Document:

THE SHANGHAI COMMERCIAL & SAVINGS BANK,
LTD.

HONG KONG BRANCH

(INCORPORATED IN TAIWAN WITH LIMITED LIABILITY)

  

Private and Confidential

 

Our Reference: 6400101120030

 

31st July 2012

 

Hong Kong Highpower Technology Company Limited

Unit 12, 15/F Technology Park,

18 On Lai Street,

Shek Mun, Shatin,

N.T.

 

Dear Sirs,

 

	Re:	Banking Facility up to a limit of USD4,000,000
	 	Borrower: Hong Kong Highpower Technology Company Limited

 

We are pleased to offer the banking/credit
facility(ies) as described in this letter (“Facility Letter”) to you subject to the provisions herein contained
this Facility Letter and in the Appendix (“Appendix”) hereof. Please note that the Appendix forms an integral
part of this Facility Letter, which is intended to set out all the terms and provisions of the said Facility.

 

		1.	Bank

 

The Shanghai Commercial &
Savings Bank, Ltd., Hong Kong Branch, whose registered office is situated at 10/F, Peninsula Office Tower, 18 Middle Road, Tsim
Sha Tsui, Kowloon, Hong Kong (including its successors and assigns) (the “Bank”).

 

		2.	Borrower

 

Hong Kong Highpower Techonolgy
Company Limited (Company No.: 851928) whose registered office is situated at Unit 12, 15/F Technology Park, 18 On Lai Street, Shek
Mun Street, Shek Mun, Statin, N.T. (the “Borrower”).

 

		3.	Facility Type and Amount

 

A Revolving Short-term Secured
Loan Facility

 

Limit: US Dollars Four Million
(USD4,000,000)

 

Note:-

The Revolving Short-term Secured Loan Facility is to be granted against the Standby Letter of Credit issued by China CITIC Bank
and acceptable to the Bank.

 

Unless otherwise agreed by the
Bank, the Borrower shall ensure that the total outstanding amount of the Facility shall not exceed the Facility Limit.

 

    	Page 1 of 9

    	 

    
 

THE SHANGHAI COMMERCIAL & SAVINGS BANK,
LTD.

HONG KONG BRANCH

(INCORPORATED IN TAIWAN WITH LIMITED LIABILITY)

 

The Facility Limit is subject
to our customary periodic review, normally on an annual basis. In any event, the Bank may at any time modify or reduce the Facility
Limit.

 

		4.	Interest

 

Interest is to be charged at
2% p.a. above 6-Month LIBOR or at a rate not to be less than our cost of funds.

 

Interest is payable monthly commencing
one month after the drawdown date or at the due date, whichever is earlier.

 

The LIBOR is subject to change.
The interest rate of the Facility shall be changed automatically and immediately upon the change of the LIBOR without any notice
from the Bank to the Borrower.

 

		5.	Facility Fee

 

A facility fee of USD10,000 will
be charged.

 

		6.	Drawdown

 

The Borrower shall give notice
to the Bank no later than 2 business days before the day it requires drawdown. The notice of drawdown referred herein shall
be in such form and content to be determined by the Bank in its absolute discretion.

 

		7.	Repayment

 

Subject to the Bank’s overriding
right of withdrawal and forthwith repayment on demand, all the outstanding liabilities under the Facility shall be repaid by 7th
June 2013.

 

		8.	Conditions Precedent

 

The availability of the Facility
is subject to and conditional upon due and complete fulfillment of all of the following conditions :-

 

		(a)	delivery of certified true copies of the Certificate of Incorporation and Memorandum and Articles
of Association (or equivalent constitutional documents) of the Borrower(s);

		(b)	delivery of appropriate supporting board minutes and/or shareholders’ resolutions in a form
acceptable to the Bank;

		(c)	the General Letter of Hypothecation; and

		(d)	such other documents, items or evidence (all in a form acceptable to the Bank) as the Bank may
require.

 

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THE SHANGHAI COMMERCIAL & SAVINGS BANK,
LTD.

HONG KONG BRANCH

(INCORPORATED IN TAIWAN WITH LIMITED LIABILITY)

 

		9.	Nature and Term of the Facility

 

Subject to the Bank’s overriding
right of withdrawal and forthwith repayment on demand, the term of the Facility shall be for a period up to 7th June 2013.

 

We must stress that notwithstanding
anything contained in this Facility Letter, the Bank shall be entitled at any time in its absolute discretion to cancel or withdraw
the Facility and/or to demand immediate repayment or payment (as the case may be) of all principal, interest, fees and other amounts
outstanding under this Facility Letter (the “Facility Liabilities”) (whereupon the Facility shall be so cancelled
or withdrawn and/or the Facility Liabilities shall be immediately so payable).

 

The Facility is also subject
to our customary periodic review, normally on an annual basis. In any event, the Bank may at any time cancel the outstanding commitment
in respect of any undrawn portion of the Facility.

