Document:

THIS WARRANT AND THE SECURITIES ISSUABLE
UPON THE EXERCISE HEREOF HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED. THEY MAY NOT BE SOLD, OFFERED FOR
SALE, PLEDGED, HYPOTHECATED, OR OTHERWISE TRANSFERRED EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES
ACT OF 1933, AS AMENDED, OR AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT REGISTRATION IS NOT REQUIRED UNDER SUCH ACT
OR UNLESS SOLD PURSUANT TO RULE 144 UNDER SUCH ACT.

 

	Date of Issuance:	Void after:
	 	 
	January 17, 2014	January 16, 2019

  

HIGHPOWER INTERNATIONAL, INC.

 

Warrant to Purchase Shares
of

Common Stock

 

FOR VALUE RECEIVED,
Jian Ke (also known as Patrick J. Ko) (“Holder”), is entitled to purchase from the Company, subject to the provisions
of this Warrant (“Warrant”), from Highpower International, Inc., a Delaware corporation (“Company”),
at any time not later than 5:00 P.M., Pacific Standard Time on January 16, 2019 (the “Expiration Date”), 100,000
shares (the “Warrant Shares”) of the Company’s Common Stock, par value $0.0001 per share, at a price per
share equal to $2.20 (the “Exercise Price”). The Exercise Price and the number of Warrant Shares purchasable
upon exercise of this Warrant shall be subject to adjustment from time to time as described herein. This Warrant is issued pursuant
to that certain Consulting Agreement executed July 15, 2013 between the Company and FirsTrust China Ltd. (the “Consulting
Agreement”).

 

1.           Certain
Definitions

 

(a)          “Fair
Market Value” of a share of Common Stock as of a particular date shall mean:

 

If traded on a securities exchange,
the Fair Market Value shall be deemed to be the average of the closing prices of the Common Stock of the Company on such exchange
or market over the five (5) trading days ending immediately prior to the applicable date of valuation;

 

If actively traded over-the-counter,
the Fair Market Value shall be deemed to be the average of the closing bid prices over the thirty (30)-day period ending immediately
prior to the applicable date of valuation; and

 

If there is no active public
market, the Fair Market Value shall be the value thereof, as agreed upon by the Company and the Holder; provided, however,
that if the Company and the Holder cannot agree on such value, such value shall be determined by an independent valuation firm
experienced in valuing businesses such as the Company and jointly selected in good faith by the Company and the Holder. Fees and
expenses of the valuation firm shall be paid for in equal proportions by the Company and the Holder.

 

    	 

    	 

    

 

(b)          “Common
Stock” shall mean the Common Stock, $0.0001 par value per share, of the Company and any other securities at any time
receivable or issuable upon exercise of this Warrant.

 

2.    
      Method of Exercise.

 

(a)          Subject
to compliance with the terms and conditions of this Warrant and applicable securities laws, this Warrant may be exercised, in whole
or in part at any time or from time to time, on or before the Expiration Date by the delivery (including, without limitation, delivery
by facsimile) of the form of Notice of Exercise attached hereto as Exhibit A (the “Notice of Exercise”),
duly executed by the Holder, at the principal office of the Company, and as soon as practicable after such date, surrendering:

 

(i)          this
Warrant at the principal office of the Company, and

 

(ii)         payment,
(i) in cash (by check) or by wire transfer, (ii) by cancellation by the Holder of indebtedness of the Company to the
Holder; or (iii) by a combination of (i) and (ii), of an amount equal to the product obtained by multiplying the number of
shares of Common Stock being purchased upon such exercise by the then effective Exercise Price (the “Exercise Amount”).

 

(b)          Net
Issue Exercise. In lieu of the payment methods set forth in Section 2(a)(ii) above, the Holder may elect to exchange
all or some of this Warrant for shares of Common Stock equal to the value of the amount of the Warrant being exchanged on the
date of exchange. If Holder elects to exchange this Warrant as provided in this Section 2(b), Holder shall tender to the
Company the Warrant for the amount being exchanged, along with written notice of Holder’s election to exchange some or all
of the Warrant, and the Company shall issue to Holder the number of shares of the Common Stock computed using the following formula: 

 

	X =  	Y (A-B)
	 	A

 

	Where:   X =	 	the number of shares of Common Stock to be issued to Holder.
	 	 	 
	Y =	 	the number of shares of Common Stock purchasable under the amount of the Warrant being exchanged (as adjusted to the date of such calculation).
	 	 	 
	A =	 	the Fair Market Value of one share of the Common Stock on the date that the relevant Notice of Exercise is received by the Company.
	 	 	 
	B =	 	Purchase Price (as adjusted to the date of such calculation).

  

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(c)          Each
exercise of this Warrant shall be deemed to have been effected immediately prior to the close of business on the day on which this
Warrant is surrendered to the Company as provided above. The person or persons entitled to receive the Warrant Shares issuable
upon exercise of this Warrant shall be treated for all purposes as the holder of record of such Warrant Shares as of the close
of business on the date the Holder is deemed to have exercised this Warrant.

 

(d)          As
soon as practicable after the exercise of this Warrant in whole or in part, the Company at its expense will cause to be issued
in the name of, and delivered to, the Holder, or as such Holder (upon payment by such Holder of any applicable transfer taxes)
may direct:

 

(i)          a
certificate or certificates for the number of Warrant Shares to which such Holder shall be entitled, and

 

(ii)         in
case such exercise is in part only, a new warrant or warrants (dated the date hereof) of like tenor, calling in the aggregate on
the face or faces thereof for the number of Shares equal to the number of such Warrant Shares described in this Warrant minus the
number of such Warrant Shares purchased by the Holder upon all exercises made in accordance with this Section 1.

 

(e)          If
the Company shall fail, for any reason or for no reason, to issue to the Holder within three (3) trading days after receipt of
the applicable Notice of Exercise, a certificate as set forth herein upon the Holder’s exercise of this Warrant and if the
Holder (or any other Person in respect, or on behalf, of the Holder) purchases (in an open market transaction or otherwise) shares
of Common Stock to deliver in satisfaction of a sale by the Holder of all or any portion of the number of shares of Common Stock
issuable upon such exercise that the Holder so anticipated receiving from the Company (a “Buy-In”), then the
Company shall, within three (3) business days after the Holder’s request, pay cash to the Holder in an amount equal to 50%
of the excess (if any) of the total purchase price (including reasonable brokerage commissions and other reasonable out-of-pocket
expenses, if any) for the shares of Common Stock so purchased (including, without limitation, by any other Person in respect, or
on behalf, of the Holder) over the proceeds received by the Holder as a result of the sale to which such Buy-In relates. The Holder
shall provide the Company written notice together with a reasonably detailed summary indicating the amounts payable to the Holder
in respect of the Buy-In.

 

3.      
    Representations and Warranties of the Company.

 

In connection with
the transactions provided for herein, the Company hereby represents and warrants to the Holder that:

 

(a)          Organization,
Good Standing, and Qualification. The Company is a corporation duly organized, validly existing, and in good standing under
the laws of the State of Delaware and has all requisite corporate power and authority to carry on its business as now conducted.
The Company is duly qualified to transact business and is in good standing in each jurisdiction in which the failure to so qualify
would have a material adverse effect on its business or properties.

 

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(b)          Authorization.
Except as may be limited by applicable bankruptcy, insolvency, reorganization or similar laws relating to or affecting the enforcement
of creditors’ rights, all corporate action has been taken on the part of the Company, its officers and directors necessary
for the authorization, execution and delivery of this Warrant. The Company has taken all corporate action required to make all
the obligations of the Company reflected in the provisions of this Warrant the valid and enforceable obligations they purport to
be. The issuance of this Warrant will not be subject to preemptive rights of any stockholders of the Company. The Company has authorized
sufficient shares of Common Stock to allow for the exercise of this Warrant.

 

4.           Representations
and Warranties of the Holder.   In connection with the transactions provided
for herein, the Holder hereby represents and warrants to the Company that:

 

(a)          Authorization.
Holder represents that it has full power and authority to enter into this Warrant. This Warrant constitutes the Holder’s
valid and legally binding obligation, enforceable in accordance with its terms, except as may be limited by (i) applicable bankruptcy,
insolvency, reorganization, or similar laws relating to or affecting the enforcement of creditors’ rights and (ii) laws relating
to the availability of specific performance, injunctive relief or other equitable remedies.

