Document:

ex4_5.htm

    
      

    

    Exhibit 4.5

    

      NON-QUALIFIED
OPTION AGREEMENT

      

      This
Agreement is dated ____ __, 20__

      

      BETWEEN:

      

      Vantage
Drilling Company, an exempted company existing under the laws of the Cayman
Islands (hereinafter called the "Corporation"),

      

      -
and -

      

      , an
employee of the Corporation residing at _________, (hereinafter called the
"Participant")

      

      WHEREAS
the Participant is an employee of the Corporation or of a subsidiary of the
Corporation and has been designated by the Corporation as eligible to
participate in the Vantage Drilling Company 2007 Long Term Incentive
Compensation Plan (the "Plan");

      

      AND
WHEREAS the Corporation desires to grant to the Participant options to purchase
ordinary shares of the Corporation (the "Shares") in accordance with the terms
of the Plan;

      

      NOW
THEREFORE THIS AGREEMENT WITNESSETH that the parties hereto agree as
follows:

      

      1.           
 The Corporation hereby grants to the
Participant         irrevocable options
(the "Options") to purchase       Shares at a
price of $    per share, subject to the terms and conditions set
forth herein.

      

      2.          
  The Options expire and terminate at 5:00 p.m. (Houston time) on the
day (the "Expiry Date") that is the earlier of (i) ____ __, 20__ and (ii) the
dates determined by Sections 6, 7 and 8 below.

      
 

      3.        
    The Shares optioned under this Agreement shall vest
according to the following schedule:

      
        
          
            	
                    Vesting
      Date

                  	 	
                    Number
      of Vested Options

                  
	
                    ____
      __, 20__

                  	 	
                     

                  
	
                    ____
      __, 20__

                  	 	
                     

                  
	
                    ____
      __, 20__

                  	 	
                     

                  
	
                    ____
      __, 20__

                  	 	
                     

                  

          

        

      

      
        
           

        

        
          1

          
            

          

        

        
           

        

      

      4.           
 The Participant (or his legal or personal representative) may exercise the
Options by delivering to the Corporation, at its principal office in Houston,
Texas:

      

      (a)             a
written notice ("Notice") expressing the intention to exercise the Options and
specifying the number of Shares in respect of which the Options are
exercised;

      

      (b)             a
cash payment, check or bank draft, representing the full purchase price of the
Shares in respect of which the Options are exercised; and

      

      (c)             in
the event that the Options are exercised in accordance with this Agreement by
persons other than the Participant, proof satisfactory to the Corporation of the
right of such persons to exercise the Options.

      

      5.         
   Upon the exercise of the Options as aforesaid, the Corporation
shall employ its reasonable efforts to forthwith deliver, or cause the registrar
and transfer agent of the Shares to deliver, to the Participant (or his legal,
personal representative) or to the order thereof, a certificate representing the
aggregate number of fully paid and non assessable Shares as the Participant (or
his legal, personal representative) shall have then paid for.

      

      6.         
   Subject to any express resolution passed by the board of
directors of the Corporation (the "Board") with respect to an Option, if the
Participant who is an officer, employee (part-time or full-time), director or
Consultant of the Corporation ceases to be an officer, employee (part-time or
full-time), director or Consultant of the Corporation such that the Participant
holds none of such positions with the Corporation (in each case, the
"Departure") and does not continue in at least one of such capacities, each
Option held by the Participant will terminate and be deemed to have been
terminated:

      

      (a)             if
the reason for Departure is resignation or termination without cause, and the
Departure is in respect of a director or officer, as applicable, at 4:00 p.m.
(Houston time) on the earlier of: (i) the expiry date of the Option; and (ii)
the date that is 30 days after the date of Departure;

      

      (b)             if
the reason for Departure is resignation or termination without cause, and the
Departure is in respect of an employee (part-time or full-time), at 4:00 p.m.
(Houston time) on the earlier of: (i) the expiry date of the Option; and (ii)
the date that is 30 days after the date of Departure;

      

      (c)             if
the reason for Departure is resignation or termination without cause, and the
Departure is in respect of a Consultant, in accordance with the terms of the
consulting agreement entered into between the Corporation or the Subsidiary and
the Consultant, or, if not expressly indicated in such consulting agreement, at
4:00 p.m. (Houston time) on the earlier of: (i) the expiry date of the Option;
and (ii) the date that is 30 days after the date of Departure;

      
        
           

        

        
          2

          
            

          

        

        
           

        

      

      (d)             if
the reason for Departure is death, permanent disability or normal retirement of
the Participant, at 4:00 p.m. (Houston time) on the earlier of: (i) the expiry
date of the Option; and (ii) the date that is 30 days after the date of
Departure; and

      

      (e)             if
the reason for Departure is termination for cause, at 12:01 a.m. (Houston time)
on the date of Departure;

      

      provided
that in the circumstances described in clauses (a), (b), (c) and (d) above, the
Option may be exercised or surrendered during the respective periods only to the
same extent, in the same manner, and subject to the same restrictions and
limitations that the Participant was entitled to exercise or surrender the
Option as at the date of Departure.  Notwithstanding anything else
contained herein, no Option shall vest following the date of Departure of the
Participant.

