Document:

REF: ZH78191309001

 

Comprehensive Credit Line Contract

 

Contents

 

	Chapter one	Definitions and interpretation
	Chapter two	The maximum credit limits and Specific line of credit
	Chapter three	The period of credit
	Chapter four	Usage of the Maximum Credit Limits and Specific Line of Credit
	Chapter five	The Fees
	Chapter six	Adjustment of the Maximum Credit Limits and Specific Line of Credit
	Chapter seven	Guarantee
	Chapter eight	Commitment of Party B
	Chapter nine	Commitment of Party A
	Chapter ten	Validation of Agreement
	Chapter eleven	Disputes and Resolution
	Chapter twelve	Integrity of the Contract
	Chapter thirteen	Supplementary Provisions

 

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Comprehensive Credit Line Contract

 

Party A: SPRINGPOWER TECHNOLOGY (SHENZHEN)
CO., LTD.

Add:      Bao'an
District, Shenzhen Guanlan Dan Lake communit Superparamagnetic Renmin Road Industrial Area, Building A

Legal Representative: Dangyu Pan

Tel: 0755-89686236

Fax: 0755-89686819

 

Party B : China Everbright Bank
Shenzhen Longhua Sub-branch

Add : First floor, No. 3, 4
building, yinquan gardenm, people south road, Longhua, Baoan

Tel : 0755-81483044

Fax : 0755-28138641 

 

Pursuant to the Commercial Banking
of the People’s Republic of China, Interim Measures for the management of commercial banks authorize and credit, Guidelines
on the Risk Management of Credits Granted by Commercial Banks to Group clients and other relevant laws and regulations
of the State, this Contract is entered into by the Debtor (hereinafter referred to as Party A) and the Creditor (hereinafter
referred to as Party B) who shall, in line with the principles of equality, honesty and credibility and on a voluntary basis, reach
unanimity through consultations and abide by the terms and conditions of this Contract.

 

Part 1    Definitions
and interpretation

 

1. In this Contract, the following terms
shall have the following meanings unless otherwise expressly stipulated in the contexts:

 

Comprehensive credit line: it means that
Party B conditionally agrees to provide one type or several types of credit lines to Party A.

 

Specific business: it refers to the specific
business operations as determined in accordance with the comprehensive credit extension of Party B to Party A. Party B will offer
Party A the credit services including the loans, bank acceptances, trade finance and so on.

 

The maximum amount of line of credit: it
refers to the sum of the maximum balance as determined in accordance with the comprehensive credit line of Party B to Party A for
various specific businesses, which Party A may submit an application to Party B for use within the valid period for funding from
the credit lines as stipulated in this agreement.

 

Specific line of credit: it refers to the
debt principal for a specific business that Party A may use within the valid period for comprehensive credit line as stipulated
in this agreement, or the maximum balance of financial loans available to Party A as acknowledged by Party B and therefore undertaken
by Party B, which is determined within the maximum amount of line of credit.

 

Used line of credit: it refers to the amount
sum debt principal, within the specific line of credit, for a specific business that occurs to Party A but is not settled during
the valid period for comprehensive credit line as stipulated in this agreement.

 

Specific business contract: it refers to
the corresponding contract or agreement signed by and between Party A and Party B for use of a specific line of credit.

 

Part 2     The Maximum
Credit limits and Specific Line of Credit

 

2. The maximum credit limits under this
contract (currency exchange rates convert according to the actual foreign exchange rate): RMB7,000,000.00

 

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Both parties agree that this Agreement
under the maximum credit limits including the outstanding business of original Comprehensive Credit Agreement (Agreement Number:
/)

 

3. According to the maximum credit limits,
the specific line of credit as:

Bank acceptances: the specific line of
credit RMB7,000,000.00

 

Part 3     Period
for Credit Line

 

4. The valid period for maximum amount
of credit line is 1 year: from September 4, 2013 to September 3, 2014.

 

The period of the specific business is
determined by the specific contract, but the start date of the specific business must not exceed the effective use of the deadline
of the maximum credit limits.

 

Part 4     Use of
Maximum amount of line of Credit and Specific Line of Credit

 

5. Within the valid period of this agreement
and the maximum amount of line of credit, Party A may apply to use the specific line of credit in one application or several applications.
Reviewing the credit status of Party A, Party B will sign specific credit business contracts with Party A in accordance with the
credit policy of Party B and the stipulations of this agreement.

