Document:

Exhibit
10.1

  

No.: Bank of XI’AN South City Loan
(2012) No. 7

 

Loan Contract for Working Capital

 

Borrower: Xi’an TCH Energy Technology Co., Ltd

Address: 86# Gaoxin Road, Gaoxin district, Xi’an

Legal Representative: Ku Guohua

Phone: 

 

Lender: Bank of XI’AN Co., Ltd. South City Branch

Address: 1# Nan Guan Zheng Road

Legal Representative: Li Peilin

Phone: 87818014 

 

Catalog

Provision I Type of Loan

Provision II Purpose of Loan

Provision III Amount & Term of Loan

Provision IV Interest Rate,
Default Interest Rate, Compound Interest Rate, Interest Calculation Method, Interest Settlement

Provision V Pre-Conditions for Capital Withdrawal

Provision VI Arrangement for Capital Withdrawal

Provision VII Loan Distribution

Provision VIII Loan Repayment

Provision IX Account Surveillance

Provision X Security

Provision XI Rights and Obligations of Borrower

Provision XII Rights and Obligations of Lender

Provision XIII Effectiveness,
Modification, Rescission and Termination of Contract

Provision XIV Liability for Breach of Contract

Provision XV Miscellaneous

Provision XVI Special Representations
and Warranty of Borrower

Provision XVII Dispute Resolution and Application of Law

Provision XVIII Supplementary
Provisions

 

Special Note: prior to the execution of this contract, the borrower
and guarantor should read all the terms and conditions in this contract carefully, and should pay special attention to the bold
words. If there is any doubt or anything unclear, please promptly consult the lender or professionals. Upon the signing of this
contract, it is considered that all the parties understand and agree to all the terms and conditions of this contract.

 

Borrower: Xi’an TCH Energy Technology Co., Ltd

Lender: Bank of XI’AN Co., Ltd. South City Branch

Guarantor: Shaanxi Trust Re-guarantee Ltd, Ku Guohua

Due to the need of liquidity, the borrower applies to the lender
for a loan. To specify their rights and obligations, in accordance with the relevant law, regulation and rules, both parties hereby
enter into and agree to comply with the following terms and conditions in this contract.

 

Provision I Type of Loan

Under this contract, the type of loan is working capital loan.

 

Provision II Purpose of Loan

1. The loan hereunder shall be used for: Purchasing Power Generation
Equipment.

2. Without the written consent by the lender, the borrower shall
not change the agreed purpose of the loan in the contract.

 

    	 

    	 

    

 

Provision III Amount & Term of Loan

1. Under this contract, the amount of the loan is Thirty Million
Yuan (in word), the currency type of the loan is RMB.

2. Under this contract, the term of the loan is 12 months (Month/Year),
from_____ (day) __3___ (month) __2012___ (year) to _____ (day) __3___ (month) ___2013__ (year).

3. If the loan is withdrawn by one take down, in case any discrepancy
between the starting date on the withdraw slip and the starting date in the item 2 under this provision , then the start date on
the slip shall prevail, and the corresponding maturity date shall be adjusted accordingly under this contract.

4. If the loan is withdrawn by installments, the repayment date
for each installment shall be no later than the maturity date agreed in the article 2 under this provision.

5. The withdraw slip of the loan is an integral part of this
contract, and is of equal legal effect. 

 

Provision IV Interest Rate, Default
Interest Rate, Compound Interest Rate, Interest Calculation Method, Interest Settlement

Article 1 Interest Rate

1 The interest rate shall be determined as prescribed in __(2)___
of the following methods:

(1) Fixed Interest Rate: up-float or down-float _____ % based
on the corresponding benchmark interest rate of the People’s Bank of China, namely, the monthly interest rate _____ %, and
the interest rate will not be adjusted during the term of the contract.

(2) Floating Interest Rate: up-float or down-float _____ % based
on the corresponding benchmark interest rate of the People’s Bank of China, and the interest rate will not be changed during
the term of the contract, the benchmark interest rate shall be adjusted according to __B___ of the following methods:

A. Monthly Interest Rate _____ %, the benchmark interest rate
shall be adjusted from the second day after the adjustment date of the People’s Bank of China.

B. Interest Rate will be adjusted every term, by __Year___ (Year/
Half a Year/Season/Month) as each term. The date of interest rate for the first term shall be the effective date on the loan agreement,
which is determined by the lender in accordance with the corresponding benchmark interest rate published by the People’s
Bank of China on the effective date of the contract and the floating rate agreed by both parties, namely, monthly interest rate
is_6.0133‰_. The date of interest rate determination for the second term and the succeeding terms are the corresponding
dates in relation to the effective date of the contract. The interest rate for every term shall be determined by the lender in
accordance with the corresponding benchmark interest rate published by the People’s Bank of China on the effective day of
the contract and the floating rate agreed by both parties. If the month doesn’t have the corresponding date of the effective
date of the contract, the corresponding date shall be the last date of the month.

As for the installment loan withdrawal, no matter how many installments
are taken, the interest rate shall be the interest rate on the effective date of the contract or the corresponding date.

The anniversary date for the contract effective date is the
date when the term is matured. For example, if the effective date of the contract is May 9th, and the term is one month,
then the anniversary date is June 9th of this year. As if the term is a quarter, the anniversary date shall be August
9th; If the term is half a year, the anniversary date of the term shall be November 9th; if the term is a year, the anniversary
date of the term shall be May 9th, next year.

(3) The other methods:

 

 

 

 

2. The lender shall notify the borrower within 30 days after
the interest rate is changed in a proper way. However, no matter the notification arrives or not, it does not affect the changes
and the exercise of the changed interest.

3. If the People’s Bank of China adjusts the interest
rate or the methods of determining the interest rate, the relevant regulations of the People’s Bank of China prevails.

Article 2 Default interest rate and compound interest rate

1. If the borrower doesn’t use the loan in accordance
with the purpose agreed in contract, the default interest rate will be rise _100____ % (50%—-100%) more than the loan interest
rate. As for the unpaid interest, the compound interest, which is _100____ % (50%—-100%) more than loan interest rate, shall
be charged. As for the loan interest rate adjusted according to the article 1 of this provision, the default interest rate and
compound interest rate shall be adjusted accordingly in accordance with the adjusted loan interest rates and the floating rates
mentioned above.

2. Under this contract, the default interest rate for the overdue
loan shall be __50__ % (30%—-50%) more than the loan interest rate. As for the unpaid interest, the compound interest, which
is _50____ % (30%—-50%) more than loan interest rate, shall be charged. As for the loan interest rate adjusted according
to the article 1 of this provision, the default interest rate and compound interest rate shall be adjusted accordingly in accordance
with the adjusted loan interest rates and the floating rates mentioned above.

 

    	 

    	 

    

 

3. As for the overdue loan and misuse occur simultaneously,
charge the default interest rate or compound rate according to the principle of higher interest rate, but no charging of the two
defaults concurrently.

