Document:

Exhibit 10.2

 

Working Capital Loan Contract 

 

REF: JK161213000014

 

Party A: Shenzhen Highpower Technology
Co., Ltd

Address: Building A1, 68 Xinxia Street, Pinghu,
Longgang, Shenzhen.

 

Party B:Bank of Jiangsu, Shenzhen Sub-branch.

Address: 4011, Shennan Road, Futian District,
Shenzhen.

 

According to relevant laws and regulations
of China, this contract was agreed by two parties, and both of them will be in accordance with the terms of the contract.

 

Clause 1 Content of the loan

 

1. Amount

Currency in: RMB

Amount: RMB Twenty millions only

RMB 20,000,000.00

 

2. Period: From July 25th, 2013
to July 24th, 2014.

 

3. Lending rate and interest calculation

(1) Lending rate

 

Lending rate is a floating rate, which is
reset on 21st of every month. Interest rate is the one-year benchmark lending interest rate, set by People’s bank
of China, plus 20%.

 

(2) Interest calculation

 

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withdrawal date on the actual amount of money withdrawn and the number of days outstanding.

 

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

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

 

4. Purpose of loan: Purchase of raw materials

 

5. Evidence of debt

 

Evidence of debt is part of this contract,
and has equal legal effect. In case of a conflict between the contract and evidence of debt the latter shall govern.

 

Clause 2 Interest settlement

 

1. Interest settlement takes place on the
20th of each month.

 

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

 

2. Party A should pay interest on the 20th
of each month. Party B can charge interest from Party A’s account in bank of Jiangsu. If Party A does not pay on time, compound
interest will be charged interest.

 

Clause 3 Penalty interest and compound
interest

 

1. For an overdue loan or violation of use
of loan purpose, the penalty interest rate of the overdue loan shall be the agreed interest rate plus 50%, and the penalty interest
rate of the misappropriated loan shall be the agreed interest rate plus 100%.

 

Overdue interest bears compound interest with
penalty interest rate.

 

    	1

    	 

    

 

Clause 4 Withdrawal conditions

 

1. To conduct a withdrawal, the following
conditions must be met when the contract is effective, unless Party B exempts the condition:

 

(1) Party A has opened the account in Bank
of Jiangsu or its sub-branch.

 

(2) Party A has provided Party B with legal
papers, which can prove Party A is of legality, to Party B, including but not limited to the latest business license, approval
certificate, joint or cooperate contract, and article of association.

 

(3) Party A has provided Party B with a withdrawal
application, entrusted payment.

 

(4) Guaranty contract related to this loan,
and/or mortgage contract, pledge contract have been effective.

 

(5) Provide or complete all items requested
by this contract and Party B, including but not limited to finishing approval, register, filing, insurance, notarization, and testimony.

 

(6) Party A has provided Party B with the
verification report which can prove its registered capital has been put in place.

 

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

 

(8) Party A should submit written withdrawal
application, documentary proof for using of loans

 

(9) Party A has provided Party B with evidence
of debt which has seals.

 

(10) Party A has provided Party B with credit
cards of Party A and guarantee.

 

(11) Loan contract, guarantee contract, and
pledge contract must apply for notarial legalization procedure, if necessary. All notarization fees should be paid by Party A.

 

(12) All expenses under this contract have
been paid by Party A and/or guarantee.

 

Clause 5 Withdrawal plan

 

1. If all withdrawal conditions have met,
Party A can withdraw 20 million Yuan on July 25th 2013 in one lump sum.

 

2. Party B has right to refuse providing the
loans if Party A doesn’t withdraw on schedule.

 

Clause 6 The way of payment

 

 1. Entrusted payment.

 

Party B pay to transactional objects according
to withdrawal application and entrusted payment applied by Party A, under the condition of regulated use of purpose by this contract.

 

    	2

    	 

    

 

2. Party B has the right to consult with Party
A about withdrawal conditions, and stop the loan or request Party A to repay the loan in advance, if the following situations occurred:

 

 (1) Party A's credit status drops.

 

(2) Party A's main business profitability
is not good.

 

(3) Party A contravenes the section on use
of the loan.

 

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

 

(5) Party A violates commitments issues.

 

(6) Party A violates the other situations
under this contract.

