Document:

Exhibit
10.16

 

COMPREHENSIVE CREDIT LINE CONTRACT

 

Contract No.: Pingyin Shen Xin Zhou Zongzi
20151210 No. 001

 

	Party A (Line Grantor):	PING AN BANK CO., LTD. SHENZHEN BRANCH 
	Address:	NO 1099 Shennan Dong Road, Shenzhen
	Legal Representative (Principal): 	Guiping Yao
	Tel.: 	23480048

 

	Party B (Line Applicant): 	SHENZHEN HIGHPOWER TECHNOLOGY CO., LTD.
	Address:	Bldg. 1, No. 68, Xinsha Road, Pinghu Street, Longgang District, Shenzhen
	Legal Representative: 	Dangyu Pan
	Tel.:	89686236

 

Whereas Party B applies Party A for a comprehensive
credit line, in accordance with the Contract Law and other relevant laws and regulations, Party A and Party B hereby make
and enter into this Contract upon consensus through consultation.

 

Article 1 Credit Line and Category

 

	1.1	Amount of comprehensive credit line:  Party A agrees to grant to Party B a comprehensive credit line of (Currency) RMB (in figures) 70,000,000.00 Yuan (in words) seventy million Yuan only. This line is applicable to multiple-currency credit. The exchange rate of currencies other than RMB shall be converted according to the foreign exchange rate published by Party A when the specific business occurs.

 

	1.2	The period of the comprehensive credit line follows the following (1):

 

	 	(1)	From Dec. 10, 2015 to Dec. 9, 2016.

 

	 	(2)	  _____Year(s) _____
    month(s), calculated from the date when the Contract comes into force. 

 

During the credit period, the credit line
(X) can be recycled ( ) cannot be recycled, but the sum of the balances of all the credit categories within the credit line shall
not exceed the amount of the comprehensive credit line. When the credit period expires, the unused balance shall become automatically
invalid.

 

Credit period means the occurrence period
of the specific credit under a line (i.e. the period for determining the debt). The start date of the specific credit under the
line must be included in the credit period and the termination date of the specific credit may exceed the credit period. The start
date and termination date of the specific credit shall accord with the specific credit business contract.

 

     

     

    

 

	1.3	The credit granting method of this credit line shall include but not be limited to:

 

Loan bank lending, bill acceptance and discount,
overdraft, factoring, security, loan commitment and opening of L/C.

 

	1.4	The category/credit granting method, amount, interest rate, tariff and term of the specific credit under the line shall accord with the single credit contract and IOU or other credit vouchers.

 

	1.5	
        Transfer of credit under the line.

         

        Party B agrees to transfer
the credit line to the following a third party to use (in other words, the following object may use the credit line), and Party
B shall undertake the joint guarantee liability for the principal, interest, default interest and compound interest of all the
debts (including contingent debts) under the line, and the expense for realizing the creditor’s rights (including but not
limited to legal cost, attorney fee, notary fee and execution fee), and other losses and expenses caused to Party A due to the
debtor’s breach of contract. The guarantee period shall be from the date of effectiveness of the specific credit contract
to two years after the expiration of the debt performance term specified in the credit contract (including acceleration of maturity
of debt).

 

The specific credit-transferred object and amount are as follows:

( )                                    
(the transferee), amount: (converted into)       (currency) (in words) ;

( )                                    
(the transferee), amount: (converted into)       (currency) (in words) ;

( )                                    
(the transferee), amount: (converted into)       (currency) (in words) ;

 

Article 2 Use of Credit Line

 

2.1Signature of this Contract by and between Party A and
Party B shallnot constitute Party A’s credit commitment to Party B. Party B shall present a written application to Party
A for each specific credit business under the line, and Party A shall have the right to make its own decision on whether to grant
to Party B a single credit under the line. If Party A agrees to grant the single credit through examination, Party A and Party
B shall make and enter into a single credit contract additionally according to the business nature.

 

     

     

    

 

2.2Preconditions for use of the credit line:

 

(1) Party B has handled the legal procedures
(if any) for government license, approval, registration and delivery for the credit under this Contract according to relevant laws
and regulations;

(2) The related security contract is effective
(if any);

(3) Party B has paid off all the expenses
related to this Contract (if any);

(4) Party B meets the credit conditions
specified herein;

(5) There is no adverse change to the business
and financial conditions of Party B and the guarantor (if any);

(6) There is no adverse change to Party
B’s repayment willingness and the guarantee willingness of the guarantor (if any);

(7) Party B has no breach of this Contract.

 

2.3Party A has the right to adjust the amount of the credit
line or ask Party B to add guaranty where there is any change of the exchange rate.