 

6. Requirement on revolving: During the
period of the maximum credit limits, Party A can revolve the line of credit. If the debt of one specific business is paid
off, the same kind of new specific business can be used except that Party B prohibited revolving.

 

7. Party A and Party B shall sign a specific
contract with regard to a specific business, and if there is a discrepancy between the specific business contract and this agreement,
the specific business contract shall supersede this agreement. For example, Party A has been identified as a customer of the
Group under the "Guidelines for Risk Management of Credit business of Commercial Bank Group's customers" and other relevant
laws and regulations.

 

Part 5     The Fees

 

8. According to each specific business
contract, Party A and Party B should conform to the interest rate, exchange rate, fee rate and other fees charged by Party B in
the specific contract.

 

Part 6     Adjustment
to Maximum Amount of Line of Credit and Specific Line of Credit

 

9. When one of the following conditions
occurs, Party B shall have the right to adjust the maximum amount of line of credit, specific line of credit and the period for
credit extension, and/or terminate this comprehensive credit line agreement:

 

(1)    There is a significant
change of the monetary policy of the state;

(2)    A major financial risks
occurs or is likely to occur in the region that Party A is located;

(3)    There is a significant
change in the Party A’s market of business;

(4)    Party A is experiencing
or will encounter the major operational difficulties or risks;

(5)    There is significant
change in the Party A’s corporate structure, such as merger, acquisition and reorganization, separation, amalgamation
and termination, which thought by Party B may affect the safety of loan:

(6)    Party A refused
to accept the supervision and inspection about usage of funds and operating financial activities;

(7)    Without the consent
of the lender loans, Party A change the original purpose of loans, misappropriation of loans or engaged in illegal
or irregular transactions;

(8)    Providing false information
or withheld important operations of the financial facts

(9)    Party A transfers assets,
retrieve capital and deny indebtedness;

 

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(10)  Party A is considered as a Group
Account according to the "Commercial Bank Group guidelines for customer credit risk management business", or other relevant
laws and regulations. Through related party transactions, potential evasion of bank debt

(11)  Party A violates the contractual
commitments as stipulated in this Agreement;

(12)  the guarantor for this Agreement
is in critical shortage of working capital or encounters major operational difficulty, which negatively affects the capacity as
being a guarantor;

(13)  the object of pledge or the thing
pledged is damaged or lost, which jeopardizes the security and right of Party B;

(14)  any event that has taken place
or any circumstance that has emerged, upon the judgment of Party B, has resulted in or led to the decrease of repayment ability
of Party A or the harm to the rights and benefits of Party B.

(15)  Party A fails to perform any obligations
in specific business contract.

 

10. Party A has to submit a written request
for any adjustments the various specific lines of credit after this agreement is signed. Party B has to give written consent before
any adjustments are made. The written application of amendments from Party A and the written consent from Party B shall be considered
as the modification to Provision 3 of this agreement, and are treated in the same legality and enforceability of this agreement.

 

Part 7     Guarantee

 

11. To ensure that borrowing under this
agreement is repaid, the following guarantees shall be adopted for this credit line agreement:

 

The guarantors Dangyu Pan and SHENZHEN
HIGHPOWER TECHNOLOGY CO., LTD signed “Guaranty Contract of Maximum Amount”, which number is “GB78191309001-1,
GB78191309001-2” with Party B.

 

12. Although different forms of guarantees
for the credit line are stipulated in this chapter, when a specific business transaction is occurred and if Party B considers it
is necessary, Party B still has the right to request Party A to provide additional guarantee, and Party A may not refuse to provide
such guarantee under the excuse that guarantee is already stipulated in this chapter.

 

Part 8     Commitment
of Party B

 

13. When Party A submits an application
for use of a specific line of credit in accordance with the stipulation of this agreement, Party B shall process and approve the
application in a timely manner.

 

14. Except as otherwise provided in this
Agreement, Party B can not adjust the contract which may lead adverse effects to Party A.

 

Part 9     Commitment
of Party A

 

15. Party A should pay off the debt and
fees on time according to the specific business credit.

 

16. The use of fund within a specific line
of credit shall be in line with the requirements of the law and the stipulations of this agreement and the specific business contract,
and shall be subject to examination by Party B at any time.

 

17. During the period of the credit line,
Party A shall submit true financial statements, truthfully provide major domestic bank, bank account, deposit and loan balance
and other relevant information reflecting its status promptly upon Party B’s request.