4. If the borrower could not pay the interest on time, the compound
interest shall be charged according to the loan interest rate of the unpaid interest. If the overdue loan occurs, the compound
interest shall be charged according to Sub-section 2 under Article 2 of this provision.

Interest Bearing:

1. The loan interest is calculated since the day when the loan
is deposited into the borrower’s designated account. Under this contract, the loan interest is accrued daily, and the day
interest rate=annual rate/360=monthly rate/30.

2. The default interest is calculated from the day of overdue
and diverting.

3. If the borrower could not pay the interest on the agreed
day in this contract, the compound interest shall be charged from the next day.

 

Interest Settlement:

1. As for the loan of fixed interest rate, the interest shall
be calculated according to the agreed interest rate. As for the loan of floating interest rate, the interest shall be calculated
according to the interest rate of the corresponding floating term. If there are multi-floating changes of the rate within a single
interest term, the interest will be not calculated separately. When the loan is due, the interest shall be paid off with the principal
on the loan.

2. _(1)_ of the following methods will be selected for interest
settlement under this contract:

(1) Interest settlement by month, the day for interest settlement
is the 20th of every month.

(2) Interest settlement by season, the day for interest settlement
is the 20th of the last month of the season.

(3) The other method ___________________

 

Provision V Pre-Conditions for Capital
Withdrawal

Article 1 Prior to the first-time capital withdrawal,
the following documents shall be submitted by the borrower to the lender: If the documents submitted are photocopies, the company
seal shall be stamped on each copy to prove its authenticity, integrity and consistency with the original document.

1. The original copy of the company’s resolution made
by the company’s decision-making body according to the company’s articles of incorporation.

2. The ID card of the legal representative/principal, the authorization
document of the authorized agent and the original script of their signatures.

3. The list of the stakeholders, directors and the relevant
senior mangers and the original script of their signatures.

4. The current effective bylaw of the borrower.

5. The current effective organization code certificate of the
borrower, the document proving that the enterprise’s business registration certificate (public institution: Registration
Certificate of Legal Person) has passed the latest annual verification, Tax Registration Certificate (National Tax and Local Tax)
and loan card.

6. Original copies of valid security contract, the relevant
registration documents and the relevant insurance documents.

7. The other files needed.

Article 2 Prior to the first time of loan withdrawal and
every loan withdrawal, the conditions the borrower shall meet:

1. Opening an account according to the contract and the requirements
of the lender.

2. Submitting the loan withdrawal application to the lender,
and handling the relevant procedures according to the corresponding regulations and the requirements of the lender.

3. If the loan under this contract is in the form of foreign
currency, the borrower shall go through the procedures of getting approval, registration and the other law procedures related to
this contract.

4. The security contract and insurance shall be valid during
the contract period.

5. No breaching event to contract, and no event that might cause
to breach the contract.

6. The statement and assurance made by the borrower during reaching
the agreement shall be kept valid on the day of capital withdrawal, and no any unfavorable substantial change.

7. No law, regulation and the relevant authority prohibit the
lender to provide the loan under this contract.

8. The other conditions for capital withdrawal agreed by the
two parties:

 

 

 

 

 

 

 

    	 

    	 

    

 

Provision VI Arrangement of Capital withdrawal

Article 1 __(1)___ of the following methods will be selected
by the borrower to draw the capital.

1. Borrower draws the loan at one time, and transfer the all
the capital into the account opened at the loan providing bank.

2. Loan-withdrawal will be carried _____ times, the specific
sum and date for loan withdrawal is as follows:

(1)

Date _____ Month _____ Year _____, Sum (Capitalization) _____
(Small Letter: _____)

Article 2 When the borrower draw the loan according to the provisions
of the item 2, article1 of this provision, if there is any advancement or any postponement in terms of the loan withdrawal, the
borrower shall submit the written application to get the written approval of the lender.

Article 3 If the borrower needs to cancel the entire loan or
the undrawn part of the loan of this contract, he shall submit the application to the lender 15 days prior to the loan withdrawal
date confirmed by the contract. The cancelation becomes effective upon getting the written approval from the lender.

Article 4 Under the following conditions, the lender can cancel
the entire loan or the undrawn part of the loan, and charge a compensation fee which is __5___ % of the canceled part:

1. If the borrower has not handled the loan withdrawal procedures
in accordance with the withdrawal date, withdrawal period or withdrawal plan, and has not applied the postponed withdrawal, the
lender has noticed the borrower to handle the relevant procedures in 10 days, but the borrower has not handled them before the
time limit.

2. If the loan-withdrawal is in accordance with the 3rd Item,
Article 3 of this provision “withdrawal capital by the other means”, and the borrower doesn’t draw the loan or
doesn’t draw the entire loan on the withdrawal day.

Article 5 If the borrower applies to draw the loan, he shall
follow the loan-withdrawal procedures and submit to the lender for verification ___10__ (5 days or 10 days) in advance.

Article 6 The specific withdrawal-date, repayment-date and the
sum of withdrawal shall be subject to the contents of the loan voucher.

 

Provision VII Payment of Loan

Article 1 __(1)___ of the payment methods will be adopted under
this contract:

1. The method of entrusted payment will be adopted completely.

2. The method of direct payment will be adopted completely.

3. If the payment receiver is definite and the amount of a single
payment exceeds 3 million Yuan, the entrusted payment method will be adopted; if the amount of a single payment is less than 3
million Yuan, the direct payment method will be adopted.

4. The other methods:

 

 

 

 

Article 2 The payment methods under this contract will be differentiated
depending on the different situations, and the borrower agrees that the lender will manage and supervise the loan payment.

1. Entrusted payment by the lender means that the lender, according
to the borrower’s draw-down application and payment instruction, pay the loan to the borrower’s debtor whose usage
meets the contract provisions.

When the method of entrusted payment is selected, after the
lending of the loan, the lender is entitled to verify (include entrusting the third party to verify) whether the payment receivers,
the sum of payment and the other information listed on the payment application provided by the borrower is consistent with the
contract and the other proving materials prior to the distribution of loan. After approval, pay the loan to the borrower’s
debtor. The lender is entitled to refuse the payment application which is not consistent with the provision of this contract, and
any consequence or damage caused by this shall be borne by the borrower.

2. Direct payment by the borrower means that, after the lender
releases loan capital to the borrower's account according to the borrower's drawdown application, the borrower directly pays such
loan capital to its counterpart consistent with the purposes stipulated in the loan contract.

 With respect to direct payment by the borrower, the borrower
shall report the payment situation of the loan capital to the lender on a __Month___ (periodic basis, month/season), and the lender
is entitled to check whether the payments are made for purposes as stipulated in the loan contract by making account analyses,
voucher verification or on-site investigation.

