Document:

Joint Repayment Contract

 

No.: [P2012M11SCSDQ0001-0012]

 

	Borrower (Party A): Chisen Electric Jiangsu Co., Ltd.
	 
	Domicile: Jinyuan Road, Xuyi Economic Development Zone, Jiangsu	Post Code: 211700
	 	 
	Legal Representative: Xu Kecheng
	 
	Financial Institution for Deposit: Xuyi Xinhua Sub-Branch, Industrial and Commercial Bank of China
	 
	Account No.: 1110090309200077630
	 
	Tel.: 0517-88555599	Fax: 0517-88556166

 

	Lender (Party B): CITIC Trust Co., Ltd.
	 
	Domicile: F/13, Capital Mansion, No. 6, Xinyuan South Road, Chaoyang District, Beijing	Post Code: 100004
	 	 
	Legal Representative: Pu Jian
	 
	Financial Institution for Deposit: Beijing Capital Mansion Sub-Branch, China CITIC Bank
	 
	Account No.:  7110210186800061319
	 
	Tel.: 010-84861327	Fax: 010-84861380

 

	Joint repayer (Party C): Zhejiang Chisen Electric Co., Ltd.
	 
	Domicile: No.1188, Taihu Avenue, Changxing Economic Development Zone	Postal code: 313100
	 	 
	Legal Representative: Xu Kecheng
	 
	Opening bank: CCB Changxing Jiefangdonglu Sub-branch
	 
	A/C.: 330016472420500000065
	 
	Tel.: 0572-6225888-8608	Fax: 0572-6267588

 

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WHEREAS:

 

1. Party A and Party B hereto entered into
the “RMB Funds Loan Contract (hereinafter referred to as the "Loan Contract") numbered [P2012M11SCSDQ0001-0003]
on the day,  2012. Party B shall grant to Party A trust loans in an amount not more than RMB 200,000,000.00 (amount in words:
say RMB two hundred million only) with an annual interest rate of 8%. The maturity of the loan is three years.

 

2. Party C is willing to act as the joint
repayer of the trust loans under the Loan Contract, while Party A agrees upon and Party B accepts Party C as the joint repayer
of the trust loans under the Loan Contract.

 

Therefore, through friendly consultation,
Party A, Party B and Party C (“the Parties”) enter into this Contract so that Party C acts as the joint repayer of
the trust loans under the Loan Contract.

 

Article 1 Joint Repayment

 

For purposes of this Contract, joint repayment
shall have the following meanings:

 

1.1 Party C is willing to act as the joint
repayer of the trust loans under the Loan Contract, so that it will assume the obligations for the repayment to Party B of the
loans under the Loan Contract and the accrued interests thereof, jointly and separately with Party A.

 

1.2 Party A agrees that Party C acts as
the joint repayer of the trust loans under the Loan Contract, so that Party C will assume the obligations for the repayment to
Party B of the loans under the Loan Contract and the accrued interests thereof, jointly and separately with Party A.

 

1.3 Party B accepts Party C as the joint
repayer of the trust loans under the Loan Contract, so that Party C will assume the obligations for the repayment to Party B of
the loans under the Loan Contract and the accrued interests thereof, jointly and separately with Party A.

 

Article 2 Amount of Credit and Debt
for Joint Repayment

 

1.1 The Parties hereto confirm that the
amount of the credit and debt for joint repayment as mentioned herein is the amount corresponding to all the credits receivable
by Party A to Party B and all the debts owned by Party B to Party A under the Loan Contract, including but not limited to all the
principal of and interests on the trust loans (including compound interest and penalty interest), liquidated damages, compensation,
other amounts payable by Party A to Party B (including, but not limited to any handling fees, telecommunications fees, miscellaneous
fees), and any costs incurred by Party B arising from realization of liability and guarantee right (including, but not limited
to legal fees, arbitration fees, property preservation fees, travel expenses, execution fees, assessment fees, auction fees, notary
fees, delivery fees, advertising fees, and attorneys' fees).

 

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1.2 Pursuant to the Loan Contract, Party
B shall grant to Party A trust loans in the amount of RMB 200,000,000.00 (amount in words: say RMB two hundred million only) with
an annual interest rate of 8%. The maturity of the loan is three years.

 

1.3 Party C hereby states that it fully
understands and agrees all the terms and conditions of the Loan Contract and the obligations to be assumed by Party A.

 

1.4 The Parties hereto confirm that upon
the entry into force of the Contract, Party B shall have the right to request Party C to assume any obligations for repayment to
be assumed by Party A.

 

Article 3 Party C’s Representations
and Covenants

 

Party C makes the following representations,
warranties and covenants, on the basis of which Party B accepts Party C as the joint repayer of the trust loans under the Loan
Contract:

 

3.1 Party C is a legal person registered
under the laws and regulations of the People's Republic of China. As of the day on which the trust loans under the Loan Contract
are granted, Party C is in normal operation, free from any existing or reasonably expected factor which may result in its inability
to maintain normal operation during the term of the loan.

 

3.2 The execution of the Contract and the
performance of its obligations hereunder on the part of Party C comply with relevant laws, administrative rules, regulations and
the provisions set forth in its articles of association and constitutional documents. Party C has been approved and legally authorized
by the authority with the jurisdiction to do so and has legally perform its obligation for information disclosure (if applicable).