 

Clause 7 Repayment

 

 1. Party A’s repayment sources include but are not limited to revenues from normal operations.

 

2. Except agreed by Party A and Party B, Party
A must repay 20 million Yuan under this contract on July 24th 2014.

 

3. If the above repayment date is not a banking
day, repayment is delayed to the next banking day. If Party A cannot repay the loan on time, Party A should provide the written
application for delaying repayment one month before the loan expiration to Party B.

 

5. Party B has the right to collect expired
principal and interest from Party A’s account in Jiangsu Bank. If the collected money is a foreign currency, it will convert
to RMB according to the rate announced by Party B.

 

Clause 8 All debts under the contract
are guaranteed by SPRINGPOWER TECHNOLOGY (SHENZHEN) CO., LTD. And DANGYU PAN, who signed the guarantee contract (NO.B2161213000023
and B2161213000024) with Party B.

 

Clause 9 Representations and warranties

 

1. Party A’s qualification meets the
requirements of related laws and regulations.

 

2. Party A has been granted all legal and
valid authorizations to sign this contract and other relevant documents, and is able to perform its own responsibilities.

 

3. Party A will not violate any laws, normative
documents and this contract by signing and performing the contract.

 

4. Party A does not have any pending litigations,
arbitrations or administrative penalties.

 

5. Party A will cooperate with Party B in
payment management of the loan, management after the loan and related examination.

 

6. The financial statements provided by Party
A truly report Party A’s financial condition.

 

7. All information provided by Party A to
Party B is true, legal and effective, without material misstatement and is not misleading.

 

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8. All information about Party A, guarantee,
mortgager, mortgagor, mortgage and project which exists in this contract and the guarantee contract is true, complete, and accurate,
without leaving any important fact out.

 

9. Party A has known the business scope and
grant privilege of Party B. Party A has read all terms of the contract. Party B has explained homologous terms requested by Party
A. Party A knows the meaning of all terms of the contract and homologous legal consequence. Signing the contract is the true will
of Party A.

 

Clause 10 Rights and obligations of Party
A

 

1. The rights of Party A

 

(1) Party A has the right to draw and use
the loan according to this contract.

 

(2) Party A has the right to transfer the
liability under this contract to third party, if Party A gets the written approval of Party B.

 

2. The obligations of Party A

 

(1) Party A should provide true documents
to Party B.

 

(2) Party A should provide last
month’s financial statement to Party B before the 20th of each month, and provide audited financial
statements to Party B within 120 days after fiscal year, and provide changes and modifications of itself to Party B.

 

(3) Party A should accept and cooperate with
Party B in surveying, supervising and examining credit conditions, related production, management, and financial operations.

 

(4) Party A should open a settlement account
in Bank of Jiangsu, Shenzhen Sub-branch, and arrange settlement of both domestic and overseas accounts, foreign exchange settlement
and sale and other intermediate business in Bank of Jiangsu or its sub-branch more than the proportion of the loan under the contract
and all loans of Party A.

 

(5) Party A should use the loan according
to the contract.

 

(6) Party B should repay principal and interest
according to the contract.

 

(7) Party A should provide notice to Party
B in writing before investing abroad, substantially increasingdebt financing, merging, or before a discretion, stock right transference,
asset transference and any other major events. Party A should put safeguards of repaying principal, interest and other fees under
the contract in place.

 

(8) If significant adverse things can affect
the solvency/guarantee ability of Party A or guarantee, Party B should be informed by Party A or guarantee.

 

(10) If Party A is a group, Party B should
be informed in writing within 10 days when the turnover of a connected transaction exceeds 10% of Party A’s net assets. The
content of the report should include but not be limited to the relationships between the trading object and Party A, trading program
and nature of the transaction, transaction amount or the corresponding proportion, and pricing basis(including the transactions
which have no amount or only token payment).

 

(11) Ensuring cover insurance for the
asset which is related to the loan to the insurance company as Party B requested, and designating Party B to be the
beneficiary.

 

(12) If a notary agency
mandates enforceable status to this contract, guarantor agrees to be enforced by the legislative body and gives up the right of
defense.

 

    	4

    	 

    

 

Clause 11 the rights and obligations of
Party B

 

1. The rights of Party B

 

(1) Having the right to ask Party A to provide
related information of the loan under the contract.

 

(2) Having the right to ask Party A to repay
principal and interest on schedule or in advance.

 

(3) Having the right to know the production,
financial condition, operation, and repayment plan. Having the right to extract and copy from account books, operation records
and related information.