 

    	 

    	 

    

 

Article 3 During the process of checking, if the lender found
that the following situations of the borrower occur, the lender may request the borrower to correct within a time limit; if the
borrower does not correct within the required time limit, the lender is entitled to raise up the pre- conditions of loan granting
and payment, or suspend the granting and paying of the loan, and request the borrower to assume relevant liabilities according
to this contract:

1. The real usage of the capital is inconsistent with the usages
stipulated in the contract;

2. The credit standing of the borrower deteriorates.

3. Its principal business profitability becomes weak and the
use of loan shows abnormal situations.

4. It doesn’t pay the loan according to the contract,
or adopt the method of breaking the whole into parts to avoid entrusted payment;

5. The designated payment account of the borrower is frozen
or stops paying by the relevant authority.

6. The other situations which our bank considers that should
change the methods of distributing the loan or stop the loan.

Article 4 When the borrower applies each loan to be paid through
the special account for loan, it shall submit the application to the lender 3 days in advance. After the ratifying by the lender,
pay the applied loan to the borrower; when the lender considers that the payment application submitted by the borrower doesn’t
meet requirments, the lender is entitled to request the borrower to amend or refuse the borrower’s application, and the postponing
or any liability shall be born by the borrower himself, and the lender will not bear it.

 

Provision VIII Repayment of Loan

Article 1 Source of Repayment Capital:

1. The capital, which is used to repay the principal and interest
by the borrower should be from but not limited to:

(1)______Operating Income___________________________________

(2)______Account Receivable__________________________________

2. No matter the other contract in which the borrower is one
party stipulates the repayment capital source, the other contract can not effect the obligation fulfilling of the borrower under
this contract. No matter what situation happens, the borrower shall not refuse to fulfill the repayment obligation under this contract
by referring to the Item 1st, Article 1 of this provision.

3. When the sum of the capital repaid by the borrower could
not clear off the sum due under this contract, the lender is entitled to decide the repaying order of the principal capital, interest,
default interest, compound interest and fee.

Article 2 Methods of Repayment:

The borrower shall prepare the enough
capital for the due interest or principal capital in the account opened by the borrower prior to the date of interest settlement
or the date of repaying the principal loan, and entrust the lender to collect the interest or principal loan on the date of interest
settlement or the date of repaying the principal loan; or entrust the lender collect the capital from the any Account opened by
the Borrower with XI’AN BANK CO., Ltd and any branch of XI’AN Bank to pay the principal loan and interest on the repayment
date stipulated by this contract. This contract could be the entitled voucher for the borrower entrusting the lender to collect
loan.

Article 3 Plan of Principal Loan
Repayment:

The borrower shall pay the enough
interest according to the contract, and repay the principal according to the __2___ of the following agreements.

1. Repayment once for all, the borrower
repays the entire principal capital on the mature date.

2. Repayment by several times, the
sum of the principal capital and dates are as follows:

(1)

Date _____ Month _____ Year _____, Sum (Capitalization) _____
(Small Letter: _____)

(2)

Date _____ Month _____ Year _____, Sum (Capitalization) _____
(Small Letter: _____)

(3)

Date _____ Month _____ Year _____, Sum (Capitalization) _____
(Small Letter: _____)

(4)

Date _____ Month _____ Year _____, Sum (Capitalization) _____
(Small Letter: _____)

(5)

Date _____ Month _____ Year _____, Sum (Capitalization) _____
(Small Letter: _____)

(The annex could be attached when there are many more times
than listed here.)

 3. The other methods of repayment: 

 

    	 

    	 

    

 

 

 

 

Article 4 Repayment in Advance

1. If the borrower wants to repay
the principal capital of the loan, he shall submit the written application to the lender 10 days prior to the advancing repayment
date, and get the written consensus of the lender.

2. If the borrower repays the principal
capital of the loan, the interest shall be counted according to the real days of using the loan and the interest rate stipulated
by this contract.

3. If the lender agrees that the
borrower repays the principal capital of the loan, he is entitled to charge the compensation capital stipulated in this contract
from the borrower, and the compensation capital shall be charged in accordance with the following provisions:

Sum of the compensation=the sum of
the advanced repayment * monthly interest rate _____ % * _____ (0%—-100%). If the loan using days is less than a month, count
the compensation by a month.

4. Repayment with the lender’s
consensus, the principal capital repaid is no less than _____ Yuan (Capitalization), and shall be the integer times of _____ Yuan
(Capitalization).

5. If the borrower repays in advance,
the capital to be repaid shall be reduced according to the reversed order stipulated in the item 2nd, Article 3rd
of this provision and the interest of the unpaid loan shall be counted according to the interest rate stipulated by this contract.

6. If the borrower could not repay
the loan according to the repayment plan stipulated by this contract, he shall submit the written application for postponing to
the lender 30 days prior to the mature day. After the checking and acceptance of the lender, sign the agreement of postponing with
the lender; before the signing of the agreement of postponing, this contract will be implemented further.

 

Provision
IX Supervision of Account

Article 1 The borrower shall open
the account which is specially for receiving the loan and payment with the lender (Account Number: ____) and the account for capital
receivable account (Account Number: _____), and entitle the lender supervise the accounts according to the relevant regulations
of accounts management and this contract.

Article 2 The borrower shall deposit
the following, including but not limited to, business income, investment benefits and the other capital into the capital receivable
account, and report to the lender the flowing-in and flowing-out of the capital of this account.

Article 3 The borrower promises that
the payment of the loan shall be only used for working capital, and the repayment of the principal, interest, default fee, compensation
fee and other relevant fees under this agreement; it shall not be used in investing in the real estate and stock market, or where
is prohibited by the government.

Article 4 If the lender stops the
payment, payment limits and the other measures on the supervise account according to this contract, no legal liability shall be
born by the lender.

 

Provision X Guarantee

1. The guarantee method of the loan under this contract is:
Joint and several liabilities Guarantee.

2. The borrower has the obligation to assist the lender, and
facilitate the lender to sign the following guarantee contracts with the guarantor on the specific items:

Series Number: Xi’an Bank South city branch Baozi [2012]
No.007 Contract of Guarantee

Others: Xi’an Bank South city branch Gebaozi [2012] No.007,
Personal Guarantee Contract

3. The guarantee contracts
are the subcontracts of this contract.

 

    	 

    	 

    

 

Provision XI Rights and Obligations of
the Borrower

Article 1 The rights of the borrower:

1. Draw and use the loan according to the purpose and period
stipulated by this contract.

2. Upon meeting prerequisite requirements of the lender, the
borrower is entitled to apply the extension of the loan.

3. has the right to refuse any additional conditions out of
this contract, including the supplementary agreements.

4. has the right to require the lender to keep the financial
reports and business information related to manufacturing and operation provided by the borrower in secret, except for the laws
and regulations required otherwise, or the information required by the authority, or agreed by the parties.