 

It should be noted that approval
of advance to the Borrower under any of the Facility may in our sole and absolute discretion, be varied, withdrawn or suspended
at any time before any such advance is in fact made notwithstanding any purported acceptance by the Borrower hereunder or the signing/execution
of any Facility Letter and security documents by the Borrower in favour of us.

 

Please indicate your acceptance
of the Facility by signing and returning the enclosed duplicate of this Facility Letter, which should be duly signed by you and
the relevant party(ies) (if any) within 30 days hereof to evidence your understanding, failing which the offer in this Facility
Letter will lapse (unless otherwise agreed by our Bank).

 

	 	Yours faithfully,
	 	For and on behalf of
	 	The Shanghai Commercial & Savings
	 	Bank, Ltd., Hong Kong Branch
	 	 
	 	 
	 	 
	 	/s/ [ILLEGIBLE SIGNATURE]_______
	 	Authorized Signatures

 

We agree to accept the Facility and be
bound by all the terms and conditions as the Borrower.

 

In addition, we hereby represent, declare
and undertake to the Bank that the utilization of any of the Facility or use of proceeds drawn under this Facility Letter do not
and will not conflict with any law or regulation applicable to us (including and without limitation those in force in the Mainland).
The above representation and declaration to be made by us by reference to the facts then existing during the period where the Facility
or any part thereof remains outstanding.

 

    	Page 3 of 9

    	 

    
 

THE SHANGHAI COMMERCIAL & SAVINGS BANK,
LTD.

HONG KONG BRANCH

(INCORPORATED IN TAIWAN WITH LIMITED LIABILITY)

 

	/s/ Dangyu Pan
	Borrower : Hong Kong Highpower Technology Company Limited
	Date:

 

Note: The Borrower should note that the
Bank has during the credit approval process obtained and considered a credit report on the Borrower from the credit reference agency
- Dun & Bradstreet (HK) Limited. In this regard, the Borrower may wish to contact the credit reference agency (Tel No. 2516
1100) directly for enquiry. The Bank may in future access the Borrower’s data held with the credit reference agency for the
purpose of reviewing the facility and such reviews are common and in the normal course of events take place one or more times each
year.

 

    	Page 4 of 9

    	 

    
 

THE SHANGHAI COMMERCIAL & SAVINGS BANK,
LTD.

HONG KONG BRANCH

(INCORPORATED IN TAIWAN WITH LIMITED LIABILITY)

 

APPENDIX

 

 

Definitions and Interpretation

 

“HIBOR” means the annual
rate of interest applicable for each interest period in respect of an advance determined conclusively, in the absence of manifest
error, by the Bank to be the rate (rounded up, if necessary, to the nearest integral multiple 1/16 per cent.) at which Hong Kong
dollar deposits in amounts comparable to the amount of the advance are offered by the Bank for that interest period to prime banks
in the Hong Kong inter-bank market at or about 11:00 a.m. (Hong Kong time) on the first day of that interest period;

 

“Hong Kong” means the
Hong Kong Special Administrative Region of the People’s Republic of China;

 

“LIBOR” means the annual
rate of interest applicable for each interest period in respect of an advance determined conclusively, in the absence of manifest
error, by the Bank to be the rate (rounded up, if necessary, to the nearest integral multiple 1/16 per cent.) at which United States
dollar deposits in amounts comparable to the amount of the advance are offered by the Bank for that interest period to prime banks
in the London inter-bank market at or about 11:00 a.m. (London time) on the first day of that interest period;

 

“Prime Rate” means Hong
Kong dollar prime lending rate as announced, quoted or applied by the Bank from time to time and subject to fluctuation at its
discretion;

 

 

General Terms and Conditions

 

		1.	Interest Rate Calculation Basis

 

		1.1	Interest shall be computed on the basis of a 365 day year for Hong Kong dollar Facilities and 360
day year for Facilities in other currencies.

 

		2.	Overdue Interest

 

		2.1	4% per annum over the interest rate as set out in paragraph 4 of the Facility Letter subject to
changes at our discretion.

 

		3.	Interest and Repayment on Overdraft facility (“O/D”)

 

		3.1	O/D is repayable on demand. Interest is to be accrued on a daily basis but payable monthly in arrears
to the debit of the Borrower’s Current Account on the 21st day (or the next business day if it is a holiday) of
each and every calendar month. Any O/D in excess of the agreed limit is subject to approval at our discretion. Interest on such
excess amount is to be charged at such rate as the Bank may from time to time determine on a daily basis which is currently at
Prime Rate plus 10% per annum.

 

    	Page 5 of 9

    	 

    
 

THE SHANGHAI COMMERCIAL & SAVINGS BANK,
LTD.

HONG KONG BRANCH

(INCORPORATED IN TAIWAN WITH LIMITED LIABILITY)

 

		4.	Set-off

 

		4.1	In the event of default, the Bank have the right to set off any credit balance in other accounts
held by the Borrower solely or jointly with other person(s) against the actual or contingent liabilities due to the Bank whether
current or otherwise or subject to notice or not.

