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Unassociated Document

    

      EXECUTIVE
        CHAIRMAN AGREEMENT

      

      

      This
        Executive Chairman Agreement (“Agreement”)
        is
        made and entered into on August 10, 2007, for services commencing as of July
        1,
        2007 (“Commencement
        Date”),
        by
        and between Xcorporeal, Inc., a Delaware corporation (“Company”),
        and
        Terren S. Peizer, an individual (“Chairman”).

      

      1. Term.
        The
        initial term of this Agreement shall begin on the Commencement Date and continue
        for a period of three years (“Initial
        Term”).
        At
        the conclusion of the Initial Term, and each successive term thereafter,
        the
        Agreement shall be automatically renewed for an additional one-year term,
        unless
        either party gives written notice of its intention to terminate the Agreement
        at
        least six months prior to the automatic renewal date (collectively, the
“Term”).

      

      2. Services.

      

      (a) Excutive
        Chairman.
        During
        the Term the Chairman shall serve as Executive Chairman of the Board of
        Directors (“Board”)
        of
        Company. Chairman is currently a director and Chairman of the Board of Company,
        and subject to the Board’s fiduciary obligations will take all reasonable action
        necessary to assure that Chairman remains Chairman of the Board. Chairman
        shall,
        to the extent appointed or elected, continue to serve as Executive Chairman
        of
        the Board throughout the Term.

      

      (b) Position
        and Duties.
        Chairman shall have the general powers, duties and responsibilities usually
        vested in the office of the Executive Chairman of a corporation, and such
        other
        additional powers as may be prescribed from time to time by the Board. In
        the
        event that Chairman’s shall be assigned to him duties and responsibilities
        materially inconsistent with Chairman’s position and such situation continues
        for 10 days after notice is given such occurrence shall constitute a termination
        without Good Cause under Section
        4(c).

      

      (c) Other
        Services.
        Company
        acknowledges and pre-approves Chairman’s current responsibilities as Chairman
        and Chief Executive Officer (CEO) of Hythiam, Inc. (“Hythiam”).
        Company further acknowledges that Chairman is subject to a Confidentiality
        Agreement under the terms of Chairman’s employment and directorship with
        Hythiam. In addition, Company acknowledges that Chairman may do charity work
        and
        conduct personal business, as long as such activities do not materially
        interfere with the performance of Chairman’s duties hereunder.

      

      3. Compensation.
        During
        the term of this Agreement, Company shall pay the amounts and provide the
        benefits described in this section, and Chairman agrees to accept such amounts
        and benefits in full payment for Chairman’s services under this
        Agreement.

      

      (a) Cash
        Compensation.
        Chairman’s initial cash compensation will be $450,000 per annum, payable in
        accordance with the Company’s standard practices. In addition, Chairman will
        receive a one-time signing bonus of $225,000 upon full execution of this
        Agreement. Throughout the Term, Company shall pay to Chairman annual cash
        compensation no less than the median cash compensation of similarly positioned
        Executive Chairmen of similarly situated companies, subject to increases
        as
        provided below. 

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      (b) Bonus.
        Subject
        to the foregoing and any restrictions under federal or state law of the rules
        of
        any exchange upon which the shares of Company’s common stock are then traded,
        Chairman shall receive annual bonus cash compensation as determined in the
        reasonable discretion of the Board or its Compensation Committee, targeted
        at no
        less than 100% of annual base cash compensation, and based on (1) the level
        of
        service of Chairman, (2) the achievement of designated individual goals and
        milestones, and (3) the overall performance and profitability of Company
        (collectively, the “Factors”).
        The
        Factors will be established as soon as reasonably practicable and reevaluated
        on
        an annual basis by mutual agreement of Chairman and the Board or its
        Compensation Committee. The bonus will be based on a calendar year and paid
        no
        later than April 15th
        of the
        following year.