5. With the consensus of the lender, the borrower could transfer
the debt under this contract to a third party.

6. If the lender breaks the law and regulation during the loan-granting
process, the borrower has the right to report it to the authority and the relevant departments.

Article 2 Obligation of Borrower:

1. Repay the principal capital and interest (including compound
interest and default interest) under this contract according to this contract.

2. Bear the relevant fees of credit investigation, evaluation,
auditing, appraising, inquiring, searching, registration, notarization and litigation fee, arbitration fee, lawyer fee, traveling
cost, transporting cost and the other fees which are paid by the lender for the realization of creditor’s rights.

3. Use the loan according to the purpose stipulated by this
contract, no diverting, impropriating or using the loan for the illegal transaction; shall not draw out the capital illegally,
transfer assets or take advantage of the related party transaction to avoid the debt under this contract; shall not use the illusory
contract of the related parties, and use the notes receivable, account receivables and the other creditor’s rights without
the real transactions to discount or cash out at the bank to extract capital and credit.

4. Cooperates with the lender actively to check and supervise
the manufacturing, management, finance and the usage of the loan, and has the obligation to provide the balance sheet and income statement
of each period and the other materials, shall not provide illusory materials to hide the important business facts, and be responsible
for the authenticity, integrity and effectiveness of the materials provided.

5. Within the term of this loan, the borrower shall not exceed
the following financial indexes:

(1) asset-liability ratio
shall not exceed: ____________

(2) Liquidity ratio
shall not exceed: _________________

(3) Quick ration shall not exceed: __________________

(4) Sales Growth Rate shall not be lower than: _____________

6. Accept consciously and cooperate actively with the lender
and its entrusting institute to check, understand and supervise the using status of the loan under this contract; accept consciously
and cooperate actively with the lender to supervise the account under supervision and mange the payment account for loan,
and provide the above relevant document, materials and information to the lender on the basis of __Monthly___ (Monthly/Quarterly).

7. Prior to transfer all or part of the debts under this contract
to the third party, the written consent of the lender shall be achieved.

8. When the lender transfer all or part of the debts under this
contract to the third party, the borrower shall perform its obligation to the transferred part or all of the debts transferred
to the third party according to this contract.

9. If the borrower is a group client, the borrower shall report
the related party transaction which is 10% more than its net asset to the lender, including: (1) The relationship among
the transaction parties; (2) transaction projects and nature; (3) Sum of transaction and the relative ratio; (4) Pricing policy.

10. Upon receiving the notice delivered by any means, the borrower
shall send the return receipt to the lender within 3 days after receiving.

11. As for the changing of dwell, address, business scope and
legal representative, the major managers and the other major industrial and commercial registration, the borrower shall notify
the lender in written form of the changing items within 7 days after changing.

12. When the major events or the material adverse events which
include contracting, leasing, entrusting, shareholding reformation, joint operation, merging, venturing, separation, capital reduction,
acquisition and reorganization, material increase debt financing, changing of controlling shareholder or the major transferring
of asset, production halting, termination of business, dissolution, bankruptcy liquidation and the other events, the borrower shall
notify the lender at least 30 days in advance to get the written consensus of the lender, or the above actions could not be carried
out before debt settlement.

13. If the following events or the other events that challenges
the normal business operation of the borrower and imposes the material adverse effect on the repayment by the borrower, the borrower
shall notify the lender immediately, and repay the loan according to the requirement of the lender or provide the new guarantee
agreed by the lender:

(1) Being filed for bankruptcy, being canceled or revoked business
license.

(2) Including but not limited to the involvement of major economic
controversy, deterioration of financial status, major administrative punishment, damaging of reputation.

(3) The borrower fails to repay other debt due, transacts at
material unreasonable price, transfers asset at low price and for free, reduces or discharges of the debt of the third party, fails
to exercise rights or tenders guarantee for the third party.

 

    	 

    	 

    

 

(4) The shareholders of the borrower abuse the independent legal
person status of the company or shareholder’s limited liability to avoid debts.

(5) The controlling shareholder and its related company encounter
the major crisis in business operation or finance, or the major related party transaction between the borrower and its controlling
shareholder or other related party company and it affects the company’s normal business operation;

(6) The major changes of guaranty under this contract include,
value of the guaranty reduced, the guaranty damaged or lost, or the guarantee ability reduced of the guarantor, which effect the
realization of the creditor’s rights.

14. The guaranty under this contract shall not be disposed by
the guarantor without the written consent of the lender.

15. Complies with the promise and guarantee items for the lender
strictly, and shall not breach the financial indexes agreed by the two parties.

16. The other obligations:

 

 

  

 

  

Provision XII Rights and Obligations
of Lender

Article 1 Rights of Lender

1. Requires the borrower to repay the principal, interest and
fee of the loan on time, exercises the other rights stipulated by this contract, and requires the borrower to fulfill the other
obligations under this contract.

2. Is entitled to check the situations of manufacturing, financial
status, inventory and usage of the loan, and is entitled to exercise the dynamic supervision on the usage of the loan, the payment
of the loan and income account for project.

3. Is entitled to with draw the loan before due according to
the capitals withdrawal situation.

4. Is entitled to participate in the major financing, asset
sale, merging, separation, shareholding reformation, bankruptcy liquidation of the borrower, to protect the lender’s creditor’s
rights.

5. For the activities of avoiding supervision, delinquency of
principal and interest and the other serious noncompliance committed by the borrower, the lender is entitled to exercise credit
sanctions, notify the relevant authority, and collect the capitals publicly by request through media.

6. The lender is entitled to transfer the creditor’s right
to the third party without the consent of the borrower or guarantor.

7. Apart from the debt under this contract, if the borrower
owes the other mature debts to the lender, the lender is entitled to collect RMB or the other currencies in the accounts that the
borrower opened with XI’AN Bank Co., Ltd and the its branches, and is entitled to use the collected capital to clear any
mature debt without notifying the borrower in advance. If there is the need to handle the procedures of exchange settlement and
sales or foreign currency changing, the borrower is of the obligation to assist the lender’s handling, and the risk of exchange
rate will be born by the borrower.

8. The other rights:

 

 

  

 

Article 2 The obligations of the Lender

1. In accordance with the contract, provide loan to the borrower.
However, the except for the failure to provide loan due to the reasons of the borrower and the other reasons could not be attributed
to the lender.

2. Keep the information of manufacturing, business operation,
and finance and management provided by the borrower in confidence, except that the contract, law and regulations or the government
authorities impose the other requirements on the information.

3. Within 30 days after the lender transfers the debt under
this contract, the lender is obliged to notify the borrower. The means of notification can be telephone, fax, e-mail, letter or
public announcement.