      

      7.         
   In the event of a Participant's death or permanent disability,
any Option held by the Participant at the time of his death or permanent
disability may be exercised or surrendered only:

      

      (a)             by
the person to whom the Participant's rights under the Option shall pass by the
Participant's legal will or pursuant to applicable law; and

      

      (b)             to
the same extent, in the same manner and subject to the same restrictions and
limitations that the Participant was entitled to exercise or surrender the
Option as at the date of death or permanent disability.

      

      8.         
   The Participant acknowledges and agrees that neither the
selection of him as a Participant under the Plan nor the granting of the Options
hereunder shall: (i) confer upon him any right to continue as a director,
officer, employee or Consultant of the Corporation or any of its subsidiaries,
as the case may be, or (ii) be construed as a guarantee that the Participant
will continue as a director, officer, employee or Consultant of the Corporation,
as the case may be.  The Participant further acknowledges and agrees
that this Agreement and the Options granted hereby shall in no way constitute
the basis for a claim for damages by the Participant against the Corporation in
the event of the termination of the employment of the Participant with the
Corporation for any reason whatsoever, including the Participant's wrongful
dismissal, and the Participant hereby releases and forever discharges the
Corporation from all claims and rights of action for damages whatsoever based
upon or arising out of this Agreement or the Options.

      
        
           

        

        
          3

          
            

          

        

        
           

        

      

      9.     
       The Participant shall not have any of
the rights or privileges of a shareholder of the Corporation in respect of any
Shares issuable upon exercise of the Options until such Shares have been paid
for in full and issued to the Participant.

      

      10.           The
number of Shares deliverable upon the exercise of the Options shall be increased
or decreased proportionately in the event of the subdivision or consolidation of
the outstanding Shares of the Corporation prior to the Expiry Date, without any
change in the total price applicable to the unexercised portion of the Options,
but with a corresponding adjustment in the price for each Share covered by the
Options.  In case the Corporation is reorganized or merged or
consolidated or amalgamated with another corporation, appropriate provisions
shall be made for the continuance of the Options and to prevent their dilution
or enlargement.  Adjustments under this Section 10 shall be made by
the Board (or by such committee or persons as may be delegated such authority
pursuant to the Plan), whose determination as to what adjustments shall be made,
and the extent thereof, shall be final, binding and conclusive.  No
fractional Shares shall be issued on any such adjustment.

      

      11.           The
Options and all benefits and rights accruing to the Participant hereunder shall
not be transferable or assignable.  During the lifetime of the
Participant the Options granted hereunder may only be exercised by the
Participant as herein provided and in the event of the death of the Participant,
by the person or persons to whom the Participant's rights under the Options pass
by the Participant's will or applicable law.

      

      12.           The
Participant acknowledges and agrees that the Board may, at any time, suspend or
terminate the Plan.  The Board may also at any time amend or revise
the terms of the Plan, provided that no such amendment or revision shall alter
the terms of the Options granted herein without the consent of the
Participant.

      

      13.           The
obligation of the Corporation to issue and deliver Shares on the exercise of the
Options in accordance with the terms and conditions of this Agreement is subject
to applicable securities legislation and to the receipt of any approvals that
may be required from any regulatory authority or stock exchange having
jurisdiction over the securities of the Corporation.  If Shares cannot
be issued to the Participant upon the exercise of the Options for any reason
whatsoever, the obligation of the Corporation to issue such Shares, shall
terminate and any funds paid to the Corporation in connection with the exercise
of the Options will be returned to the Participant as soon as
practicable.

      

      14.           The
Participant acknowledges that he has read and understands the Plan and the
Participant and the Corporation agree that all provisions thereof apply to the
parties hereto and to this Agreement with the same effect as if such provisions
were set out in this Agreement.

      

      15.            If
at any time the Corporation grants to its shareholders the right to subscribe
for and purchase pro rata additional securities of the Corporation or of any
other corporation or entity, there shall be no adjustments made to the number of
Shares or other securities subject to the Option in consequence thereof and the
Option of the Participant shall remain unaffected.

      
        
           

        

        
          4

          
            

          

        

        
           

        

      

      16.           Any
reference in this Agreement to a capitalized word not herein defined shall refer
to that word as defined in the Plan.

      

      17.           Time
shall be of the essence of this Agreement.

      

      18.           This
Agreement shall be governed by and construed in accordance with the laws of the
State of Texas.

      
        
           

        

        
          5

          
            

          

        

        
           

        

      

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

      

      

      
        
          
            
              
                	
                        Vantage
      Drilling Company

                      	 
      	
                        Participant

                      
	 
      	 
      	 
      	 
      
	
                        By:

                      	 
      	 
      	 
      
	 
      	
                        Name:

                      	 
      	
                        Name:

                      
	 
      	
                        Title:

                      	 
      	 
      

              

            

          

        

      

      
 

    

    6Unassociated Document

    Agreement
on Line of Credit

    

    No. 2008
Zhen Zhong Yin Bu E Xie Zi No. 050203

    

    Party A:
Shenzhen Highpower Technology Co., Ltd.