      

      (d) Annual
        Review.
        Upon
        each anniversary of the Commencement Date, Chairman’s cash compensation and
        bonus target shall be reevaluated by the Board or its Compensation Committee
        and, if appropriate, increased to ensure appropriate compensation in the
        competitive marketplace based on the position and level of service of
        Chairman.

      

      (e) Replacement
        Review.
        In the
        event that the Company appoints a Co-Chairman, CEO or other officer or director
        who performs a substantial portion of the duties and responsibilities of
        Chairman, Chairman’s cash compensation and bonus target shall be reevaluated,
        and the Board or its Compensation Committee will mutually agree with Chairman
        on
        a decrease or adjustment, if appropriate, to ensure appropriate compensation
        in
        light of any material decrease or adjustment in the required level of service
        of
        Chairman.

      

      (f) Equity
        Incentive Plan.

      

      (1) Chairman
        shall be entitled to participate in any equity compensation, stock option,
        restricted stock, phantom stock right, equity pool, or other such plans or
        arrangements which may exist during the Term, provided that Chairman’s
        entitlement is not inconsistent with the terms of any such arrangement or
        plan.

      

      (2) Chairman
        shall be granted options to purchase shares of Company’s common stock under the
        provisions of Company’s stock incentive plan, at 110% of the fair market value
        on the date of grant, in amounts and at such times as agreed between Chairman
        and the Board or its Compensation Committee based upon the Factors. Except
        as
        otherwise set forth herein, vesting of options will cease upon the termination
        of all of Chairman’s services to Company.

      

      (g) Reimbursement
        of Expenses.
        Company
        shall pay to or reimburse Chairman for all reasonable business, travel,
        promotional and similar expenditures incurred by Chairman.

      

      (h) Deductions.
        Company
        shall deduct and withhold from all compensation payable to Chairman all amounts
        required to be deducted or withheld pursuant to any present or future law,
        ordinance, regulation, order, writ, judgment or decree requiring such deduction
        and withholding. To the extent legally permissible, the Company shall not
        treat
        any fringe benefits or expense reimbursement as income to Chairman.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      4. Termination

      

      (a) Termination
        With Good Cause or Without Good Reason.
        Company
        may terminate Chairman’s services at any time, with or without notice or Good
        Cause (as defined below). If Company terminates Chairman’s services with Good
        Cause, or if Chairman resigns without Good Reason (as defined below), Company
        shall pay Chairman any accrued but unpaid cash compensation, prorated through
        the date of termination, at the rate in effect at the time notice of termination
        is given, together with any benefits accrued through the date of termination.
        Company shall have no further obligations to Chairman under this Agreement
        or
        any other agreement, and all unvested options will terminate. To the extent
        legally permissible under the incentive compensation plan, all vested options
        shall be exercisable until the end of their original term.

      

      (b) Termination
        Without Good Cause or with Good Reason.
        Chairman shall have the right to terminate Chairman’s services to Company with
        notice and Good Reason. If Company terminates Chairman’s employment without Good
        Cause, or Chairman resigns for Good Reason:

      

      (1) Company
        shall pay Chairman’s cash compensation prorated through the date of termination,
        at the rate in effect at the time notice of termination is given, together
        with
        any benefits accrued through the date of termination;

      

      (2) Company
        shall pay Chairman in a lump sum an amount equal to three years’ of additional
        (i) cash compensation (at the rate in effect at the time of termination)
        and
        (ii) bonus (based on 100% of the targeted bonus for the year of
        termination);

      

      (3) All
        of
        Chairman’s unvested stock options will vest immediately, and remain exercisable
        for the full term thereof; and

      

      Company
        shall have no further obligations to Chairman under this Agreement or any
        other
        agreement.

      

      (c) Good
        Cause.
        For
        purposes of this Agreement, a termination shall be for “Good
        Cause”
if
        Chairman shall willfully:

      

      (1) Commit
        fraud or embezzlement in connection with Chairman’s duties;

      

      (2) Materially
        violate the Company’s written Codes of Ethics as adopted by the Board under the
        Sarbanes-Oxley Act;

      

      (3) Refuse
        to
        comply with a relevant and material obligation assumable and chargeable to
        an
        executive of Chairman’s corporate rank and responsibilities under the
        Sarbanes-Oxley Act and the regulations of the Securities and Exchange Commission
        promulgated thereunder; or

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      (4) Be
        convicted of, or enter a plea of guilty to, a felony under state or federal
        law,
        other than a vehicle related offense or an offense not involving dishonesty
        or
        moral turpitude.