 

		5.	Expenses

 

		5.1	Whether or not the legal documentation for the Facilities is executed as contemplated, all expenses,
commissions, legal costs, fees, stamp duties, insurance premiums, property valuation fees, documentation costs, out-of-pocket expenses
and any other expenses reasonably incurred in connection with the Facilities including, without limitation, the preparation, execution
and/or enforcement of the relative security documents shall be for the Borrower’s account and borne by the Borrower and shall
be payable on demand.

 

		6.	Forced Liquidation

 

		6.1	If the total outstanding amount under the Facility shall exceed [801% of the market value of the
Collateral, the Borrower shall, on demand by the Bank, make partial prepayment of the Facility in the sum equal to the amount of
the total outstanding amount under the Facility exceeding [801% of the market value of the Collateral to the extent that the remaining
total outstanding amount under the Facility (after the aforesaid partial prepayment) shall not exceed [801% of the market value
of the Collateral. The market value of the Collateral shall be determined by the Bank in its absolute discretion and the determination
of the Bank on the market value of the Property shall be final and conclusive and be binding on the Borrower.

 

		7.	Debt Collection Agencies

 

		7.1	When necessary and at the Bank’s discretion, debt collection agencies may be appointed to
recover any overdue amount due to the Bank by the Borrower. The Borrower are required to indemnify the Bank for the reasonable
costs and expenses incurred in the debt recovery process.

 

		8.	Availability Period of The Facility

 

		8.1	The Facility will be available for 3 months from the date of this Facility Letter unless further
extension is agreed by the Bank in writing. After the expiration of the said 3 months period, the Facility shall automatically
become lapsed and be terminated.

 

		9.	Increased Costs

 

		9.1	If any change in, or in the interpretation of or compliance with, any law or regulation subjects
the Bank to tax in respect of sums payable by the Borrower hereunder (other than tax on the Bank’s overall net income), or
increases the Bank’s cost of making available or maintaining the Facility or reduces the amount of any payment receivable
by the Bank hereunder, then the Borrower will pay the Bank on demand all amounts needed to compensate the Bank therefor.

 

    	Page 6 of 9

    	 

    
 

THE SHANGHAI COMMERCIAL & SAVINGS BANK,
LTD.

HONG KONG BRANCH

(INCORPORATED IN TAIWAN WITH LIMITED LIABILITY)

 

		10.	Representations and Warranties

 

		10.1	The Borrower represents and warrants to the Bank that:

		(a)	the Borrower has full capacity and legal right to enter into and engage in the transactions contemplated
by this Facility Letter and this Facility Letter constitutes legal, valid and binding obligations of the Borrower in accordance
with its terms;

		(b)	neither the borrowing of the Facility nor the performance by the Borrower of its obligations hereunder
will conflict with any obligation applicable to the Borrower or result in or oblige the Borrower to create any encumbrance on any
of its property; and

		(c)	there are no pending or, to the best of the knowledge and belief of the Borrower, threatened actions
or proceedings before any court, arbitrator, administrative tribunal or governmental authority which might materially and adversely
affect the business, assets or condition (financial or otherwise) or operations of the Borrower or its ability to perform its obligations
hereunder.

 

		11.	Events of Default

 

		11.1	The Bank may by written notice to the Borrower declare the amount of the Facility outstanding,
accrued interest thereon and all other sums payable hereunder to be, whereupon the same shall become, immediately due and payable
if any of the following events of default occurs :-

		(a)	the Borrower fails to pay any sum payable hereunder on the due date;

		(b)	the Borrower fails to perform any other of its obligations hereunder and, in respect only of a
failure which is in the Bank’s opinion capable of remedy, does not remedy such failure within seven (7) days after receipt
of written notice from the Bank requiring it to do so;

		(c)	any representation or warranty made by the Borrower in this Facility Letter is or proves to have
been untrue or inaccurate in any material respect;

		(d)	the Borrower (being individual) dies or commits an act of bankruptcy;

		(e)	if any Shareholder (being a company) commits an act to go into voluntary liquidation or reconstruction
or amalgamation; and

		(f)	any situation occurs which in the opinion of the Bank may materially and adversely affect the ability
of the Borrower to perform its obligations under this Facility Letter.

 

		12.	Indemnity

 

		12.1	The Borrower shall indemnify the Bank against all losses, liabilities, damages and expenses which
the Bank may sustain or incur as a consequence of any event of default hereunder or any default by the Borrower in the performance
of its obligations hereunder.

 

    	Page 7 of 9

    	 

    
 

THE SHANGHAI COMMERCIAL & SAVINGS BANK,
LTD.