 

(b)          Purchase
Entirely for Own Account. The Holder acknowledges that this Warrant is entered into by the Holder in reliance upon such Holder’s
representation to the Company that the Warrant and the Warrant Shares (collectively, the “Securities”) will
be acquired for investment for the Holder’s own account, not as a nominee or agent, and not with a view to the resale or
distribution of any part thereof, and that the Holder has no present intention of selling, granting any participation in or otherwise
distributing the same. By acknowledging this Warrant, the Holder further represents that the Holder does not have any contract,
undertaking, agreement, or arrangement with any person to sell, transfer or grant participations to such person or to any third
person, with respect to the Securities.

 

(c)          Disclosure
of Information. The Holder acknowledges that it has received all the information it considers necessary or appropriate for
deciding whether to acquire the Securities. The Holder further represents that it has had an opportunity to ask questions and receive
answers from the Company regarding the terms and conditions of the offering of the Securities.

 

(d)          Investment
Experience. The Holder is an investor in securities of companies in the development stage and acknowledges that it is able
to fend for itself, can bear the economic risk of its investment, and has such knowledge and experience in financial or business
matters that it is capable of evaluating the merits and risks of the investment in the Securities. If other than an individual,
the Holder also represents it has not been organized solely for the purpose of acquiring the Securities.

 

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(e)          Accredited
Investor. The Holder is an “accredited investor” within the meaning of Rule 501 of Regulation D, as presently in
effect, as promulgated by the Securities and Exchange Commission (the “SEC”) under the Securities Act of 1933,
as amended (the “Act”).

 

(f)          Restricted
Securities. The Holder understands that the Securities are characterized as “restricted securities” under the federal
securities laws inasmuch as they are being acquired from the Company in a transaction not involving a public offering and that
under such laws and applicable regulations such securities may be resold without registration under the Act, only in certain limited
circumstances. In this connection, Holder represents that it is familiar with Rule 144, as presently in effect, as promulgated
by the SEC under the Act (“Rule 144”), and understands the resale limitations imposed thereby and by the Act.

 

(g)          Further
Limitations on Disposition. The Holder, by acceptance hereof, agrees that, absent an effective registration statement filed
with the SEC under the Act covering the disposition or sale of this Warrant or the Warrant Shares issued or issuable upon exercise
hereof, as the case may be, and registration or qualification under applicable state securities laws, such Holder will not sell,
transfer, pledge, or hypothecate any or all of this Warrant or such Warrant Shares, as the case may be, unless either (i) the Company
has received an opinion of counsel, in form and substance reasonably satisfactory to the Company, to the effect that such registration
is not required in connection with such disposition or (ii) the sale of such Securities is made pursuant to SEC Rule 144.

 

(h)          Legends.
It is understood that the Securities may bear the following or a similar legend:

 

“THESE SECURITIES HAVE NOT
BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED. THEY MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED, HYPOTHECATED, OR
OTHERWISE TRANSFERRED EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR AN
OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT REGISTRATION IS NOT REQUIRED UNDER SUCH ACT OR UNLESS SOLD PURSUANT TO RULE
144 UNDER SUCH ACT.”

 

5.      
    Valid Issuance; Taxes. All Warrant Shares issued upon the exercise
of this Warrant shall be validly issued, fully paid and nonassessable, and the Company shall pay all taxes and other
governmental charges that may be imposed in respect of the issue or delivery thereof. The Company shall not be required to
pay any tax or other charge imposed in connection with any transfer involved in the issuance of any certificate for Warrant
Shares in any name other than that of the Holder of this Warrant, and in such case the Company shall not be required to issue
or deliver any stock certificate or security until such tax or other charge has been paid, or it has been established to the
Company’s reasonable satisfaction that no tax or other charge is due.

 

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6.      
    Adjustment of Exercise Price and Number and Kind of Warrant Shares. The
number and kind of Warrant Shares purchasable upon exercise of this Warrant and the Exercise Price shall be subject to
adjustment from time to time as follows:

 

(a)          Subdivisions,
Combinations and Other Issuances. If the Company shall at any time after the issuance but prior to the expiration of this Warrant
subdivide its Common Stock, by split-up or otherwise, or combine its Common Stock, or issue additional shares of its Common Stock
as a dividend with respect to any shares of its Common Stock, the Exercise Price shall be proportionally decreased and the number
of Warrant Shares issuable on the exercise of this Warrant shall be proportionately increased in the case of a subdivision or stock
dividend. The Exercise Price shall be proportionally increased and the number of Warrant Shares issuable on the exercise of this
Warrant shall be proportionately decreased in the case of a combination. Any adjustment under this Section 6(a) shall become
effective at the close of business on the date the subdivision or combination becomes effective, or as of the record date of such
dividend, or in the event that no record date is fixed, upon the making of such dividend.

 

(b)          Reclassification,
Reorganization and Consolidation. In case of any reclassification, capital reorganization or change in the capital stock of
the Company (other than as a result of a subdivision, combination or stock dividend provided for in Section 6(a) above),
then, as a condition of such reclassification, reorganization or change, lawful provision shall be made, and duly executed documents
evidencing the same from the Company or its successor shall be delivered to the Holder, so that the Holder shall have the right
at any time prior to the expiration of this Warrant to purchase, at a total price equal to that payable upon the exercise of this
Warrant, the kind and amount of shares of stock and other securities or property receivable in connection with such reclassification,
reorganization or change by a holder of the same number and type of securities as were purchasable as Warrant Shares by the Holder
immediately prior to such reclassification, reorganization or change. In any such case appropriate provisions shall be made with
respect to the rights and interest of the Holder so that the provisions hereof shall thereafter be applicable with respect to any
shares of stock or other securities or property deliverable upon exercise hereof, and appropriate adjustments shall be made to
the per-share Exercise Price payable hereunder, provided the aggregate Exercise Price shall remain the same.

 

(c)          Notice
of Adjustment. When any adjustment is required to be made in the number or kind of Warrant Shares purchasable upon exercise
of the Warrant, or in the Exercise Price, the Company shall promptly notify the Holder of such event and of the new Exercise Price
and number of Warrant Shares or other securities or property thereafter purchasable upon exercise of this Warrant.

 

7.           No
Fractional Shares or Scrip.   No fractional shares or scrip representing
fractional shares shall be issued upon the exercise of this Warrant, but in lieu of such fractional shares the Company shall make
a cash payment therefor on the basis of the Exercise Price then in effect.

 

8.           No
Stockholder Rights.   Prior to exercise of this Warrant, the Holder shall
not be entitled to any rights of a stockholder with respect to the Warrant Shares, including (without limitation) the right to
vote such Warrant Shares, receive dividends or other distributions thereon, exercise preemptive rights or be notified of stockholder
meetings, and, except as otherwise provided in this Warrant, such Holder shall not be entitled to any stockholder notice or other
communication concerning the business or affairs of the Company.

 

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9.           Restrictions
on Transfer; Transferability.  As provided herein, this Warrant may be transferred
only pursuant to a registration statement filed under the Act, or an exemption from such registration. Subject to such restrictions,
the Company shall transfer this Warrant with a properly executed assignment (in the form of Exhibit B hereto) at the
principal office of the Company from time to time upon the books to be maintained by the Company for that purpose, upon surrender
hereof for transfer, properly endorsed or accompanied by appropriate instructions for transfer and such other documents as may
be reasonably required by the Company, including, if required by the Company, an opinion of its counsel to the effect that such
transfer is exempt from the registration requirements of the Act, to establish that such transfer is being made in accordance
with the terms hereof, and a new Warrant shall be issued to the transferee and the surrendered Warrant shall be canceled by the
Company.

 

10.         Governing
Law.   This Warrant shall be governed by and construed under the laws
of the State of Delaware as applied to agreements among Delaware residents, made and to be performed entirely within the State
of Delaware.

 

11.         Successors
and Assigns.  The terms and provisions of this Warrant shall inure to the benefit
of, and be binding upon, the Company and the holders hereof and their respective successors and assigns.

 

12.         Titles
and Subtitles.  The titles and subtitles used in this Warrant are used for
convenience only and are not to be considered in construing or interpreting this Warrant.