 

(4) Having the right to supervise how Party
A uses the loan according to the contract.

 

(5) Having the right to collect principal,
interest, and other related expenses from Party A’s account on schedule or in advance.

 

(6) If Party A fails to act or violates the
obligations under the contract, Party B has the right to change the way of payment, and stop providing the loan or ask Party A
to repay the loan in advance, and announce the acceleration of maturity of the loan.

 

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

 

(8) If Party A transfers the property right,
changes system, reduces registered capital, or transfers obligatory rights and debts or something important, Party B has the right
to ask Party A to repay principal, interest and other related fees under the contract, or request Party A to transfer all loan
under the contract to the assignee agreed to by Party B, or ask Party A to provide other guarantee measures agreed to by Party
B.

 

(9) Party B has the right to query the credit
inquiry of Party A, the legal representative of Party A and executives of Party A, and has the right to provide the information
of Party A to the people’s Bank of China etc.

 

2. The obligations of Party B

 

(1) Party B should provide the loan to Party
A according to the contract.

 

(2) The financial conditions and operations
of Party A should be kept secret by Party B, except as required by the laws, administrative laws and regulations, and normative
documents requested.

 

Clause 12 Default

 

1. The occurrence of the following things
constitute a default during the contract period:

 

(1) Party A fails to comply with clause 9
and clause 10, including not repaying the principal, interest and other payables on schedule under the contract.

 

(2) Party A does not perform its obligations
under the contract and other related documents. If the above actions can be corrected, Party A should correct above actions to
make Party B satisfied in 20 days since Party B sent written notice.

 

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(3) Termination of business, liquidation,
restructuring, dissolution and bankruptcy of Party A by an active or passive means.

 

(4) Party A provides false materials or conceals
any important fact of finance and operations.

 

(5) Party A breaks the financial target agreed
in Clause 18 in the contract;

 

(6) Party A has financial losses or a deterioration
of financial conditions which might affect the capacity for fulfilling the contract of Party A or Guarantor. Or Party A evades
the bank debts on purpose.

 

(7) The project loan of Party A is canceled
or impossible to implement.

 

(8) Party A uses false contracts with related
parties to achieve capital or a line of credit from Party B or other banks.

 

(9) Party A is involved in illegal
operations.

 

(10) Division, merger, important takeover,
consolidation and reorganization of Party A.

 

(11) Party A violates other contracts signed
with Party B or another third party, or is involved in litigation or arbitration because of those contracts.

 

(12) Controlling shareholder of Party A transfers
its share, or significant items happen to the controlling shareholder, actual controller, legal representative, senior executives
of Party A, including but not limited to being involved in illegal actions, litigation, arbitration, administrative penalty, deterioration
of financial condition, bankruptcy, dissolution etc.

 

(13) Guarantor violates the contract, such
as providing false information, violating other contracts signed by Party B or other third parties, becoming involved in litigation,
arbitration, ceasing business, business failures, illegal actions, evading bank credit’s rights, merging, consolidating,
reorganizing, and other situation which may affect guaranty ability of Guarantor.

 

(14) Defaults have occurred under other loan
contracts or guaranty contracts signed between Party A and Party B.

 

(15) Other situations are or might be injured
the safety of the loan.

 

2. When default happens, Party B will take
one or a few following measures according to the nature and extent of the default:

 

(1) Asking Party A to correct the default
and take remedial measures within a definite time.

 

(2) Changing the way of payment under the
contract.

 

(3) Stopping providing remaining loan, cancelling
remaining loan commitment, announcing the immediate expiration on the principal and interest under the contract, and calling the
loan immediately.

 

(4) Accelrate the maturity of and
declare immediately payable all principal and interest under other contracts signed between Party A and Party B.

 

(5) Freezing part or all deposit of Party
A. Having the right to deduct the funds from Party A’s deposit accounts to pay off the principal, interest and other related
expense under the contract. Foreign exchange purchasing is granted to Party B by Party A for repaying the principal and interest
of foreign exchange loans.

 

    	6

    	 

    

 

(6) Asking liability of guaranty from guarantor
or handling the guarantee.

 

(7) Filing a lawsuit to the court, claiming
indemnity for the principal, interest, expenses and other losses from Party A and guarantor by taking legal action.

 

(8) If the notary organ considers the contract
as enforceable, enforcement can be applied to the court.

 

Clause 13 Expense

 

1. The expenses of credit information, notarization,
testimony, register etc. under the contract should be afforded by Party A.