    Business
License No.:

    Legal
representative/principal: Pan Dangyu

    Domicile:
A2 Block, Luoshan Industrial Park, Pinghu Town, Luogang District,
Shenzhen

    Postal
Code: 518111

    Opening
financial institution & account: Bank of China, Pinghu
Subbranch,

    
      
        
          	Tel.:
89686236	
                  Fax:
89686298

                

        

      

       

      Party B:
Bank of China Limited, Shenzhen Buji Subbranch

    

    Legal
representative/Principal: Jiang Guoliang

    Domicile:
No. 108, Buji Road, Buji Town, Longgang District, Shenzhen

    Postal
Code: 518112

    
      	Tel.:
28274825	
              Fax:
28270847

            

    

           

    Party A
and Party B, in light of developing friendly and mutual benefit cooperation
relationship, reached the following agreement through negotiation pursuant to
principles of voluntariness, equality, mutual benefit and good
faith.

    

    Article
1: Scope of business

    

    Party B
will provide Party A the line of credit as agreed in the Agreement. Party A may,
subject to the preconditions as agreed herein and in relevant single agreement,
apply to Party B for revolving use, adjustment or one-time use of the line of
credit for the purpose of RMB short-term loan, foreign currency short-term loan,
trade financing, Letter of Guarantee, funding business and other credit business
(collectively referred to as “single loan business”).

    

    Trade
financing, as mentioned herein, includes opening international L/C, opening
domestic L/C, import bill advance, lading guarantee, packing credit, export bill
advance, discounting acceptance draft under time L/C, buyer bill advance for
domestic L/C, seller bill advance for domestic L/C, negotiation of domestic L/C
and other international and domestic trade financing businesses.

    

    Article
2: Types and Sum of Line of Credit

    

    Party B
agrees to provide the following line of credit to Party A:

    

    Currency:
RMB

    

    Sum: (in
words) thirty-six million three hundred and sixty thousand
Yuan (in
figures) RMB36,360,000.000

    

    The
detailed types and sum are as follows:

    

    
      1.  Line of
trade financing: RMB36,360,000.000 (in words: thirty-six million three hundred
and sixty thousand Yuan), which includes:

    

    

    (1)
Factoring line of credit: RMB1,360,000.00 (in words: one million, three hundred
and sixty thousand Yuan)

    

    (2) Line
of credit for opening domestic L/C (incl. buyer bill advance): RMB35,000,000.00
(in words: thirty-five million Yuan)

    

    Article
3: Use of the line of credit

    

    1.  Within the use period of
the line of credit as agreed in the agreement, Party A may, without exceeding
the scope of line regarding respective single loan business as agreed herein,
use the respective line of credit by the following (1)
manner:

    

    (1)
Revolving use: the detailed types of line of credit are factoring line of credit and
line of credit for opening domestic L/C (incl. buyer bill
advance).

    

    (2)
One-time use: the detailed types of line of credit are:        /                     .

    

    
      
         

      

      
         

        
          

        

      

      
         

      

       

    

    In case
Party A intends to adjust the use of line of loan of credit as agreed in Article
1, it shall apply to Party B in written form, subsequent to which Party B shall
determine whether or not grant and the details of the adjustment and inform
Party A in written form accordingly.

    

    2.  As of the effective date
of the Agreement, the balance of credit based on Agreement on Line of Credit or
similar agreement and single agreement thereof previously effective shall be
deemed the credit generated hereunder.

    

    In which,
the balance of credit in the line of credit shall be deemed the line of credit
hereunder.

    

    3.  Unless otherwise agreed,
the following businesses shall not be incorporated into the line of
credit:

    

    (1)  Export bill advance where
the L/C is consistent with documents;

    

    (2)  Bill advance or financing
based on the export L/C acceptable by Party B and accepted/ honored/ confirmed
for payment/ confirmed by the opening bank or confirming house, or based on the
bill of exchange or sum under domestic L/C;

    

    (3)  Where Party A would
provide deposit, national debt, or deposit receipt issued by Party B, or the
acceptance bill, letter of guarantee and standing L/C acceptable to Party B, the
sum of credit corresponding to the said guarantee will not be incorporated into
the line of credit;

    

    (4)

    (...) Other
businesses not incorporated into the line of credit otherwise confirmed by both
parties in written form.

    

    Though
the said items will not be incorporated into the line of credit, the business
agreements thereof shall still constitute the single agreement hereunder and the
integral part hereof and shall be bound by the Agreement hereof, unless
otherwise agreed in the said business agreements.

    

    Article
4: Agreements Executed in Single Loan Business

    

    Party A
shall, in case of applying to Party B for the single loan business hereunder,
submit respective application and/or execute respective contract/agreement
(collectively referred to as “single agreement”) with Party B.

    

    Article
5: Use period of the line of credit

    

    The use
period of the line of credit as stated in Article 2 hereof shall be from the
effective date of the Agreement to 20 November 2009.

    

    At the
expiration of the aforesaid use period, where Party B provides the line of
credit to Party A through negotiation, both parties may execute supplemental
agreement in written form, define clearly the new line of credit and use period
etc. The said supplemental agreement shall constitute integral part of the
Agreement hereof, and any items uncovered in supplemental agreement shall be
subject to provisions herein. The supplemental agreement shall be of the equal
force and effect as of the Agreement hereof.