 

2.4Party A has the right to supervise the use of the credit
line and the orientation of the credit funds, and Party B shall provide coordination.

 

2.5If, prior to or during the use of the credit line, Party
A’s regulatory department requests Party A to control the credit scale or orientation due to change of national macro-control
policies, or Party A is unable to grant to Party B to use the credit line for causes not attributable to Party A, Party A shall
have the right to suspend or terminate the use of this credit line and cancel this Contract, for which Party B shall have no objection.

 

Article 3 Repayment

 

3.1Party B shall open an account in Party A and deposit
the amount repayable to this account prior to the specified date of repayment.

 

3.2Party B shall perform the debt on time when each single
credit within the line expires, or the related credit shall be deemed overdue or advances shall be made.

 

3.3Party B hereby irrevocably authorizes Party A to deduct
the principal and interest of the due credit and related expenses from any and all accounts opened by Party B in any banking branch
of Pingan Bank.

 

Article 4 Party B’s Representations
and Warranties

 

4.1Party B is a company with good reputation duly established
and validly existing within the jurisdiction of the location where it is located. Party B has all corporate rights and has obtained
the government license and approval for conducting its current business.

 

     

     

    

 

4.2Party B has completed all the authorizations and approvals
necessary for the signature of this Contract. This Contract is the presentation of Party B’s true meaning and may not result
in violation of any agreement or commitment concluded with any a third party. When this Contract is concluded and signed, Party
B has not violate any law, regulation and rule for environmental protection, energy conservation and emission reduction, and pollution
reduction, and Party B promises to strictly abide by such laws, regulations and rules after the conclusion of this Contract.

 

4.3Party B is not involved in any litigation, arbitration
execution, appeal and reconsideration procedure and other incident or case which may have major adverse impact on the execution
of this Contract, unless otherwise Party B notified Party A in wiring prior to the conclusion of this Contract.

 

4.4Party B shall, within the time limit requested by Party
A, provide its financial statements, number of all opening accounts, loan balance and other relevant materials requested by Party
A. Party B shall ensure the genuine, completeness and objectivity of all the documents and materials provided, which shall have
no false record, misleading representation or material misstatement. The financial statements shall be prepared strictly in accordance
with the Accounting Standards of China.

 

Article 5 Party B’s Rights and
Obligations

 

5.1Party B shall open an account in Party A and handle deposit,
settlement and other related services firstly in Party A.

 

5.2If Party B is a customer group, it shall give a written
report to Party A within ten days after the date of affiliated transaction of over 10% of net assets. The report contents shall
include the affiliated relation between the transaction parties, transaction item and nature, transaction amount or relevant proportion,
and the pricing policy (including no-money involved transaction or only symbolic-money involved transaction).

 

A customer group as mentioned herein shall mean an enterprise
or public institution legal person who has the following features:

 

(1) It directly or indirectly controls or
is directly or indirectly controlled by another enterprise or public institution legal person in respect of stock right or management;

(2) It is jointly controlled by a third
party enterprise or public institution legal person;

(3) Its principal individual investor, key
manager or a close family member (including lineal blood relationship within three generations and collateral blood relationship
within two generations) commonly directly or indirectly controls;

 

     

     

    

 

(4) It has other affiliated relationship
and may transfer the assets and profits not on the basis of fair price, which should be deemed as credit management by a customer
group.

 

5.3If Party B has any one of the following circumstances,
it shall notify Party A thirty days in advance. If Party A thinks it will cause significant impact on the performance of the Contract,
Party B shall obtain Party A’s written consent in advance:

 

(1) material change to Party B’s operating
system, equity structure, property organizational form and primary business, including but not limited to implementation of contracting,
lease, joint operation, reform of shareholding system, merger, acquisition, joint venture (cooperation), division, establishment
of a subsidiary, trusteeship (takeover), sales of enterprise, transfer of property rights and reduction of capital, etc.;

(2) disposal of important assets, of which
the value exceeds 10% of the net assets, by selling, gifting, lending, transferring, mortgaging (pledging) or other means;

(3) its dividends exceed 30% of the net
profits after tax of the current year or exceed 20% of the total undistributed profits;

(4) it adds external investment of over
20% of its net assets after the credit line becomes valid;

(5) it changes the debt clauses with other
bank and pay off other long-term debt in advance;

(6) Party B repays its shareholder debt;

(7) it applies other bank for a credit line,
or provides a third party with security, or reduces or exempts a third party’s debt, with the debt amount concerned exceeding
20% of its net assets.