4. The lender is prohibited to bribe to or solicit and receive
bribe from the borrower and its staffs.

5. The other obligations:

 

 

  

 

  

Provision XIII Becoming Effective, Modification,
Dissolution and Termination of Contract

Article 1 Becoming Effective of Contract:

The contract becomes effective after the two parties sign or
stamp.

Article 2 Modification of Contract

1. If the borrower applies rollovers, it shall submit the written
application and the written confirmation of continuous guaranteeing from the guarantor to the lender 30 days before this contract
expires. Before the signing of the rollovers agreement, this contract shall still be effective.

2. Other than the modification and termination permitted by
this contract or law, any party shall not modify or terminate this contract. If there is a need to modify or terminate this contract,
the written agreement shall be signed after the consensus of the two parties. Before reaching the written agreement, this contract
shall be still valid.

3. The debt of the borrower shall not be exempted due to any
of the following conditions:

 

    	 

    	 

    

 

(1) The creditor or debtor encounters the situations of restructuring,
merging, annexing, separation, increasing or reducing capital, venturing, joint operation and so on;

(2) The creditor entitles the third party to exercise its rights
under this main contract.

Article 3 the dissolution and termination of Contract

Since this contract becomes effective, after the principal loan,
interest, compound interest, default interest, penalty and fees of realization of creditor’s rights have been paid, and then
the contract is terminated. However, if any of the following situations occurs, the lender is entitled to stop providing
the loan, announce the loan to become mature early, collect part or all of the principal and interest, terminate the contract or
take the other measures to protect its asset intact, and ask the borrower to bear the liability for breach of contract and compensate
for loss:

1. Any of the following situations occurs with respect to the
borrower and the lender believes that its creditor’s rights under this contract could be in risk:

(1) The borrower violates any obligation stipulated by this
contract or any legal obligation.

(2) The borrower expresses outstandingly or expresses by its
action that it will not fulfill any obligation under this contract.

(3) The borrower commits major cross breaches, transacts at
materially unreasonable price, transfers asset at low price and for free, reduces or discharges of the debt of the third party,
fails to exercise its rights, or tenders guarantee for the third party.

(4) The shareholders of the borrower abuse the independent legal
entity status of the company or shareholder limited liability to avoid debts.

(5) The controlling shareholder (or its real controller) and
its related company encounter the major crisis in business operation or finance, or the major related party transaction between
the borrower and its controlling shareholder or the other related party company impacted its normal business operation;

(6) The borrower does not follow the purpose stipulated by this
contract to use the capital, and does not pay the loan capital according to the means stipulated by this contract, or fails to
observe the promises and breach the agreed financial indexes.

(7) Any representation and warranty of the borrower is illusory,
false or with omission.

(8) Any of the prerequisites stipulated by this contract for
the loan providing has not been met constantly.

2. The lender considers that the following situations of the
guarantor which could risk the creditor’s rights:

(1) Violating any content of the guarantee contract, or there
are any false, mistake, omission in the statement and the promises.

(2) The guarantor encounters the situation stipulated in the
item 12, Article 11, Section 2, Provision 11.

(3) The guarantor expresses outstandingly or expresses by its
action that it will not fulfill any obligation under this contract.

(4) The other situations in which the guarantor may lose its
warranting ability which risks the creditor’s rights of the lender.

3. The following situation occurring in mortgage, pledge which
could be considered by the lender risky to the creditor’s rights under this contract:

(1) Due to the third person’s action, national expropriation,
confiscation, requisition, free recovery, removing, fluctuation of market and the other reason, the mortgage and pledge asset is
damaged, lost or devalued.

(2) The mortgaged or pledged asset is sealed up, detained, frozen,
collected, taken into custody, auctioned, supervised administratively or the controversy of its ownership.

(3) The pledgor or mortgagor violates the pledging contract
or mortgaging contract, or there exists any false, illusory or missed parts of the statement and promises.

(4) The other situations may risk the lender’s mortgage
rights or pledge rights.

4. The guarantee does not stand or fails to be effective, is
canceled or dissolute, or the guarantor expresses outstandingly or expresses by its action that it will not fulfill any obligation
of guarantee, or the guarantor loses part or entire of the guaranteeing ability, or the guaranty devalues and the other situations
that considered to be risky to the security of the creditor’s rights under this contract by the lender.

Article 4 If this contract is modified, terminated or expired
early, the loan obtained by the borrower and the due interest shall be paid according to this contract.

Article 5 The invalidity or non-execution of any article of
this contract doesn’t influence the effectiveness and execution of the other articles, and doesn’t reduce the effect
of the entire contract.

 

XIV Liability
for Breach of Contract

Article 1 After this contract becomes effective,
the two parties shall implement this contract on the basis of honesty, integrity, cooperation, economy principles. Any party who
does not implement, or does not implement entirely or postpones implementing the agreed obligation stipulated by the above articles,
shall assume the liability for breach of the contract, and compensate the loss to the other party due to its faults. When there
is no clear liability clauses in this contract, the parties shall assume the responsibility of continuously implementing this contract,
adopting the remedy measures and compensating the losses according to the law.

Article 2 As for the borrower failing to observe
this contract when it draws the loan, and late withdrawing the loan without the permission of the lender, the lender is entitled
to count and collect the default sum according to the contract interest rate day by day.

 

    	 

    	 

    

 

Article 3 If the lender fails to provide the loan according
to the contract, the lender shall pay the postponing default sum according to the contract interest rate day by day, exception
that the failure of providing the loan by the lender is caused by the borrower or the reason can not be attributed to the lender.

Article 4 If the borrower fails to repay the principal and interest
under this contract, the lender is entitled to require the borrower to pay off within a limited time, and the borrower entrusts
the lender collect the capital in all the accounts opened with XI’AN Bank and its branches to compensate for the debt under
this contract.

When the capital collected is foreign currency, exchange it
into RMB according to the buying rate published by the lender on the day of collecting.

Article 5 As for the borrower violating the obligation of this
contract or legal obligation, or the borrower, guarantor and guaranty encounter the certain situations that the lender considers
risky to the security of the creditor’s rights, the lender is entitled to require the borrower provide the guaranty recognized
by the lender, stop providing the loan unilaterally, and announce the loan is mature early and to terminate the contract.

Article 6 When there is no clear
liability clauses in this contract, the parties shall assume the responsibility of continuously implementing this contract, adopting
the remedy measures and compensating the losses according to the law. 

 

Provision XV Miscellaneous 

Article 1 The action of releasing loan by the lender even when
the borrower fails to meet the capital withdrawal conditions under provision VI, shall not be considered as lender’s breach.

Article 2 Unless there are the reliable evidences saying otherwise,
the inner financial record of creditor’s principal, interest, fee and the repayment notes, the bills, voucher made during
the debtor withdrawing the loan, repaying the principal and interest, and the record, voucher of calling in loan are the effective
evidences of the creditor relationship under this master contract. The guarantor shall not raise an objection just because that
the mentioned records, notes, bills, vouchers are made or reserved by the creditor unilaterally.