 

3.3 All the documents and information provided
by Party C to Party B, including, but not limited to the financial statements, the loan contracts being performed and entered into
with other financial institutions, and security for others/itself, are true, accurate, legitimate and effective.

 

Its execution and performance of this Contract
are not in conflict with the provisions binding on it or its assets (including its Articles of Association and other provisions),
including but not limited to any security provided to others/itself.

 

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3.4 Except those disclosed to Party B in
writing, Party C did not conceal any event that occurred or likely to occur that may cause Party B to refuse to accept Party C
as the joint repayer of the trust loans under the Loan Contract:

 

(1) important events of breaching the principle,
law or reimbursement involving Party C or its main leaders;

 

(2) any event of default under the contract
entered into by Party C and other debtors;

 

(3) outstanding litigation or arbitration;

 

(4) debts, contingent liability assumed
by Party C or any mortgage, pledge or guarantee provided to the third party; or

 

(5) other conditions that may affect its
financial position and repayment capability.

 

3.5 Party C agrees that Party B may get
access to the credit of Party C through the People's Bank of China and the credit database established and approved by the credit
reporting authorities or relevant departments or authorities. Party C further agrees that Party B provides Party C’s information
to the People's Bank of China and the credit database. Party C further agrees that Party B may reasonably use and disclose such
information as necessary.

 

Article 4 Liability for Breach of Contract
and Remedies against Circumstances Prejudicing Party B’s Claims

 

4.1 Defaults by Party C

 

(1) Party C is in breach of any of the
terms hereof or any legal obligations;

 

(2) Party C demonstrates, expressly or
impliedly, that it will not perform any obligation hereunder.

 

4.2 Circumstances which may prejudice Party
B’s claims

 

(1) In case of any of the following circumstances
which Party B deems may prejudice the safety of the claims hereunder: work contracting, trust (takeover), lease, stock system reformation,
reduction of registered capital, investment, joint operation, merger, combination, acquisition, reorganization, division, joint
venture, voluntary or passive application for winding up, application for dissolution, being canceled, voluntary or passive application
for bankruptcy, change in controlling shareholder/actual controller, transfer of major assets, shut down, closure, high amount
of fines by certain authorities, registered issues being imposed, business license being revoked, being involved in major legal
disputes, serious difficulties in production or operation, bad financial conditions, or failure of legal representative or main
principal and individual guarantor to perform normal duties;

 

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(2) In case of any of the following circumstances
which Party B deems may prejudice the safety of the claims hereunder: Party C fails to discharge other due debts (including those
to Party B or other third person), transfers its properties at a low price or without consideration, reduce a third person’s
debts, delays in exercising claims or other rights or provides a guarantee to a third person;

 

(3) Party C’s shareholders misuse
the company’s status of independent legal person or shareholders’ limited liability and escape from debts, which Party
B deem may prejudice the safety of the claims hereunder and under the Loan Contract;

 

(4) In case of any of the following circumstances
which Party B deems may prejudice the safety of the claims hereunder: (i) violation of any of the terms of relevant guarantee contract,
or the statements and warrants contain any false or error information, or some information is omitted; (ii) work contracting, trust
(takeover), lease, stock system reformation, reduction of registered capital, investment, joint operation, merger, combination,
acquisition, reorganization, division, joint venture, voluntary or passive application for winding up, application for dissolution,
being canceled, voluntary or passive application for bankruptcy, change in controlling shareholder/actual controller, transfer
of major assets, shut down, closure, high amount of fines by certain authorities, registered issues being imposed, business license
being revoked, being involved in major legal disputes, serious difficulties in production or operation, bad financial conditions,
or failure of legal representative or main principal and individual guarantor to perform normal duties, which may affect the guarantor’s
capability to assume the guarantee; (iii) other circumstances which result in actual or possible loss of the warrant capability;

 

(5) the guarantee cannot be accepted, become
effective or invalid, is canceled or rescinded, or the guarantor is in breach of the contract or shows, expressly or impliedly,
that it will not perform the guarantee liability, or the guarantor loses all or part of the guarantee capability, or the value
of collateral reduces, which Party B deems may prejudice the safety of the claims hereunder;

 

(6) Party C’s controlling shareholder/actual
controller/legal representative/individual guarantor loses the civil capability or is taken criminal compulsory measures;

 

(7) any other circumstance which may prejudice
the safety of the claims hereunder.

 

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4.3 Party B’s remedies

 

In case of any of the circumstances set
forth in Article 4.1 or 4.2 hereof, Party C shall send a written notice to Party B within two days thereafter. Party B shall have
the right to require Party C to correct its default and to exercise the following rights, separately or jointly. If Party C fails
to correct its default within 5 business days after Party B sends the notice, Party B shall have the right to exercise the following
rights:

 

(1) to stop disbursing the Loan;

 

(2) to declare the Loan becomes due immediately
and require Party C to forthwith repay all principals, interests and fees with respect to all due and undue debts hereunder;

 

(3) to require Party C to provide new guarantee
which meets Party B’s requirement for all debts hereunder;

 

(4) to exercise the security right;

 

Article 5 Alteration, Transfer, Rescission
or Termination of the Contract

 

5.1 After the execution of the Contract,
neither party may alter or rescind the Contract unilaterally.

 

5.2 Any alterations to the Contract shall
be subject to unanimous consent of the Parties and specified in a written agreement.