 

5.4Party B shall notify Party A within seven working days
as of the date of occurrence or possible occurrence of the following matters, and Party A shall have the right to decide whether
to request Party B to add guaranty or directly take back all the loans as the case may be:

 

(1) Party B or the guarantor’s business
or financial status is worsened, or there is significant financial loss, loss of assets (including but not limited to loss of assets
caused due to external guarantee) or other financial crisis;

(2) Party B encounters administrative punishment
or criminal sanction or is involved in any significant legal dispute due to its illegal business behavior;

(3) Party B, its shareholder or de facto
controlling person, or the legal representative or key manager of the guarantor is involved in an important case, or its main asset
goes under property preservation or other compulsory measures, or encounters administrative punishment or criminal sanction, or
there is any other incident which causes Party B impossible to perform its duties normally;

 

     

     

    

 

(4) Party B or the guarantor provides a
third party with guarantee, causing significant adverse impact on its financial condition or on the performance of its obligations
under this Contract;

(5) Party B or the guarantor has the following
changes, such as division, consolidation, major merger, acquisition and reconstruction, disposal of major assets, reduction of
capital, winding-up, cease of business for rectification, liquidation, reorganization, being revoked, being dissolved, bankruptcy,
or its business license is revoked;

(6) there is obvious reduction or loss of
the guaranty value, or dispute about the ownership of the guaranty; or the guaranty is sealed up, detained, frozen, deducted, detained
or sold by auction; or

(7) any other important event or default
event which may affect the business activities of Party B or the guarantor and the loan safety of Party A.

 

5.5If Party B changes its domicile, mailing address, telephone
number, business scope, legal representative or other relevant items, it shall notify Party A in writing within seven working days
after the change. In the event that Party B fails to perform the said notification obligation, the notices and documents given
by Party A according to the original mailing address shall be deemed to have been served.

 

5.6Party B shall keep reasonable financial ratios within
the service life of the credit line.

 

(     ) The financial indicators shall reach
the following standard within the service life of the credit line:                                        

 

(     ) 5.7If Party B handles YIDAITONG
business, Party B shall abide by the following stipulations:

 

(1) Party B shall open settlement accounts
in Party A. Party B shall open payment collection accounts for such three pledge loans as export tax rebates, warehouse warrants
and accounts receivable, and authorize Party A to deduct money directly from these accounts for repayment of this credit.

(2) When the loan is released, Party B shall
open in Party A and use the corporate Internet banking product.

(3) Party B promises to give propriety to
handle in Party A the increase of mortgage/pledge financing, if any.

 

Article 6 Party A’s Rights and
Obligations

 

6.1From the second year after the effectiveness of a over
one-year (excluding one-year) line, Party A shall have the right to evaluate the business and financial conditions of Party B and
the guarantor (if any) and the progress of the specific project according to the credit conditions specified in the Contract when
the credit line becomes valid, and adjust the credit line, term and interest rate according to the evaluation result.

 

     

     

    

 

Where there is any mortgaged (pledged) property, Party A shall
have the right to ask for valuating the mortgaged (pledged) property by an appraisal agency accepted by Party A each year. If the
value of the mortgaged (pledged) property is declined obviously and is not enough for guaranteeing the debt under the Main Contract,
Party A shall have the right to ask Party B to repay part of the loan or provide other guarantee measures accepted by Party A.

 

6.2Party A has the right to ask Party B to provide materials
related to the credit line, enter Party B’s business site, investigate, review and check the use of the credit line and the
assets, financial and business conditions of Party B, for which Party B shall provide coordination. Party A also has the right
to supervise Party B to use the loan for the purpose specified herein.

6.3Party A shall bear confidentiality obligation for the
materials provided by Party B, except otherwise prescribed by laws and regulations, or specified by a regulatory authority or by
both Parties, or non-confidential information provided by Party B.

 

Article 7 Breach of Contract

 

7.1Any one of the following cases shall be deemed as a default
event referred to herein:

 

(1) There is overdue interest, overdue repayment
or advance of the credit hereunder, or the credit funds are used not for the purpose specified by both Parties;

(2) Party B violates some of its representations,
warranties and commitments;

(3) Party B violates some of its obligations
performable hereunder;

(4) Party B conceals some genuine important
information;

(5) Party B or the guarantor evades bank
claims through affiliated transactions or by other means;

(6) Party B or the guarantor has any one
of the following behaviors, being negligent in managing and claiming the creditor’s rights due, or disposing and transferring
its main properties free of charge, or at unreasonable low price or by other improper means, or escaping debts;

(7) Party B illegally get funds or credit
from Party A or other banks by using a false contract and arrangement with a third party, including but not limited to pledge or
discount of the notes receivable and other claims without actual trading background.