 

13.         Notices.   Unless
otherwise provided, any notice required or permitted under this Warrant shall be given in writing and shall be deemed effectively
given as hereinafter described (a) if given by personal delivery, then such notice shall be deemed given upon such delivery, (b)
if given by telex or facsimile, then such notice shall be deemed given upon receipt of confirmation of complete transmittal, (c)
if given by mail, then such notice shall be deemed given upon the earlier of (i) receipt of such notice by the recipient or (ii)
three days after such notice is deposited in first class mail, postage prepaid, and (d) if given by an internationally recognized
overnight air courier, then such notice shall be deemed given one business day after delivery to such carrier. All notices shall
be addressed as follows: if to the Holder, at its address as set forth in the Company’s books and records and, if to the
Company, at the address as follows, or at such other address as the Holder or the Company may designate by ten days’ advance
written notice to the other:

 

	 	If to the Company:
	 	Highpower International, Inc.
	 	Building A1, Luoshan Industrial Zone,
	 	Shanxia, Pinghu, Longgang,
	 	Shenzhen, Guangdong, 518111
	 	People’s Republic of China
	 	Attn: Henry Sun, Chief Financial Officer
	 	Fax: +86-755-8968-6916

 

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	 	With a copy to:
	 	K&L Gates LLP
	 	10100 Santa Monica Boulevard Seventh Floor
	 	Los Angeles, CA 90067
	 	Attn: Katherine J. Blair
	 	Fax: (310) 552-5001

  

Each person making
a communication hereunder by facsimile shall promptly confirm by telephone to the person to whom such communication was addressed
each communication made by it by facsimile pursuant hereto but the absence of such confirmation shall not affect the validity of
any such communication.

 

14.         Expenses.  If
any action at law or in equity is necessary to enforce or interpret the terms of this Warrant, the prevailing party shall be entitled
to reasonable attorneys’ fees, costs and necessary disbursements in addition to any other relief to which such party may
be entitled.

 

15.         Entire
Agreement; Amendments and Waivers.   This Warrant and any other documents
delivered pursuant hereto and the Consulting Agreement constitute the full and entire understanding and agreement between the
parties with regard to the subjects hereof and thereof. Nonetheless, any term of this Warrant may be amended and the observance
of any term of this Agreement may be waived (either generally or in a particular instance and either retroactively or prospectively),
with the written consent of the Company and the Holder; or if this Warrant has been assigned in part, by the holders or rights
to purchase a majority of the shares originally issuable pursuant to this Warrant.

 

16.         Severability.   If
any provision of this Warrant is held to be unenforceable under applicable law, such provision shall be excluded from this Warrant
and the balance of the Warrant shall be interpreted as if such provision were so excluded and shall be enforceable in accordance
with its terms.

 

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IN WITNESS WHEREOF,
the parties have executed this Warrant as of the date above written.

 

	 	HIGHPOWER INTERNATIONAL, INC.
	 	 	 
	 	By:	/s/  Dangyu Pan
	 	Name:  Dangyu Pan
	 	Title:  Chief Executive Officer

 

	ACKNOWLEDGED AND AGREED	 
	 	 
	/s/ Jian Ke	 
	Jian Ke	 
	 	 
	Address:	 
	 	 
	 	 
	 	 
	 	 

 

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EXHIBIT A

 

Notice of Exercise

 

HIGHPOWER INTERNATIONAL, INC.

 

Attention: Chief Financial Officer

 

The undersigned hereby irrevocably elects
to exercise the right of purchase pursuant to the provisions of the Warrant the securities of the Company, as provided for therein,
as follows (check the applicable box):

 

	 ̈	tenders herewith payment of the exercise price in full in the form of (i) cash (by check) or by wire transfer or (ii) by cancellation by the Holder of indebtedness of the Company to the Holder, in the amount of $____________ for _________ shares of Common Stock pursuant to the terms of the attached Warrant at $_______ per share (the applicable Exercise Price as of the date of this Notice of Exercise).
	 	 
	 ̈	elects the Net Issue Exercise option pursuant to Section 2(b) of the Warrant, and accordingly requests delivery of a net of ______________ shares of Common Stock.

  

The undersigned hereby
represents and warrants that Representations and Warranties in Section 3 of the Warrant are true and correct as of the date hereof.

 

Please issue a certificate or certificates
for such securities in the name of, and pay any cash for any fractional share to (please print name, address and social security
number):

  

	Name:	 
	 	 
	Address:	 
	 	 
	Signature:	 

  

Note: The above signature should correspond
exactly with the name on the first page of this Warrant or with the name of the assignee appearing in the assignment form below.

 

If said number of shares shall not be all
the shares purchasable under the within Warrant, a new Warrant is to be issued in the name of said undersigned for the balance
remaining of the shares purchasable thereunder rounded up to the next higher whole number of shares.

 

    	 

    	 

    

  

EXHIBIT B

 

Assignment
Form

 

HIGHPOWER INTERNATIONAL, INC.

 

FOR VALUE RECEIVED,
_________________________________________ (the “Assignor”) hereby sells, assigns and transfers all of the rights
of the undersigned under the attached Warrant with respect to the number of shares of Common Stock covered thereby set forth below,
unto:

 

	Name of Assignee	 	Address/Fax Number	 	No. of Shares
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 

  

1.          Obligations
of Assignee. Assignee agrees to take and hold the Warrant and any Warrant Shares issued upon its exercise (the “Securities”)
subject to, and to be bound by, the terms and conditions set forth in the Warrant to the same extent as if Assignee were the original
holder thereof.

 

2.          Investment
Intent. Assignee represents and warrants that the Securities are being acquired for investment for its own account, not as
a nominee or agent, and not with a view to, or for resale in connection with, the distribution thereof, and that Assignee has
no present intention of selling, granting any participation in, or otherwise distributing the shares, nor does it have any contract,
undertaking, agreement or arrangement for the same, and all representations and warranties set forth in Section 4 of the
Warrant are true and correct as to Assignee as of the date hereof. 

 

	ASSIGNEE	 	ASSIGNOR
	 	 	 	 	 
	By:	 	 	By:	 
	 	 	 	 	 
	Name:	 	 	Name:	 
	 	 	 	 	 
	Title:	 	 	Title:	 
	 	 	 	 	 
	Date:	 	 	Date:	 

 

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THIS WARRANT AND THE SECURITIES ISSUABLE
UPON THE EXERCISE HEREOF HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED. THEY MAY NOT BE SOLD, OFFERED FOR
SALE, PLEDGED, HYPOTHECATED, OR OTHERWISE TRANSFERRED EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES
ACT OF 1933, AS AMENDED, OR AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT REGISTRATION IS NOT REQUIRED UNDER SUCH ACT
OR UNLESS SOLD PURSUANT TO RULE 144 UNDER SUCH ACT.

 

	Date of Issuance:	Void after:
	 	 
	January 17, 2014	January 16, 2019

 

HIGHPOWER INTERNATIONAL, INC.

 

Warrant to Purchase Shares
of

Common Stock

 

FOR VALUE RECEIVED,
Jian Ke (also known as Patrick J. Ko) (“Holder”), is entitled to purchase from the Company, subject to the provisions
of this Warrant (“Warrant”), from Highpower International, Inc., a Delaware corporation (“Company”),
at any time not later than 5:00 P.M., Pacific Standard Time on January 16, 2019 (the “Expiration Date”), 100,000
shares (the “Warrant Shares”) of the Company’s Common Stock, par value $0.0001 per share, at a price per
share equal to $3.80 (the “Exercise Price”). The Exercise Price and the number of Warrant Shares purchasable
upon exercise of this Warrant shall be subject to adjustment from time to time as described herein. This Warrant is issued pursuant
to that certain Consulting Agreement executed July 15, 2013 between the Company and FirsTrust China Ltd. (the “Consulting
Agreement”).

 

1.        
  Certain Definitions

 

(a)          “Fair
Market Value” of a share of Common Stock as of a particular date shall mean:

 

If traded on a securities exchange,
the Fair Market Value shall be deemed to be the average of the closing prices of the Common Stock of the Company on such exchange
or market over the five (5) trading days ending immediately prior to the applicable date of valuation;

 

If actively traded over-the-counter,
the Fair Market Value shall be deemed to be the average of the closing bid prices over the thirty (30)-day period ending immediately
prior to the applicable date of valuation; and

 

If there is no active public
market, the Fair Market Value shall be the value thereof, as agreed upon by the Company and the Holder; provided, however,
that if the Company and the Holder cannot agree on such value, such value shall be determined by an independent valuation firm
experienced in valuing businesses such as the Company and jointly selected in good faith by the Company and the Holder. Fees and
expenses of the valuation firm shall be paid for in equal proportions by the Company and the Holder.