      

      (d) Good
        Reason.
        For
        purposes of this Agreement, a resignation shall be with “Good
        Reason”
        following:

      

      (1) The
        assignment to Chairman of duties materially inconsistent with Chairman’s status
        and title, or the removal of Chairman as a director or as Chairman of the
        Board;

      

      (2) Company’s
        failure to cause any acquiring or successor entity following a Change in
        Control
        to assume Company’s obligations under this Agreement, unless such assumption
        occurs by operation of law; or

      

      (3) Material
        breach of this Agreement by Company, which continues after written notice
        and
        reasonable opportunity to cure (not to exceed 10 days after the date of notice),
        or failure to timely pay to Chairman any amount due under Section
        3.

      

      (e) Effects
        of Change in Control.
        Immediately upon a Change in Control (as defined below) all of Chairman’s
        unvested options shall vest immediately, and remain exercisable for a period
        of
        three years thereafter.

      

      (f) Change
        in Control.
        For
        purposes of this Agreement, a “Change
        in Control”
        means:

      

      (1) any
        “person” (as used in Sections 13(d) and 14(d) of the Securities Exchange Act of
        1934, as amended (the “Exchange
        Act”)),
        other than a trustee or other fiduciary holding under an employee benefit
        plan,
        becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange
        Act) of securities representing at least 50% of (i) the outstanding
        shares of common stock of the Company or (ii) the combined voting power of
        the
        Company’s then outstanding securities; 

      

      (2)
         the
        Company is party to a merger or consolidation which results in the voting
        securities of the Company outstanding immediately prior thereto failing to
        continue to represent (either by remaining outstanding or by being converted
        into voting securities of the surviving or another entity) more than 50% of
        the combined voting power of the voting securities of the Company or such
        surviving or other entity outstanding immediately after such merger or
        consolidation; 

      

      (3)
         the
        sale
        or disposition of all or substantially all of the Company’s assets (or
        consummation of any transaction having similar effect); 

      

      (4)
         the
        dissolution or liquidation of the Company; or 

      

      (5) the
        composition of the Board changes during any period of 36 months such that
        individuals who at the beginning of the period were members of the Board
        (the
“Continuing
        Directors”)
        cease
        for any reason to constitute a majority thereof; unless a majority of the
        Continuing Directors has either (i) approved the election of the new directors,
        or (ii) if the election of the new directors is voted on by shareholders,
        recommended that the shareholders vote for approval.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      (g) No
        Change in Control.
        Notwithstanding the provisions of Section
        4(f),
        the
        following shall not constitute a Change in Control:

      

      (1) If
        the
        sole purpose of the transaction is to change the state of the Company’s
        incorporation or to create or eliminate a holding company that will be owned
        in
        substantially the same proportions by the same beneficial owners as before
        the
        transaction;

      

      (2) If
        Company’s stockholders of record as constituted immediately prior to the
        transaction will, immediately after the transaction (by virtue of securities
        issued as a consideration for Company’s capital stock or assets or otherwise),
        hold more than 50% of the combined voting power of the surviving or acquiring
        entity’s outstanding securities;

      

      (3) An
        underwritten public offering of Company’s common stock, if Company’s
        stockholders of record as constituted immediately prior to the offering will,
        immediately after the offering, continue to hold more than 50% of the combined
        voting power of Company’s outstanding securities;

      

      (4) The
        private placement of preferred or common stock, or the issuance of debt
        instruments convertible into preferred or common stock, for fair market value
        as
        determined by the Board, provided the acquiring person does not as a result
        of
        the transaction own at least 50% of the outstanding capital stock of Company,
        have the right to vote at least 50% of the outstanding voting stock of Company,
        or have the right to elect a majority of the Board; or

      

      (5) If
        Chairman is a member of a group that acquires control of Company in an event
        that would otherwise be a Change in Control, such event shall not be deemed
        a
        Change in Control and Chairman shall have no right to benefits hereunder
        as a
        result of such event; provided, however, that Chairman shall not be deemed
        a
        member of any acquiring group solely by virtue of Chairman’s continued
        employment or ownership of stock or stock options following a Change in
        Control.