 

5.3 Party B has the right to transfer its
rights and obligations under the Contract and the Guarantee Contract to a third person. Without Party B’s consent, Party
C may not transfer its rights and obligations hereunder to any third person.

 

5.4 Under any of the following circumstances,
the Contract may be rescinded or terminated:

 

(1) the Parties enter into a written agreement
though negotiation; or

 

(2) the Contract is to be rescinded or
terminated according to pertinent laws or other clauses hereof.

 

Article 6 Applicable Law and Dispute
Settlement

 

6.1 The Contract shall be governed by the
laws of the People’s Republic of China.

 

6.2 Any and all disputes arising from performance
of the Contract may be settled through negotiation between the Parties; where negotiation fails, the following method shall apply:
either party may bring a suit with the People’s Court having the jurisdiction upon the place where Party B is located.

 

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Article 7 Enforcement of Notarization

 

7.1 Once notarized, the Contract becomes
an enforceable deed of claim. Party C covenants that, if Party C fails to perform any or all of its obligations hereunder, it is
willing to accept the enforcement of certain judicial organ, without legal proceedings, and that Party B may, in accordance with
Article 214 of the Civil Procedure Law, apply to the People’s Court having jurisdiction for enforcement; meanwhile, Party
C waives the defense right.

 

7.2 Party B and Party C hereby jointly
confirm that they have fully understood the meanings, contents, procedures and effectiveness of pertinent laws, regulations and
regulatory documents concerning enforcement of notarization.

 

7.3 Where Party C fails to perform, or
performs in an improper way, the notarized deed of claim which is enforceable, Party B shall send a written notice to Party C of
correction of such default within 5 business days as of the date of the notice; otherwise, Party B may apply to the notary office
for a certification of enforcement and Party C shall cooperate with the notary office within the period notified by Party B in
completing the face-to-face verification procedures. Party C undertakes to cooperate in Party B’s application in all aspects,
including, but not limited to, cooperation with the notary office within the period notified by Party B in completing the face-to-face
verification procedures. If Party C fails to perform the aforesaid obligation after receiving a written notice from Party B, Party
C hereby confirms that, in case of Party C’s absence, the notary office shall be deemed having completed the face-to-face
verification procedures after it completes the verification work subject to its internal flow according to Party B’s application,
and that Party C accepts all the legal consequences arising therefrom.

 

7.4 The stipulations of Article 7 hereof
on enforcement of notarization shall prevail than Article 6 hereof (Applicable Law and Dispute Settlement).

 

7.5 It is agreed to appoint Beijing Fangyuan
Notary Office to go through the legal procedures for enforcement of notarization with respect to the Contract and to issue a notarial
deed.

 

Article 8 Miscellaneous

 

8.1 Notice

 

(1) Unless otherwise stipulated herein,
each and all notices between the Parties under the Contract may be sent to the following addresses by fax, mail, express or any
other methods agreed:

 

Party A: Chisen Electric Jiangsu Co., Ltd.

 

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Add.: Jinyuan Road, Xuyi Economic Development
Zone, Jiangsu

 

Postal code: 211700

 

Attn.: Zhao Feng

 

Tel.: 0517-88555599

 

Fax: 0517-88556166

 

Party B: CITIC Trust Co., Ltd.

 

Add.: Room 4602, Capital Mansion, No. 6,
Xinyuan South Road, Chaoyang District, Beijing

 

Postal code: 100004

 

Attn.: Hao He

 

Tel.: 010-84861259

 

Fax: 010-84861355

 

Party C: Zhejiang Chisen Electric Co.,
Ltd.

 

Address: No.1188, Taihu Avenue, Changxing
Economic Development Zone

 

Postal code: 313100

 

Attn.: Liu Chuanjie

 

Tel.: 0572-6225888-8608

 

Fax: 0572-6267588

 

(2) Either party subject to any change
in its correspondence address or contact information shall forthwith send a written notice to the other party of such change; otherwise,
the changing party shall be fully responsible for the losses arising from failure to make a notice in time.

 

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8.2 Right Reserved

 

Party B’s rights under the Contract
shall not prejudice or exclude any of its rights entitled to it under applicable laws, regulations and other contracts. Party B’s
tolerance, extension or preference of any default or delay, or Party B’s late exercise of any of its rights hereunder, shall
not be deemed as Party B’s waiver of its rights and interests hereunder or as permission or acceptance of any breach of the
Contract, nor restrict, prevent or affect Party B’s further exercise of such right or exercise of any other right, nor create
Party B’s obligation and liability to Party A or Party C.

 

8.3 The Contract shall come into force
with signatures or seals of the Parties’ respective legal representatives or authorized representatives and the common seals
of the Parties.

 

The Parties hereto confirm that as the
appendix to the Loan Contract and, this Contract, together with the Loan Contract, constitutes the master contract. Therefore,
all the collateral contracts of the Loan Contract shall be the collateral contracts of the Contract.

