Document:

Unassociated Document

TO: Standard Chartered Bank (China) Co., Ltd.

The maximum amount Guarantee Contract

In view of the Bank and between the Bank and Shenzhen Highpower Technology Co., Ltd. ("Customer ") from time to time enter into a loan agreement, financing agreement to provide the letter or other written documents of financing (the "Financing Letter"), according to the terms agreed to provide the financing, the undersigned (the "Guarantor ") is willing to function in the financing of debt obligations under its guarantee of all responsibilities and ensure the Bank is as follows:

Unconditional and irrevocable guarantee of (1) to the Bank guarantee, the customer will repay all the loan principal, your letter down the line because of the financing of all expenditures other financing payments, interest, penalty interest, liquidated damages, damages , the Bank all costs and expenses to achieve cost claims (including but not limited to, attorneys fees) ("secured debt"), and (2) ensure that the request from your bank immediately required by the Bank to assume guarantee responsibilities to the Bank payment of secured debt. Bank customers to produce proof of payment due and payable shall be final and binding and the guarantor.

 

Guarantor under the Guarantee in the principal obligation secured (ie the amount of the loan principal amount and other financing) should not exceed the total amount of five hundred million dollars the whole (or the equivalent in other currencies). For the secured debt in the period from April 7, 2010 to April 6, 2015 ("secured debt in the period"), that is the guarantor of the secured debt in the period preceding the occurrence of all secured obligations jointly and severally liable. Since the finance function to ensure that during the term financing first document the actual withdrawal date or the date, until the letter of the Bank pursuant to the financing of the period in secured debt financing to provide all the latest financing due a due date only two years ("Warranty Period").

Guarantor further unconditionally and irrevocably guaranteed the Bank immediately upon demand compensation to the Bank the finance function as customers of any payment obligations under any reason (whether your bank know the reason) to become invalid, illegal can result in revocation or non-implementation of the Bank for any costs, losses or liabilities (the obligation to compensate is an independent primary obligation.)

 

  

  

  

 

The guarantor under the guarantee responsibility to honor the bond payments to the Bank, should be secured debt owed by the customer paid in the currency of payment should be no offset, no deduction or withholding for any reduction in charge.

The Guarantee is a continuing guarantee, the guarantor shall undertake all security responsibilities under the letter without any factors, such factors include, but are not limited to (1) the Bank or any other person to give customers the tolerance or extension (including but not limited to the rights and waive any other security interest); (2) any change in financial terms (including but not limited to the loan principal, interest, interest rate and term changes, on the other financing may increase your customer line the obligations of any changes. and / or your bank financing granted to customers of any new project); (3) the Bank or any other person the customer the right to have any flaws; (4) customer, the guarantor or any other person killed , bankruptcy, receivership, insolvency, liquidation, dissolution, incapacity, or subject to any restrictions; or (5) any party other act, neglect, events or circumstances, these things if not for this provision, may lessen release, discharge or affect the guarantor's responsibility.

 

The Bank Guarantee is a form of security held by any other supplement (if any mortgage or pledge), the guarantor of your request to the front line, without first exercising your rights under the Bank other security (including but not limited to waive any other security rights and interests).

As long as there is no outstanding secured debt, the guarantor will not be to the client (1) the exercise of any guarantor of any claims or may have the power, and (2) does not exercise any rights to enable customers to guarantee the exercise of due obligations under this warranty the compensation surety.

 

Guarantor guarantees to pay the Bank the implementation of the Guarantee of any right under all the costs that may occur, and such fees constitute a part of secured debt.

Guarantor hereby authorizes Bank, without giving any notice of the guarantor, that the right to dispose off and spend the guarantor of any account in your bank, any amount in any currency (whether or not to notify and whether due) to repay the guarantor Bank debt.

The letter of guarantee to maintain a comprehensive and fully effective until the earlier the following two: (1) secured debt to be paid in full the day, and (2) ensure that the date of expiration of the period. If the foregoing letter of guarantee (1) and expire one year after the due date but, if the repayment of debt due to any applicable bankruptcy laws and regulations is found invalid and / or forced return, the Bank will continue to have the right to implement the letter of guarantee.

