Document:

Exhibit
10.16(b)

 

 

MAXIMUM GUARANTEE CONTRACT

 

Contract No.: Pingyin Shen Xin Zhou Zongzi
20151210 No. 002

 

	Party A (Creditor): 	PINGAN BANK CO., LTD. SHENZHEN BRANCH 
	Address: 	NO1099 Shennan Zhonglu Road, Shenzhen
	Tel.:  23480048 	Fax:  23480054
	Principal:  Guiping Yao	Position:  President
	 	 
	Party B (Guarantor): 	SPRINGPOWER TECHNOLOGY (SHENZHEN) 
	 	COMPANY LIMITED
	Certificate Type *:	Certificate No. *:

 

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

 

Address: Building A, Chaoshun Industrial Zone,
Renmin Road, Guanlan

 

	Tel.:                                                 	Fax:                                         
	 	 
	Legal
    Representative**: Dangyu Pan 	Position **: President

 

(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

 

1.1Scope 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.

1.2 Guarantee 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

(4) 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): SPRINGPOWER
TECHNOLOGY (SHENZHEN) COMPANY LIMITED

Signature of Legal Representative or Authorized
Agent: Dangyu Pan

 

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

or Authorized Agent:Exhibit
10.17

 

Number :0400000928-2015 Nian (Henggang)
No. 00090

 

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:	Industrial and Commercial Bank of China Ltd. 	 
	 	Shenzhen Henggang Branch	 
	Person in charge: 	Duoping Yang	Contact:  Weifeng Tian
	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   	 
	Person in charge: 	Dangyu Pan	Contact:  Jing Li
	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

 

2.1The amount under this contract is RMB20,000,000.00
(RMB TWENTY MILLION ONLY)

 

     

     

    

 

2.2The 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

 

3.1To determine the RMB loan interest
rates.

 

RMB loan interest rates shall be determined
according to the following:

 

(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 ___% 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) 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) Floating interest
rates. Interest rate shall be determined by base rate plus floating rate. Base rate is up 5% of national interbank lending rates,
and the rate cannot change during the period.

 

3.2To 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:

 

3.3Interest 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 equals interest
rate / 360.

 

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

 

Article 4 Withdrawal (This section
does not apply to loan cycles.)

 

4.1Funds should be withdrawn based on
the actual needs, the borrower can make single or multiple withdrawals to the loan amount limit before.

 

4.2If the borrower does not withdraw according
to the contract, the lender has the right to cancel all or part of the remaining unused balance. 

 

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

 

7.1Loans 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.

 

     

     

    

 

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

 

Maximum amount of guarantee
contract name: "the maximum guaranteed contract" (ID: ICBC 0400000928-2015 Henggang Baozi 0009)

 

Guarantor: Hong Kong Highpower
Technology Co., Ltd.

 

Maximum amount of guarantee
contract name: "the maximum guaranteed contract" (ID: ICBC 0400000928-2015 Henggang Baozi 0010)

 

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

 

Maximum amount of guarantee
contract name: "the maximum guaranteed contract" (ID: ICBC 0400000928-2015 Henggang Baozi 0011)

 

Guarantor: Dangyu
Pan

 

Article 8Financial 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.

 

Article 10 Other

 

10.1Contract 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 (REUTERS) 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 (REUTERS) Financial Telecommunication terminal "HIBOR" page shows the same industry
in HK Offered Rate.

 

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

 

1.3For 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.

 

1.4The 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.

 

1.5In 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.

 

1.6Upon 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

 

2.1Upon 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.

 

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

 

2.3Borrowers 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.

 

2.4If 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.

 

2.5In 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.

 

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

 

3.1The 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.

 

     

     

    

 

3.2The 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.

 

3.3The 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.

 

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

 

3.5If 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

 

5.1In 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.

 

5.2Borrower 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.

 

5.3If 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

 

6.1Borrower 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.

 

6.2Lender 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:

 

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

 

7.2The 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.

 

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

 

7.4The 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.

 

7.5The 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.

 

7.6The 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.

 

7.7The borrower has not concealed to the
lender any litigation, arbitration or claim involved.

 

     

     

    

 

Article 8 Borrower Commitment

 

8.1The 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.

 

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

 

8.3Accept 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.

 

8.4Accept 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.

 

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

 

8.6For 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.

 

8.7One 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.

 

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

 

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

 

     

     

    

 

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

 

8.11If 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.

 

8.12Take 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.

 

8.13Debt 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.

 

8.14Reinforce 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

 

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

 

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

 

Article 10 Breach of Contract

 

10.1Any 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.

 

10.2If 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;

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

 

     

     

    

 

10.3If 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.

 

10.4Borrower 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.

 

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

 

10.6If 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.

 

10.7If 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

 

11.1Borrower 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.

 

11.2If 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.

 

11.3If 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

 

12.1Lender 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.

 

     

     

    

 

12.2The 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

 

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

 

13.2Any 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.

 

13.3The 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

 

16.1All 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.

 

16.2One 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: Duoping
Yang

 

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

 

Legal representative / authorized agent: Dangyu
Pan

 

Contract signed on:

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