    

    Expiration
of the use period as aforementioned shall not influence the force and effect of
the Agreement and shall not constitute the cause of terminating the Agreement.
Single loan business executed between Party A and Party B in light of the
Agreement will be performed as per the agreements in the Agreement and in
relevant single agreement. Any rights and obligations already generated shall be
performed completely.

    

    Article
6: Preconditions for single loan business

    

    Party A
shall comply with the following conditions regarding single loan business as
required by Party B:

    

    1.  Reserve for Party B
relevant Company file, document, seal, namelist of relevant staff, specimen
signature relevant to the Agreement and single agreement, and fill in relevant
certificates;

    

    2.  Open the account required
by single loan business;

    

    3.  The guarantee agreed in
the Agreement and single agreement has been effectively
established;

    

    4.  Other preconditions
required of the single business agreed in single business
agreement;

    

    5.   Other conditions to be
met by Party A deemed necessary by Party B.

    

    
      
         

      

      
        - 2
-

        
          

        

      

      
         

      

       

    

    Article
7: Guarantee

    

    With
respect to the liabilities of Party A to Party B arising from the Agreement and
any single agreements, both parties agree to guarantee the liabilities by the
following methods:

    

    (1) Springpower Technology
(Shenzhen) Co., Ltd will, subject to 2008 Zhen Zhong Yin Bu Bao Xie Zi No.
050203 Contract on Maximum Guarantee, provide the maximum guarantee and
sign corresponding Contract on Maximum Guarantee;

    

    (2) Pan Dangyu will, subject to
2008 Zhen Zhong Yin Bu Bao Xie Zi No. 050203A Contract on Maximum
Guarantee, provide the maximum guarantee and sign corresponding Contract
on Maximum Guarantee;

    

    (3) Li Wenliang will, subject to
2008 Zhen Zhong Yin Bu Bao Xie Zi No. 050203B Contract on Maximum
Guarantee, provide the maximum guarantee and sign corresponding Contract
on Maximum Guarantee;

    

    (4) Ma Wenwei will, subject to
2008 Zhen Zhong Yin Bu Bao Xie Zi No. 050203C Contract on Maximum
Guarantee, provide the maximum guarantee and sign corresponding Contract
on Maximum Guarantee;

    

    Maximum
pledge:

    

    (1)
/   will provide the maximum pledge and sign corresponding
Contract on Maximum Pledge.

    

    (2)
/   will provide the maximum pledge and sign corresponding
Contract on Maximum Pledge.

    

    The
guarantee contract shall be signed corresponding to the detailed loan business
agreement in case single loan business is to be provided.

    

    In case
of any events occurred to Party A or the guarantor which is deemed to be
influencing the performance capacity of Party A or the guarantor, or in case the
guarantee contract turns to invalid, is cancelled or rescinded, or in case Party
A or the guarantor seriously deteriorates in the financial position or is
involved in significant litigation or arbitration cases or any other conditions
which may influence its performance capacity hereunder, or in case the guarantor
breaches the guarantee contract or any other contract executed between Party B,
or in case the collateral is depreciated, damaged, lost or sealed which weakens
or eliminates the guarantee value, Party B shall have the right to require Party
A and Party A shall be obligated to provide new guarantee, to change guarantor
etc to guarantee the liabilities hereunder.

    

    Article
8: Representations and commitments

    

    Party A
represents as follows:

    

    1.  Party A is lawfully
registered and existed and of the full capacity for private rights and the full
capacity for civil acts as needed for the execution and performance of the
Agreement;

    

    2.  Executing and performing
the Agreement and single agreements shall be the declaration of Party A's true
intention with legal and valid authorization in accordance with the articles of
association or other internal management document. Execution and performance of
the Agreement and single agreements will not breach any agreement, contract or
other legal documents binding Party A. Party A has acquired or will acquire all
relevant approvals, permissions, filings or registrations needed by the
execution and performance of the Agreement;

    

    3.  All documents, financial
statements, certificates and other materials provided by Party A hereunder and
under any single agreement shall be true, complete, accurate and
valid;

    

    4.  The background of the
transaction hereunder shall be true and legal, which will not be used for
illegal purposes like money laundering etc;

    

    5.  Party A did not conceal
from Party B any event which may influence the financial position and
performance capacity of itself and the guarantor.

    

    Party A
makes the commitment as follows:

    

    1.  Party A will submit the
financial statements (including but not limited to annual statements, quarterly
statements and monthly statements) on a regular basis or in a timely manner as
required;

    

    
      
         

      

      
        - 3
-

        
          

        

      

      
         

      

       

    

    2.  Party A will accept and
cooperate with Party A’s inspection and monitor over the use condition of the
line of credit and relevant production and operation, financial
activities;

    

    3.  In case Party A executes
with the guarantor hereunder any counter-guarantee contract or similar contract,
it shall not impair any rights of Party B hereunder;

    

    4.  In case of any conditions
which may influence the financial position and performance capacity of Party A
or the guarantor hereunder, including but not limited to the split-up, merging,
pooling, joint venture with foreign investors, cooperation, contract operation,
reconstruction, transformation, planning for listing etc of its business manner
in any form, reduction of registered capital, significant asset or equity
transfer, bearing of significant indebtedness, setup of new significant
liability on the collateral, seal-up of the collateral, wind-up, revocation or
(being applied) application for bankruptcy etc, or engaging in any significant
litigation or arbitration cases, Party A shall timely inform Party
B;

    

    5.  Party A agrees to follow
Party B’s relevant regulations and business practices regarding any items not
covered in the Agreement and in any single agreement.