HONG KONG BRANCH

(INCORPORATED IN TAIWAN WITH LIMITED LIABILITY)

 

		12.2	The Bank is entitled to employ, engage and appoint lawyers, debt collection agents or third party
service providers to demand, request, recover and collect any money from time to time due and outstanding from the Borrower to
the Bank under this Facility Letter and/or incurred as a consequence of any default by the Borrower in the performance of its obligations
hereunder. The Borrower hereby agrees to pay and indemnify the Bank on full indemnity basis all the costs, expenses, charges, fees,
commissions and service charges incurred by or charged against the Bank in relation to the employment, engagement and appointment
of such lawyers, debt collection agents or third party service providers. The Borrower’s attention is specifically drawn
to the provisions of this Clause which may involve the Borrower in incurring additional costs and expenses.

 

		13.	Payments

 

		13.1	The Borrower shall make all payments under this Facility Letter in immediately available funds
by [*] a.m. (Hong Kong time) on the due day by such method as the Bank and the Borrower may agree.

 

		14.	Assignment

 

		14.1	The Bank is entitled to assign or transfer all or any of its rights or transfer any of its obligations
hereunder without the consent of the Borrower. The Borrower shall not assign any of its rights or transfer any of its obligations
hereunder.

 

		15.	Notices

 

		15.1	Any notice or demand given or made in connection with this Facility Letter shall be sent to the
Bank or the Borrower, as the case may be, at its address given above or such other address as the relevant party may from time
to time notify to the other. Notices shall be in writing and made by letter, telex or facsimile.

 

		16.	Policy on Personal Data

 

		16.1	The policies and practices of the Bank in relation to personal data and the Personal Data (Privacy)
Ordinance (Chapter 486, Laws of Hong Kong) are set out in the Circular to Customers and Other Individuals relating to the Personal
Data (Privacy) Ordinance attached to this Facility Letter. The said policies and practices form an integral part of this Facility
Letter and shall be deemed incorporated into this Facility Letter accordingly.

 

		17.	Miscellaneous Provisions

 

		17.1	Where there is any conflict between the provisions in this Facility Letter and the other terms
and conditions previously delivered to the Borrower by the Bank, the provisions herein shall prevail.

 

		17.2	Section 83 of the Banking Ordinance (Chapter 155, Laws of Hong Kong, the “Ordinance”)
has imposed on the Bank as a bank certain limitations on advances to persons or companies related to the Bank’s directors
or employees. In acknowledging this Facility Letter the Borrower should advise the Bank whether the Borrower is in any way related
to any of the Bank’s directors or employees within the meaning of the Ordinance and in the absence of such advice the Bank
will assume that the Borrower is not so related. The Borrower shall advise the Bank immediately in writing should it becomes so
related subsequent to acknowledging this Facility Letter.

 

    	Page 8 of 9

    	 

    
 

THE SHANGHAI COMMERCIAL & SAVINGS BANK,
LTD.

HONG KONG BRANCH

(INCORPORATED IN TAIWAN WITH LIMITED LIABILITY)

 

		17.3	Upon signing the duplicate of this Facility Letter, the Borrower consents to the Bank on providing
to any guarantor or security provider in respect of any Facility or credit facilities extended to Borrower:

		(a)	a copy of this Facility Letter evidencing the obligations to be guaranteed or secured or a summary
thereof;

		(b)	a copy of any formal demand for overdue payment which is sent to the Borrower after it has failed
to settle an overdue amount following a customary reminder; and

from time to time on request
by the guarantor or security provider, a copy of the latest statement of account provided to the Borrower.

 

		17.4	If it becomes unlawful for the Bank to give effect to its obligations hereunder, it shall notify
the Borrower in writing and the Borrower shall, within such period as may be permitted by the relevant law, repay the principal
together with all interest accrued thereon to the date of repayment and other monies then payable hereunder.

 

		17.5	If any provision herein becomes illegal, invalid or unenforceable then the remaining provisions
of this Facility Letter shall not he affected or impaired thereby.

 

		17.6	No failure or delay by the Bank in exercising any right, power or remedy hereunder shall operate
as a waiver thereof. Rights, powers and remedies available under this Facility Letter do not exclude those provided by law.

 

		18.	Language

 

		18.1	The Chinese version of the Facility Letter (including this Appendix) is for reference only and
if there is any conflict between the English and Chinese versions, the English version shall prevail.

 

		19.	Governing Law and Jurisdiction

 

		19.1	This Facility Letter and the Facility shall be governed by and construed in accordance with the
laws of Hong Kong.

 

		19.2	The parties hereto irrevocably submit to the non-exclusive jurisdiction of the courts of Hong Kong.

 

    	Page 9 of 9Number :40000928-2012 (Henggang) No. 0041

 

Working Capital Loan Contract

(2012)

 

IMPORTANT NOTE: This contract is in equal
and voluntary basis of the parties, all terms of the contract are both true meaning of them. To maintain the legitimate interests
of the guarantor, the creditor specially remind the guarantor to pay attention on the bold terms in the contract.