(8) Party B or the guarantor violates any
other contract (including but not limited to credit contract, loan contract and guarantee contract) signed with Party A or other
banks or any securities with the nature of debt it issued;

 

     

     

    

 

(9) Party B’s guarantor violates the
guarantee contract (including but not limited to guarantee contract, mortgage contract and pledge contract) or has any breach of
the guarantee contract, or the guarantee contract has not taken effect, is invalid or is cancelled; or there is obvious reduction
or loss of the guaranty value, or dispute about the ownership of the guaranty, or the guaranty is sealed up, detained, frozen,
deducted, detained or sold by auction;

(10) There is any case which should be notified
under sub-clauses 5.3 and 5.4 herein that Party A thinks effective on the safety of its creditor’s rights; or

(11) The business term of Party B or the
guarantor expires within the credit line period, and Party B or the guarantor fails to handle the procedures for renewal.

 

7.2In case of any one of these default events listed in
the preceding clause, Party A shall have the right to take the following actions:

 

(1) To adjust, cancel or terminate the comprehensive
credit line hereunder, or to adjust the period and amount of the credit line;

(2) To announce immediate maturity of all
or part of the credit under this line; to ask Party B to repay part or all the credit principal, interest and expenses immediately,
and pay default interest for the total credit principal released at the default interest rate from the date of occurrence of the
default event until Party B pays off the total credit principal.

 

Expenses shall include but not be limited to the attorney fee,
legal cost, arbitration fee, traveling expenses, announcement cost, service fee, execution fee, transfer fee and other relevant
expenses of Party A for realizing its creditor’s rights.

 

(3) To ask Party B to pay in full the cash
deposit for paying undue acceptance, L/G, L/C or other credit business;

(4) To ask Party B to provide new guarantee
measures accepted by Party A;

(5) To make deduction directly from the
account of Party B’s guarantor to repay all the debts under this Contract and the specific business contract (including the
debts Party A requests for prepayment), without obtaining Party B’s consent in advance;

(6) To exercise the guarantee right, ask
the guarantor to perform guarantee liability, or realize creditor’s rights through disposal of the mortgaged property and/or
pledged property;

(7) Party A claims Party B’s debtor
for the right of subrogation or appeal to the court to revoke Party B’s waiving of the creditor’s right due or Party
B's transfer of property free of charge or at an obviously unreasonable low price. Party B shall provide all necessary coordination
and assistance according to Party A’s requirements, and all the costs and expenses caused to Party A arising therefrom shall
be borne by Party B;

(8) Other remedial measures prescribed by
laws and regulations and specified in the Contract.

 

     

     

    

 

Article 8 Other Provisions

 

 During the period of
credit granted by Party A, Party B and the guarantor shall not make profit distribution.

 

Article 9 Supplementary Provisions

 

9.1(    ) Both Parties agree to handle compulsory
enforcement notarization for this Contract.

 

If Party B fails to completely or partly perform the obligations
specified herein when compulsory enforcement notarization is handled by both Parties for this Contract, Party A shall have the
right to apply the original notary public for an enforcement certificate, and apply the competent people’s court (the people’s
court at the location where the person subject to enforcement lives or where the property of the person subject to enforcement
is located) for enforcement holding the original notarial certificate and the enforcement certificate.

 

 (X) No compulsory
enforcement notarization shall be handled for this Contract.

 

9.2The application for single credit, credit contract, IOU and
credit vouchers related hereto, other relevant documents and materials confirmed by both Parties, and the commitment letter and
declaration issued by Party B unilaterally to Party A shall be deemed as an integral part of this Contract and shall have the
same equal legal force as this Contract.

 

9.3Party B authorizes Party A to inquire Party B’s
credit standing including information about social insurance from the credit information database of the People’s Bank of
China, the credit database established upon approval by the competent credit investigation authorities, or relevant institutions,
departments and individuals. The credit report acquired through inquiry may be used only within the scope prescribed by the interim
measures for administration of credit information database issued by the People’s Bank of China and other relevant laws and
regulations. As agreed by Party B, Party A may provide Party B’s credit information for the credit information database of
the People’s Bank of China and the credit database established upon approval by the competent credit investigation authorities.

 

9.4Please confirm the options with √ in the brackets
before the selected items.

 

9.5Any and all disputes arising from the execution of the
Contract shall be settled by both Parties through consultation. Where consultation fails, the following (2) shall be adopted
for dispute settlement:

 

     

     

    

 

(l) To apply                                     
for arbitration in accordance with the current arbitration rules of the commission. The award of the arbitration shall be final
and binding upon both Parties.