    

    Article
9: Internal related transaction and disclosure thereof in Party A’s
Group

    

    Both
parties agreed to follow the item 1 as mentioned
hereunder:

    

    1.  Party A did not fall into
the customer group as determined in Guidelines for the Risk Management by
Commercial Banks for Granting Credit to Customer Groups
(“Guidelines”);

    

    2.  Party A falls into the
category of customer group as defined by Party B in compliance with Guidelines.
Party A shall, subject to provisions of Article 17 of Guidelines, timely report
to Party B the conditions of any related transaction over 10% of Party A’s net
assets, including the related relation of parties concerned, transaction items,
transaction nature, sum or respective ratio, pricing policies (incl. transaction
without any sum or with only symbolic sum).

    

    Article
10: Defaults and treatment

    

    Any of
the following conditions shall constitute or be deemed as the default of Party A
hereunder or under any single agreement:

    

    1.  Party A fails to perform
the payment and settlement obligations to Party B as agreed in the Agreement and
single agreement;

    

    2.  Party A fails to use the
funds acquired for agreed purposes as stated in the Agreement and single
agreement;

    

    3.  The representations made
by Party A in the Agreement and single agreement were untrue or breached the
commitment of Party B in the Agreement and single agreement.

    

    4.  In case of the condition
provided in Article 8, item 2 (4) which is deemed by Party B as influencing
Party A’s financial position and performance capacity, or influencing the
guarantor’s financial position and performance capacity, while Party A fails to
provide new guarantee and replace guarantor as agreed in the
Agreement.

    

    5.  Party A terminates the
business or is engaged in any wind-up, cancellation or bankruptcy
issues.

    

    6.  Party A breaches any
other agreements regarding involving party's obligations in the Contract or in
single agreement.

    

    7.  Party A was engaged in
any default issues under any other contract with Party B or other organizations
under Bank of China Limited;

    

    8.  The guarantor breaches
the agreement in guarantee contract, or is engaged in any default issues under
any other contract with Party B or other organizations under Bank of China
Limited.

    

    Party B
shall, according to the actual situation, have the right to take the following
measures jointly or respectively regarding the aforesaid default
issues:

    

    1.  Require Party A and the
guarantor to correct the default action within required duration;

    

    2.  Reduce, suspend or
terminate in whole or in part the line of credit to Party B;

    

    
      
         

      

      
        - 4
-

        
          

        

      

      
         

      

       

    

    3.  Suspend or terminate in
whole or in part any business application of Party A under the Agreement, single
agreement or any other agreement between Party A and Party B; suspend or
terminate in whole or in part the issuance and handling of any loan not issued,
any trading financing business and letter of guarantee business not
handled;

    

    4.  Declare that the loan,
trade financing sum, principal and interest of advanced sum for letter of
guarantee not repaid and other payables under the Agreement, single agreement or
any other agreement between Party A and Party B shall be in whole or in part be
mature immediately;

    

    5.  Terminate or cancel the
Agreement, terminate or cancel single agreements and other agreements between
Party A and Party B in whole or in part;

    

    6.  Require Party A to
indemnify the losses caused to Party B thereby;

    

    7.  With prior or after
notice, deduct the sum in the account opened in Party B to discharge all or part
liabilities of Party B attributable to Party A. Any premature sum in the account
shall be deemed mature in advance. Where the currency of the account is
different from the pricing currency of Party B’s business, the settlement
exchange rate applicable to Party B at the time of deduction shall be followed
for the translation;

    

    8.  Exercise the security
interest;

    

    9.  Require the guarantor to
undertake the guarantee responsibility;

    

    10.  Party A promises that,
within the effective period of the Agreement, the total line of credit (which
may be extended to total amount of exposed credit) in all banks shall not exceed
RMB140 million, or else Party B shall have the right to suspend the
credit;

    

    11.  Any other measures deemed
necessary by Party B.

    

    Article
11: Rights reservation

    

    Any
party’s failure in performing the rights under the Agreement, single agreement
in whole or in part or in requiring the other party to perform and undertake
partial or whole liabilities and obligations shall not constitute the waiver of
the rights or release of the liabilities or obligations.

    

    Any
party’s allowance or extension to the other party or delay in performing the
rights under the Agreement or single agreement shall not affect any of its
rights under the Agreement, single agreement, laws or regulations and shall not
be deemed as the waiver of the rights.

    

    Article
12: Modification, alteration, termination and partial invalidity

    

    The
Agreement may be subject to modification or alteration with both parties’
negotiation and consensus, and any modification or alteration made thereby shall
constitute integral part of the Agreement.