 

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(b)          “Common
Stock” shall mean the Common Stock, $0.0001 par value per share, of the Company and any other securities at any time
receivable or issuable upon exercise of this Warrant.

 

2.      
     Method of Exercise.

 

(a)          Subject
to compliance with the terms and conditions of this Warrant and applicable securities laws, this Warrant may be exercised, in whole
or in part at any time or from time to time, on or before the Expiration Date by the delivery (including, without limitation, delivery
by facsimile) of the form of Notice of Exercise attached hereto as Exhibit A (the “Notice of Exercise”),
duly executed by the Holder, at the principal office of the Company, and as soon as practicable after such date, surrendering:

 

(i)          this
Warrant at the principal office of the Company, and

 

(ii)         payment,
(i) in cash (by check) or by wire transfer, (ii) by cancellation by the Holder of indebtedness of the Company to the
Holder; or (iii) by a combination of (i) and (ii), of an amount equal to the product obtained by multiplying the number of
shares of Common Stock being purchased upon such exercise by the then effective Exercise Price (the “Exercise Amount”).

 

(b)          Net
Issue Exercise. In lieu of the payment methods set forth in Section 2(a)(ii) above, the Holder may elect to exchange
all or some of this Warrant for shares of Common Stock equal to the value of the amount of the Warrant being exchanged on the date
of exchange. If Holder elects to exchange this Warrant as provided in this Section 2(b), Holder shall tender to the Company
the Warrant for the amount being exchanged, along with written notice of Holder’s election to exchange some or all of the
Warrant, and the Company shall issue to Holder the number of shares of the Common Stock computed using the following formula:

 

	X =  	Y (A-B)
	 	A

 

	Where:   X =	 	the number of shares of Common Stock to be issued to Holder.
	 	 	 
	Y =	 	the number of shares of Common Stock purchasable under the amount of the Warrant being exchanged (as adjusted to the date of such calculation).
	 	 	 
	A =	 	the Fair Market Value of one share of the Common Stock on the date that the relevant Notice of Exercise is received by the Company.
	 	 	 
	B =	 	Purchase Price (as adjusted to the date of such calculation).

 

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(c)          Each
exercise of this Warrant shall be deemed to have been effected immediately prior to the close of business on the day on which this
Warrant is surrendered to the Company as provided above. The person or persons entitled to receive the Warrant Shares issuable
upon exercise of this Warrant shall be treated for all purposes as the holder of record of such Warrant Shares as of the close
of business on the date the Holder is deemed to have exercised this Warrant.

 

(d)          As
soon as practicable after the exercise of this Warrant in whole or in part, the Company at its expense will cause to be issued
in the name of, and delivered to, the Holder, or as such Holder (upon payment by such Holder of any applicable transfer taxes)
may direct:

 

(i)          a
certificate or certificates for the number of Warrant Shares to which such Holder shall be entitled, and

 

(ii)         in
case such exercise is in part only, a new warrant or warrants (dated the date hereof) of like tenor, calling in the aggregate on
the face or faces thereof for the number of Shares equal to the number of such Warrant Shares described in this Warrant minus the
number of such Warrant Shares purchased by the Holder upon all exercises made in accordance with this Section 1.

 

(e)          If
the Company shall fail, for any reason or for no reason, to issue to the Holder within three (3) trading days after receipt of
the applicable Notice of Exercise, a certificate as set forth herein upon the Holder’s exercise of this Warrant and if the
Holder (or any other Person in respect, or on behalf, of the Holder) purchases (in an open market transaction or otherwise) shares
of Common Stock to deliver in satisfaction of a sale by the Holder of all or any portion of the number of shares of Common Stock
issuable upon such exercise that the Holder so anticipated receiving from the Company (a “Buy-In”), then the
Company shall, within three (3) business days after the Holder’s request, pay cash to the Holder in an amount equal to 50%
of the excess (if any) of the total purchase price (including reasonable brokerage commissions and other reasonable out-of-pocket
expenses, if any) for the shares of Common Stock so purchased (including, without limitation, by any other Person in respect,
or on behalf, of the Holder) over the proceeds received by the Holder as a result of the sale to which such Buy-In relates. The
Holder shall provide the Company written notice together with a reasonably detailed summary indicating the amounts payable to
the Holder in respect of the Buy-In. 

 

3.           Representations
and Warranties of the Company.

 

In connection with
the transactions provided for herein, the Company hereby represents and warrants to the Holder that:

 

(a)          Organization,
Good Standing, and Qualification. The Company is a corporation duly organized, validly existing, and in good standing under
the laws of the State of Delaware and has all requisite corporate power and authority to carry on its business as now conducted.
The Company is duly qualified to transact business and is in good standing in each jurisdiction in which the failure to so qualify
would have a material adverse effect on its business or properties.

 

    	- 14 -

    	 

    

 

(b)          Authorization.
Except as may be limited by applicable bankruptcy, insolvency, reorganization or similar laws relating to or affecting the enforcement
of creditors’ rights, all corporate action has been taken on the part of the Company, its officers and directors necessary
for the authorization, execution and delivery of this Warrant. The Company has taken all corporate action required to make all
the obligations of the Company reflected in the provisions of this Warrant the valid and enforceable obligations they purport to
be. The issuance of this Warrant will not be subject to preemptive rights of any stockholders of the Company. The Company has authorized
sufficient shares of Common Stock to allow for the exercise of this Warrant.

 

4.            Representations
and Warranties of the Holder.   In connection with the transactions provided for herein, the Holder hereby represents and warrants
to the Company that:

 

(a)          Authorization.
Holder represents that it has full power and authority to enter into this Warrant. This Warrant constitutes the Holder’s
valid and legally binding obligation, enforceable in accordance with its terms, except as may be limited by (i) applicable bankruptcy,
insolvency, reorganization, or similar laws relating to or affecting the enforcement of creditors’ rights and (ii) laws relating
to the availability of specific performance, injunctive relief or other equitable remedies.

 

(b)          Purchase
Entirely for Own Account. The Holder acknowledges that this Warrant is entered into by the Holder in reliance upon such Holder’s
representation to the Company that the Warrant and the Warrant Shares (collectively, the “Securities”) will
be acquired for investment for the Holder’s own account, not as a nominee or agent, and not with a view to the resale or
distribution of any part thereof, and that the Holder has no present intention of selling, granting any participation in or otherwise
distributing the same. By acknowledging this Warrant, the Holder further represents that the Holder does not have any contract,
undertaking, agreement, or arrangement with any person to sell, transfer or grant participations to such person or to any third
person, with respect to the Securities.

 

(c)          Disclosure
of Information. The Holder acknowledges that it has received all the information it considers necessary or appropriate for
deciding whether to acquire the Securities. The Holder further represents that it has had an opportunity to ask questions and receive
answers from the Company regarding the terms and conditions of the offering of the Securities.

 

(d)          Investment
Experience. The Holder is an investor in securities of companies in the development stage and acknowledges that it is able
to fend for itself, can bear the economic risk of its investment, and has such knowledge and experience in financial or business
matters that it is capable of evaluating the merits and risks of the investment in the Securities. If other than an individual,
the Holder also represents it has not been organized solely for the purpose of acquiring the Securities.

 

    	- 15 -

    	 

    

 

(e)          Accredited
Investor. The Holder is an “accredited investor” within the meaning of Rule 501 of Regulation D, as presently in
effect, as promulgated by the Securities and Exchange Commission (the “SEC”) under the Securities Act of 1933,
as amended (the “Act”).

 

(f)          Restricted
Securities. The Holder understands that the Securities are characterized as “restricted securities” under the federal
securities laws inasmuch as they are being acquired from the Company in a transaction not involving a public offering and that
under such laws and applicable regulations such securities may be resold without registration under the Act, only in certain limited
circumstances. In this connection, Holder represents that it is familiar with Rule 144, as presently in effect, as promulgated
by the SEC under the Act (“Rule 144”), and understands the resale limitations imposed thereby and by the Act.