Article 3 Borrower (Make a choice between the two):

■ Agree to perform the notarization which entrusts this
contract to have the enforcement effect. When the borrower refuses to fulfill or refuses to fulfill suitably the obligations of
this contract, the borrower will accept the compulsory enforcement of court.

□ Refuse to perform the notarization which entrusts this
contract to have the enforcement effect.

Article 4 The parties agree the term of this contract has been
changed from 24 months to 12 months under item 2 provision III. At the loan maturity date, borrower shall pay back the loan principal
in one payment under item 3 provision VIII.

Article 5 If the debtor does not fulfill the contract, the debtor
and the guarantor agrees to accept the enforcement of the court.

 

Provision XVI Special Representation
and Warranty of Borrower

Article 1 The borrower is set up in accordance with law, and
is a legal (or it is the branches authorized by the legal entity). The borrower is entitled to sign the contract and has the ability
to implement this contract.

Article 2 The borrower has finished all the inner approval procedures
which are needed to sign this contract and the one who signs on this contract is the legal representative/principal or authorized
agent. When the contract becomes effective, it has the legal binding effect on the borrower.

Article 3 The documents, materials, voucher from the borrower,
the guaranteeing party and mortgage provided are real, effective, accurate, integrated, no including any major mistakes which is
inconsistent with the facts or the omission of any major facts.

Article 4 The borrower has read all the content of this contract.
On the requirement of the borrower, the lender has made explanation of this contract. The borrower understands fully the meaning
of this contract and the corresponding legal consequences.

Article 5 The borrower agrees the lender investigate the credit
status of the borrower with People’s Bank of China, and the credit database approved by the credit investigation authority
or the relevant department, agrees the lender to provide the information to People’s Bank of China and the credit database
approved by the credit investigation authority. The borrower agrees that the lender could use and disclose the borrower’s
information for relevant business need.

Article 6 Other than the written notification to the lender
before the signing of this contract, the borrower does not involve into or is to be involved in any lawsuit, arbitration or administrative
procedures which would influence the borrower’s implementation of this contract.

Article 7 Cooperate actively with the lender to manage the payment
of loan and after loan is distributed and relevant inspections.

Article 8 Use the loan in accordance with the purpose stipulated
by this contract; Pay the loan capital in accordance with the means stipulated by this contract.

Article 9 As for the major events such as investment abroad,
increase debt financing, merging, separation/stock transferring, the consensus of the lender shall be received in advance.

Article 10 The lender is entitled to take back the loan early
according to the situation of capitals withdrawal.

 

    	 

    	 

    

 

Article 11 When the major adverse events which could impact
the ability of repayment are encountered, notify the lender immediately.

Article 12 The borrower shall recognize the interest rate risks
completely. If the lender adjusts the interest rate level, i.e. interest counting or settlement according to the changes of national
interest rate policy or the stipulations of this contract, causes the interest, default interest and compound interest increase,
the borrower shall bear the paying responsibility for the increased part.

Article 13 Under the same conditions, the borrower’s accounts
settling, capital collection and payment and the other Intermediate business, ___no less than the ration of the lender’s
loan_______ (the entire/no less than the ration of the lender’s loan) shall be performed by the lender.

 

Provision XVII Dispute Resolution and
Application of Law

Article 1 Solution of disputes:

The disputes, which emerge during the process of signing and
implementing this contract, shall be settled by the consensus of the two parties. If the disputes can not be solved by negotiation,
any party could (make a choice among the following):

■ Apply the compulsory enforcement of the court according
to the notarization document which is of forced effect.

□ Institute legal proceedings to the local People’s
Court of the lender.

□ Apply arbitration to the __________ arbitration committee.

Article 2 Application of law

Law of the People’s Republic of China is applicable for
the signing, implementing and disputes resolution.

 

XVIII Supplementary Provisions

Article 1 If the withdrawal date, principal repay date, interest
settlement date is a legal holiday, then it is postponed to the next working day.

Article 2 This contract is signed in __Five____ copies. The
borrower has one, and the lender has two, and the notary department has one. All of the copies have the same effect.

Article 3 The annexes of this contract includes agreement for
extension, supplementary agreement, application for capital withdrawal, repayment plan, which are the indispensable parts of this
contract and have the same effect of this contract.

  

Borrower (official seal):             Lender (official seal):

Legal Representative:              Legal Representative 

(Or authorized Agent)             (Or authorized Agent) 

Date____ Month ____ Year 2012     Date____ Month ____ Year 2012

 

Guarantor (official seal):  

Legal Representative:

(Or Entrusted Agent) 

Date____ Month ____ Year 2012CONVERTIBLE
PROMISSORY NOTE TRANSFER AGREEMENT

 

This CONVERTIBLE PROMISSORY
NOTE TRANSFER AGREEMENT (the “Agreement”) is entered into as of the 28th day of April, 2012, by and among, Great Essential
Investment, Ltd., a company registered in the Virgin Islands (“Great Essential”), Carlyle Asia Growth Partners III,
L.P., a limited partnership organized under the laws of the Cayman Islands (“CAGP”) and CAGP III Co-Investment, L.P.,
a limited partnership organized under the laws of the Cayman Islands (“CAGP III,” and together with CAGP, the “Holders”)
and China Recycling Energy Corporation, a Nevada corporation (the “Company”). Any capitalized terms in this Agreement
not otherwise defined shall have the meaning ascribed to them in the Subscription Agreement and the Note (as hereinafter defined).

 

RECITALS

 

WHEREAS, on
April 29, 2009, the Holders and the Company entered into a Note Subscription and Amendment Agreement (the “Subscription Agreement”)
pursuant to which the Company issued to the Holders collectively an 8% secured convertible promissory note in the principal amount
of $3,000,000 (the “Note”).

 

WHEREAS, the
Holders have determined that it is in their best interests to sell, subject to the terms and conditions set forth herein, the Note
to Great Essential;

 

WHEREAS, Great
Essential has determined that it is in its best interest to purchase, subject to the terms and conditions set forth herein, the
Note from the Holders; and

 

WHEREAS, the
Company has agreed to the provisions of this Agreement that are necessary for the parties to complete the transaction which they
have negotiated.