 

2. The expenses resulting from Party A not
repaying the principal and interest on schedule should be paid by Party A, such as advertising fees, delivery fees, appraisal costs,
counsel fees, legal fares, travel expenses, valuation fees, auction fees, property preservation fees, enforcement fees etc.

 

Clause 14 Transferring of obligation

 

1. Without the written approval from Party
B, Party A cannot transfer any rights and obligations under the contract to a third party.

 

2. If Party A transfers the rights and obligations
under the contract to a third party with the written approval of Party B, the third party should comply with all terms of the contract
unconditionally.

 

Clause 15 Modification, dissolution and
execution of civil right of the contract

 

1. If agreed by both parties, this contract
can be modified and dissolved in writing.

 

2. Any tolerance, extension or delay from
Party B to Party A of exercising of rights under this contract does not affect the rights Party B enjoys according to this contract
and laws and regulations, and cannot be considered as approval to the default, and does not mean the waiverof the right.

 

3. If any terms of the loan become invalid
for any reason, Party A still should perform the obligation of repayment. If above situation happens, Party B has the right to
terminate this contract, and ask Party A to repay the principal, interest and other funds under this contract immediately.

 

4. Party B shoud be provided written notice
of any changes of Party A’s abode, postal address, contact number, business scope, legal representative etc, within 10 days
after the changes happen. It will be considered as if the information has been delivered if Party B sends related notices and documents
according to primary address for Party A if Party A does not perform the above obligations.

 

5. Any related notices and documents should
be sent in writing by both parties.

 

Clause 16 Party A agrees that the creditor’s
rights under this contract can be enforced after notarization. When Party A does not carry out obligations under the contract completely
or partly, Party B can apply enforcement to competent court.

 

Clause 17 Applicable Law and Resolution
for dispute

 

The signing, effectiveness, interpretation,
performance and settlement of disputes of this contract shall apply for the People's Republic of China's laws. If there are any
disputes based on this contract, the contracting parties could attempt to resolve them through consultation. If negotiation fails,
shall resolve the disputes according to the following way of     A    :

A. Institute legal proceeding to the court
where the Party B located.

B.

 

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Clause 18 Other terms and conditions

 

1. This contract is the specific business
of Maximum Amount Comprehensive Credit Line Contract (NO: SX161213000233).

 

2. The things which are not mentioned in this
contract should be explained and settled according to relevant laws, administrative laws and regulations, normative documents and
the related regulations of Bank of Jiangsu.

 

Clause 19 Effective and invalid of the
contract

 

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

2. This contract becomse invalid after Party
A has repaid all principal and interest of the loan and other expenses.

 

This contract is signed in triplicate; each
party (Party A, Party B and Guarantor) holds one copy, which has the equal legal effect.

 

/s/ [COMPANY SEAL]

Party A (Stamp):Shenzhen Highpower Technology
Co., Ltd.

Signature of legal representative or deputy:

/s/ Dangyu Pan

 

/s/ [COMPANY SEAL]

Party B (Stamp): Bank of Jiangsu, Shenzhen
Sub-branch.

Signature of legal representative or deputy:

/s/ Cheng Chen

 

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[FOR GUARANTEE AGREEMENTS RELATED TO THIS
AGREEMENT, SEE THE MAXIMUM AMOUNT PERSONAL JOINT RESPONSIBILITY GUARANTEE AND THE MAXIMUM AMOUNT GUARANTY CONTRACT FILED WITH EXHIBIT
10.1 TO THE REGISTRANT’S QUARTERLY REPORT ON FORM 10-Q FOR THE QUARTER ENDED SEPTEMBER 30, 2013 FILED WITH THE SEC ON NOVEMBER
14, 2013.]Number :40000928-2013 (Henggang) No. 0040

 

Working capital loan contract 

 

Important note: The contract is signed between
borrower and lender according to laws and on equal and willing basis, and all the terms of this contract are true meaning of both
sides. In order to protect the borrower’s legitimate rights and interests, the lender hereby inform the borrower to pay full
attention to all the terms concerning the rights and obligations of both parties , especially the bold parts of the contract.

 

The lender (the loan): Industrial and
Commercial Bank of China Ltd. Shenzhen Henggang Branch

Person in charge: Duoping Yang   Contact:
Xiaomin Hong

Residence (address): City Center Garden Street
shops 101, 201, Henggang Street, Longgang District, Shenzhen   

Zip Code: 518115

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

 

Borrower: Shenzhen Highpower Technology
Co., Ltd.