 

(g)          Further
Limitations on Disposition. The Holder, by acceptance hereof, agrees that, absent an effective registration statement filed
with the SEC under the Act covering the disposition or sale of this Warrant or the Warrant Shares issued or issuable upon exercise
hereof, as the case may be, and registration or qualification under applicable state securities laws, such Holder will not sell,
transfer, pledge, or hypothecate any or all of this Warrant or such Warrant Shares, as the case may be, unless either (i) the Company
has received an opinion of counsel, in form and substance reasonably satisfactory to the Company, to the effect that such registration
is not required in connection with such disposition or (ii) the sale of such Securities is made pursuant to SEC Rule 144.

 

(h)          Legends.
It is understood that the Securities may bear the following or a similar legend:

 

“THESE SECURITIES HAVE NOT
BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED. THEY MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED, HYPOTHECATED, OR
OTHERWISE TRANSFERRED EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR AN
OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT REGISTRATION IS NOT REQUIRED UNDER SUCH ACT OR UNLESS SOLD PURSUANT TO RULE
144 UNDER SUCH ACT.”

 

5.         
 Valid Issuance; Taxes. All Warrant Shares issued upon the exercise of this Warrant
shall be validly issued, fully paid and nonassessable, and the Company shall pay all taxes and other governmental charges
that may be imposed in respect of the issue or delivery thereof. The Company shall not be required to pay any tax or other
charge imposed in connection with any transfer involved in the issuance of any certificate for Warrant Shares in any name
other than that of the Holder of this Warrant, and in such case the Company shall not be required to issue or deliver any
stock certificate or security until such tax or other charge has been paid, or it has been established to the Company’s
reasonable satisfaction that no tax or other charge is due.

 

    	- 16 -

    	 

    

 

6.      
    Adjustment of Exercise Price and Number and Kind of Warrant Shares. The
number and kind of Warrant Shares purchasable upon exercise of this Warrant and the Exercise Price shall be subject to
adjustment from time to time as follows:

 

(a)          Subdivisions,
Combinations and Other Issuances. If the Company shall at any time after the issuance but prior to the expiration of this Warrant
subdivide its Common Stock, by split-up or otherwise, or combine its Common Stock, or issue additional shares of its Common Stock
as a dividend with respect to any shares of its Common Stock, the Exercise Price shall be proportionally decreased and the number
of Warrant Shares issuable on the exercise of this Warrant shall be proportionately increased in the case of a subdivision or stock
dividend. The Exercise Price shall be proportionally increased and the number of Warrant Shares issuable on the exercise of this
Warrant shall be proportionately decreased in the case of a combination. Any adjustment under this Section 6(a) shall become
effective at the close of business on the date the subdivision or combination becomes effective, or as of the record date of such
dividend, or in the event that no record date is fixed, upon the making of such dividend.

 

(b)          Reclassification,
Reorganization and Consolidation. In case of any reclassification, capital reorganization or change in the capital stock of
the Company (other than as a result of a subdivision, combination or stock dividend provided for in Section 6(a) above),
then, as a condition of such reclassification, reorganization or change, lawful provision shall be made, and duly executed documents
evidencing the same from the Company or its successor shall be delivered to the Holder, so that the Holder shall have the right
at any time prior to the expiration of this Warrant to purchase, at a total price equal to that payable upon the exercise of this
Warrant, the kind and amount of shares of stock and other securities or property receivable in connection with such reclassification,
reorganization or change by a holder of the same number and type of securities as were purchasable as Warrant Shares by the Holder
immediately prior to such reclassification, reorganization or change. In any such case appropriate provisions shall be made with
respect to the rights and interest of the Holder so that the provisions hereof shall thereafter be applicable with respect to any
shares of stock or other securities or property deliverable upon exercise hereof, and appropriate adjustments shall be made to
the per-share Exercise Price payable hereunder, provided the aggregate Exercise Price shall remain the same.

 

(c)          Notice
of Adjustment. When any adjustment is required to be made in the number or kind of Warrant Shares purchasable upon exercise
of the Warrant, or in the Exercise Price, the Company shall promptly notify the Holder of such event and of the new Exercise Price
and number of Warrant Shares or other securities or property thereafter purchasable upon exercise of this Warrant.

 

7.            No
Fractional Shares or Scrip.    No fractional shares or scrip representing fractional shares shall be issued upon the exercise
of this Warrant, but in lieu of such fractional shares the Company shall make a cash payment therefor on the basis of the Exercise
Price then in effect.

 

8.            No
Stockholder Rights.    Prior to exercise of this Warrant, the Holder shall not be entitled to any rights of a stockholder with
respect to the Warrant Shares, including (without limitation) the right to vote such Warrant Shares, receive dividends or other
distributions thereon, exercise preemptive rights or be notified of stockholder meetings, and, except as otherwise provided in
this Warrant, such Holder shall not be entitled to any stockholder notice or other communication concerning the business or affairs
of the Company.

  

    	- 17 -

    	 

    

 

9.            Restrictions
on Transfer; Transferability.  As provided herein, this Warrant may be transferred only pursuant to a registration statement
filed under the Act, or an exemption from such registration. Subject to such restrictions, the Company shall transfer this Warrant
with a properly executed assignment (in the form of Exhibit B hereto) at the principal office of the Company from
time to time upon the books to be maintained by the Company for that purpose, upon surrender hereof for transfer, properly endorsed
or accompanied by appropriate instructions for transfer and such other documents as may be reasonably required by the Company,
including, if required by the Company, an opinion of its counsel to the effect that such transfer is exempt from the registration
requirements of the Act, to establish that such transfer is being made in accordance with the terms hereof, and a new Warrant
shall be issued to the transferee and the surrendered Warrant shall be canceled by the Company.

 

10.         Governing
Law. This Warrant shall be governed by and construed under the laws of the State of Delaware as applied to agreements among
Delaware residents, made and to be performed entirely within the State of Delaware.

 

11.         Successors
and Assigns. The terms and provisions of this Warrant shall inure to the benefit of, and be binding upon, the Company and
the holders hereof and their respective successors and assigns.

 

12.         Titles
and Subtitles. The titles and subtitles used in this Warrant are used for convenience only and are not to be considered in
construing or interpreting this Warrant.

 

13.         Notices.
Unless otherwise provided, any notice required or permitted under this Warrant shall be given in writing and shall be deemed
effectively given as hereinafter described (a) if given by personal delivery, then such notice shall be deemed given upon such
delivery, (b) if given by telex or facsimile, then such notice shall be deemed given upon receipt of confirmation of complete
transmittal, (c) if given by mail, then such notice shall be deemed given upon the earlier of (i) receipt of such notice by the
recipient or (ii) three days after such notice is deposited in first class mail, postage prepaid, and (d) if given by an internationally
recognized overnight air courier, then such notice shall be deemed given one business day after delivery to such carrier. All
notices shall be addressed as follows: if to the Holder, at its address as set forth in the Company’s books and records
and, if to the Company, at the address as follows, or at such other address as the Holder or the Company may designate by ten
days’ advance written notice to the other:

 

    	- 18 -

    	 

    

 

	 	If to the Company:
	 	Highpower International, Inc.
	 	Building A1, Luoshan Industrial Zone,
	 	Shanxia, Pinghu, Longgang,
	 	Shenzhen, Guangdong, 518111
	 	People’s Republic of China
	 	Attn: Henry Sun, Chief Financial Officer
	 	Fax: +86-755-8968-6916

 

	 	With a copy to:
	 	K&L Gates LLP
	 	10100 Santa Monica Boulevard Seventh Floor
	 	Los Angeles, CA 90067
	 	Attn: Katherine J. Blair
	 	Fax: (310) 552-5001

 

Each person making
a communication hereunder by facsimile shall promptly confirm by telephone to the person to whom such communication was addressed
each communication made by it by facsimile pursuant hereto but the absence of such confirmation shall not affect the validity of
any such communication.

 

14.         Expenses.
  If any action at law or in equity is necessary to enforce or interpret the terms of this Warrant, the prevailing party shall
be entitled to reasonable attorneys’ fees, costs and necessary disbursements in addition to any other relief to which such
party may be entitled.

 

15.         Entire
Agreement; Amendments and Waivers. This Warrant and any other documents delivered pursuant hereto and the Consulting Agreement
constitute the full and entire understanding and agreement between the parties with regard to the subjects hereof and thereof.
Nonetheless, any term of this Warrant may be amended and the observance of any term of this Agreement may be waived (either generally
or in a particular instance and either retroactively or prospectively), with the written consent of the Company and the Holder;
or if this Warrant has been assigned in part, by the holders or rights to purchase a majority of the shares originally issuable
pursuant to this Warrant.