 

Lender: Industrial and Commercial Bank
of China Ltd, Shenzhen Henggang Branch (hereinafter referred to as "Party A")

Person in charge: Yang Duoping

Business address: Room 101&201, Building
10, City Center Garden, Henggang Street, Longgang District, Shenzhen

Zip Code: 518115

Tel: 0755 -28433033 Fax 0755 -28858699
E-mail: /

 

Borrower: Shenzhen Highpower Technology
Co., Ltd.

Legal representative: George Pan, Contact:
Eric Li

Residence (address): Building A2, Luoshan
Industrial, Shanxia, Pinghu Town, Longgang District, Shenzhen

Zip Code: 518111

Tel: 0755 -89686236 Fax: 0755-89686819
E-mail: /

 

Borrower and lender enter into this contract
through equal consultation on both parties.

 

Part 1 Basic Provisions

 

Article 1 The Usage of the Loan

 

The loan in this contract is for the following
purposes, without consent of the lender in writing, the borrower cannot use for other purposes, the lender has the right to monitor
usage of the loan.

 

The usage of the loan: turnover of current
capital for operating.

 

Article 2 The Amount and Period
of the Loan

 

2.1 The currency of the loan in this contract
is RMB, the amount is RMB 20000000.00 (capital: twenty million yuan) (if the capital and the figure is inconsistent, subject to
capital).

 

    	 

    	 

    

 

2.2 The period of the loan in this contract
is 12 months, from the date of actual withdrawal (if fractional withdrawal, from the date of first withdrawal), the actual withdrawal
date is the date in IOU.

 

Article 3 Interest rate, interest and
fees

 

3.1 The confirmation method of RMB interest
rate of the loan

 

Use interest rate is the summation of benchmark
rate and floating rate. Benchmark rate is benchmark loan rate of People’s Bank of China, corresponding the loan period agreed
by provision 2.2 on the effective day, floating rate is going up 15%. After drawing the loan, the interest rate adjusts every 6
months, and calculates the interest in sections. Second rate-setting date is the corresponding date after expiration of the first
withdrawal. If there is no corresponding date in the adjustment month, the corresponding date is the last day in this month, so
on the other corresponding date. If fractional withdrawal, the interest rates is calculated as specified below:

 

Regardless of how much times of withdrawal,
the interest rate is current rate on rate confirmation day, and will be adjusted next corresponding date.

 

3.2 The interest of the loan in this contract
will be calculated since the actual withdrawal date, and will be charged monthly. If the loan is maturity, there is no interest.
One day interest rate = interest rate / 360.

 

3.3 Overdue interest rate in the contract
is 30% up to the original interest rate. Embezzlement interest rate is 50% up to the original loan interest rate.

 

Article 4 Withdrawal (This article
is not applicable to recycling loan)

 

The borrower should withdraw the loan when
needed, and the first and final loan must be withdraw before September 5, 2013, or lender has the right to cancel all or part of
the loan.

 

Article 5 Repayment

 

Borrower should pay off the loan in this
contract one time when the loan expires.

 

Article 6 Guarantees

 

6.1 The loan in this contract is secured
loan, the guaranty method is a joint responsibility guarantee involved Hong Kong Highpower Technology, Springpower Technology (Shenzhen)
Co., Ltd and Pan Dangyu, our legal representative.

 

    	 

    	 

    

 

6.2 If the loan in this contract is guaranty
contract of maximum amount, the corresponding guaranty contracts are listed as follows:

 

Name of guaranty contract of maximum amount:
"Guaranty Contract of Maximum Amount" (number: ICBC 40000928-2012henggangbaozi 0053)

Guarantor: Hong Kong Highpower Technology
Co., Ltd.

 

Name of guaranty contract of maximum amount:
"Guaranty Contract of Maximum Amount" (number: ICBC 40000928-2012henggangbaozi 0054)

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

 

Name of guaranty contract of maximum amount:
"Guaranty Contract of Maximum Amount" (number: ICBC 40000928-2012henggangbaozi 0055)

Guarantor: Pan Dangyu

 

Article 7 Dispute Resolution

 

Use below method to resolve disputes:

Resolves through litigation in court where
the lender locates.

 

Article 8 Other provisions

 

8.1 Contract is in triplicate, the borrower
has one copy, the lender has two copies, which have the same legal effect.

 

8.2 The following attachments and other
attachments agreed by other parties are integral part of this contract, and have the same legal effect:

Annex 1: Notice of Withdrawal

Annex 2: agreement of commission payment

 

 

Part 2 Specific provisions

 

Article 1 Interest rate and interest

 

1.1 In foreign currency borrowings, LIBOR
is the interbank offered rate of the currency in this contract, which is showed on the page of Reuters (REUTRES) Financial Telecommunication
terminal "LIBO=" on two days before the withdrawal day or benchmark interest rate adjustment day(11:00 noon, London time);
HIBOR is the interbank offered rate of the currency in Hong Kong, which is showed on the page of Reuters (REUTRES) Financial Telecommunication
terminal "HIBO=" on two days before the withdrawal day or benchmark interest rate adjustment day (11:15 noon, Hong Kong
time).