 

8.4 Anything not covered herein may be
specified in a written agreement between the Parties, which shall be attached hereto. Any annexes and modifications to or supplementation
with the Contract shall be an integral part of the Contract and have the same legal force and effect.

 

8.5 The Contract is executed in ten copies
with equal legal effect, one for each party hereto, one for Guarantor and the remaining to be used for completion of relevant procedures
for enforcement and notarization. All the copies shall have the same legal effect.

 

8.6 Party A and Party C have read all the
clauses of the Contract. At the request of Party A and Party C, Party B has explained relevant clauses hereof. Party A and Party
C have been fully aware of and understood the meanings of the clauses hereof and relevant legal consequences.

 

8.7 Party A and Party C confirm that following
Party C assumes the obligations for joint repayment under this Contract, its credit and debt relating to Party A shall be separately
confirmed and settled by Party A and Party C, which shall have nothing to do with Party B.

 

[The Remainder of This Page is Intentionally
Left Blank]

 

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(This page
intentionally left blank, solely for the signature
of the Joint Repayment Contract numbered P2012M11SCSDQ0001-0012).

 

 

Party A: Chisen Electric JiangSu Co.,
Ltd. (Official seal):

 

 

Legal Representative or Authorized Representative
(Signature/seal):  /s/ Authorized Representative

 

 

Signed on: December 17,
2012

 

 

Party B: Lender (Party B): CITIC Trust
Co., Ltd. (Official Seal):

 

 

Legal Representative or Authorized
Representative (Signature/seal):  /s/ Authorized Representative

 

 

Signed on: December 17,
2012

 

 

Party C: Zhejiang Chisen Electric Co.,
Ltd. (Official seal)

 

 

Legal Representative or Authorized
Representative (Signature/seal):   /s/ Authorized Representative

 

 

Signed on: December 17,
2012

 

    	10Guarantee Contract

 

Contract No.: P2012M11SCSDQ0001-0013

 

Guarantor: Xu Kecheng (hereinafter referred
to as “Party A”)

 

PRC Resident Identity Card No.:

 

Xu Kecheng

 

Domicile:

 

Creditor: CITIC Trust Co., Ltd. (hereinafter
referred to as “Party B”)

 

Address: 13/F, Capital Mansion, No. 6,
Xinyuan South Road, Chaoyang District, Beijing

 

Legal Representative: Pu Jian

 

Warrantee: Chisen Electric Jiangsu Co.,
Ltd. (hereinafter referred to as the “Debtor”)

 

Domicile: Jinyuan Road, Xuyi Economic Development
Zone, Jiangsu

 

Legal Representative: Xu Kecheng

 

Warrantee: Zhejiang Chisen Electric Co.,
Ltd. (hereinafter referred to as the “Co-Debtor”)

 

Domicile: No. 1188, Taihu Avenue, Changxing
Economic Development Zone

 

Legal Representative: Xu Kecheng

 

To ensure the performance of the No.[P2012M11SCSDQ0001-0003]
RMB Capital Loan Contract signed by and between Party B and the Debtor, the No. [P2012M11SCSDQ0001-0012] Joint Repayment Contract
signed by and between Party B, the Debtor and the Co-Debtor (the RMB Capital Loan Contract and the Joint Repayment Contract are
jointly referred to as the “Main Contract”), Party A is willing to provide joint and several liability guarantee for
all the obligations of the Debtor and the Co-Debtor under the Main Contract and Party B is willing to accept the joint and several
liability guarantee provided by Party A. Therefore, the terms and conditions of this Contract are hereby made and entered into
by and between Party A and Party B in accordance with the Contract Law of the People's Republic of China, the Guarantee
Law of the People's Republic of China and other relevant laws and regulations, and on the principle of equality and mutual
consultations.

 

Article 1 The Kind and Amount of the
Principal Claim Guaranteed 

 

1.1 The Principal Claim referred to herein
means the trust loan of an amount no more than RMB 200,000,000.00 (in words: RMB Two Hundred Million only) at an interest rate
of 8% per annum and loan period of three years, as granted by Party B to the Debtor under provisions of the Main Contract. The
Debtor and the Co-Debtor shall jointly and severally repay the principal and the interest to Party B under such trust loan.

 

1.2 Details about the Principal Claim are
given in the Main Contract.

 

Article 2 Mode of Guarantee 

 

The guarantee hereunder shall be a joint
and several guarantee for obligations under the Main Contract, which shall be provided by Party A using all personal properties
of Party A.

 

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The “all personal properties of Party
A” referred to in the preceding paragraph shall mean the properties jointly possessed by Party A and his wife and the properties
solely possessed by Party A.

 

If the Debtor and the Co-Debtor fail to
repay the interest, default interest, principal, liquidated damages and / or the relevant expenses pursuant to provisions of the
Main Contract, Party B shall have the right to directly recourse against Party A and Party A hereby undertakes that Party A shall,
within 10 working days after receipt of a written notice from Party B, repay such payments by remitting the corresponding amount
to the bank account designated by Party B.