(2) To initiate a lawsuit in the people’s
court at the location where Party A is located;

(3) To initiate a lawsuit in the people's
court.

 

9.6This Contract shall be governed by the laws of the People's
Republic of China.

 

9.7This Contract shall come into force upon the signature
of all the parties hereto (signed or sealed by the authorized signatories and affixed with official seal). If Party B does not
use the line within three months as of the date of effectiveness of this Contract, Party A shall have the right to cancel this
Contract unilaterally.

 

9.8This Contract shall be made out in 3 originals
for Party A holding two and Party B, (     ) the guarantor and (     ) the registration
authority each holding one.

 

Party B hereby represents that it has fully understood all the
terms and conditions of this Contract (especially the bold fonts), and the clauses of the related guarantee contract and other
relevant documents and has taken independent legal consultation (where necessary).

 

Party A (Seal): PINGAN BANK CO., LTD.

SHENZHEN BRANCH:

Legal Representative (Principal) or Authorized Agent (Signature):
Guiping Yao

  

Party B (Seal) SHENZHEN HIGHPOWER TECHNOLOGY CO., LTD.: 

Legal Representative or Authorized Agent: /s/ Dangyu PanExhibit
10.16(a)

 

Exhibit 10.16(a)

 

MAXIMUM GUARANTEE CONTRACT

 

Contract No.: Pingyin Shen Xin Zhou Zongzi
20151210 No. 003

 

	Party A (Creditor): 	PINGAN BANK CO., LTD. SHENZHEN 
	 	BRANCH 
	Address:	NO 1099 Shennan Donglu Road, Shenzhen
	Tel.:  23480048  	Fax:  23480054
	Principal:  Guiping Yao 	Position:  President
	 	 
	Party B (Guarantor):  	Dangyu Pan 
	Certificate Type *:ID	Certificate No. *:430104196803184316

 

(The contents expressed with “*”
may not be written if Party B is an unit)

 

	Address:                                                                                             
	Tel.:                                                 	Fax:                                         
	Legal Representative **: 	Position **:

 

(The contents expressed with “**”
may not be written if Party B is an individual)

 

Whereas Party B is willing to act as the Guarantor
of Party A and provide Party A with maximum joint liability guarantee in order to ensure the execution of the contract between
Party A and SHENZHEN HIGHPOWER TECHNOLOGY CO., LTD. (hereinafter referred to as the Debtor),

 

IN WITNESS WHEREOF, Party A and Party B hereby
agree to conclude and sign this Contract upon consensus through consultation between both Parties. Both Parties shall abide by
the following terms and conditions.

 

Article 1 Guarantee and Guarantee Liability

 

1.1 Scope of guarantee.

 

The scope of guarantee hereunder is as follows
(expressed with “X” in front of the option):

 

(X) The principal, interest, compound
interest and default interest of all the debts (including contingent debts), and the expenses for realizing the creditor’s
rights which shall be borne by the Debtor under the Comprehensive Credit Line Contract of Pingyin Shen Xin Zhou Zongzi
20151210 No. 001 (hereinafter referred to as “the Main Contract”). The maximum principal (balance) of the debts
shall be (converted into) RMB (currency) (in words) seventy million Yuan only.

 

     

     

    

 

( ) (Converted into) (currency) (in words)
of the principal of all the debts (including contingent debts) (converted into) (currency) (in words) , and the corresponding interest,
compound interest and default interest, and the expenses for realizing the creditor’s rights which shall be borne by the
Debtor under the Contract of PY No. (hereinafter referred to as “the Main Contract”). Party A shall
have the right to ask Party B to bear guarantee liability for the debt balance within the aforesaid scope of guarantee as long
as the debts under the Main Contract are not fully repaid. 

 

( ) Performance of the debts under all the
credit line contracts and specific credit business contracts (hereinafter referred to as “the Main Contract”) concluded
and signed by and between the Debtor and Party A dated from YYYY MM DD to YYYY MM DD. The date of signature of the Main
Contract shall be within this period and the execution period of the Main Contract is not limited to this period. The scope of
Party B’s maximum guarantee shall include the principal, interest, compound interest and default interest of all the debts
(including contingent debts), and the expenses for realizing the creditor’s rights which shall be borne by the Debtor under
the Main Contract. The maximum principal (balance) of the said debts shall be (converted into) (currency) (in words) .

 

( ) The principal of the debts not fully repaid
by the Debtor (converted into) (currency) (in words) , and the interest, compound interest and default interest thereof, and the
expenses for realizing the creditor’s rights under the Contract of PY No. (hereinafter referred to as “the
Main Contract”).