  

    	 

    	 

    

 

1.2 If the interest in this contract adopts
floating interest rate, the overdue interest rate adjustment provisions are the same as the original provisions.

 

1.3 If the interest is charged monthly,
the charge date is 20th of every month; if charged quarterly, the charge date is 20th of month the end of each quarter; if is charged
half a year, the charge dates are June 20 and December 20 each year.

 

Article 2 The Granting and Payment of
Loan

 

2.1 The borrower should meet the following
requirements before extraction loan, or the lender will not have obligation to pay any loan to the borrower, unless the lender
agreed to pay in advance:

 

(1) Except credit loan, the borrower has
provided guarantee and finished related guaranty procedures according to lender’s requirements;

(2) There is no breach of contract in this
contract or other contracts borrower and lender entered into;

(3) The certificates of usage of the loan
provided by borrower are the same as the agreed purposes.

 

2.2 The documents in writing provided to
lender when the borrower withdrawal the amount must be original; If cannot provide the original, should provide the copy with stamp
of the borrower after the consent of the lender.

 

2.3 Borrowers must provide withdrawal notice
to lender at least five bank’s business days of applies for the withdrawal. The withdrawal notice cannot be cancelled without
the written consent of the lender after submission.

 

2.4 After the borrower meets the prerequisites
or with the consent of withdrawal in advance of the lender, the lender will pay the loan to designated account of the borrower,
then it deems the lender has paid the loan to borrower according to this contract.

 

Article 3 Repayment

 

3.1 The Borrower shall fully repay the
capital, interest and the payables. On the repayment day and every bank business day before charged day, the borrower should fully
deposit payable interest, capital and other payables in repayment account opened at the lender, the lender has the right to deduct
the amount actively on repayment day or charged day, or request the borrower to cooperate for finishing the deducting procedures.
If the amount is insufficient to cover all payables due of the borrower, the lender has the right to determine the payment order.

 

    	 

    	 

    

 

3.2 If the borrower applies for repaying
all or part of the loans in advance, the borrower should submit application in writing before 10 bank’s business days, has
consent of lender, and pays compensation according to this contract.

 

3.3 If with the consent of the lender to
repay the loan in advance, the borrower should pay all payable capital, interest and other payables according to this contract
to earlier repayment day.

 

3.4 The lender has the right to take back
the loan in advance according to the borrower’s funds.

 

3.5 The shorten of actual loan period caused
by the borrower repays the loan in advance or the lender takes back the loan in advance according to this contract, the corresponding
interest rate will not be adjusted and use the original interest rate.

 

Article 4 Guarantee

 

4.1 Except credit loan, the borrower should
provide legal and effective guarantee that lender agreed according to this contract. Guaranty contract will be entered into separately.

 

4.2 The guarantee in this contract is damaged,
depreciated, in dispute, seized or detained, or the mortgagor disposes of the hostage by itself, or the financial condition of
the guarantor has adverse change or there is other changes that is not conducive to the lender’s loan right, Borrower shall
promptly notify the lender, and provides other guarantee approved to the lender separately.

 

4.3 If the loan is guaranteed by accounts
payables, during the effective period of this contract, if any of the following situation happens, the lender has the right to
expire the loan in advance, and the borrower should repay all or part of the capital and interest, or adds legal, effective and
full amount’s guarantee that lender approved:

 

		(1)	Bad debt rate of the pledged accounts receivable increases continually 2 months;

 

		(2)	Due but outstanding accounts receivable accounts up to 5% of accounts receivable balance;

 

(3) The mortgagor of accounts receivable
and the payment party or other third party have trade disputes (the trade disputes include but not limited to quality, technology,
service-related disputes) or debt disputes, result in the account receivables cannot be paid on time.

 

    	 

    	 

    

 

Article 5 Account Management

 

5.1 Borrower shall designate special repayment
account at the lender, for collecting corresponding revenue or repayment in plan. If the corresponding revenue is paid noncash,
the borrower should ensure the revenue is deposited in the special repayment account.

 

5.2 Lender has the right to supervise the
special repayment account, including but not limited knowing and supervising the income and expenditure situation of the account,
the borrower should cooperate. The borrower should entered into special supervising contract of the account if the lender requires.

 

Article 6 Commitments of Borrower

 

6.1 Extracts and uses the loan according
to the provisions of this contract, the loan cannot use for investing fixed assets and equity assets, and will not invest into
stock market, futures market in any way, and other usages relevant laws and regulations prohibit or restrict.

 

6.2 Pays off the capital, interest and
other payables according to the provisions of this contract.

 

6.3 Accepts and actively cooperates with
the inspection and supervision of the loan’s usage condition, via the way of account analysis, certificate inspection, Site
investigation, etc., and report the loan’s usage situation periodically according to the lender’s requirements.