 

Article 3 Scope of Guarantee 

 

3.1 The guarantee hereunder shall cover
all liabilities under the Main Contract, including, but not limited to all loan principal, interests (including compound interest
and penalty interest), liquidated damages, compensation, other payments payable by the Debtor and the Co-Debtor to the Creditor
(including, but not limited to the relevant handling charges, telecommunications fees, miscellaneous fees, etc.), expenses incurred
by the Creditor for realizing the claim and the guarantee rights (including, but not limited to legal fees, arbitration fees, property
preservation fees, travel expenses, execution fees, assessment fees, auction fees, notary fees, delivery fees, advertising fees,
legal fees, etc.).

 

3.2 If the Debtor and the Co-Debtor fail
to fulfill their repayment obligations under the Main Contract, whether Party B has any other guarantees for the claim under the
Main Contract (including, but not limited to, guarantee, mortgage, pledge, bond, etc.), Party B shall have the right to request
Party A to undertake the guarantee within Party A’s scope of guarantee.

 

Article 4 Period of Guarantee 

 

The guarantee period hereunder shall be
two years commencing from the date of expiry of the liability performance period under the Main Contract. If the liability performance
period under the Main Contract early expires according to laws or provisions of the Main Contract, the guarantee period shall be
two years commencing from the date of early expiry of the liability performance period under the Main Contract. If, pursuant to
provisions of the Main Contract, Party B declares that the liability shall expire on an early date, then the guarantee period shall
be two years commencing from such early date. If the liability under the Main Contract shall be performed in installments, the
guarantee period in respect of each installment shall be two years commencing from the date of expiry of the liability performance
period of the final installment.

 

Article 5 Independence of the Guarantee
Contract 

 

This Contract is independent of the Main
Contract. Any ineffectiveness, partial ineffectiveness, revocation or termination of the Main Contract shall not affect the effectiveness
of this Contract. If the Main Contract is deemed invalid, ineffective, partially ineffective, revoked or terminated, then Party
A shall be jointly and severally liable for the debts of the Debtor and the Co-Debtor incurred for repayment of properties and
compensation for losses.

 

If any clause or any part of any clause
is ineffective or becomes ineffective on a latter date, the ineffectiveness shall not affect the effectiveness of this Contract
or any other clause or any other part of such clause.

 

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Article 6 Amendment to the Main Contract

 

6.1 If any clause of the Main Contract
is amended by and between Party B, the Debtor and the Co-Debtor (including, but not limited to amendment to the currency for the
repayment, mode of repayment, loan account, repayment account, loan proceeds use plan, repayment plan, value date, interest settlement
date, change to the commencing and / or ending date of the liability performance period while the liability performance period
is not changed, etc.), Party A agrees to be jointly and severally liable for the debts under the Main Contract so amended without
the need to obtain the consent of Party A.

 

6.2 The guarantee liability of Party A
shall not be released under any of the following circumstances:

 

(1) Where Party B, the Debtor and / or
the Co-Debtor undergo any change of organization or name, shareholder equity transfer, merger, division, capital increase and /
or capital reduction;

 

(2) Where Party B entrusts any third party
to perform Party B’s obligations under the Main Contract.

 

6.3 If the transfer of the claim or debt
under the Main Contract fails to be effective or is invalid, revoked or terminated, Party A shall still be jointly and severally
liable for the guarantee under this Contract.

 

6.4 If all claims under the Main Contract
is transferred by Party B to a third Party, Party B shall promptly notify Party A of the transfer after execution of the transfer
contract.

 

Article 7 Guarantee Liabilities 

 

7.1 If the debts under the Main Contract
expire or they expire on a early date as declared by Party B pursuant to provisions of the Main Contract or the applicable laws,
but the Debtor and Co-Debtor fail to fulfill them in full or the Debtor and the Co-Debtor breach any other obligations of the Main
Contract, Party A shall assume the guarantee liabilities within the scope of guarantee.

 

7.2 Whether Party B has any other guarantees
for the claim under the Main Contract (including, but not limited to, guarantee, mortgage, pledge, bond, etc.), irrespective of
the date of commencement of such a guarantee, whether it is still effective, whether Party B makes any claim against any other
guarantor, whether there is any third party who agrees to assume any or all the debts under the Main Contract, and whether any
other guarantee is provided by the Debtor and the Co-Debtor, the guarantee liabilities of Party A under this Contract shall not
be mitigated and Party B shall still have the right to directly request Party A to assume the guarantee liabilities within the
scope of guarantee specified herein.

 

7.3 Party A agrees that even if some of
the debts disappear due to repayment by the Debtor and Co-Debtor, realization by Party B of other guarantee rights or any other
reasons, Party A shall still assume the guarantee liabilities which are not distinct within the scope of guarantee specified herein.

 

7.4 Party A agrees that, if the debts under
the Main Contract are still not fully cleared after assumption by Party A of the guarantee liabilities, in exercising the right
of subrogation or recourse claimed (including pre-exercise) by Party A against the Debtor, Co-Debtor and / or any other guarantors,
the rights and interests of Party B shall not be affected thereby and that the repayment of the debts under the Main Contract shall
have the priority over the realization of the right of subrogation or recourse exercised by Party A.