  

  

  

 

Guarantor under the Guarantee to ensure that responsibility is assumed, "PRC Security Law" and its judicial interpretation of the definition of joint guarantee responsibilities.

 

Agreed by the guarantor of the Bank may be under the Bank Guarantee of any transfer of rights to anyone.

 

Acknowledge that the Guarantee is a guarantee commercial transactions, surety or guarantor in the property for any action to waive any defense of sovereign immunity or similar defense.

 

Guarantor hereby agrees that the Bank and its staff and agents to the relevant guarantor, surety accounts and / or with the Standard Chartered Bank and the United Kingdom limited liability company (including all its branches and subsidiaries) ("Standard Chartered Bank") trading relationship , including but not limited to the details of the guarantor credit line, to provide security, guarantee transactions and the Bank and Standard Chartered Bank balances and transactions of information disclosed to:

(A) of the bank holding company, its subsidiaries or its holding company's subsidiaries, affiliates, representatives and any country or region in the Branch (the "Licensee");

 

(B) of the licensee's obligation of confidentiality to the licensee's professional advisers and service providers;

 

(C) between the Bank and the Guarantor and the Bank of any rights under the agreement and / or obligations related to actual or potential participant or sub-participant or transferee or replacement (or their agents or consultants) ;

 

(D) Licensee's credit rating agencies, insurance companies, insurance brokers, or directly or indirectly to the credit protection provided by licensed third party;

 

(E) of the licensee in any court having jurisdiction or the jurisdiction of organization, or normative, regulatory, governmental or quasi-governmental authority of the department.

 

Established by the Bank to provide or will provide services and promote the Bank and / or its affiliates and sponsor relations between the management of banking business.

  

  

  

 

Associated with an individual company is a subsidiary or holding company or any other subsidiary of the holding company.

 

Any individual holding company refers to the individual as a subsidiary of the company.

 

Is a subsidiary of an individual directly or indirectly controlled, directly or indirectly, more than 50% of the voting shares or similar ownership entity. For the purposes here, the control means control the management and policies of the entity the power, whether through the ownership of voting shares, contract or otherwise.

If the letter of guarantee of any provision in any jurisdiction is invalid for any reason, only valid within the scope of the invalid, the remaining provisions shall not affect the validity or other jurisdictions involved in terms of effectiveness.

The letter of guarantee shall be governed by Chinese law and in accordance with China's legal interpretation, the guarantor agrees with this letter of guarantee to, or derived from legal action and legal action shall be the seat of the Court of the Bank, and irrevocably accept the above non-exclusive courts jurisdiction.

 

The letter of guarantee can be signed by Chinese or other language text. If there is any inconsistency of the language text, the Chinese version shall prevail.

 

Date: April 7, 2010

Guarantee Corporation:

Authorized signatory to sign and affix the company seal

/s/ Pan Dang YuUnassociated Document

Date:                                21st January 2011

Our Ref:                           OCC/MM/Team 11/BVD

CONFIDENTIAL

Hong Kong Highpower Technology Company Limited

Room 4, Block 4, 13/F, Tai Ping Ind Ctr,

51A Ting Kok Road, Tai Po,

New Territories.

Attn:  Mr. Eric Li

Dear Sirs,

BANKING FACILITIES

Standard Chartered Bank (Hong Kong) Limited [chinese symbols] (the “Bank”) is pleased to offer certain banking facilities including, amongst other facilities, those terms set out in this facility letter (the “Facilities”) to the Customer(s) below for the purpose(s) of general working capital, trade finance and treasury requirement, subject to the terms and conditions set out in this facility letter, and subject to the following additional terms and conditions (each attached to this facility letter):

 

	
·

	
Standard Terms

 

	
·

	
General Trade Terms

 

	
·

	
Terms and Conditions for Foreign Exchange Business

 

	
  

	
(collectively referred to as “Standard Terms and Conditions”)

 

	
  

	
A.CUSTOMER(S):

 

Hong Kong Highpower Technology Company Limited

 

	
  

	
B.FACILITY LIMITS:

 

	
  

	
(1)General Banking Facilities

 

	
Type(s) of Facility

	
Facility Limit(s)

	
Designated Customer(s) and Sub-limit(s), if applicable

	
1.     Trade Finance

(Please refer to Appendix 1 for product details.)