 

6.4 Accepts the lender's credit inspection,
provides financial documents such as balance sheet, profit statement and other documents that
can reflect the borrower’s debt paying abilities, assists actively and cooperates with the lender for the investigation,
acquaintance, supervision of the operation and financial condition.

 

6.5 Before paying off the principal, interest
and other payables in this contract, cannot distribute of dividends in any form.

 

6.6 If the borrower has actions including
merger, divesture, reduction of capital, change of ownership, transfer of significant assets and liabilities, significant external
investment, increasing debt financing materially and other actions may adversely affect the rights of the lender, the borrower
should have the written agreement of the lender in advance, or have made satisfactory arrangement. If not, Party A cannot engage
in such actions.

    	 

    	 

    

 

6.7 If any of the following situations
happens, the borrower should notice the lender:

 

		(1)	Change of charter, business coverage, registered capital, the legal representative, change of ownership;

 

		(2)	Go out of business, dissolution, liquidation, business for rectification, revocation of business
license, be revoked or bankruptcy;

 

		(3)	Involved or maybe involved in material economic disputes, litigation, arbitration, or the property
was legally seized, detained or controlled;

 

		(4)	Shareholders, directors or senior management officer involves in important case or economic dispute.

 

6.8 Release the relationship of related
parties and related transactions in time, wholly, and truly.

 

6.9 React to the return notice from the
lender in time.

 

6.10 Do not dispose of owned assets result
in reducing debt paying ability; provides guarantees to a third party will not damage the interest of the lender.

 

6.11 If the loan in this contract is credit
loan, the borrower should submit external guarantee situation to lender completely, truly, and periodically, and enters into supervising
contract of the account according to lender’s requirements. If provides guarantee to external party may affect the performance
of obligations in this contract, it should be agreed by lender in writing.

 

6.12 Assume the fees caused by realizing
the loan right of lender in this contract, including but not limited to litigation fees, appraisal fees, auction fees, etc.

 

6.13 The settlement order of loan in this
contract is prior to the loan of shareholders, and at least have equal order with similar debt the borrower owes to other creditor.

 

Article 7 Commitment of lender

 

7.1 Grant the loan to the borrower according
to the provisions of the contract.

 

7.2 Keep secret for the non-disclosure
and confidential information provided by the borrower, but except the situations agreed by the laws and regulations and this contract.

 

Article 8 Breach of contract

 

8.1 If any of the following situations
happens, the borrower breaches of contract:

 

(1)The borrower pays off principal, interest,
and other payables in accordance with the provisions in this contract, or fails to perform any other obligations in this contract,
or contrary to the statements, guarantee and commitments in this contract;

 

    	 

    	 

    

 

(2)The guarantees in this contract have
adverse change to lender’s loan, and the borrower is not available to provide other guarantees approved by the lender;

 

(3) Fail to pay off any other debts due
by the borrower (including being announced ahead of expiration), or fails to perform or breach of other obligations in this contract,
or likely to affect the performance of the obligations in this contract;

 

(4) The financial performance of the profitability,
debt payment ability, operating capacity and cash flow of the borrower exceed the agreed standards, or deterioration has been or
may affect the obligations in this contract;

 

(5) Borrower's ownership structure, operation,
external investment has material adverse changes, likely to affect the performance of the obligations in this contract;

 

(6) Borrower involves or may involve significant
economic disputes, litigation, arbitration, or asset seizure, detention or enforcement, or judicial or administrative authorities
for investigation or take disciplinary measures in accordance with the laws, or illegal with relevant state regulations or policies
in accordance with the laws, or exposure by media, likely to affect the performance of the obligations in this contract;

 

(7) The borrower’s principal individual
investors, key management officer’s change, disappearances or restriction of personal liberty, likely to affect the performance
of the obligations in this contract;

 

(8) The borrower using false contracts
with related parties, using no actual transaction to extract the lender’s funds or credit, or evasion of lender’s loan
right through related party transactions;

 

(9) Borrowers have been or may be out of
business, dissolution, liquidation, business reorganizations, business license has been revoked or bankruptcy;

 

(10) Borrowers breaches food safety, production
safety, environmental protection and other environmental and social risk management related laws and regulations, regulatory requirements
or industry standards, resulting in accidents, major environmental and social risk events, likely to affect the performance of
the obligations in this contract;

 

(11) In this contract, the borrowing is
paid by credit, the borrower's credit rating, level of profitability, asset-liability ratio, net cash flow of operating and other
indicators do not meet the credit conditions of the lender; or without the lender’s written contract, pledges guarantee or
provides assurance guarantees to other party, likely to affect the performance of the obligations in this contract;

    	 

    	 

    

 

(12) Other adverse situations may affect
in the realization of loan right in this contract.