 

18. If Party A is considered as a Group
Account according to the "Commercial Bank Group guidelines for customer credit risk management business", or other relevant
laws and regulations. During the credit period, Party A shall promptly report to Party B about more than 10% of net assets associated
with the transaction, including but not limited to:

 

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(1) the parties to the transaction of the
association;

(2) trading program and nature of the transaction;

(3) the amount of the transaction or the corresponding ratio;

(4) pricing policies (including no amount or only nominal amounts of transactions)

(5) requirements of laws, regulations or other circumstances required by Party B.

 

19. During the period of credit, Party
A should notice Party B in advance when providing guarantee for third party, which can not affect the ability to pay off debt.

 

20. During the period of credit, Party
A has the following obligation:

 

(1) If the legal representative or legal
residence, place of business, or the registered capital of a major investment in equity change, Party A shall notice to Party B
within 15 days from the date of change and provide the relevant information.

(2) In the credit period, Party A involves
in significant litigation, arbitration or other judicial proceedings, administrative punishment procedures, or a significant change
in operating conditions and financial condition, which may affect the realization of Party B’s debt, Party A shall notify
Party B immediately.

(3) During the credit period, any activities
of assets reorganization (such as mergers, acquisitions, discrete), or changes of business, or activities changes the organization,
operation mode, or dissolution, bankruptcy application, should notify Party B two months in advance, and should pay off all the
debts of Party A or perform the debt responsibilities.

 

21. The violation by Party A of any stipulation
in this agreement or in a specific business contract will constitute a breach of contract against this agreement, and Party B will
have the right to recover ahead of schedule any fund allocated under the maximum amount of line of credit, and will have the right
to terminate this agreement and the specific business contract.

 

Any damages to Party B caused by Party
A’s breach of contract, Party A should assume full obligations.

 

Part 10     Validation
of Agreement

 

22. The agreement goes into effect from
the date on which it is signed and marked with seal by the legal representatives of both Party A or Party B or the authorized agents
thereof.

 

Part 11     Dispute
and Settlement

 

23. If there is any dispute during the
enforcement of the agreement between Party A and Party B, the two parties shall first seek a resolution through friendly negotiations,
and if it is necessary to take legal proceeding, either party may institute a proceeding at the court where Party B is located.

 

Part 12     Entirety
of Agreement

 

24. Each specific business contract that
Party B signs with Party A in accordance with this agreement is a valid part of this agreement, and the entire agreement is thus
construed.

 

25. If Party A fails to fulfill any obligation
as stipulated in any specific business contract signed by and between Party A and Party B in accordance with this agreement, such
failure will constitutes a breach against the agreement, and Party B can therefore terminate this agreement and call back all the
outstanding credit and loans.

 

26. Agreed by Party B, Party A can authorize
all or part of the line of credit under this agreement to other units to use, and name of the unit is authorized to enter into
with the relevant specific business contract signed with Party B, the specific content shall prevail by "credit line to use
the power of attorney" issued by Party A and approved by Party B.

 

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27. In the "line of credit using the
power of attorney" or "buy-back guarantee amount to use the power of attorney", it is not necessary to clear the
specific business of the specific line of credit under Article 3.

 

28. Party A in the " power of attorney
for using line of credit " must clarify whether the authorized organization can be delegated or not.

 

29. Party A and Party B may sign additional
agreement in writing with regard to an issue unsettled in this agreement, which shall be regarded as an appendix to this agreement.
An appendix to this agreement is a valid part of this agreement and has the same legal force as this agreement.

 

Part 13     Supplementary
Provisions

 

30. This agreement is in triplicate, Party
A has one copy, Party B has two copies, which have the same legal effect.

 

31. This agreement is signed on September
4, 2013 in Shenzhen.

 

32. The two parties agreed to notarize
the contract and promise to give the contract enforceability. When the party fails to perform, do not fully comply with any
legal obligations, Party B has the right to direct the people's court having jurisdiction for enforcement. Party A makes no objection
to the enforcement application under the agreement.

(Not applicable)

 

33. If at any time, any provision of this
contract in any way becomes illegitimate, invalid or unenforceable, the legality, validity or enforceability of the other provisions
of this contract is not affected.

 

34. Under this agreement In the event of
bank acceptance bill business, "bank acceptance agreement" signed by the China Everbright Bank, Shenzhen branch, the
specific operations undertaken by the Branch Office, all the rights and obligations under "banker's acceptance agreement"
borne by the Longhua Sub-Branch.