 

16.         Severability.
If any provision of this Warrant is held to be unenforceable under applicable law, such provision shall be excluded from this
Warrant and the balance of the Warrant shall be interpreted as if such provision were so excluded and shall be enforceable in
accordance with its terms. 

 

    	- 8 -

    	 

    

 

IN WITNESS WHEREOF,
the parties have executed this Warrant as of the date above written.

 

	 	HIGHPOWER INTERNATIONAL, INC.
	 	 	 
	 	By:	/s/ Dangyu Pan
	 	Name:  Dangyu Pan
	 	Title:  Chief Executive Officer

 

	ACKNOWLEDGED AND AGREED	 
	 	 
	/s/ Jian Ke	 
	Jian Ke	 
	 	 
	Address:	 
	 	 
	 	 
	 	 
	 	 

    	- 9 -

    	 

    

 

EXHIBIT A

 

Notice of Exercise

 

HIGHPOWER INTERNATIONAL, INC.

 

Attention: Chief Financial Officer

 

The undersigned hereby irrevocably elects
to exercise the right of purchase pursuant to the provisions of the Warrant the securities of the Company, as provided for therein,
as follows (check the applicable box):

 

	 ̈	tenders herewith payment of the exercise price in full in the form of (i) cash (by check) or by wire transfer or (ii) by cancellation by the Holder of indebtedness of the Company to the Holder, in the amount of $____________ for _________ shares of Common Stock pursuant to the terms of the attached Warrant at $_______ per share (the applicable Exercise Price as of the date of this Notice of Exercise).
	 	 
	 ̈	elects the Net Issue Exercise option pursuant to Section 2(b) of the Warrant, and accordingly requests delivery of a net of ______________ shares of Common Stock.

  

The undersigned hereby
represents and warrants that Representations and Warranties in Section 3 of the Warrant are true and correct as of the date hereof.

 

Please issue a certificate or certificates
for such securities in the name of, and pay any cash for any fractional share to (please print name, address and social security
number):

 

	Name:	 
	 	 
	Address:	 
	 	 
	Signature:	 

  

Note: The above signature should correspond
exactly with the name on the first page of this Warrant or with the name of the assignee appearing in the assignment form below.

 

If said number of shares shall not be all
the shares purchasable under the within Warrant, a new Warrant is to be issued in the name of said undersigned for the balance
remaining of the shares purchasable thereunder rounded up to the next higher whole number of shares.

 

    	 

    	 

    

 

EXHIBIT B

 

Assignment
Form

 

HIGHPOWER INTERNATIONAL, INC.

 

FOR VALUE RECEIVED,
_________________________________________ (the “Assignor”) hereby sells, assigns and transfers all of the rights
of the undersigned under the attached Warrant with respect to the number of shares of Common Stock covered thereby set forth below,
unto:

 

	Name of Assignee	 	Address/Fax Number	 	No. of Shares
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 

  

1.       
   Obligations of Assignee. Assignee agrees to take and hold the Warrant and any Warrant Shares issued
upon its exercise (the “Securities”) subject to, and to be bound by, the terms and conditions set forth in
the Warrant to the same extent as if Assignee were the original holder thereof.

 

2.   
       Investment Intent. Assignee represents and warrants that the Securities are being
acquired for investment for its own account, not as a nominee or agent, and not with a view to, or for resale in connection with,
the distribution thereof, and that Assignee has no present intention of selling, granting any participation in, or otherwise distributing
the shares, nor does it have any contract, undertaking, agreement or arrangement for the same, and all representations and warranties
set forth in Section 4 of the Warrant are true and correct as to Assignee as of the date hereof. 

 

	ASSIGNEE	 	ASSIGNOR
	 	 	 	 	 
	By:	 	 	By:	 
	 	 	 	 	 
	Name:	 	 	Name:	 
	 	 	 	 	 
	Title:	 	 	Title:	 
	 	 	 	 	 
	Date:	 	 	Date:	 

  

    	- 11 -Working Capital Loan Contract

 

Reference No. : 2014zhenzhongyinbujiezi No.00010

 

Party A: Springpower Technology (Shenzhen) Co.,
Ltd

Business Licences: 440306503295562

Legal Representative: Dangyu Pan

Address: Factory A, Chaoshun Industrial Zone, Renmin Road, Fumin
Residential Area, Guanlan, BaoAn District,

Postal code: 518000

Deposit A/C and financial institutions: Bank of China, Pinghu
Sub-branch, Shenzhen, Telephone: 2802 9923 ; Facsimile: 2802 9923

 

Party B: Bank of China, Buji Sub-branch.

Legal Representative: Li Yanshan

Address: 108, Buji Road, Buji Town, Longgang
District, Shenzhen; Postal code: 518112

Telephone: 0755-2827 4825; Facsimile: 0755-2827
0847

 

This contract is the affiliated specific credit
contract under the “Comprehensive Credit Line Contract” (Reference No.: 2013zhenzhongyinebuxiezi No. 0000132), which
is signed by Springpower Technology (Shenzhen) Co., Ltd and Bank of China, Buji Sub-branch.

 

The parties agree as follow.

 

Clause 1 Amount

 

Party B agrees to provide the following loan:

	Currency in:	RMB
	Amount:	RMB Ten million only
	 	RMB  10,000,000.00

 

Clause 2 Period

 

The period of the loan is 6 months starting
from the first withdrawal date in part or in whole. It is Party A’s obligation to withdraw funds on the date as agreed. Any
late withdrawal will not result in delay/extension of repayment.

 

    	 

    	 

    

 

Clause 3 Use of loan

 

Purpose of loan: Purchase of raw
materials

 

Party A is prohibited from changing the use
of loan without Party B’s written approval. The restrictions include but are not limited to changing the use of loan to fixed
assets or equity investments, as well as production activities prohibited by the central governments.

 

Clause 4 lending rate and interest
calculations

 

Lending rate is floating rate, which is reset
every six months starting from the first withdrawal date. The rate resetting date is the first day of each floating period.

 

For each withdrawal in installments:

 

■ RMB floating rate

 

A. First withdrawal (during the first floating
period) interest rate is the six-month benchmark lending interest rate, set by People's Bank of China, plus 10%;

 

B. On the interest resetting date, the new
interest rate is the spot one-year lending interest rate, benchmarked by People’s Bank of China, plus 10% on all outstanding
loan amounts.

 

2. Interest calculation

 

Interest is calculated starting from the actual
withdrawal date on the actual amount of money withdrawn and the number of days outstanding.

 

Interest calculation formula: Interest = Principal
× actual number of days × daily rate.

Daily rate calculation is: daily rate = APR
/ 360.

 

3. The method of interest settlement

 

Interest settlement takes place on the 20th
of each month, the 21st is the interest payment date.

 

If the final loan principal payment date is
different from the interest payment date, the borrower should pay off all interest on the principal payment date.

 

4. Penalty interest

 

(1) For the loan overdue or violated use the
loan purpose, penalty interest rate will apply to the loan amount that is overdue or misappropriated from the date of overdue or
misappropriation until the principal and interest are paid off.

 

    	 

    	 

    

 

On both overdue and misappropriation of loans,
a higher penalty interest rate shall be charged.

 

(2) If the borrower does not pay interest
and/or penalty interest by the interest payment date, the interest is calculated based on Clause 3 and 4.

 

(3) Penalty rate

 

■ The penalty interest rate on
floating-rate loans

 

According to the floating period and the method
of floating as agreed in Clause 1, the penalty interest rate of the overdue loan shall be the agreed interest rate plus 50%, and
the penalty interest rate of the misappropriated loan shall be the agreed interest rate plus 100%;

 

Clause 5 Withdrawal Conditions

 

Withdrawal must meet the following conditions:

 

1. This contract and its attachments have
become effective.

 

2. Party A has provided guarantees requested
by Party B, and the guarantee contract has become effective and has accomplished legal procedures of approval and registration.

 

3. Party A has provided Party B with loan
documents, seals, personnel list, specimen signature, and complete the relevant evidence.

 

4. Party A has opened the account for fulfilling
this contract requested by Party B.

 

5. Party A should submit written withdrawal
application, documentary proof for using of loans and complete the relevant formalities for withdrawal before 5 banking days.

 

6. Party A has submitted resolution books
and power of attorney signed by the board or other authorities to Party B.

 

Withdrawal can be refused by Party B if Party
A has not met the above conditions, but agreed by Party B.