Legal representative: George Pan   Contact:
Eric Li

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

Zip Code: 518111

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

 

After equal negotiation, both sides agreed
to enter into this particular contract.

 

The first part   Basic
Provisions

 

Article 1 the use of the loan

The loan Can be used for the below purpose
and shouldn’t be used for any other purposes without written consent of the lender, the lender has the right to monitor the
use of funds.

 Use of loan: The
loan can be used as current funds for production and operations.

 

Article 2 the loan amount and duration

2.1 The amount under this contract is RMB
20,000,000.00 (RMB TWENTY MILLION ONLY)

2.2 The term under this contract is 12 months
from the date of actual withdrawal (if separate withdrawal, from the date of the first withdrawal), the actual withdrawal date
is the date on IOU.

 

Article 3 rate, interest and cost

3.1 to determine the RMB loan interest
rates

RMB loan interest rates shall be determined
according to the following (2)

(1) Fixed interest rate. Annual interest rate
shall be /% and will not change during the duration.

(2) Floating interest rates. Interest rate
shall be determined by base rate plus floating rate. Base rate is the corresponding base lending rate announced by the People's
Bank of China on the effective date of the contract with underlying term the same as in section 2.2. The floating
rate is 15% of the base rate, and shall not change within the loan period. After withdrawal, the interest rates
shall be adjusted every 6 months. The date to determine the second period’s interest rate is the corresponding
date when the first period ends.  If the corresponding date does not exist, then choose the last day of that month. Interest
rate of each withdrawals shall be adjusted according to A.

A, the interest rate
for each withdrawal during any six month period shall be determined according to the rate set at the beginning of the underlying
period regardless of the number of withdrawals and shall be adjusted at the next six month period.

B, Borrowing rates of
each withdrawal are determined and adjusted individually.

(3) Other: None

 

    	1

    	 

    

  

 

  

3.2 to determine the foreign exchange
loan interest rates

Borrowing rates in foreign currency follow
the / ways to determine:

(1) Fixed interest rate. Annual interest rate
shall be / and shall not change during the duration.

(2) Floating interest rates, borrowing rates
to / months / (LIBOR / HIBOR) as the base rate plus / basis points (one basis point to 0.01%) consisting of a floating interest
rate spreads. Contract period plus point spreads remain unchanged. The use of sub-pen drawing and each withdrawal rates were calculated.
Borrower after the withdrawal, following the / ways to adjust the benchmark interest rate, interest-bearing segment:

A, the benchmark interest rate changes in
accordance with the corresponding period. The second phase of the benchmark interest rate adjustment date for a full withdrawal
on the corresponding day after, if you adjust the month and the withdrawal does not exist on the corresponding date, places corresponding
to the last day of the month, day, and so on other phases.

B, the benchmark interest rate changes in
the first day of each Interest Period.

(3) Other: /

3.3 Interest for the borrower under the contract
is calculated on a daily basis from the date of withdrawal and is paid on a monthly basis (month / quarter / half year) interest
settlement. When the loan matures, interest should be settles along with the principal. One day interest rate = interest rate /
360.

3.4 Late penalty rate under the contract is
130% ofthe original loan interest rate, penalty interest rate for misappropriation of the loan is 150% of the original loan interest
rate.

 

Article 4 withdrawal

Funds should be withdrawn based on the actual
needs, the borrower can make single or multiple withdrawals to the loan amount limit. If the borrower does not withdraw according
to the contract, the lender has the right to cancel all or part of the remaining unused balance. (This section does not apply
to loan cycles)

 

Article 5 repayment

5.1 Borrower repay the loan under this contract
in one single lump sum.

 

5.2 If the Borrower prepay the principal in
advance, the borrower should compensate the lender. The compensation should be calculated as: the amount of principle that is prepaid
x the remaining time under the contract (number of months) x 0.1%; the number of months calculated for remaining time should be
rounded to the greater integral number.

 

Article 6 cycle loan special agreement not
applicable.

 

Article 7 guarantees

7.1 Loans under the contract are guaranteed,
by Hong Kong Highpower Technology, Springpower Technology (Shenzhen) Co., Ltd. and the legal person, Dangyu Pan 's personal joint
responsibility for promissory guarantee.