    

    Unless
otherwise provided by laws or regulations or otherwise agreed by both parties
concerned, the Agreement shall not be terminated prior to the complete
performance of the rights and obligations hereunder and under single
agreement.

    

    Unless
otherwise provided by laws or regulations or otherwise agreed by both parties
concerned, the invalidity of any provisions herein shall not influence the
validity of any other provisions herein.

    

    Article
13: Applicable laws and dispute settlement

    

    Unless
otherwise agreed by parties concerned, the Agreement and single agreement shall
be governed by laws of the People’s Republic of China.

    

    Unless
otherwise agreed by parties concerned, upon the coming into force of the
Agreement and single agreement, any and all disputes arising from or in
connection with the execution and performance of the Agreement and single
agreement shall be subject to negotiation between both parties, failing which
any party hereto may solve the dispute under question by the 2 manner mentioned
below:

    

    1.  Submit to     /       
arbitration committee for arbitration.

    

    
      
         

      

      
        - 5
-

        
          

        

      

      
         

      

       

    

    2.  Appeal to the people's
court in the place where Party B resides or where any other organizations under
Bank of China Limited performing rights and undertaking obligations under the
Agreement or single agreement reside.

    

    3.  Appeal to the people’s
court with jurisdiction.

    

    During
the dispute settlement period, any other articles not affected by the dispute
shall be performed as well.

    

    Article
14: Expense

    

    Unless
otherwise provided for by law or otherwise agreed by both parties, the expenses
(incl. attorney fee) for concluding, performing and dispute settling of the
Agreement and single agreement shall be borne by Party A.

    

    Article
15: Attachments

    

    The
following attachments and any other attachments and single agreements jointly
confirmed by both parties shall constitute integral part of the Agreement and be
of the same force and effect with the Agreement.

    

    Attachment
7: Opening of Domestic L/C.

    Attachment
9: Buyer Bill Advance of Domestic L/C.

    Attachment
12:       /           
..

    

    Article
16: Other provisions

    

    1.  Party A, without the
consent of Party B in written, shall not assign any rights and obligations
hereunder or under any single agreement to any third party.

    

    2.  In case Party B shall, as
required by business, entrust other organizations under Bank of China Limited to
exercise the rights and undertake obligations under the Agreement and single
agreement, Party A shall agree with the arrangement. Other organizations under
Bank of China Limited as authorized by Party B shall have the right to exercise
all rights under the Agreement and single agreement and shall have the right to
appeal to the people’s court or to arbitration institution for any dispute under
the Agreement or single agreement.

    

    3.  The Agreement shall be
binding upon both parties and successors and assignees legally generated of both
parties without affecting any other provisions herein and in single
agreement.

    

    4.  Unless otherwise agreed,
domicile designated by both parties herein shall be the address of both parties
for communication. Both parties commit to inform the other party in written form
in case of changing the said domicile.

    

    5.  Headings and business
names as mentioned herein shall be used only for the convenience of reference,
which shall not be regarded as the interpretation of provisions contained herein
or rights and obligations of parties hereto.

    

    6.  Party A commits to take
Party B as the secondary mortgagee upon acquiring the property right certificate
of Lilang Production Base.

    

    7.  Party A commits that it
will take the settlement account opened in Party B as the main account of
recovering sales proceeds, and the relevant deposit and settlement sum therein
shall not be less than the credit tranche granted to Party A by Party
B.

    

    8.  Party A commits that it
shall inform Party B in written form and shall obtain the consent of Party B
prior to applying for any credit from other commercial banks, otherwise Party B
shall have the right to terminate the credit.

    

    Article
17: Effectiveness

    

    The
Agreement shall come into force with the signature of both parties’ legal
representatives, principals or authorized signatories and with both parties’
official seals.

    

    The
Agreement shall be made in sextuplicate, out of which Party A shall hold one,
Party B shall hold two , the Guarantor shall hold two and the pledge
registration authority shall hold one. The six originals shall be of the same
force.

    

    Party A:
Shenzhen Highpower Technology Co., Ltd.

    Signatory:
/s/ Pan Dang Yu          (Official
Seal)

    28
November 2008

    

    
      
         

      

      
        - 6
-

        
          

        

      

      
         

      

    

    

    Party B:
Bank of China Limited, Shenzhen Buji Subbranch

    Signatory:
/s/ jiang Guo Liang          (Official
Seal)

    28
November 2008

     

    
      
         

      

      
        - 7
-

        
          

        

      

      
         

      

       

    

    Attachment
7: For Opening of Domestic L/C

    

    1.  Where there is any
difference between the Attachment and the Agreement, the Attachment shall be
applied.

    

    2.  Preconditions agreed in
the Agreement shall be met in case Party A applies to Party B for opening
domestic L/C.

    

    3.      Party
A undertakes the following responsibilities irrevocably:

    

    (1)  Party A is willing to
comply with Rules for the Settlement of Domestic Letter of Credit and relevant
national regulations, agrees that Party B will go through all issues under the
L/C based on the Rules for the Settlement of Domestic Letter of Credit and
relevant national regulations and agrees to bear all responsibilities thus
generated.