      

      (h) Gross-Up
        Payment.

      

      (1) Notwithstanding
        the above, if any of the compensation payable upon termination of Chairman’s
        services as provided for above (the “Payments”)
        triggers the application of Internal Revenue Code Section 280G, or makes
        Chairman liable for payment of the excise tax (the “Excise
        Tax”)
        provided for under Section 4999 of the Code, or
        any
        other statute or regulation under which Chairman may be penalized as a result
        of
        the nature or amount of such compensation, then
        Company or the acquiring or successor entity of Company shall pay to Chairman
        an
        additional amount (the “Gross-Up”)
        such
        that the net after-tax amount retained by the Chairman, after deduction of
        (A)
        any Excise Tax on the Payments, and (B) any federal, state, local or foreign
        income, employment or other tax and Excise Tax upon any payment provided
        for by
        this section, shall be equal to the Payments, reduced by the amount of any
        United States federal, state and local income or employment tax liability
        of the
        Chairman calculated as if the Payments were not subject to the Excise Tax.
        The
        determination of whether any of the Payments will be subject to the Excise
        Tax
        and the amount of such Excise Tax will be made by Company’s regular independent
        public accounting firm.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      (2) In
        the
        event that the Excise Tax is subsequently determined to be less than the
        amount
        taken into account under this section, Chairman shall repay to Company at
        the
        time that the amount of such reduction of Excise Tax is finally determined,
        an
        amount equal to the sum of the following: (i) the amount of the reduction
        of the
        Excise Tax, (ii) the amount of the reduction in all other taxes generated
        by the
        reduction in the Excise Tax, and (iii) interest on the amount of the sum
        of (i)
        and (ii) at the rate provided in Section 1274(b)(2)(B) of the Code.

      

      (3) In
        the
        event that the Excise Tax is determined to exceed the amount previously taken
        into account under this section (including by reason of any payment the
        existence or amount of which cannot be determined at the time of the Gross-Up),
        Company shall make an additional Gross-Up payment in respect to such excess
        (plus any interest payable with respect to such excess) at the time that
        the
        amount of such excess is finally determined in accordance with the principles
        set forth above.

      

      (i) Death
        or Disability.
        To the
        extent consistent with federal and state law, Chairman’s services and cash
        compensation shall terminate on Chairman’s death or Disability. “Disability”
means
        any physical or mental health condition beyond Chairman’s control that
        completely prevents Chairman from performing Chairman’s duties, even after all
        reasonable accommodations are made by Company, for a period of more than
        180
        consecutive days within an annual period of the Term. In the event of
        termination due to death or Disability, Company shall pay Chairman (or
        Chairman’s legal representative) Chairman’s cash compensation prorated through
        the date of termination, at the rate in effect at the time of termination
        and
        continue to provide insurance and other fringe benefits to Chairman and
        Chairman’s spouse and dependent children for a period of one year from
        Chairman’s termination date. In the event of a termination due to death or
        Disability, in addition to all options already vested, 100% of the options set
        to vest in the year that death or disability occurs shall vest and Chairman
        shall have until the end of the option term to exercise all options. Company
        shall have no further obligations to Chairman under this Agreement, except
        for
        those created under any stock option agreements executed prior to the effective
        date of termination, and any other vested rights under the employee benefit
        plans and programs and the right to receive reimbursement for business expenses
        as provided for in Section
        3(h).