	
USD3,000,000.-

	
-

 

Standard Chartered Bank (Hong Kong) Limited [chinese symbols]

Credit Documentation Unit

Wholesale Banking Legal

 

11th Floor Standard Chartered Tower

388 Kwun Tong Road Kwun Tong Hong Kong

LA-467060 v1

  

  

  

 

	
Hong Kong Highpower Technology Company Limited

	
Page 2 

 

	
(a)     Trade Finance Group All

	  	
·     The Customer (USD3,000,000.-)

 

	
(b)     Trade Finance Group 1

	  	
·     The Customer (USD3,000,000.-)

 

	
(c)     Trade Finance Group 2

	  	
·     The Customer (USD3,000,000.-)

 

	
(d)     Trade Finance Group 3

	  	
·     The Customer (USD3,000,000.-)

 

	
2.     Short Term Money Market Loan

	
USD10,000,000.-

	
·     The Customer

 

	
Total Facility Limit:

	
USD13,000,000.-

 

	
Note:

·     The aggregate amounts outstanding Limit to which the Sub-limits relate and not at any time exceed the Total Facility under all Sub-limits shall not at any time exceed the Facility the aggregate amounts outstanding under all Facilities shall Limit.

	 	
(2)

	
Treasury Facilities (The Bank may arrange for these facilities to be available through Standard Chartered Bank or other members of the Standard Chartered Group and separate documentation would be executed where necessary.)

 

	
Type(s) of Facility

	
Designated Customer(s) and Sub-limit(s), if applicable

	
3.     Foreign Exchange Contract(s) (I)

        (Spot and Forward)

        Facility Limit to be determined by the Bank on a case by case basis.

 

	
·     The Customer

	
4.     Currency and Interest Rate Risk Management (I)

	
·     The Customer

 

	
5.     Foreign Exchange Contract(s) (II) (Forward)

        Facility Limit to be determined by the Bank on a case by case basis.

 

	
·     The Customer

	
6.     Currency and Interest Rate Risk Management (II)

	
·     The Customer

 

 

  

  

  

 

	
Hong Kong Highpower Technology Company Limited

	
Page 3 

 

 C.  PRICING AND CONDITIONS:

 

	
1.     Trade Finance

	
Interest:

HKD import/export facilities: 1.75% per annum over HIBOR.

 

Foreign currency import/export facilities: 1.75% per annum over LIBOR.

 

Commission:

Standard rates.

 

Maximum tenor/advance percentage for:

Import facilities:  Combined usance and import loan period of any transaction is not to exceed 120 days.

 

Export facilities:  Not to exceed 120 days.

 

Import invoice financing: Up to 120 days from the date of invoice, and up to 100% of the invoice amount against submission of certified true copy of suppliers’ original invoices and relevant transport documents. Loan proceeds will be directly remitted to suppliers bank accounts. Suppliers to be approved by the Bank.

 

	
2.     Short Term Money Market Loan

	
Interest:  1% per annum over LIBOR, payable at the maturity of each advance or quarterly in arrears if a six month period is selected.

 

Drawdown:  Partial drawdown is allowed with minimum amounts of USD500,000.- or above and in multiples of USD100,000.- for periods of 12 months.  Drawdown notice shall be delivered to the Bank at or before 11:00 a.m. on the proposed drawdown date.

 

Other Conditions:

·      Loan drawdown is subjected to deposit at Customer’s CNY account. The drawdown amount is no more than the amount of pledged deposit in the pledged account.

·      Loan outstanding will be repaid up to 12 months after loan drawdown date.

·      Interest will be payable on monthly basis, by debiting its USD Current account #36800806332.

·      Pledged deposit in CNY accounts in Standard Chartered Bank Hong Kong under Customer’s name can be released in proportion to the repaid amount of the Short Term Money Market Loan facility at maturity.