 

Specifically, before the claims of Party
B are fully repaid:

 

(1) Party A agrees not to exercise the
right of subrogation or recourse against the Debtor, Co-Debtor or any other guarantors and if, for any reason, such rights are
realized by Party A, Party A shall, first of all, use the proceeds to settle the claims of Party B;

 

(2) If the debt under the Main Contract
is under any guarantee of real right, Party A hereby agrees not to use the right of subrogation or any other cause to claim for
such guarantee or the proceeds from disposal of such guarantee. Such guarantee and the proceeds therefrom shall first of all be
used to settle the claims of Party B;

 

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(3) If any counter-guarantee is provided
by the Debtor, Co-Debtor or any other guarantor, the proceeds obtained by Party A from such counter-guarantee shall first of all
be used to settle the claims of Party B.

 

7.5 If the Main Contract is not established,
does not take effect or is invalid, partially invalid or revoked, and Party A is not concurrently the Debtor and Co-Debtor, then
Party A shall, within the scope of guarantee specified herein, be jointly and severally liable for the return of properties or
compensation which shall be made by the Debtor and Co-Debtor.

 

7.6 Party A has been fully aware of the
interest rate risk. If the interest rate, interest accrual and / or settlement mode are adjusted by Party B pursuant to provisions
of the Main Contract, whereby the amount payable by the Debtor and Co-Debtor in the interest, penalty interest and / or compound
interest are increased, Party A shall still be jointly and severally liable for such amount so increased.

 

Article 8 Other Obligations of Party
A 

 

8.1 Party A shall accept the supervision
by Party B on the assets of Party A and shall, on request of Party B, provide an inventory of properties as well as other relevant
information, documents and materials and shall ensure that they are accurate, true, complete and effective.

 

8.2 The following matters on the part of
Party A shall be promptly reported to Party B in writing: change of nationality, change of address, change of marital status, any
major disease, under any administrative or criminal penalty, involving in any significant civil dispute, financial deterioration,
or loss or impairment or threatened loss or impairment of guarantee capacity. In such case, Party A shall, under instructions of
Party B, implement the assumption, transfer or inheritance of the guarantee liabilities of Party A under this Contract, or for
the performance of the Main Contract, provide a new guarantee satisfactory to Party B.

 

8.3 The following matters on the part of
the properties of or the business under the control of Party A shall be promptly reported to Party B in writing: contracting, trusteeship
(takeover), leasing, joint-stock reform, reducing the registered capital, investment, joint operation, merger, consolidation, acquisition,
restructuring, division, joint venture, applied for suspending business for rectification, applying for dissolution, revoked, applied
for bankruptcy, change of controlling shareholder / actual controller, transfer of significant assets, ceasing operation, out of
business, imposed of heavy fines by competent authorities, cancellation of registration, business license revoked, involving significant
legal disputes, serious difficulties in production and operation or financial condition deterioration, legal representative or
main person in charge not function properly or loss or possible loss of guarantee capacity for any reason. In such case, Party
A shall, under instructions of Party B, implement the assumption, transfer or inheritance of the guarantee liabilities of Party
A under this Contract, or for the performance of the Main Contract, provide a new guarantee satisfactory to Party B.

 

8.4 Party A shall provide Party B true
and effective legal documents proving the legal status of Party A and any change to the business under of the control of Party
A such as the name, legal representative (person in charge), address, business scope, registered capital, company (enterprise)
articles of association and / or any other items registered in the administration for industry and commerce shall be promptly reported
to Party B and the relevant documents after the change shall be attached thereto.

 

8.5 If, within the effective period of
this Contract, Party A provides any guarantee of any form to any third party, the interest of Party B shall not be impaired thereby.

 

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Article 9 Representations and Warranties
of Party A 

 

Party A hereby makes the following representations
and warranties to Party B:

 

9.1 Party A has the full capacity for civil
rights and civil capacity and has the legal eligibility to act as a guarantor.

 

9.2 Party A confirms that Party A has a
full understanding on assets, debts, operations, credits, reputation and other conditions of the Debtor and Co-Debtor as well as
on whether they has the capacity or authority to sign the Main Contract and on all contents of the Main Contract.

 

9.3 The execution by Party A of this Contract
and the performance by Party A of its obligations hereunder comply with the provisions of laws and administrative regulations.
If Party A has not right to sign this Contract, any and all responsibilities incurred shall be borne by Party A, including, but
not limited to full compensation for the resulting loss of Party B.

 

9.4 Any and all documents, materials, statements
and documents provided by Party A hereunder to Party B are accurate, true, complete and effective.

 

9.5 Except for those already disclosed
to Party B in writing, Party A does not withhold anything as a result of which Party A’s guarantee capacity may be impaired
or lose, including anything already incurred or may happen.

 

9.6 Whether any counter-guarantee agreement
or the like is or may be signed by and between Party A and the Debtor and Co-Debtor or by and between Party A and any other guarantor,
no right or interest of Party B shall be affected under the Contract whether in law or in fact.

 

9.7 Party A agrees that Party B may refer
to the credit database established under approval by the People’s Bank of China and credit information administration and
to the relevant departments about the credit status of Party A. Party A further agrees that Party B may provide the information
of Party A to the credit database established under approval by the People’s Bank of China and credit information administration.
Party A also agrees that Party B may reasonably use and disclose Party A’s information for due purposes.