      

      (j) Return
        of Company Property.
        Within
        30 days after the Termination Date, Chairman shall return to Company all
        products, books, records, forms, specifications, formulae, data processes,
        designs, papers and writings relating to the business of Company including
        without limitation proprietary or licensed computer programs, customer lists
        and
        customer data, and/or copies or duplicates thereof in Chairman’s possession or
        under Chairman’s control. Chairman shall not retain any copies or duplicates of
        such property and all licenses granted to him by Company to use computer
        programs or software shall be revoked on the Termination Date.

      

      5. Duty
        Of Loyalty.
        During
        the term of this Agreement, Chairman shall not, without the prior written
        consent of Company, engage in any activity directly competitive with the
        business or welfare of Company, whether alone, as a partner, or as an officer,
        director, employee, consultant, or holder of more than 10% of the capital
        stock
        of any other corporation. Otherwise, Chairman may make personal investments
        in
        any other business. The parties agree that the activities provided for in
        Section
        2(c)
        are not
        directly competitive with the business or welfare of Company.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      6. Cure
        Period

      

      In
        the
        event that Chairman or Company breaches this Agreement, the breaching party
        shall have 30 days within which to cure such breach, after receiving written
        notice from the other party specifying in reasonable detail the basis for
        the
        claimed breach (“Cure
        Period”).
        No
        breach of the Agreement shall be actionable if the breaching party is able
        to
        cure the breach within the Cure Period.

      

      7. Other
        Provisions.

      

      (a) Compliance
        With Other Agreements.
        Company
        acknowledges that Chairman is subject to an Employment Agreement and
        Confidentiality agreement with Hythiam. Chairman represents to Company that,
        to
        the best of Chairman’s knowledge and belief, the execution, delivery and
        performance of this Agreement will not conflict with or result in the violation
        or breach of any term or provision of any other agreement, order, judgment
        or
        injunction to which Chairman is a party or by which Chairman is bound. Should
        claims, demands, causes of action, costs or expenses (including attorneys’ fees)
        arise from any alleged breach of contract as a result of accepting a position
        with Company, Company will indemnify Chairman for all reasonable legal fees,
        costs and expenses arising out of or relating thereto. 

      

      (b) Nondelegable
        Duties.
        This is
        a contract for Chairman’s personal services. The duties of Chairman under this
        Agreement are personal and may not be delegated or transferred in any manner
        whatsoever, and shall not be subject to involuntary alienation, assignment
        or
        transfer by Chairman during Chairman’s life.

      

      (c) Governing
        Law.
        The
        validity, construction and performance of this Agreement shall be governed
        by
        the laws, without regard to the laws as to choice or conflict of laws, of
        the
        State of California.

      

      (d) Venue.
        If any
        dispute arises regarding the application, interpretation or enforcement of
        any
        provision of this Agreement, such dispute shall be resolved in Los Angeles
        County, California.

      

      (e) Severability.
        The
        invalidity or unenforceability of any particular provision of this Agreement
        shall not affect the other provisions, and this Agreement shall be construed
        in
        all respects as if any invalid or unenforceable provision were
        omitted.

      

      (f) Binding
        Effect.
        The
        provisions of this Agreement shall bind and inure to the benefit of the parties
        and their respective successors and permitted assigns.

      

      (g) Notice.
        Any
        notices or communications required or permitted by this Agreement shall be
        deemed sufficiently given if in writing and when delivered personally or
        four
        (4) business days after deposit with the United States Postal Service as
        registered or certified mail, postage prepaid and addressed as follows: (1)
        If
        to Company, to the principal office of Company in the State of California,
        marked “Attention: Compensation Committee,” with a copy to the Company’s general
        outside counsel; or (2) If to Chairman, to the most recent address for Chairman
        appearing in Company’s records.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      (h) Arbitration.
        Any
        disputes, controversies or claims arising out of or relating to this Agreement,
        including without limitation any failure to reach mutual agreement pursuant
        to
Sections
        3(b) or (e),
        shall
        be resolved by binding arbitration before a retired judge at JAMS in Santa
        Monica, California, in accordance with its Employment Arbitration Rules and
        Procedures. To the extent permitted by the rules and applicable law, the
        prevailing party shall be awarded its reasonable attorney’s fees, costs and
        expenses.