 

7.2 Under the contract, the corresponding
maximum guarantee contracts are the following:

Maximum amount of guarantee contract name:
"the maximum guaranteed contract" (ID: ICBC 40000928-2012henggangbaozi 0053)

Guarantor: Hong Kong Highpower Technology
Co., Ltd.

Maximum amount of guarantee contract name:
"the maximum guaranteed contract" (ID: ICBC 40000928-2012henggangbaozi 0054)

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

Maximum amount of guarantee contract name:
"the maximum guaranteed contract" (ID: ICBC 40000928-2012henggangbaozi 0055)

Guarantor: Dangyu Pan

 

Article 8 financial agreement not
applicable

/

/

 

Article 9 dispute resolution

Dispute resolution under this contract is
resolved through litigation at the court with jurisdiction where the lender is located.

 

    	2

    	 

    

 

 

 

 

Article 10 other

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

10.2 The following attachments along with
other attachments mutually recognized form an integral part of this contract, and have the same legal effect as the contract:

Annex 1: Notice of Withdrawal

Annex 2: commission payment protocol

 

Article 11 other matters agreed by the
parties

  /

 

The second part   Specific
Provisions

 

Article 1   rate and interest

1.1 In foreign currency borrowings, LIBOR
is the benchmark interest rate on the withdrawal date or two banking days before the adjustment date of base interest rate (11:00
noon London time) Reuters (REUTRES) Financial Telecommunication terminal "LIBOR" page displays the borrower under this
contract currency interbank offered rate; HIBOR as the benchmark interest rate adjustment date or withdrawal two banking days before
(11:15 noon Hong Kong time) Reuters (REUTRES) Financial Telecommunication terminal "HIBOR" page shows the same industry
in HK Offered Rate.

1.2 For loans with floating interest rates
under the contract, , the rules to adjust the underlying interest rate will not be changed.

1.3 For loans with interest rates settled
monthly, interest settlement date is 20th of each month; For loans with interest rates settled quarterly, the interest settlement
date is the 20th of the last month of each quarter; For loans with interest rates settled semi-annually, interest settlement
dates are June 20 and December 20 of each year.

1.4 The first interest period is from the
actual withdrawal date to the date of the first interest settlement date; the last interest period is from the following day after
the previous interest period to the final repayment date; other interest period is from the following day after the previous interest
period to the next interest settlement date.

1.5 In the case the People's Bank of China
adjust the policies to mandate loan interest rate, the lender will follow such policies, and will not notify the borrower.

1.6 Upon signing the contract, if the loan
interest rate is discounted from the base interest rate determined by People’s Bank of China, the Lender has the right to
reevaluate the discount given to the Borrower based on the national policies, credit quality of the borrower, and the changes of
the guarantors, etc. The Lender has the discretion to decide on the cancellation of part or all discount, and will notify the borrower
in the due course.

 

Article 2   loan withdrawal
and release

2.1 Upon withdrawal, the borrower must meet
the following prerequisites, otherwise lenders are not obliged to release any funds to the borrower, except the lender agrees to
advance loans:

(1) Except loans on credit, the Borrower has
provided appropriate guarantee according to the Lender’s requirements, and related guarantee procedures are completed;

(2) No breaches occurred under this contract
or other contracts signed by the Borrower and the Lender.;

(3) Evidence of use of funds provided by the
borrower conforms to the agreed use of funds;

(4) Provide any other materials needed by
the lender.

2.2 The written documents provided by the
Borrower to the Lender upon withdrawal shall be original; Under conditions that original written documents can not be provided,
after the consent of the Lender, a copy of the duplicate with the official seal stamped from the Borrower.

2.3 Borrowers must submit withdrawal notice
to the Lender at least five banking days in advance before any withdrawal. Once withdrawal notice is submitted, without the written
consent of the lender, it may not be revoked.

2.4 If the Borrower meets the prerequisites
for withdrawal or agreed by the Lender to advance the loan, the lender transfers loan amount to the designated borrowers’
account, the lender is deemed to have issued the loan to the Borrower in accordance with the contract.

2.5 In accordance with relevant regulatory
requirements and management requirements of lenders, loans more than certain amount or that meet other conditions should be paid
by entrusted payment of the Lender, the Lender should pay loans to the designated object with the borrower's withdrawal application
and payment commission. 

 

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Therefore, the Borrower should sign entrusted payment agreement with the Lender as the attachment of the
contract, and should open or designate a specific account at the Lender’s bank to settle the payments.