 

9.8 If Party A breaches this Contract,
Party B shall have the right to report it to the relevant department or unit and may make a public announcement through the news
media.

 

9.9 Party A fully understands and agrees
to all the terms of the Main Contract, and is willing to provide guarantee for the Debtor and Co-Debtor under the Main Contract
and all intents of Party A given in this Contract are true.

 

Article 10 Liabilities for Breach of
Contract

 

10.1 If Party A breaches any provision
hereof or any legal obligation, or expressly indicates or the act of Party A shows that Party A will not perform any of its obligations
hereunder, or any representation or warranty given by Party A as set forth in Article 9 hereof is untrue, inaccurate, incomplete
or intentionally misleading, Party B may send a written notice to Party A, requesting Party A to take the relevant remedial measures.
If Party A fails to take the requested remedial measures within 5 working days after receipt thereof, Party B may exercise the
following rights, whether individually or concurrently:

 

(1) Requesting Party A to remedy such breach
within a certain time limit;

 

(2) Requesting Party A to provide a new
guarantee;

 

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(3) Requesting Party A to compensate the
resulting loss of Party B;

 

(4) If Party A is in material breach of
the Contract, requesting Party A to pay an amount of liquidated damages 30% of the value of the claim when the breach occurs;

 

(5) Other remedies permitted by law.

 

If the amount of liquidated damages is
insufficient to cover the actual economic losses of Party B, Party A shall make up the insufficiency.

 

10.2 If this Contract becomes invalid due
to the fault of Party A, Party A shall, within the guarantee scope of Party A, totally compensate for the loss of Party B.

 

10.3 If, within the validity period of
this Contract, any of the following circumstances occurs, Party B shall have the right to request Party A to undertake the guarantee
responsibilities or to take the corresponding legal measures against Party A or the properties or property rights of Party A:

 

(1) Where the debt performance period expires
under the Main Contract, or the debt performance period specified in the Main Contract early expires according to laws and regulations
or provisions of the Main Contract or as otherwise agreed upon by and between the Parties, while the debts are not settled by Party
B;

 

(2) Where Party A is under any circumstance
prescribed in Clause 8.2, but Party A fails to implement the assumption, transfer or inheritance under this Contract according
to instructions of Party B or fails to provide a new guarantee acceptable to Party B for the performance of the Main Contract.

 

Article 11 Governing Law and Settlement
of Disputes 

 

11.1 This Contract shall be governed by
laws of the People’s Republic of China and relevant administrative regulations and departmental rules.

 

11.2 Any and all disputes arising from
the performance hereof shall be settled by the Parties through amicable negotiations. If it fails to be so settled, either Party
may submit the case to a people’s court of competent jurisdiction.

 

Article 12 Enforcement of Notarization

 

12.1 Once notarized, the Contract becomes
an enforceable deed of claim. Party A covenants that, if Party A fails to perform any or all of its obligations hereunder, it is
willing to accept the enforcement of certain judicial organ, without legal proceedings, and that Party B may, in accordance with
Article 214 of the Civil Procedure Law, apply to the People’s Court having jurisdiction for enforcement; meanwhile, Party
A waives the defense right.

 

12.2 It is confirmed that the Parties hereto
have fully understood the meanings, contents, procedures and effectiveness of pertinent laws, regulations and regulatory documents
concerning enforcement of notarization.

 

12.3 Where Party A fails to perform, or
performs in an improper way, the notarized deed of claim which is enforceable, Party B shall send a written notice to Party A of
correction of such default within 5 business days as of the date of the notice; otherwise, Party B may apply to the notary office
for a certification of enforcement and Party A shall cooperate with the notary office within the period notified by Party B in
completing the face-to-face verification procedures. Party A undertakes to cooperate in Party B’s application in all aspects,
including, but not limited to, cooperation with the notary office within the period notified by Party B in completing the face-to-face
verification procedures. If Party A fails to perform the aforesaid obligation after receiving a written notice from Party B, Party
A hereby confirms that, in case of Party A’s absence, the notary office shall be deemed having completed the face-to-face
verification procedures after it completes the verification work subject to its internal flow according to Party B’s application,
and that Party A accepts all legal consequences arising therefrom.

 

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12.4 The stipulations of Article 12 hereof
on enforcement of notarization shall prevail over Article 11 (Governing Law and Settlement of Disputes).

 

12.5 It is agreed to appoint Beijing Fangyuan
Notary Office to go through the legal procedures for enforcement of notarization with respect to the Contract and to issue a notarial
deed.

 

Article 13 Miscellaneous 

 

13.1 Right Reserved

 

Party B’s rights under the Contract
shall not prejudice or exclude any of its rights available in accordance with laws, regulations and other contracts. Party B’s
toleration, extension or preference of any default or delay, or Party B’s late exercise of any of its rights hereunder, shall
not be deemed as Party B’s waiver of its rights and interests hereunder or as permission or acceptance of any breach of the
Contract, nor restrict, prevent or affect Party B’s further exercise of such right or exercise of any other right, nor create
Party B’s obligation and liability to Party A.