 

(     )

 

Interest, default interest and compound
interest shall be calculated according to the stipulations of the Main Contract until the debts are fully repaid. The expenses
for realizing the creditor’s rights shall include but not be limited to announcement cost, delivery fee, appraisal fee, attorney
fee, legal cost, traveling expenses, evaluation fee, auction fee, property preservation cost and enforcement fee. 

 

The exchange rate of currencies other than
RMB shall be converted according to the foreign exchange rate published by Party A when the specific business occurs.

 

1.2Guarantee period of this Contract:

 

(X) The guarantee period hereunder
shall be from the date of effectiveness of this Contract to two years after the expiration of the debt performance term specified
in the Main Contract. The guarantee period of each specific credit business shall be calculated separately. In case of extension
of any specific credit, the guarantee period shall be extended to two years after the expiration of the extended term.

 

     

     

    

 

(    ) The guarantee period
hereunder shall be from the date of release of the loan under the Main Contract to the date when handles and completes the procedures
for real estate mortgage registration taking Party A as the mortgagee and the relevant ownership certificates are submitted to
Party A.

 

(    ) The guarantee period
hereunder shall be from the date of effectiveness of this Contract to                                                .

 

(    ) If Party A transfers
its creditor’s rights to a third person by law during the guarantee period, Party B hereby agrees to bear guarantee liability
within the original scope of guarantee.

 

1.3If the Debtor transfers its credit
line granted by Party A to a third party to use, Party B hereby agrees to bear guarantee liability for the transferred part according
to the stipulations of this Contract. The specific credit-transferred object and amount are as follows:

 

1.                                         
(the transferee), amount: (converted into)              (currency)
(in words) ;

2.                                         
(the transferee), amount: (converted into)             (currency)
(in words) ;

3.                                         
(the transferee), amount: (converted into)             (currency)
(in words) ;

4. 

 

1.4Party B shall bear guarantee liability
hereunder independently. Party A shall have the priority to ask Party B to bear guarantee liability no matter whether there is
any security or guarantee provided by the guarantor (including the debtor of the Main Contract). If Party A waives the guarantee
right for the guaranteed property (including the guaranteed property provided by the Debtor) or for other guarantors, Party B shall
also take full guarantee liability according to the stipulations of this Contract.

 

1.5This Contract is an irrevocable contract.

 

1.6The validity of this Contract is independent
from the Main Contract. In case of invalidity of the Main Contract or any clause of the Main Contract, this Contract shall remain
in force.

  

Article 2 Performance of Guarantee Liability

 

2.1If the Debtor fails to perform any
matured debt (including matured in advance, same below) under the Main Contract, Party B ensures to repay the debt unconditionally
after the receiving of a written payment notice from Party A. Any document about the Debtor’s failure to perform any matured
debt given by Party A shall be deemed as a written payment notice that Party A asks Party B to make payment.

 

     

     

    

 

2.2Party B hereby irrevocably authorizes
Party A to deduct the principal and interest of the Debtor’s matured debt and related expenses directly from any and all
accounts opened by Party B in any banking branch of Pingan Bank. Party A shall notify Party B in writing after this deduction and
shall have the right to continuously claim Party B for the insufficient part. 

 

If the amount deducted is not enough to repay
all the matured debts and the Debtor delays for less than 90 days (including 90 days), the repayment priority of principal and
interest is as follows: (1) expenses; (2) interest (including default interest and compound interest); (3) principal.

 

If the Debtor delays for more than 90 days,
the repayment priority of the principal and interest of the advance payment is as follows: (1) expenses; (2) principal; (3) interest
(including default interest and compound interest).

 

Article 3 Guarantor’s Warranties
and Commitments

 

3.1Party B has completed all the authorizations
and approvals necessary for the signature of this Contract. This Contract is the presentation of Party B’s true meaning and
may not result in violation of any agreement or commitment concluded with any a third party. When this Contract is concluded and
signed, Party B has not violate any law, regulation and rule for environmental protection, energy conservation and emission reduction,
and pollution reduction, and Party B promises to strictly abide by such laws, regulations and rules after the conclusion of this
Contract.

 

3.2Party B is not involved in any litigation,
arbitration, execution, appeal and reconsideration procedure and other incident or case which may have major adverse impact on
the execution of this Contract, unless otherwise Party B notified Party A in wiring prior to the conclusion of this Contract.

 

3.3The following provisions are applicable
if Party B is a legal person:

 

3.3.1 Party B is a company
with good reputation duly established and validly existing within the jurisdiction of the location where it is located. Party B
has all corporate rights and has obtained the government license and approval for conducting its current business.