 

Article 3   repayment

3.1 The Borrower shall timely repay the contract
principal, interest and other payables in full. On the payment date and one banking day before each settlement day, current payable
interest, principal and other payables should be fully deposited into the repayment account opened at the Lender’s bank ,
which shall be collected by the Lender on the repayment date or interest settlement date, or the Lender has the right to require
the Borrower handle transfer procedure . If the repayment amount in the account is insufficient to cover all due amounts of the
Borrower, the lender has the right to decide the liquidation order.

3.2 The Borrower should submit written application
10 banking days in advance for advanced repayment of all or part of the loans to the lender with the consent of the Lender to pay
compensation to the Lender in accordance with the standard agreed in the contract.

3.3 The Borrower shall repay due principal,
interest and other payables in advance with the consent of the Lender according to the contract on the advanced repayment date
..

3.4 The lender has the right to call loans
in advance according to the returning situation of borrower’s funds.

3.5 If the actual loan period is shorten
because of the advanced repayment by the Borrower or advanced loan call by the Lender according to the contract, the corresponding
interest rate level will not be adjusted.

 

Article 4 cycle loan (not applicable)

 

Article 5   guarantee

5.1 In addition to loans on credit, the borrower
should provide legitimate and effective guarantee that is accepted by the Lender to fulfill the obligations under the contract
.. Guarantee contracts are signed separately.

5.2 Borrower shall promptly notify the lender,
and further provides other guarantees accepted by the Lender under the conditions that damages, depreciation, property disputes,
being seized or detained, or discreet disposal of collateral by the Borrower, or the guarantor’s financial condition changes
adversely,

5.3 If accounts receivables are pledged as
collaterals under the contract during the period the contract is still effective, the lender has the right to declare early maturity
of loans, and require the borrower to immediately repay some or all of loan principal and interest, or request additional legitimate
and effective collaterals against the loans, if one of the following conditions occur,

(1) The pledgor of the accounts receivable
bad debt increases on the payer of which the accounts receivable are pledged, for two consecutive months;

(2) The accounts receivable that is uncollectable
accounts for over 5% of the pledgor’s total accounts receivable.

(3) The accounts receivable is due and uncollectable
when trade disputes (including but not limited to quality, technology, service-related disputes) or debt disputes between the pledgor
and payer

 

Article 6 account management

6.1 Borrower shall designate a special account
at the Lender’s bank for cash inflows for collecting sales revenues or planned capital repayment. Corresponding to the sales
in the form of non-cash settlement, the borrower should ensure timely receipt of funds into the designated account.

6.2 Lender has the right to monitor the designated
account, including but not limited to the capital income and expenditure, the borrower should cooperate. If required by the Lender,
the Borrower should enter into a special account control agreement.

 

Article 7   representations
and warranties

Borrower makes the following representations
and warranties to the lender, and such representations and warranties remains in effect under the term of the contract:

7.1 Borrower shall have the qualification,
and ability to perform the contract signed with the Lender.

7.2 The Borrower has received all the necessary
authorization or approval to sign and perform this contract, which is not in violation of the Articles of Association and relevant
laws and regulations, and shall bear other obligations under the contract not in conflict with other contracts.

7.3 The borrower has been scheduled to meet
other debt payments, bank loan principal and interest owed no malicious behavior.

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7.4 The borrower has a sound organizational
and financial management system, in the last year of production and management process has not a major act of violation of discipline,
the current senior management has no significant adverse record.

7.5 The borrower provides to the lender of
all documents and information are true, accurate, complete and effective, there is no false record, misleading statement or significant
omission.

7.6 The borrower provides to the lender's
financial and accounting reports are prepared under Chinese accounting standards, true, fair and complete reflection of the borrower's
operations and liabilities, and the borrower's financial situation has not any material adverse change since the most recent financial
reporting period. 7.7 The borrower has not concealed to the lender any litigation, arbitration or claim involved.

 

Article 8 borrower commitment

8.1 The Borrower withdraws and uses funds
under terms and conditions in the contract. The borrowed money is not used for fixed assets and equity and other investments, not
in any way into the stock market, futures market or uses prohibited by relevant laws and regulations.