 

NOW, THEREFORE,
in consideration of the premises and the mutual agreements herein set forth, and for good and valuable consideration, the receipt
and sufficiency of which is hereby acknowledged, the parties hereto agree as follows:

 

ARTICLE I 

 

The Note Transfer

 

Section
1.01. The Note Transfer. Subject to the terms and conditions of this Agreement, Great Essential and the Holders have
agreed that Great Essential shall pay US$ 3 million to the Holders for their entire right, title and interest in the Note. The
Note transfer shall take effect on the Transfer Date and the US$3 million transfer price (the “Transfer Price”) shall
be paid on or before May 29, 2012 (the “Transfer Date”) by
wire transfer of immediately available funds to an account designated in writing by the Holders and delivered to Great Essential
on or prior to the Transfer Date. In addition, Great Essential shall pay, together with the Transfer Price, interest on any outstanding
Transfer Price at 8.0% per annum between April 29, 2012 and the Transfer Date. If Great Essential fails to pay the Transfer Price
in full on or before May 29, 2012, the interest rate applicable on the outstanding amount shall be at 16% per annum until the Transfer
Price is paid in full. Interest on the outstanding Transfer Price shall be computed on the
basis of the actual number of days elapsed and a year of three hundred and sixty (360) days. It is understood all interest due
and payable on the Note as of April 29, 2012 will have been paid by the Company to the Holders. The Note shall be transferred with
all the conversion rights described in the Note (and in the related Transaction Documents as that term is defined in the Note)
but Great Essential shall not have any of other rights granted to the Holders under the Transaction Documents. Unless otherwise
provided in this Agreement, the risks and full economic benefits with respect to the Note shall pass to Great Essential on the
Transfer Date. If Great Essential fails to pay the Transfer Price in full before the Transfer Date, the Transfer Date shall be
postponed accordingly until such date when the Holders receive the full payment of the Note and any interest accrued thereon, provided
that if Great Essential fails to pay outstanding amount in full before June 30, 2012, this Agreement and the Note transfer shall
be terminated. The Holders and Great Essential agree with the Company that the maturity date of the Note shall be extended for
a period of 60 days following the Transfer Date and that Great Essential shall have registration rights with respect to shares
issuable upon conversion of the Note consistent with the registration rights of the Holders pursuant to the Amended and Restated
Registration Rights Agreement between the Holders and the Company dated April 29, 2009. 

 

    	-1-

    	 

    
 

Section
1.02. Further Documentation. The parties hereby agree to execute such other documents as may be required to carry out this
transaction including the issuance of a replacement note as provided in section 5.4 of the Note, if necessary. Despite
the requirement under section 5.4 of the Note, Parties agree that the Holders shall surrender the Note to Great Essential upon
the Transfer Price being paid in full, and the Holders can choose to deliver the Note to the offices of the Company’s outside
counsel in Washington D.C. for it to send the Note to Great Essential. 

 

 

ARTICLE II

 

REPRESENTATIONS AND WARRANTIES

 

Section 2.01. Representations and Warranties
of Great Essential. Great Essential represents and warrants to the Holders and the Company as follows:

 

(a) Great Essential has all power and authority
to execute, deliver and perform this Agreement. The execution, delivery and performance by Great Essential of this Agreement and
the transactions contemplated hereby including, without limitation, the purchase of the Note, have been duly authorized by Great
Essential.

 

(b) This
Agreement has been duly executed and delivered by Purchaser and constitutes the legal, valid and binding obligation of Great Essential,
enforceable against Great Essential in accordance with its terms.

 

(c) The Note will be acquired for investment
for the account of Great Essential, and not as a nominee or agent, and not with a view to the distribution or public offering thereof.
In connection therewith, Great Essential confirms that it is neither a U.S Person, as such term is defined in Rule 902(k) of Regulation
S, under the Securities Act of 1933, as amended (the “Securities Act”) nor located within the United States, and that
the transaction will be between non-U.S. Persons, and take place outside of the United States.

 

(d) Great Essential has not been contacted
concerning the acquired Note or the matters set forth in this Agreement by means of any advertisement or other general solicitation.

 

(e) Great Essential understands that a
registration statement on Form S-3 has been filed with the Securities and Exchange Commission of the United States (the “SEC”)
covering the shares issuable upon the conversion of the Note;, however, it has not been declared effective by the SEC and that
the Note has not been registered under either the Securities Act or the securities laws of any state by reason of specific exemptions
therefrom and that such securities may be resold in the United States without registration under the Securities Act only in certain
limited circumstances.

 

    	-2-

    	 

    
 

(f) Great Essential is a sophisticated
and experienced investor, with experience in buying and selling securities and has the ability to evaluate the merits and risks
of buying the Note. Great Essential has had access to information relating to the Company, and has had the opportunity to do due
diligence concerning the Company, as Great Essential deems necessary to make an informed investment decision in connection with
the purchase of the Note. Great Essential has made an independent decision to acquire the Note based on the information available
to it. Great Essential has determined that it has adequate information concerning the business and financial condition of the Company
and understands the disadvantage to which it may be subject on account of the disparity of information between Great Essential
and the Holders. Great Essential understands that, except as provided in Section 2.02 below, the Holders are making no representations
and warranties concerning the Note or the business and financial condition of the Company.

 

Great Essential understands that the Company
and/or its affiliates (including the Holders) may now or at any other time have material confidential information that could affect
the value of the Note and that this information has not been, and may not be in the future, made available to Great Essential.
Great Essential hereby waives any claim against, and covenants not to sue, the Company, the Holders and their respective controlling
persons, officers, directors, members, partners, agents or employees and their respective successors and assigns, from any and
all claims, demands, causes of action, damages, losses, expenses or liabilities, of any nature whatsoever, whether accrued or unaccrued,
contingent or liquidated, known or unknown, arising from or connected to any action heretofore or hereafter taken or omitted to
be taken in connection with this Agreement or any transaction contemplated hereby, including without limitation any failure to
disclose to Great Essential any information concerning the Company, including, without limitation, confidential information in
connection with any sale of the Note.

 

(g) Great Essential understands that Regulation
S promulgated under the Securities Act, is available only for offers and sales of securities outside the United States, and will
comply with Regulation S, specifically complying with the restrictions on re-sale of the securities of Rules 903 (a) and (b)(3)
of Regulation S.

 

(h) Legends. Great Essential acknowledges
that the Note it acquires will bear the following restrictive legend:

 

THE SECURITIES REPRESENTED BY THIS CERTIFICATE
HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR APPLICABLE STATE SECURITIES
LAWS. THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED IN THE (A) ABSENCE OF (I) A REGISTRATION STATEMENT
IN EFFECT WITH RESPECT TO THE SECURITIES UNDER THE SECURITIES ACT OR (II) AN OPINION OF COUNSEL TO THE HOLDER THAT SUCH REGISTRATION
IS NOT REQUIRED OR (B) UNLESS SOLD PURSUANT TO RULE 144 OR RULE 144A OF THE SECURITIES ACT. THIS SECURITY AND THE SECURITIES ISSUABLE
UPON CONVERSION OF THIS SECURITY MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN SECURED BY SUCH SECURITIES.

 

(i) Great Essential acknowledges that
it is aware of its obligations under the Securities Exchange Act of 1934 (the “1934 Act”), including, but not limited
to those filing obligations that are triggered as a result of the consummation of the sale of the Note pursuant to Sections 13
and 16 of the 1934 Act, together with filings required to be made by the Company and the Holders, after the consummation of the
sale of the Note or their conversion into shares of the Company’s common stock.