    

    (2)      Party
A guarantees that all materials provided to Party B for opening the L/C shall be
true, complete and valid, and that the L/C to be opened shall be based upon
actual transaction. Party A agrees to bear all responsibilities for the
provision of any false and/or incomplete and/or invalid materials to Party B
and/or for the lack of actual transaction background for the L/C to be
opened.

    

    (3)      Prior
to paying the sum of L/C to Party B by Party A, Party A commits that the title
to the goods shall be attributable to Party B in case the goods under L/C is
subject to actual control of Party A.

    

    (4)      Party
A shall bear all effects arising from the unclear or ambiguous application
letter.

    

    4.     Opening
and Modification of domestic L/C

    

    (1) In
case Party B accepts Party A’s application for opening domestic L/C, it shall
issue domestic L/C according to Application Letter for Opening Domestic L/C
submitted by Party A, while the detailed content shall be subject to the
domestic L/C issued by Party B.

    

    (2)
Party’s requirement of submitting documents or files such as trade contracts etc
relating to the opening of domestic L/C shall not be interpreted as Party’s
obligation to issue the domestic L/C subject to the said documents or
files.

    

    (3) In
case Party A intends to modify domestic L/C, it shall submit Application Letter
for the Modification of Domestic L/C to Party B. Party A agrees that Party B
will go through the modification issues of domestic L/C in compliance with Rules
for the Settlement of Domestic Letter of Credit and agrees to undertake the
liabilities and responsibilities thus generated. The Application Letter for the
Modification of Domestic L/C shall, upon issuance, be binding upon Party
A.

    

    (4) Party
B shall have the independent discretion regarding the modification of domestic
L/C, it shall have the right to reject the modification application letter of
Party A and the right to propose the modification content. In case the
modification of domestic L/C involves sum and period etc. which is deemed by
Party B to increase the obligation of the guarantor, Party B shall be entitled
to require Party A to increase deposit, and/or require Party A to obtain the
signature and agreement of the guarantee in the Application Letter for the
Modification of Domestic L/C, or else Party B shall have the right to reject the
modification application of Party A.

    

    (5)
Modification of domestic L/C shall not modify other rights and obligations of
Party A in the Agreement and the Attachment.

    

    (6)
Content relating to domestic L/C in the Application Letter for the Opening of
Domestic Letter of Credit and the Application Letter for the Modification of
Domestic L/C shall be filled in Chinese, and all responsibilities generated due
to the ambiguity caused by the unclear writing or ambiguous wording in
application letter shall be borne by Party A.

    

    (7) Party
A shall pay all expenses (incl. relevant banking fees refused by the beneficiary
of the L/C) arising from the opening and modification of domestic L/C in a
timely manner, the charging method shall be subject to Party B’
rules.

    

    5.  Payment under domestic
L/C

    

    (1)
Within the valid period of domestic L/C, Party A shall, upon receiving Party A’s
notice about documents received, inform Party B within agreed period in the
notice the method of processing documents; or else it shall deemed that Party A
holds no rejection opinions about the documents and agrees Party B to pay/commit
for payment; in case Party A inform Party B within agreed period in the notice
to receive documents, and Party B agrees with Party A’s document handling
opinions, Party B may pay the sum/commit to pay the sum concerned. Party A shall
deposit payable sum as agreed in Application Letter for Opening Domestic Letter
of Credit.

    In case
Party A informs Party B to receive documents yet Party B disagrees with Party
A’s document handling opinions, Party B shall have the right to determine at its
own discretion whether or not reject the payment solely in light of documents;
where Party A agrees to provide sufficient deposit or other payment guarantee to
Party B, Party B shall have the right to determine whether to release the right
of reject or not according to actual situations or whether to reserve the right
of rejection at its own discretion.

    

    
      
         

      

      
        - 8
-

        
          

        

      

      
         

      

       

    

    (2) In
case Party A deems any discrepancy existed in documents and request to reject
the payment/ commitment of payment within agreed period in notice, it shall list
discrepancies all at once and shall submit the Cause for Rejection of Demand in
duplicate stamped with Party A’s reserved seal. Party B shall have the right to
deem discrepancies listed in the Cause for Rejection of Demand as all
discrepancies proposed by Party A regarding documents. Party B may reject the
payment in case it agrees with Party A for discrepancies proposed, while Party B
shall have the right to determine the payment/commitment of payment in case it
deems, according to review subject to practices, the discrepancies listed by
Party A can not hold water, or the discrepancies listed are immaterial
discrepancies which can not lead to reject of payment, subsequent to which Party
B may pay the sum by the payable sum deposited by Party A, all obligations and
responsibilities arisen thereby shall be undertaken by Party A.

    

    (3) In
case the payable sum deposited by Party A hereunder is sufficient and thereby
Party B advances for Party A the sum payable, it shall constitute, upon the
payment of the sum, Party A’s liability to Party B under the Agreement and the
Attachment.