 

Clause 6 Date and method of withdrawal

 

1. All loans should be withdrawn in 30 days
from 16th Jan 2014.

 

    	 

    	 

    

 

2. Party B has the right to refuse the withdrawal
application of unused loan which is over the date of withdrawal.

 

Clause 7 Payment of the loan

1. The account

The loan should be granted and paid through
the account opened by Party A:

 

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

Account number:764057938815

 

2. The way of payment

 

(1) The way of payment should be in accordance
with laws and regulations, regulatory requirements and the contract. The way of single payment of the Loan should be approved in
written withdrawal application. Party B has the right to change the way of payment or stop providing the loan if the way of payment
in the application doesn’t meet the requirement.

 

(3) Borrower makes the payment on its own.

 

(4) The change of payment. The way of payment
should be changed when the payment, credit rating or other conditions of Party A has changed after submitting withdrawal application.
Party A should provide the written change application, should resubmit the withdrawal application and documentary proof for using
of loans if the sum, payment object or the use of loans has changed.

 

3. The specific requirements of entrusted
payment

 

(1) Entrusted payment. Party B pay to the
specified account directly which is written in this contract, including the name of account, account number and the sum of payment.

 

(2) To provide the transaction information.
Party A should provide the account of loans, the account information of counterparty and relevant documents when entrusted payment.
All document provided to Party B should be true, integral and effective, or Party B does not assume any responsibility for failed
transaction, and occurred repayment obligations do not be affected.

 

(3) Party B’s obligations under the
entrusted payment

 

A. Party B pay to the specified account after
examination and approval of Party A’s commission books and other related transaction information when entrusted payment.

 

    	 

    	 

    

 

B. If Party B found that the proof materials
and other related trading purposes material provided by Party A does not comply with this contract or the presence of other defects,
Party B has the right to require Party A to supplement, replace, description or re-submit the relevant materials. Before these
materials are submitted, Party B has the right to refuse the issuance and payment of the relevant amounts.

 

C. Party B will assume no responsibility and
the generated obligations of Party A will be not affected if Party B cannot pay the loan to the counterparty in time in accordance
with payment order of Party A because of the refund by opening bank of the counterparty. Party A hereby authorizes Party B to freeze
the fund returned by opening bank of the counterparty. In this case, Party A shall resubmit the payment order and use proven materials
and other related transaction materials.

 

(4) Party A shall not piecemeal way to circumvent
the trustee to pay Party B.

 

5. Party B has right to redefine the terms
of payment and loan disbursement or stop the loan if the following situations occurred:

 

(1) Party A violates the contract to circumvent
entrusted payment of Party B by piecemeal way.

 

(2) Party A's credit status drops or main
business profitability is not good.

 

(3) The use of loan is abnormal.

 

(4) Party A fails to provide the records and
information of the loan requested by Party B timely.

 

(5) Party A contravenes this section to use
the loan.

 

Clause 8 Repayment

 

1. Party A shall specify the following account
as capital recovery account and provide the information of this account. Party B has the right to ask Party A to explain inflows
and outflows of large-sum and abnormal capital, as well as monitor capital recovery account.

 

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

Account number:764057938815

 

2. Except otherwise agreed, on the expiry
date, Party A must repay all the loans under this contract.

 

If Party A wants to change the plan of repayment,
a written application confirmed in writing by both parties jointly should be submitted in 10 banking days before the loans maturity.

 

    	 

    	 

    

 

3. Unless otherwise agreed, Party A has the
right to decide repayment order of the principal or interest. If there are several expiring loans or overdue loans which are repaid
in installment way under this contract, Party B has the right to decide the liquidation sequence of a repayment. Party B has the
right to decide the priority of the repayment order if multiple contracts expire at the same time.

 

4. Unless otherwise agreed, Party A can repay
in advance, but Party A should notice Party B in written 15 banking days advance. The amount of the first advance payment used
to repay the final maturity of the loan, in reverse order to repay the loans.

 

5. Party A must deposit funds in the following
account three banking days advance of every expiring principle with interest. Party B has the right to take the funds from the
account on the expiry date.

 

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

Account number:764057938815

 

Clause 9 Guarantee

 

		1.	To ensure that borrowing under this agreement is repaid, the following guarantees shall be adopted:

 

		1)	This contract is the main contract of Guaranty Contract of Maximum Amount (NO: 2013ZHENZHONGYINBUBAOEZI0016)
signed by SHENZHEN HIGHPOWER TECHNOLOGY CO., LTD. (Guarantor) and Party B. Guarantor provides the maximum amount guarantee.

 

		2)	This contract is the main contract of Guaranty Contract of Maximum Amount (NO: 2013ZHENZHONGYINBUBAOEZI0017)
signed by DAGNYU PAN (Guarantor) And Party B. Guarantor provides the maximum amount guarantee.

 

		3)	This contract is the main contract of pledge of account receivable (NO: 2013ZHENZHONGYINBUZHIXIEZI0008)
signed by Springpower Technology (Shenzhen) Co., Ltd And Party B.

 

    	 

    	 

    

 

		2.	Under certain circumstance, Party B believes that will affect the capacity for fulfilling the contract
of Party A or Guarantor, or Guarantee Contracts are invalid, revoked or dissolved, or the financial position of Party A/Guarantor
deteriorate or Party A/Guarantor involved in litigation issues, or other factors which might affect its repayment ability, or guarantors
were found default in other contracts with Party B, or devaluation, dismiss or damage of collaterals which might cause the value
of the collaterals slaked or losses, Party B reserves the right to request Party A and Party A has the obligation to add or replace
the guarantor.

 

Clause 10 Statement and Commitment

 

		1.	Party A’s statement:

 

		1)	Party A is legally register and exist with full capacity for civil rights and civil conduct;

 

		2)	Signing and performing the contract is the true will of Party A, Party A has been granted all legal
and valid authorizations before signing the contract. The contract does not form a default for other contracts signed and performed
by Party A and other legal documents. It is Party A’s responsibility to complete all required approvals, registrations, permits
and filings.

 

		3)	All document and information, financial statement, certificates and other materials provided by Party
A to Party B are true, complete, accurate and effective.

 

		4)	All the transactions mentioned by Party A for apply specific credit line should be real and not for
illegal purposes such as: money laundry.

 

		5)	No hidden events regarding Party A and guarantor’s financial and repayment abilities.

 

		6)	Party A and the loan project reach the national environmental standards, not in the list of the enterprises
which have problems of energy consumption and pollution, don’t have the risk of energy consumption and pollution.

 

		2.	Party A’s commitment:

 

		1)	Party A shall submit the financial statements and other relevant information regularly, including
but not limited to annual, quarterly and monthly financial reports.

 

		2)	Any counter-guarantee agreement between the guarantors and Party A will not affect the Party B’s
underlying rights under this contract.

 

		3)	Cooperated in Party B’s exam and inspection on the utilization of the loan as well as Party
A’s financials and operations.

  

    	 

    	 

    

  

		4)	Under circumstances Party A or Guarantor’s capability of performing the contract might be affected,
Party A should notify Party B in written in time. Those circumstances included but not limited to merger, division, decrease of
capital, equity transfer, investment, a substantial increase of debt financing, a major asset and credit assignment.

 

Party A should notify Party B in time, when
the following things occurred:

 

A. changes of articles of association,
the scope of business, registered capital and legal representative of Party A or Guarantor.

 

B. Any form of management mode
change, including joint operation, invest and cooperate with foreigners, contract management, reorganization, restructuring, listing
plan.

 

C. Party A is involved in major
litigation or arbitration, or property or collateral is seized, detained or regulated, or set new guarantee in collateral.

 

D. Out of business, dissolution,
liquidation, suspend business for rectification, cancellation, revocation of the business license or (be) filed for bankruptcy.

 

E. Shareholders, directors and
senior management personnel suspected of serious cases or economic disputes.

 

F. Default events in other contracts.

 

G. Operating difficulties and financial
situation has deteriorated.

 

(5) The repayment to Party B prior to shareholders,
and is comparable to other creditors of the same kind debts.

 

Party A is prohibited to repay the loan to
shareholders before paying off the principal and interests under the contract.

 

(6) If Party A fails to pay principal, interests
and fees on time in the fiscal year, any form of dividends is forbidden.