·      Default interest: 4% per annum over LIBOR.

·      Regarding the USD Short Term Money Market Loan proceeds applied for capital injection, the Customer is required to submit supporting documents to the Bank.

 

  

  

  

 

	
Hong Kong Highpower Technology Company Limited

	
Page 4 

 

	
3.     Foreign Exchange Contract(s) (I)

        (Spot and Forward)

 

	
Tenor:  Up to 24 months.

	
4.     Currency and Interest Rate Risk Management (I)

 

	
Tenor:  Up to 24 months.

	
5.     Foreign Exchange Contract(s) (II) (Forward)

 

	
Tenor:  Up to 12 months.

	
6.     Currency and Interest Rate Risk Management (II)

 

	
Tenor:  Up to 12 months.

Special Condition:  If required by the Bank in its sole and absolute discretion, the Customer undertakes to provide additional security acceptable to the Bank within the time limit imposed by the Bank at the relevant time. Without prejudice to any other provision of this Letter, the Customer agrees that failure to strictly comply with this undertaking gives the Bank (or any member of the Standard Chartered Group that is providing such Treasury Facilities) a right to terminate all or any part of the Treasury Facilities.

 

Market Disruption:

	
1.

	
If a Market Disruption Event occurs in relation to the Short Term Money Market Loan facility, then the rate of interest of that facility shall be the rate per annum which is the aggregate of:

 

	
  

	
(a)

	
1% per annum for the Short Term Money Market Loan facility; and

 

	
  

	
(b)

	
the rate which expresses as a percentage rate per annum the cost to the Bank of funding that loan from whatever source it may reasonably select.

 

	
2.

	
In this letter:

 

	
  

	
(a)

	
“Market Disruption Event” means:

 

	
  

	
(i)

	
at or about noon on the Quotation Day the Screen Rate is not available or the Screen Rate is zero or negative, or reasonable and adequate means do not exist for ascertaining Prime or LIBOR (as the case may be);

 

  

  

  

 

	
Hong Kong Highpower Technology Company Limited

	
Page 5 

 

	
  

	
(ii)

	
matching deposits are not readily available in the relevant Interbank Market; or

	
  

	
(iii)

	
before close of business in the principal city of the relevant Interbank Market on the Quotation Day, the cost to the Bank of obtaining matching deposits in the relevant Interbank Market would be in excess of Prime or LIBOR (as the case may be).

	
  

	
(b)

	
“Quotation Day” means, in relation to any period for which an interest rate is to be determined two London business days before the first day of that period (as the case may be), or such other period which the Bank decides accords with market practice in the relevant Interbank Market.

 

	 	
(c) 

	
“Screen Rate” means the standard market interest rate for the relevant currency and period displayed on the relevant page of the on-line electronic information service which for the time being the Bank normally uses for obtaining Prime or LIBOR (as the case may be).

 

	
Default Interest

	
In this letter, “HIBOR” means the Hong Kong Interbank Offered Rate quoted by the Bank for the relevant period; “LIBOR” means the London Interbank Offered Rate quoted by the Bank for the relevant period; and “Prime” means the respective rates which the Bank announces or applies from time to time as its prime rates for lending Hong Kong Dollars and United States Dollars.

The Bank shall charge interest on any sum(s) outstanding or owing by the Customer(s) from time to time. Unless otherwise specified, interest will accrue on a daily basis and shall be calculated, compounded and payable on such basis and in such manner as the Bank may determine at its sole discretion. Unless otherwise stipulated, a default rate of 8% per annum over Prime or the Bank’s cost of fund, whichever is higher, will apply to amounts not paid when due or in excess of any facility limit. All past due bills shall bear interest at 5% per annum above the rates charged on the trade finance facilities.

	
  

	
D.SECURITY AND CONDITIONS PRECEDENT:

 

The availability of the Facilities is conditional upon the Bank’s receipt of the following documents, items and evidence (both in form and substance) satisfactory to the Bank:

 

	
1.

	
This letter duly executed by the Customer.

 

	
2.