 

3.3.2 Party B shall, within
the time limit requested by Party A, provide its financial statements, number of all opening accounts, loan balance and other relevant
materials requested by Party A. Party B shall ensure the genuine, completeness and objectivity of all the documents and materials
provided, which shall have no false record, misleading representation or material misstatement. The financial statements shall
be prepared strictly in accordance with the Accounting Standards of China.

 

     

     

    

 

3.4The following provisions are applicable
if Party B is an individual:

 

3.4.1 Party B has provided
his personal and family incomes and properties, and other relevant materials required by Party A, and Party B warrants the genuine,
completeness and accuracy of the documents and materials that Party B has provided.

3.4.2 Party B warrants
coordinating Party A to supervise and inspect the incomes and credit conditions of Party B. If Party A thinks the loan guarantee
conditions worsened during the execution period of this Contract, Party B shall provide other guarantee measures accepted by Party
A.

 

Article 4 Guarantor’s Rights and
Obligations

 

4.1Party B shall have the right to ask
Party A to bear confidentiality obligation for the materials provided by Party B, except otherwise prescribed by laws and regulations,
or specified by a regulatory authority or by both Parties, or non-confidential information provided by Party B.

 

4.2Party B has carefully read the Main
Contract and confirmed all the clauses of the Main Contract. Party B may not confirm the single credit contract or IOU or other
credit business voucher under the Main Contract which does not exceed the specification of the Main Contract. 

Party A and the Debtor may not obtain Party
B’s consent for change of the Main Contract. Party B shall continuously bear joint guarantee liability for the Main Contract
after change. However, if the principal of the debit is increased and the loan term is extended without Party B’s written
consent, Party B shall continuously bear guarantee liability according to the amount and term originally specified in the Main
Contract. 

 

4.3Party B shall accept and ensure to
coordinate Party A to supervise and inspection Party B’s management situations and guarantee capacity. Party B shall allow
Party A to enter Party B’s business site for inspecting Party B’s assets, financial status and management situations.

 

4.4( ) In case of transfer of major property
rights, system change or transfer of claims and debts occurring to Party B, Party B shall notify Party A of the relevant issues
in advance and obtain Party A’s written consent prior to such change.

 

( ) If Party B has any one of the following
circumstances, it shall notify Party A thirty days in advance. If Party A thinks it will cause significant impact on the performance
of the Contract, Party B shall obtain Party A’s written consent in advance:

 

     

     

    

 

(1) material change to
Party B’s operating system, equity structure, property organizational form and primary business, including but not limited
to implementation of contracting, lease, joint operation, reform of shareholding system, merger, acquisition, joint venture (cooperation),
division, establishment of a subsidiary, trusteeship (takeover), sales of enterprise, transfer of property rights and reduction
of capital, etc.;

(2) disposal of important
assets, of which the value exceeds 10% of the net assets, by selling, gifting, lending, transferring, mortgaging (pledging) or
other means;

(3) its dividends exceed
30% of the net profits after tax of the current year or exceed 20% of the total undistributed profits;

(4) it adds external investment
of over 20% of its net assets after the Contract becomes valid;

(5) it changes the debt
clauses with other bank and pay off other long-term debt in advance;

(6) Party B repays its
shareholder debt; or

(7) it applies other bank
for a credit line, or provides a third party with security, or reduces or exempts a third party’s debt, with the debt amount
concerned exceeding 20% of its net assets.

 

4.5Party B shall notify Party A within
seven working days as of the date of occurrence or possible occurrence of the following matters, and Party A shall have the right
to decide whether to request Party B and the Debtor to add guaranty or directly take back all the loans as the case may be:

 

(1) business or financial
status is worsened;

(2) Party B is highly
fined by a competent authority or is involved in major legal dispute;

(3) Party B, its shareholder,
its legal representative or key manager is involved in an important case, or Party B’s main asset goes under property preservation
or other compulsory measures; or there is any other incident which causes Party B’s legal representative or key manager impossible
to perform his duties normally;

(4) Party B provides a
third party with guarantee, causing significant adverse impact on its financial condition or on the performance of its obligations
under this Contract;

(5) Party B goes into
winding-up, ceasing of its operation for reorganization, dissolution, closedown or bankruptcy, or its business license is revoked;

(6) its economic conditions
become bad, such as unemployment, unit bankruptcy, or major loss of personal property, major adverse change of personal physical
health, divorce with spouse, and other matters which may affect Party B’s capacity to perform this Contract; or

 

     

     

    

 

(7) any other important
event or default event which may affect the business activities of Party B and the loan safety of Party A.