 

(7) Party A cannot dispose of assets to reduce
its debt paying ability and promises the total amount of external guarantee is not 1 time higher than its net assets, and the total
amount of external guarantee and the amount of single guarantee shall not exceed the limitation set by the articles of association.

 

(8) Except the use agreed in this contract
or agreed by Party B, Party A is prohibited to transfer the loans to other accounts or related accounts.

 

    	 

    	 

    

 

Party A should provide documentary proof when
the loan is transferred to other accounts or related accounts.

 

(9) Party B has the right to call the loan
advanced according to the situation of capital return of Party A.

 

Clause 11 disclosure of the affiliated transaction
inside Party A 's group

 

Party A is a Group customer confirmed by
Party B according to the "Commercial Bank Group guidelines for customer credit risk management business"(hereinafter
referred to as “guideline”). During the credit period, Party A shall promptly report to Party B about more than 10%
of net assets associated with the transaction, including but not limited to: the parties to the transaction of the association;
trading program and nature of the transaction; the amount of the transaction or the corresponding ratio; pricing policies (including
no amount or only nominal amounts of transactions).

 

Under any of the following circumstances,
Party B shall have the right to unilaterally decide to suspend the unused loan and recover part or all of the principal and interest
of the loan in advance: use the false contracts which are signed with affiliated parties to discount or pledge at bank and to obtain
bank funds or credit with notes receivable and accounts receivable without actual trade background; the occurrence of major mergers,
acquisitions and reorganization which are considered by Party B may affect the loan safety; evasion or discarding of bank debts
on purpose through affiliated transactions; other circumstances stipulated in article eighteenth of "guidelines".

 

Clause 12 Breach of Covenants

 

Each of the following events and issues constitute
Party A in the event of default under the contract:

 

		1.	Party A did not perform the repayment obligation under this contract;

 

		2.	Party A has not used the credit funds according to agreed purposes, or has not paid the loan by agreed
way in this contract;

 

		3.	Party A’s statements in this contract are untrue or in violation with commitments made by Party
A in this contract.

 

		4.	Under the circumstance defined in 2.(4) of Clause 10, Party A refused to provide additional guarantee
or replacement of a new guarantor.

 

    	 

    	 

    

 

		5.	Deterioration of credit, or profitability, debt paying ability, operating ability, cash flow and other
financial indicators of Party A deteriorate, breaking the contract index constraint agreed or other financial covenants.

 

		6.	Party A breaches other contracts signed with Party B or other affiliated institutions of Bank of China.

 

		7.	Guarantors breach contracts, or have default events with Party B or other affiliated institutions
of Bank of China.

 

		8.	The termination of business or dissolution, revocation or bankruptcy of Party A.

 

		9.	Party A is or may be involved in major economic disputes, litigation, arbitration, or its assets were
seized, detained or enforced, or investigated or punished by the judicial organ or taxation, industry and commerce administrative
organs in accordance with the law, has been or may affect its ability to fulfill the obligations under this contract.

 

		10.	Abnormal change, missing, legal restriction of personal liberty and investigation by judicial authorities
of Party A’s major individual investors, key management personnel, which have been or may affect Party A to fulfill the obligations
under this contract.

 

		11.	Party B finds the problems which may affect the borrower or guarantor's financial situation and performance
capabilities when reviewing Party A’s financial condition and performance capabilities every year (every year from the effective
date of the contract);

 

		12.	Party A cannot provide materials to Party B to explain large and abnormal capital inflow and outflow
in the account.

 

		13.	Party A is in violation with other rights and obligations agreed in this contract.

 

When any of the above situations
occurred, Party B will perform the following in separate or all at the same time according to the specific situation:

 

		1)	Require Party A or Guarantor to rectify defaults within a definite time.

 

		2)	Reduce completely or partly, pause or terminate Party A’s Credit limit.

 

    	 

    	 

    

 

		3)	Pause or terminate completely or partly Party A’s business applications in this contract or
in other contracts between Party A and Party B specific credit line under this contract. Pause or terminate completely or partly,
or cancel or stop offering, paying and settling the unissued loans and unsettled trade financing.

 

		4)	Announce the immediate expiration on all or part of the outstanding loans, principle and interest
of trade financing and other accounts payable under this contract or other contracts between Party A and Party B.

 

		5)	Terminate or release this contract, terminate or release contracts between Party A and Party B completely
or partly.

 

		6)	Require compensation from Party A on the losses caused by Party A to Party B.

 

		7)	Deduct the fund from Party A’s deposit accounts to pay off the debts to Party B under this contract.
All the undue funds in the accounts were considered as acceleration of maturity. If the currency in deposit account is different
from the currency of Party B’s loans, the exchange rate on the date of the hold in custody will be applied.

 

		8)	Real rights of pledge will be executed.

 

		9)	Require Guarantors assume liability of guaranty.

 

		10)	Other necessary or probable procedures on Party B’s concern.

 

Clause 13 Rights reserved

 

One party does not perform part or all of
the rights under this contract, nor does not require the other party to perform, undertake part or all of the obligations and responsibilities,
which does not mean the abdication of the right or exemption of the obligation and responsibility. 

Any tolerance, extension or delay from one
party to another party for exercising of rights under this contract does not affect the rights one party enjoys according to this
contract and laws and regulations, and does not mean the abdication of the right.

 

Clause 14 Changes, Modification, Termination

 

Upon negotiation and agreed by both parties,
this contract can be changed and modified by written. Any of the changes and modifications should form the inseparable part of
this contract.

 

Unless otherwise provided for in any law or
regulation or stipulated between the parties, this contract would not be terminated prior to all the rights and obligations are
fulfilled.

 

    	 

    	 

    

 

Unless otherwise provided for in any law or
regulation or stipulated between the parties, the invalidation of single terms under this contract should not affect the validation
of other terms under this contract.

 

Clause 15 Applicable Law and Resolution
for Dispute

 

1.      This
contract is applicable to the laws of People’s Republic of China.

 

During the performance
of this contract or in connection with all disputes relating to this contract, the two parties settled through friendly consultations.
If negotiation cannot reach agreement, both parties can apply to the local people's court of Party A or other affiliated institutions
of Bank of China.

 

Clause 16 Attachments

 

The Appendix hereof and the other appendix
confirmed by both parties shall form an integral part of this contract, and shall be of legally equal effect with this contract.

 

		1.	Withdrawal application;

 

Clause
17 Other terms and conditions

 

		1.	Without Party B’s written approval, Party A is not allowed to transfer the rights and obligations
under this contract to the 3rd Parties.

 

		2.	Party A should give the consent that Party B might somehow authorize other affiliated institution
of Bank of China to perform the obligation. The performing party entitles all the rights and obligations under this contract, the
performing party reserves the rights to appeal a resolution of dispute if necessary.

 

		3.	The contract has equivalent restrictions to the successors or inherits of both parties.

 

		4.	Unless otherwise agreed, the domicile addresses stated in this contract are for corresponding use;
both parties should notify each other in writing about any changes of its domicile addresses.

 

		5.	The transactions under the contract based on independent interests. According to relevant laws, regulations
and regulatory requirements, other parties of the transaction constitutes a connected party or associated persons, any party shall
not seek to use this relationship to affect the fair of transaction.

 

    	 

    	 

    

 

		6.	The title and name of business in this contract is only for business purposes, will not be used for
interpretation of the contract terms, the rights and obligations.

 

		7.	In accordance with the provisions of the relevant laws and regulations, supervision, Party B has the
right to provide the information of this contract and other relevant information to the credit system of the people's Bank of China
and other legally established credit information database, for organizations or individuals who have the appropriate qualifications
to query and use.

 

		8.	If the drawdown date or the repayment date is in legal holidays, then it is delayed to the first working
day after the holidays.

 

		9.	If required by the governing institutions, Party B might not be able to perform the obligations agreed
in this contract, Party B has the right to stop or change the contract or its clauses, and Party B is exempted from punishment
under this circumstance.

 

Clause 18 Effective of the contract

 

This contract enters into force upon the date
when it is signed or sealed and affixed with official seals by the legal representatives or entrusted agents of Party A and Party
B.

 

This contract is signed in quadruplicate,
each party holds two copies, which have the equal legal effect.

 

	/s/ [Stamp of Party A]	 
	Signature	 
	Jan 16, 2014	 
	 	 
	/s/ [Stamp of Party B]	 
	Signature	 
	Jan 16, 2014

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