	
A Security Agreement over Bank Account (All Monies) executed by the Customer in favour of the Bank in respect of its own obligations.

 

	
3.

	
A personal guarantee dated 26th May 2010 (as amended from time to time) executed by Mr. Pan Dangyu for USD9,000,000.- plus interest and other charges.

 

  

  

  

 

	
Hong Kong Highpower Technology Company Limited

	
Page 6 

 

	
4.

	
A Letter of Comfort issued by Highpower International, Inc.

 

	
5.

	
A Letter of Comfort issued by Shenzhen Highpower Technology Co Ltd. [chinese symbols]

 

	
6.

	
Certified true copies of the certificate of incorporation, memorandum and articles of association or equivalent constitutional documents of High power International, Inc.

 

	
7.

	
Original/Certified copies of all necessary consents, approvals and other authorisations (including board resolutions) in connection with the execution, delivery and performance of this letter and all other documents mentioned above, if applicable.

 

	
8.

	
(if any of the facilities referred to in this letter are to be made available by Standard Chartered Bank or other members of the Standard Chartered Group) All such documents, items or evidence with, in favour of or to Standard Chartered Bank or, as the case may be, such member of the Standard Chartered Group as the Bank may request.

 

	
9.

	
Such other documents, items or evidence that the Bank may request from time to time.

 

	
  

	
E.COVENANTS AND UNDERTAKINGS:

 

The Customer undertakes to the Bank that it will:

 

	
1.

	
promptly submit to the Bank copies of all its audited and unaudited financial statements and such other reports and information relating to the Customer and/or guarantor as required by the Bank as soon as they become available but in any event no later than the period specified by the Bank from time to time.

 

	
2.

	
procure the submission of individual financial statement(s) of the personal guarantor(s) within 30 days from the date of this letter and afterwards on an annual basis.

 

	
3.

	
immediately inform the Bank:

 

	
  

	
·

	
of any change of the Customer’s directors or beneficial shareholders or amendment to its memorandum or articles of association or equivalent constitutional documents;

	
  

	
·

	
of any substantial change to the general nature of the Customer’s existing business; or

	
  

	
·

	
if it becomes, or is aware that any of its directors, shareholders, partners or managers becomes, a Related Person (as defined in paragraph 5 of section F of this letter).

	
4.

	
submit supporting documents (including but not limited to pre-approval / permits / certificates obtained from local government authorities) as evidences for the short term money market loan used for capital injections.

 

The Customer agrees to maintain collateral for an aggregate of USD900,000.- and CNY73,486,000.- (or its equivalent in other currency(ies) as approved by the Bank) (the “Minimum Collateral”) pursuant to the security document(s) set out in paragraph(s) 2 of Section D of this letter. The Minimum Collateral must be in form and substance acceptable to the Bank at its sole discretion. The Customer agrees that the Bank may change the amount of the Minimum Collateral or the manner in which the Minimum Collateral is furnished at the Bank’s absolute discretion. The Customer undertakes to maintain the Minimum Collateral for so long as the Facilities under this letter remain outstanding.

 

  

  

  

 

	
Hong Kong Highpower Technology Company Limited

	
Page 7 

 

	
  

	
F.OTHER TERMS AND CONDITIONS:

 

	
1.

	
The Facilities are available at the sole discretion of the Bank. The Bank may at any time immediately terminate, cancel or suspend the Facilities or otherwise modify the Facilities without the consent of any party.

 

	
2.

	
Notwithstanding any provisions stated in this letter, the Facilities are repayable on demand by the Bank. The Bank has the overriding right at any time to require immediate payment and/or cash collateralisation of all or any sums actually or contingently owing to it under the Facilities. This clause 2 does not apply to any factoring facility(ies).

 

	
3.

	
The Bank’s Standard Terms and Conditions attached and/or referred to in this letter forms an integral part of this letter and the Customer agrees to observe and be bound by such Standard Terms and Conditions.

 

	
4.

	
The terms and conditions set out or referred to in this letter supersede and replace those set out in our letter (if any) previously sent to the Customer(s).

 

	
5.