 

8.2 If the borrower breaches of contract,
the lender has the right to take one or more of the following measures:

 

(1) Require the borrower to remedy the
default within a certain time limit

 

(2) Terminate other financing funds in
other contract issued to the borrower by the lender, cancel part or all of undrawn borrowings and other financing amount of borrower;

 

(3) Announce the outstanding loan and other
financing amount between the lender and the borrower in this contract, and take back the outstanding amounts;

 

(4) Requires the borrower to compensate
the loss of the lender caused by the breach of contract;

 

(5) Measures according to provisions of
lows and regulations, provisions of this contract and other necessary measures.

 

8.3 If the borrower fails to repay the
due loan (including loan declared expire immediately), the lender has the right to charge penalty interest according to penalty
interest rate agreed by this contract from the due date. The interest fails to repay on time, charge compound interest according
to overdue penalty interest rate.

 

8.4 Borrower fails to use the loan for
agreed usage, the lender has the right charge penalty interest on embezzlement according to embezzlement penalty interest rate
agreed by this contract. The interest fails to repay on time during the embezzlement period, charge compound interest according
to embezzlement penalty interest rate.

 

8.5 The borrower simultaneously happens
the situations in section 8.3, 8.4, choosing the heavier interest rate to charge, cannot impose in double.

 

8.6 If the borrower does not repay the
principal, interest (including interest and compound interest) or other payables on time, the lender has the right to announcements
through the media for collection.

 

8.7 If the control or controlled relationship
between related parties of the borrower and the borrower changes, or the related parties of the borrower happens the other situations
except the situations of (1) and (2) in above provision 10.1, likely to affect the performance of the obligations of the borrower
in this contract, the lender has the right to take the measures agreed in the contract.

 

    	 

    	 

    

 

Article 9 Deduction

 

9.1 Borrower does not repay the due debt
in this contract according to this contract(including the debt declared due immediately), the lender has the right to deduct corresponding
amount from all the functional and foreign accounts opened at the branches of ICBC, until all the debt of the borrower in this
contract are paid off.

 

9.2 If the currency of deduct payments
is inconsistent with the currency in this contract, the exchange rate on the deduction day is the applicable exchange rate. The
interest and other fees during the deduction fees and debt pay off day, and the difference because of fluctuations the exchange
rate during this period is assumed by the borrower.

 

9.3 If deducted amount for the lender is
insufficient to pay off all debts, the lender has the right to determine the payment order.

 

Article 10 Transferring of rights and
obligations

 

10.1 Lender has the right to transfer all
or part of the right in this contract to a third party, the transferring actions do not need to acquire the consent of the borrower.
If without the consent of the lender in writing, the borrower cannot transfer any right and obligations in this contract to a third
party.

 

10.2 The Lender or China Industrial and
Commercial Bank Limited ("ICBC") can Authorize or commit the other branches to perform the rights and obligations in
this contract according to operation need, or transfer the loan right in this contract to the other branches of ICBC, the borrower
must agree, and the above actions of the lender do not need to ask for permission of borrower. The other branches which undertake
the lender’s rights and obligations have the right to perform all rights in this contract, and have right to apply for litigation,
arbitration, compulsory execution for the disputes in this contract in the branch’s name.

 

Article 11 Effect, Change and Terminate
of This Contract

 

11.1 This contract is effective since the
signature date, and is terminated on the day the borrower performs all the obligations in this contract.

 

11.2 Any change of this contract shall
be agreed by all parties involved and be made in writing. The changes of provisions and agreements are part of the contract, has
equal legal right with the contract. Except the changed part, the rest part of this contract is still valid, before the changes
is in effect, the original terms of this contract is still valid.

    	 

    	 

    

 

11.3 The change or termination of this
contract will not affect the right of all parties involved to require compensation. The termination of this contract, will not
affect the effectiveness of the dispute settlement provisions.

 

Article 12 Applicable Laws and Dispute
Resolution

The conclusion, validity, explanation,
performance, and resolution of dispute in this contract are all applicable to the lows of the People's Republic of China. All disputes
caused by this contract and related to this contract should be resolved through negotiation, if negotiation fails, should be resolved
according to the provisions in this contract.

 

Confirmation of both parties: the lender
and borrower have fully discussed all the provisions in this contract. The lender has remained the borrowers to pay attention to
all right and obligations provisions related to both parties. The lender has completely and truly understood on all the provisions,
and explains all the provisions according to borrower’s requirements. The borrower has carefully read and fully understood
all the provisions (including part 1 “basic provisions” and part 2 “specific provisions”), both the lender
and the borrower understand each provision of this contract in consistent.

 

 

Lenders (Seal): Industrial and Commercial
Bank of China Ltd., Shenzhen Henggang Branch

 

Responsible person / authorized agent:
/s/ [COMPANY SEAL]

 

 

 

Borrower (seal): Shenzhen Highpower Technology
Co., Ltd.

 

Legal representative / authorized agent:
/s/ [COMPANY SEAL]

 

 

 

Contract signed on: September 10, 2012

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