
the loan is due in advance, the borrower should pay off the loan immediately.

 

4. If the lender cannot issue the loan
or pay on time because of force majeure, the failure of communication or network, the failure of lender’s system, the lender
does not assume any responsibility, but should promptly notice the borrower.

 

5. The lender shall have the right to authorize
or entrust other branch of industrial bank to perform rights and obligations under this contract (including but not limited to
authorized or entrusted bank branches of other related contracts, etc.) according to the borrower’s operation and management,
or the loan under this contract as other branch’s to undertake, which is approval by the borrower, and without prior consent
of the borrower.

 

6. The borrower agrees that the lender
has the right to unilaterally reduce or cancel the unused loan under the contract according to production and operation situation,
situation of payment and credit of other financial institutions. The lender should notice the borrower five working days before
reduce or cancel the loans, without prior consent of the borrower.

 

7. At any time, any provision of this contract
in any way is or becomes illegal, invalid or unenforceable, the legality, validity or enforceability of other provisions under
the contract is not affected.

 

8. The heading of this contract is just
for the convenience of reading, which shall not be used for interpretation or any other purposes.

 

9. The attachment is an integral part of
this contract, and the attachment of this contract is equally valid.

 

10. This contract is triplet, the lender
holds two copies, the borrower holds one copy, with equal legal effect.

 

Article 21 the notarization and voluntarily
to accept compulsory execution

 

1. The contract should be notarized by
the state notary office for if any party request notarization.

 

2. The notarized contract have the enforcement
effect, if the borrower fails to perform the debt, or the lender realize lender's rights according to laws and regulations and
this contract, the lender shall have the right to directly apply the people's court with jurisdiction for enforcement.

 

    	16

    	 

    

 

 

  

Article 22 the supplementary terms and
conditions: 

 

/

 

/s/ [COMPANY SEAL]

The Lender (official seal):

The legal representative (signature):

 

The Borrower (official seal):

The legal representative (signature):

/s/ Dangyu Pan

 

    	17

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