      

      (i) Headings.
        The
        Section and other headings contained in this Agreement are for reference
        purposes only and shall not affect in any way the meaning or interpretation
        of
        this Agreement.

      

      (j) No
        Third Party Beneficiaries. This
        Agreement shall inure to the benefit of the parties and their permitted
        successors and assigns only. There are no intended third party beneficiaries
        under this Agreement.

      

      (k) No
        Disparagement. During
        the Term, and at all times thereafter, the parties agree that they will not
        disparage each other in any fashion.

      

      (l) Amendment
        and Waiver.
        This
        Agreement may be amended, modified or supplemented only by a writing executed
        by
        each of the parties. Either party may in writing waive any provision of this
        Agreement to the extent such provision is for the benefit of the waiving
        party.
        No waiver by either party of a breach of any provision of this Agreement
        shall
        be construed as a waiver of any subsequent or different breach, and no
        forbearance by a party to seek a remedy for noncompliance or breach by the
        other
        party shall be construed as a waiver of any right or remedy with respect
        to such
        noncompliance or breach.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      
 

      (m) Entire
        Agreement.
        This
        Agreement contains the entire agreement and understanding between the parties,
        and supersedes all prior and contemporaneous agreements, negotiations,
        understandings, promises, representations and warranties, whether oral or
        written.

      

      IN
        WITNESS WHEREOF, the parties hereto have executed this Agreement as of the
        day
        and year first above written.

      

       

        
          	
                  COMPANY:

                	 	 	 
	 	 	 	 	 
	
                  XCORPOREAL,
                    INC.

                	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	
                  By:

                	 	 	 	 
	 	
                  Director

                	 	 	 
	 	 	 	 	 
	
                  By:

                	 	 	 	 
	 	
                  Director

                	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	CHAIRMAN:	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	
                  Terren
                    S. PeizerUnassociated Document

    Exhibit
      10.1 

     

    
      	
              Date:
                August 1, 2007

            	
              Contract
                No.
                750413070801

            

    

     

    Non-Commitment
      Short-Term Revolving Credit Facility Agreement 

    (English
      Translation)

    

    
      	(1)  	
              Citibank
                (China) Co., Ltd., Shenzhen Branch (hereinafter referred as the
                “Bank”)

            

    

    Address:
      9/F, Citic Building, Shennan Road, Central, Shenzhen, China

    

    
      	(2)  	
              Shenzhen
                Ritar Power Co., Ltd., (hereinafter referred as “the
                Client”)

            

    

    Address:
      No.9 Building of Fuqiao Second Industry Zone, Qiaotou village, Fuyong town,
      Bao’an Area, Shenzhen, China

    

    

    The
      parties hereby enter into an agreement (the “Agreement”) as follows:

    

    
      	1.   
              	
              The
                attached ordinary
                terms and conditions of credit facility agreement and
                any other attached documents are a part of the
                Agreement.

            

    

    

    
      	2.   
              	
              Maximum
                line of credit: US $5,000,000 or equivalent amount in Renminbi (“RMB”)
                

               

              For the purpose of calculating
                the maximum
                amount of line of credit, the Bank shall be entitled to use an exchange
                rate determined by itself. In any event that the outstanding balance
                exceeds the maximum line of credit due to the fluctuation of the
                exchange
                rate, the Bank shall have the right to request an immediate repayment
                of
                the amount exceeding the maximum line of credit from the
                Client.

            

    

     

    
      	3.   
              	
              Financing
                Currency: US Dollar or RMB.

            

    

    

    
      	4.   
              	