	
Please note that section 83 of the Banking Ordinance imposes on the Bank certain limitations on advances to persons (including firms, partnerships and companies) related to its directors, employees with lending authority or controllers (each person so related shall be referred to as a “Related Person”). When acknowledging and accepting this facility letter, you should advise us if you are, or any of your directors, shareholders, partners or managers is, a Related Person within the meaning of the Banking Ordinance. If subsequent to your acceptance of this facility letter, you become, or are aware that any of your directors, shareholders, partners or managers is or becomes, a Related Person, you should immediately advise us in writing.

 

	
6.

	
The Customer acknowledges the following:

 

	
  

	
(a)

	
The Customer has received and read the Bank’s Notice to Customers and Other Individuals relating to the Personal Data (Privacy) Ordinance and the Code of Practice on Consumer Credit Data; and

 

	
  

	
(b)

	
The Customer has, or will, notify each of its Relevant Individuals, the Bank may, in the course of providing banking services to the Customer, receive Customer information in respect of that Relevant Individual.

 

For the purpose of the above, a “Relevant Individual” is defined as being one of the following (but not limited to) Chief Executive Officer, Chief Financial Officer, Chief Operating Officer, department heads, corporate officers (e.g. authorized signatories, company secretary etc.), directors, major shareholders, beneficial owners, and guarantors (where applicable).

 

  

  

  

 

	
Hong Kong Highpower Technology Company Limited

	
Page 8 

 

	
7.

	
All securities, agreements, obligations given or undertaken by the Customer shall continue to be valid and binding notwithstanding any change in the constitution of the Customer or the Bank, by amalgamation, consolidation, reconstruction or otherwise.

 

	
8.

	
Where the Bank requires the provision of any guarantee or any security from an individual as a condition to the Facilities, the Customer consents and acknowledges that the Bank may provide the Customer’s information to any proposed or actual individual guarantor or other security provider (or their solicitors) in respect of the Facilities.

 

	
9.

	
The Customer is not entitled to assign or transfer any of its rights and/or obligations in connection with the Facilities.

 

	
10.

	
As long as any sum remains owing under any Facility, if the Customer wishes to engage any person to provide transaction banking products and services including cash management services, trade services, trade finance, custodial services, fund administration and escrow services (“Services”), the Customer shall give the Bank or its Affiliate the right of first refusal to provide such Services, such right to be subject to terms and conditions to be agreed.

 

	
11.

	
This letter shall be governed by and construed in accordance with the laws of Hong Kong SAR.

 

Please sign and return to us the enclosed copy of this letter together with the attached Standard Terms and Conditions to the Bank’s Credit Documentation Unit, Wholesale Banking Legal at 11th Floor, Standard Chartered Tower, 388 Kwun Tong Road, Kwun Tong, Kowloon within one month after the date of this letter, failing which this offer shall lapse.

 

If you have any queries, please feel free to contact any of the following persons:

 

	
Queries on

	
Name

	
Telephone No.

	
Banking arrangements

	
Mr. Adam Wong, Relationship Manager

Local Enterprise

Origination & Client Coverage, Wholesale Banking

	
2821-1490

Yours faithfully,

For and on behalf of

STANDARD CHARTERED BANK (HONG KONG) LIMITED

/s/ Peggy Yiu                                                

Peggy Yiu

Senior edit Documentation Manager

PY/DS

 

Encl.

 

  

  

  

 

	
Hong Kong Highpower Technology Company Limited

	
Page 9 

We agree and accept all the terms and conditions set out above and the following additional terms and conditions each attached and/or referred to in this letter, which we have read and understood:

 

	
·

	
Standard Terms

	
·

	
General Trade Terms

	
·

	
Terms and Conditions for Foreign Exchange Business

	
·

	
Bank’s Notice on use and disclosure of personal data under the Personal Data (Privacy) Ordinance and Code of Practice on Consumer Credit Data

 

For and on behalf of

HONG KONG HIGHPOWER TECHNOLOGY COMPANY LIMITED

 

 

       /s/ Pan Dangyu

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00187-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00187-of-00352.parquet"}]]