 

Even if Party B fails to exercise or delays
in the exercise of any right of Party B under the Main Contract or any remedy under the Main Contract is not used by Party B, the
guarantee responsibility of Party A hereunder shall not be mitigated thereby. However, if the debts under the Main Contract are
reduced by Party B, the guarantee responsibilities of Party A hereunder shall be reduced accordingly.

 

13.2 Continuity of obligations

 

Any and all obligations and joint liabilities
of Party A hereunder are continuous and shall inure to the benefit of its successors, receivers and assigns as well as to the survival
unit after merger, restructuring or change of name of Party A and shall not be affected by any dispute, claim or legal proceedings,
or by any order from any superior or by any contract or document singed by and between the Debtor and Co-Debtor and any natural
person or legal person, nor shall it be affected by bankruptcy, insolvency, loss of corporate qualification, change of articles
of association or any other change in nature on the part of the Debtor and / or Co-Debtor.

 

13.3 Dissolution or bankruptcy of the Debtor
and Co-Debtor

 

If Party A is aware of the fact that the
Debtor and Co-Debtor are entering into dissolution or bankruptcy proceedings, Party A shall forthwith notify Party B about it.

 

In the dissolution or bankruptcy proceedings,
if any settlement agreement or reconstruction plan is executed by and between Party B and the Debtor and Co-Debtor, rights of Party
B hereunder shall not be affected thereby, nor shall the guarantee obligations of Party A be mitigated. Party A shall not challenge
the claims of Party B by using conditions set forth in any such settlement agreement or reconstruction plan. For the portion of
claims which are not settled though for which any compromise is made by Party A for the Debtor and Co-Debtor in the settlement
agreement and / or reconstruction plan, Party B shall still have the right to request Party A to settle such claims.

 

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13.4 Costs

 

(1) Insurance and registration costs actually
incurred in connection with the Contract and the guarantee hereunder shall be assumed by Party A, unless otherwise agreed.

 

(2) All costs incurred to Party B from
realization of claims, including, but not limited to, legal costs, arbitration fees, property preservation fees, traveling expenses,
enforcement fees, evaluation fees, notarization fees, service fees, announcement fees and attorney fees, as a result of breach
by Party A of this Contract shall be borne by Party A.

 

13.5 Notice

 

(1) Unless otherwise stipulated herein,
any and all notices between the Parties under the Contract may be sent in person or via fax, express mail service or e-mail.

 

If a notice is sent in person, a receipt
signed or sealed by the addressee shall be obtained and the notice shall be deemed duly serviced on such date.

 

If a notice is sent via fax, it shall be
deemed duly serviced on such date.

 

If a notice is sent via express mail service,
it shall be deemed duly serviced on the third day after the date on which it is sent.

 

If a notice is sent via an e-mail, it shall
be deemed duly serviced on the date on which the e-mail is received by the system designed by the addressee (in case where a special
system for receiving the e-mail is designated by the addressee) or on the date on which the e-mail is received by any system of
the addressee (in case where no special system for receiving the e-mail is designated by the addressee).

 

(2) Unless otherwise stipulated herein,
any and all notices between the Parties under the Contract may be sent to the following addresses by fax, mail, express or other
methods agreed:

 

To Party A:

 

Domicile: No. 1188, Taihu Avenue, Changxing
Economic Development Zone

 

Post Code: 313100

 

Attn: Liu Chuanjie

 

Tel: 0572-6225888-8608

 

Fax: 0572-6267588

 

To Party B:

 

Domicile: Room 4602, Capital Mansion, No.
6, Xinyuan South Road, Chaoyang District, Beijing

 

Post Code: 100004

 

Attn: Hao He

 

Tel: 010-84868494

 

Fax: 010-84861355

 

(3) Any Party subject to any change in
its correspondence address or contact information shall forthwith send a written notice to the other of such change; otherwise,
the changing party shall be fully responsible for the losses arising from failure to make a notice in time.

 

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13.6 This Contract takes effect with signature
or seal of the Parties’ respective legal representatives or authorized representative and the common seal of the Parties.

 

13.7 Any matter uncovered herein may be
specified in a written agreement between the Parties; such agreement shall be deemed as an annex to the Contract. Annexes and modifications
or supplementation to the Contract shall be an integral part of the Contract and have equal legal effect with the Contract.

 

13.8 This Contract shall be made in five
copies with equal legal effect, one for each Party, and the remaining used for the completion of relevant procedures for enforcement
and notarization.

 

13.9 Party A has read all the clauses of
this Contract. Party B has at Party A’s request explained relevant clauses hereof. Party A has been fully aware of and has
understood the meanings of the clauses hereof and relevant legal consequences.

 

(The Remainder of This Page is Intentionally
Left Blank)

 

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(This page is intentionally left blank,
solely for the signature of the No.P2012M11SCSDQ0001-0013 RMB Loan Contract.

 

 

Party A: Xu Kecheng (Signature)
/s/ Xu Kecheng

 

 

Signed on: December 17,
2012

 

 

Party B: CITIC Trust Co., Ltd. (Official
seal)

 

 

Legal Representative or Authorized Representative
(Signature / seal)   /s/ Authorized Representative

 

 

Signed on: December 17,
2012

 

    	10

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