 

4.6If Party B changes its domicile, mailing
address, telephone number, business scope, legal representative (work unit) or other relevant items, it shall notify Party A in
writing within seven working days after the change. In the event that Party B fails to perform the said notification obligation,
the notices and documents given by Party A according to the original mailing address shall be deemed to have been served.

 

4.7( ) Party B shall keep reasonable financial
ratios within the loan term.

 

( ) The financial indicators shall reach the
following standard within the loan term:

  

Article 5 Breach of Contract

 

5.1Any one of the following cases shall
be deemed as a default event referred to herein:

 

(1) Party B fails to perform
the compensative liability on time and in full;

(2) Party B violates some
of its warranties and commitments or has any other behavior not performing the obligations hereunder;

(3) Party B transfers
its property or draws out capital;

(4) Party B has breach
of contract under other contracts signed and concluded with Party A or any other banks; or

(5) There is any major
adverse change of Party B’s business and financial status.

 

5.2In case of any one of these default
events listed in the preceding clause, Party A shall have the right to take the following actions:

 

(l) To ask Party B to
perform the compensative liability immediately;

(2) To ask Party B to
provide new guarantee measures accepted by Party A;

(3) Party A claims Party
B’s debtor for the right of subrogation or appeal to the court to revoke Party B’s waiving of the creditor’s
right due or Party B's transfer of property free of charge or at an obviously unreasonable low price. Party B shall provide all
necessary coordination and assistance according to Party A’s requirements, and all the costs and expenses caused to Party
A arising therefrom shall be borne by Party B; or

(3) Other remedial measures
prescribed by laws and regulations.

 

     

     

    

 

Article 6 Other Provisions

 

( )The Bank Enterprise Guarantee Business
Cooperation Agreement (hereinafter referred to as the Agreement) concluded and signed by and between Party A and Party B is
a fundamental legal document for standardizing the relation of rights and obligations between both Parties. In case of any discrepancy
between this Contract and the Agreement, the Agreement shall prevail.

 

Chapter 7 Supplementary Provisions

 

7.1( ) Both Parties agree to handle compulsory
enforcement notarization for this Contract.

 

If Party B fails to completely or partly perform
the obligations specified herein when compulsory enforcement notarization is handled by both Parties for this Contract, Party A
shall have the right to apply the original notary public for an enforcement certificate, and apply the competent people’s
court (the people’s court at the location where the person subject to enforcement lives or where the property of the person
subject to enforcement is located) for enforcement holding the original notarial certificate and the enforcement certificate.

 

(X) No compulsory enforcement notarization
shall be handled for this Contract.

 

7.2Party B authorizes Party A to inquire
Party B’s credit standing including information about social insurance from the credit information database of the People’s
Bank of China, the credit database established upon approval by the competent credit investigation authorities, or relevant institutions,
departments and individuals. The credit report acquired through inquiry may be used only within the scope prescribed by the interim
measures for administration of credit information database issued by the People’s Bank of China and other relevant laws and
regulations. As agreed by Party B, Party A may provide Party B’s credit information for the credit information database of
the People’s Bank of China and the credit database established upon approval by the competent credit investigation authorities.

 

7.3Please confirm the options with √
in the brackets before the selected items.

 

7.4Any and all disputes arising from the
execution of the Contract shall be settled by both Parties through consultation. Where consultation fails, the following (2)
shall be adopted for dispute settlement:

 

(1) To apply                    
/               for arbitration in accordance with the
current arbitration rules of the commission. The award of the arbitration shall be final and binding upon both Parties.

(2) To initiate a lawsuit
in the people’s court at the location where Party A is located;

(3) To initiate a lawsuit
in the people's court of             /           .

 

     

     

    

 

7.5This Contract shall be governed by
the laws of the People's Republic of China.

 

7.6This Contract shall come into force
upon the signature of all the parties hereto (if one party is a natural person, the Contract shall be signed by the party; if one
party is a legal person or other organization, the Contract shall be signed or sealed by the authorized signatory and affixed with
the official seal).

 

7.7This Contract shall be made out in
three originals for Party A holding two and Party B, ( ) the Debtor and ( ) the registration authority each holding one.

 

Unit Seal of Party A: PINGAN BANK CO.,
LTD. SHENZHEN BRANCH:

Signature of Legal Representative or Authorized Agent:Guiping Yao

  

Seal of Party B (if an unit):

Signature of Legal Representative or Authorized
Agent:

 

Signature of Party B (if an individual) In
person: Dangyu Pan

or Authorized Agent:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00256-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00256-of-00352.parquet"}]]