    

    6.  Supplemental
agreement

    

    In
addition to the content agreed in the Agreement, Party A hereby makes the
following supplemental commitment to Party B regarding the business under the
Attachment:

    

    (1) Upon
the issuance of domestic letter of credit, Party A shall immediately inform
Party B in written form in case of any modification made to trade contracts
which relates to the domestic letter of credit;

    (2) With
respect to delayed payment confirmed by Party B, Party A shall not request Party
B to suspend the payment for any cause and shall waive the right, as required by
laws, regulations and rules, to apply to the people’s court for freezing the sum
under domestic letter of credit or the right to appeal to the people’s court for
suspending the sum under domestic letter of credit;

    (3) The
risk of missing, delaying, omitting or damaging correspondence or documents
under domestic letter of credit in mail delivery, telecommunication delivery or
other delivery and the risk of using third party service by Party B shall be
borne by Party A.

    

    7.  Any other issues under
the Attachment shall be subject to the agreement in the Application Letter for
Opening Domestic Letter of Credit and Application Letter for Modification of
Domestic Letter of Credit.

     

    
      
         

      

      
        - 9
-

        
          

        

      

      
         

      

       

    

    Attachment
9: Buyer Bill Advance of Domestic L/C

    

    1. Where
there is any difference between the Attachment and the Agreement, the Attachment
shall be applied.

    

    2. Buyer
bill advance refers to that Party B will, upon receiving documents from
negotiation bank or remitting bank, will grant Party A short-term finance with
Party A’s requirement to pay the sum subject to the documents.

    

    3.
Preconditions of bill advance:

    

    (1) The
preconditions agreed in the Agreement shall be met for Party A’s application of
buyer bill advance with Party B.

    

    (2) The
letter of credit shall indicate the Rules for Settlement of Domestic Letter of
Credit issued by the People’s Republic of China or the updated version thereof
with the form and content reviewed and approved by Party B.

    

    4. Party
B’s application for bill advance

    

    Party A
shall submit the Application for Bill Advance under Domestic Letter of Credit
for each application of bill advance business (“transaction”).

    

    Every
transaction hereunder shall be interdependent, which shall be in compliance with
the Attachment, relevant Letter of Credit and Party A’s
application.

    

    5.
Payment

    

    Upon
meeting preconditions for bill advance, Party B will accept Party A’s
application for buyer bill advance, while Party B shall, subject to the sum
agreed in Application for Bill Advance under Domestic Letter of Credit
acceptable by it, pay the sum under L/C on behalf of Party A.

    

    Relevant
issues including period of bill advance etc shall be subject to the Application
for Bill Advance under Domestic Letter of Credit aforementioned.

    

    6. Party
A acknowledges hereby that:

    

    (1) Party
B shall be entitled to dispose of the complete set of documents/goods under
buyer bill advance or any other security interest or interest in property
attributable to it by any applicable laws and regulations. In case the right of
disposing of the complete set of documents/goods under buyer bill advance shall
be attributing to Party A in accordance with applicable laws and regulations or
the judgment of any people's court or arbitration institution with jurisdiction,
Party A agrees that within the largest extent as permitted by applicable laws
and regulations it will transfer the right to Party B and acknowledge any
actions and omission of Party A in disposing of the documents/goods. In case the
right of disposing of the complete set of documents/goods under buyer bill
advance shall be attributing to Party B in accordance with applicable laws and
regulations or the judgment of any people's court or arbitration institution
with jurisdiction, Party B will reserve the right until the complete discharge
by Party A of the bill advance financing surrendered by Party B.

    

    (2) Party
A, as Party B’s assignee, applies to Party B for holding documents/goods and
repay the bill advance financing by Party B through sales proceeds, which
include but not limited to, on behalf of Party B, keeping relevant documents,
going through the warehousing, storage, transport, processing, sales and
insurance etc of the goods under the documents, keep the sales proceeds or
deposit the sales proceeds in the account designated by Party B. Party A shall
indicate the status hereunder when selling goods to third party.

    

    (3) All
expenses (including but not limited to insurance, warehousing, storage, port fee
etc) arising from goods under Party A’s custody shall be borne by Party A; Party
A commits to insure the goods against all possible risks a the market value of
the goods, list Party B as the insured in the original insurance certificate and
present original insurance certificate to Party B for safekeeping. Party B shall
have the right to claim against insurance company in case of losses to insured
goods.

    

    (4)
Without Party B’s permission, Party A shall not dispose of the goods through
delayed payment, payment in non-monetary manner or at the price lower than
market price. Party A shall not pledge or mortgage the goods to any party or set
the goods bound by any lien. Upon Party B’s demand, Party A shall submit to
Party B the details of the account of the goods, any sales revenue or any sales
contract relating to the goods; Party B shall be entitled to inspect the actual
condition of the goods in warehouse or occupy the goods again.

    

    
      
         

      

      
        - 10
-

        
          

        

      

      
         

      

       

    

    7.
Supplemental commitment

    

    In
addition to the content agreed in the Agreement, Party A shall make the
following supplemental commitment to Party B regarding the business under the
Attachment:

    

    Party A
commits that the sales proceeds under the domestic letter of credit shall be
used for the repayment of the financing for Party A surrendered by Party
A.

    

    8. Any
other detailed issues relating to the business under the Attachment shall be
subject to the agreement contained in the Application for the Buyer Bill Advance
under Domestic L/C.

     

    
      
         

      

      
        - 11
-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00157-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00157-of-00352.parquet"}]]