 

    	-3-

    	 

    
 

(j) Great Essential understands that one
or more stockholders, including the Holders, may be an “affiliate” of the Company within the meaning of U.S. federal
and state securities laws.

 

(k) The execution, delivery and performance
of this Agreement by Great Essential and the consummation of the transactions contemplated thereby, do not and will not (a) violate
any requirement of law applicable to Great Essential, or (b) result in a material breach or default under any of the contractual
obligations of Great Essential, or under any order, writ, judgment, injunction, decree, determination or award of any governmental
authority, in each case applicable to Great Essential or its properties.

 

(l) No approval, consent, compliance, exemption,
authorization, or other action by, or notice to, or filing with, any governmental authority or any other person in respect of any
requirement of law, and no lapse of a waiting period under any requirement of law, is necessary or required in connection with
the execution, delivery or performance by Great Essential (including, without limitation, the acquisition of the Note) or enforcement
against Great Essential of this Agreement or the transactions contemplated hereby.

 

(m) There are no brokerage commissions,
finder’s fees or similar fees or commissions payable in connection with the transactions contemplated hereby based on any
agreement, arrangement or understanding with Great Essential or any action taken by Great Essential. Holders shall not be liable
for any costs or expenses incurred by or on behalf of Great Essential in connection with this Agreement or the transactions contemplated
hereby.

 

 

Section 2.02. Representations and Warranties
of the Holders. Each of the Holders represents and warrants to Great Essential as follows:

 

(a) The Holder has all power and authority
to execute, deliver and perform this Agreement.

 

(b) This Agreement is the valid and binding
obligation of the Holder, enforceable against the Holder in accordance with its terms.

 

(c) The Holder is the record and beneficial
owner of the Note acquired by Great Essential, and the Note conveyed pursuant to this Agreement has not been assigned, pledged,
sold, transferred or otherwise previously conveyed.

 

(d) Except for the representations and
warranties contained in this Section 2.02, neither the Holders, the Company nor any other person makes any other express or implied
representation or warranty with respect to the Note or the business and financial condition of the Company, and the Holders disclaim
any other such representations, warranties, forecasts, projections, statements or information.

 

Section 2.03. Modification of S-3 Registration
Statement. The Company agrees that it shall modify the registration statement described in Section 2.01(d) above to identify
the shares issuable upon conversion of the Note either to remove such shares from registration or to identify them to Great Essential,
as Great Essential shall direct, after consummation of the purchase of the Note pursuant to this Agreement.

 

    	-4-

    	 

    
 

ARTICLE III

 

MISCELLANEOUS

 

Section 3.01. Governing Law; Successors
and Assigns. This Agreement shall be governed and construed in accordance with the laws of the State of New York and applicable
federal law without giving effect to any choice of law or conflict of law rules or provisions (whether of the State of New York
or any other jurisdiction) that would cause the application of the laws of any jurisdiction other than the State of New York and
shall be binding upon the heirs, personal representatives, executors, administrators, successors and assigns of the parties.

 

Section 3.02. Confidentiality. Each
Party agrees to hold and keep the information in this Agreement confidential and will not disclose any of such information in any
manner whatsoever, except as may otherwise be required by applicable law or NASDAQ rule.

 

Section 3.03. Entire Agreement and Severability.
This Agreement constitutes the entire agreement of the parties with respect to the subject matter hereof and supersedes and replaces
any prior agreement or understanding among Great Essential, the Holder and the Company with respect to the transfer of the Note
between Great Essential and the Holders. If any one or more of the provisions contained herein, or the application thereof in any
circumstance, is held invalid, illegal or unenforceable in any respect for any reason, the validity, legality and enforceability
of any such provision in every other respect and of the remaining provisions hereof shall not be in any way impaired.

 

Section 3.04. Headings. The headings
of the Sections of this Agreement are for convenience and shall not by themselves determine the interpretation of this Agreement.

 

Section 3.05. Counterparts. This
Agreement may be executed in any number of counterpart copies, all of which copies shall constitute one and the same instrument.

 

Section 3.06. Independent Counsel.
Great Essential and the Holders each acknowledge that this Agreement has been prepared by McKenna Long & Aldridge LLP, counsel
to the Company, and that McKenna Long & Aldridge LLP is not representing, and is not acting on behalf of, Great Essential or
the Holders in connection with this Agreement. Great Essential and the Holders have been provided with an opportunity to consult
with their own counsel and their own business, securities and tax advisors with respect to this Agreement.

 

Section 3.07. Effective.
This Agreement becomes effective upon the parties’ execution.

 

Section 3.08. Survival of Representations
and Warranties. All representations and warranties contained herein or made in writing by any party in connection herewith
shall survive the execution and delivery of this Agreement.

 

Section 3.09. Further Assurances.
Each of the parties shall execute such documents and perform such further acts (including, without limitation, obtaining any consents,
exemptions, authorizations, or other actions by, or giving any notices to, or making any filings with, any governmental authority
or any other person) as may be reasonably required or desirable to carry out or to perform the provisions of this Agreement.

 

Section 3.10. Amendments. This Agreement
may be amended, modified or supplemented at any time by the parties hereto only by an instrument in writing signed on behalf of
each of the parties hereto.

 

    	-5-

    	 

    
 

Section 3.11. Fees and Expenses.
All fees and expenses incurred in connection with this Agreement and the transactions contemplated hereby shall be paid by the
party incurring such fees or expenses.

 

 

 

(THE REMAINDER OF THIS PAGE INTENTIONALLY
LEFT BLANK)

(SIGNATURE PAGE FOLLOWS)

 

 

    	-6-

    	 

    
 

IN WITNESS WHEREOF, the parties hereto have executed this CONVERTIBLE PROMISSORY NOTE TRANSFER AGREEMENT on the date first
written above.

 

 

	 	For and on behalf of:
	 	 
	 	CARLYLE ASIA GROWTH PARTNERS III, L.P.
	 	 
	 	 
	 	By:                                                            
	 	Name:                                                        
	 	Title:                                                         
	 	 
	 	 
	 	 
	 	For and on behalf of:
	 	 
	 	CAGP III CO-INVESTMENT, L.P.
	 	 
	 	By:                                                            
	 	Name:                                                       
	 	Title:                                                         
	 	 
	 	 
	 	 
	 	For and on behalf of:
	 	 
	 	GREAT ESSENTIAL INVESTMENT, LTD.
	 	 
	 	By:                                                            
	 	Name:                                                       
	 	Title:                                                         
	 	 
	 	 
	 	 
	 	For and on behalf of:
	 	 
	 	CHINA RECYCLING ENERGY CORPORATION
	 	 
	 	By:                                                            
	 	Name:                                                       
	 	Title:                                                         

 

    	-7-

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