8.2 Repay the loan principal and interest
and other payables in accordance with the contract.

8.3 Accept and actively cooperate with the
lender for account analysis, inspection, on-site reviews, etc., including use of the loan, including the use of funds and supervision
of the inspection. In accordance with the lender’s requirements, the borrower periodically provides summary reports for the
use of funds.

8.4 Accept the lender's credit check required
by the lender, and provide the lender with balance sheet, income statement and other financial and accounting information reflecting
the borrower's solvency, to actively assist and cooperate with the lender to investigate and review its financial situation and
production operations.

8.5 Before paying off the loan principal and
interest under the contract and other payables, the Borrower is not allowed to repay and dividends.

8.6 For the merger, divesture, reduction,
changes in ownership, transfer of substantial assets and debt, significant foreign investment, substantial increase in debt financing
and other activities that may adversely affect the rights of the Lender’s interest, prior written consent is required by
the lender.

8.7 One of the following circumstances occurs,
notify the lender:

(1) The change on articles of incorporation,
business scope, registered capital, the legal representative;

(2) Out of business, dissolution, liquidation,
business for rectification, revocation of business license is revoked or application (by application) bankruptcy;

(3) Or may be involved in major economic disputes,
litigation, arbitration, or the property was legally seized, detained or regulation;

(4) Shareholders, directors and senior management
is currently involved in serious cases or economic disputes.

8.8 Timely, completely and accurately disclose
related party relationships and related party transactions.

8.9 Sign and verify notices mailed, or in
the form, from lender ..

8.10 Not dispose of assets in order to reduce
the solvency; provide guarantees to third parties without damaging the interest of the lender.

8.11 If the loans under the contract are on
credit basis, the Borrower should provide complete, true, accurate information to reflect providing guarantees that may affect
its obligations under this contract, and acquire written consent from the lender.

8.12 Take responsibility for the expenses
from the Lender in purpose of fulfillment of contracts, including but not limited to litigation or arbitration fees, property preservation
fees, legal fees, execution fees, assessments fees, auction fees, notice fees.

8.13 Debt settlement under the contract is
in priority to its shareholders, and at least has equal status with the borrower's other similar debt from other creditors and
borrowers.

8.14 Reinforce the social and environmental
risk management, and agree to accept inspections by the Lender. If requested by the Lender, the Borrower agrees to provide the
corresponding report.

 

Article 9 lender commitment

9.1 Release loans to the Borrower in accordance
with the contract.

9.2 Maintains the confidentiality of non-public
information, except required by laws and regulations otherwise.

 

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Article 10 breach of contract

10.1 Any of the following events constitutes
an event of breach:

 

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

 

(2)The guarantees in this contract have adversely
changed to the Lender’s loan, and the Borrower is not available to provide other guarantees approved by the lender;

 

(3) Fail to pay off any other debts due by
the Borrower, or fails to fulfill or breach other obligations in this contract, or likely to affect the performance of the obligations
in this contract;

 

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

 

(5) The Borrower's ownership structure, operation,
external investment has changed adversely, which have affected or may affect the fulfillment of the obligations in this contract;

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

10.5 The borrower simultaneously happens the
situations in section 10.3, 10.4, choosing the heavier interest rate to charge, cannot impose in double.

 

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

 

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

 

Article 11 deduction

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

 

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

 

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

 

Article 12 transfer of rights and obligations

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

 

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

 

Article 13 Effect, Change and Terminate
of This Contract

 

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

 

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

 

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

 

Article 14 law and dispute resolution

The contract formation, validity, interpretation,
performance and dispute settlement are applicable PRC laws. All caused by the contract or in connection with the contract-related
disputes and disputes, both parties should be resolved through consultation, the consultation fails according to the contract settlement.

 

Article 15 complete contract

The first part of this contract, "borrowing
conditions" and the second part of the "liquidity loan contract terms," together form a complete loan contract,
the same two words have the same meaning. The loan borrower is constrained by the above two parts.

 

Article 16 notice

16.1 All notices under the contract should
be given in writing. Unless otherwise agreed, the parties designated residence stated in this contract for communication and contact
address. Address of any party or other contact is changed, shall be in writing promptly notify the other party.

16.2 One party can notify the other party
in the form of announcement or notary service if the recipient party refuses to receive other circumstances that cause inability
to deliver.

 

 

 

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

 

Responsible person / authorized agent:

/s/Duoping Yang

 

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

 

Legal representative / authorized agent:

 

/s/ Dangyu Pan

 

Contract signed on: August 30, 2013

 

 

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