              Types
                of loan and amount:

            

    

    

    
      	·  	
              Discount:
                up to RMB 23,000,000 

            

    

    
      	·  	
              Account
                Payables: up to RMB 23,000,000

            

    

    
      	·  	
              Export
                Financing: up to US$ 1,750,000

            

    

    
      	·  	
              Pre-Clearing
                Risk: up to US$ 200,000

            

    

    

    Under
      no
      circumstance should the aggregate amount of outstanding balance of Discount
      and
      Account Payables exceed RMB 23,000,000. In no event should the aggregate amount
      of outstanding balance of all the above types of loan exceed the maximum line
      of
      credit. 

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    
      	5.   
              	
              Terms
                of loan:

            

    

    

    
      	·  	
              Discount:
                three months

            

    

    
      	·  	
              Account
                Payables: three months

            

    

    
      	·  	
              Export
                Financing: five months

            

    

    
      	·  	
              Pre-Clearing
                Risk: twelve months

            

    

    

    
      	6.   
              	
              Interest
                Rate / Commission Rate

            

    

    

    
      	·  	
              Discount:
                the discount rate shall be determined pursuant to the relevant documents
                attached

            

    

    
      	·  	
              Account
                Payables: the interest rate shall be determined pursuant to the relevant
                documents attached.

            

    

    
      	·  	
              Export
                Financing: the interest rate shall be determined by relevant documents
                attached.

            

    

    

    
      	7.   
              	
              Use
                of loan:

            

    

    

    
      	·  	
              Use
                of loans of Discount, Account Payables and Export Financing: working
                capital and purchase of raw
                materials

            

    

    
      	·  	
              Use
                of loans of Pre-Clearing Risk: hedging transaction
                

            

    

    

    
      	8.   
              	
              Guaranty
                and guarantor:

            

    

    

    
      	·  	
              to
                provide a cash guaranty by entering into a pledge agreement between
                the
                Client and the Bank

            

    

    
      	·  	
              to
                provide a guaranty by a letter of guarantee issued by Shanghai Ritar
                Power
                Co., Ltd.

            

    

    
      	·  	
              to
                provide a guaranty by a letter of guarantee issued by Jiada
                Hu

            

    

    
      	·  	
              to
                provide a guaranty by a letter of guarantee issued by Hengying
                Peng

            

    

    

    
      	9.   
              	
              Penalty
                interest rate:

               

              As set forth in Section 12 of
                the ordinary
                terms and conditions of credit facility agreement,
                the penalty interest rate shall be equal to:
                

            

    

    

    RMB:
      the
      minimum penalty rate permitted under relevant regulations of the People’s Bank
      of China (including the principal and interest)

    

    US
      Dollar: the rate determined by the Bank.

    

    
      	10.  	
              Facility
                fee: the Client shall pay the facility fee to the Bank in due course
                according to the notice of facility fee issued by the Bank from time
                to
                time.

            

    

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    
      	11.  	
              Special
                conditions regarding Pre-Clearing
                Risk:

            

    

    

    In
      any
      event that the Bank has determined that the loss calculated based on a market
      price reaches a fixed amount or rate (determined by the Bank), the Bank shall
      have the absolute discretion to request for additional deposit security. The
      Client hereby agrees that it will enter into a relevant pledge agreement within
      two business days following receipt of such request from the Bank and deposit
      required amount of money in the Bank according to relevant rules and regulations
      of the Bank and the State. 

    

    IN
      WITNESS WHEREOF, the authorized representatives of both parties hereto have
      executed the Agreement as of the date first set forth above and the Agreement
      comes into effect as of the execution date.

    

    

    Bank:
      

    

    Citibank
      (China) Co., Ltd., Shenzhen Branch

    

    By:
      /s/
      Jiannan
      Zhang                          

    (Representative
      of Bank) 

    

    

    Client:
      

    

    Shenzhen
      Ritar Power Co., Ltd. 

    

    By:
      /s/
      Jiada
      Hu                                       

    (Representative
      of Client) 

    

    Witnessed/Verified
      by: /s/Jack
      Chen
      (Manager)                           

     

    
      
        
        

      

      
        3

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00128-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00128-of-00352.parquet"}]]