 (Not applicable)

 

/s/ [COMPANY SEAL]

Party A (Stamp): SPRINGPOWER TECHNOLOGY
(SHENZHEN) CO., LTD.

Signature of legal representative or deputy:

 /s/ Dangyu Pan

 

/s/ [COMPANY SEAL]

Party B (Stamp): China Everbright Bank
Shenzhen Longhua Sub-branch

Signature of legal representative or deputy:

  /s/ Cheng
Chen

 

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REF:GB78191309001-2

 

Guaranty Contract of Maximum Amount

 

Natural person as a guarantor

 

CHINA EVERBRIGHT BANK

 

Content

 

	Chapter one	General principles
	Chapter two	Definitions
	Chapter three	The secured principal debt
	Chapter four	Ways of Guarantee
	Chapter five	Scope of Guarantee
	Chapter six	Period of Guarantee
	Chapter seven	Documents Submitted by the Guarantor
	Chapter eight	Representations and Warranties of guarantor
	Chapter nine	Undertakings made by the Guarantor
	Chapter ten	Nature and Effectiveness of Guarantee
	Chapter eleven	Breach of Contract
	Chapter twelve	others provisions
	Chapter thirteen	Applicable Laws and Disputes Resolution
	Chapter fourteen	Effectiveness, Modification and Rescission of the contract
	Chapter fifteen	Appendix
	Chapter sixteen	Supplementary

 

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Guarantor:          
     Dangyu Pan

ID number:

Address:                   Room
604, Floor 2, Building 34, Compound 463, Shougouling Road, Tianhe District, Guangzhou, China

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

Zip code:                  518111

TEL:                         89686236

FAX:                        89686819

 

Attorney: (Required to provide a power of
attorney signed by the guarantor)

ID number:

Address:

Living Address:

Zip code:

TEL:

FAX:

 

Creditor:                   China
Everbright Bank Shenzhen Longhua Sub-branch

Address:                   First
floor, No.3, 4 building, yinquan garden, people south road, Longhua, Baoan

Zip code:                  518000

Legal representative/Person in charge: Chen
Cheng

Attorney:

Managers:                Yang
Xiaolin

TEL:                         0755-81483044

FAX:                        0755-28138641

 

Chapter one     General
Principles

 

To ensure the performance
of the "Comprehensive Credit Agreement" (hereinafter referred to as “Comprehensive Credit Agreement”), which
contract number is “ZH78191309001” signed on September 4, 2013, entered into by SPRINGPOWER TECHNOLOGY (SHENZHEN) CO.,
LTD. (hereinafter referred to as "Debtor"), guarantor agrees to provide maximum joint responsibility guarantee, to ensure
debtor pay off the coming debt in the “comprehensive credit agreement”.

 

The creditor agrees to
accept the guarantee provided by the Guarantor after examination. This contract is made in accordance with relevant laws and regulations
on the basis of the principles of equality and mutual benefit for specifying the rights and obligations between the Guarantor and
the Creditor.

 

Chapter two     Definitions

 

Article 1       Unless
the context requires or the Contract requires, in this Contract:

 

Main contract: refers
to the "Comprehensive Credit Line Agreement" signed by the Creditor and the Debtor and the contract or agreement for
specific credit line business signed by the Creditor and the Debtor for each specific credit line business on the basis of the
Comprehensive Credit Line Agreement.

 

Specific credit line
business contract or agreement refers to the contract or agreement for single specific credit line business which is signed by
the Creditor and the Debtor when the Creditor provides credit granting in domestic and foreign currencies in the forms of loan,
trade financing, discount, acceptance, letters of credit, letter of guaranty, factoring, security, etc. on and off the balance
sheet (hereinafter referred to as the “Specific Credit Line Business”) to the Debtor.

 

Chapter three     The
Secured Principal Debt

 

Article 2       The
principal debt secured by the Guarantor shall be all the debts incurred under all the contracts or agreements for specific credit
line business signed by the Creditor and the Debtor on the basis of the Comprehensive Credit Line Agreement. The maximum principal
balance for the principal debt secured shall be the maximum line of credit as specified in the Comprehensive Credit Line Agreement,
namely, RMB 7 million Yuan.

 

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The debt of the main
contract shall be determined under any of the following circumstances:

(1)      the period
prescribed by the main contract for determining the debt expires;

(2)      the new
debt has no possibility to occur;

(3)      the main
contract is terminated by the Creditor and the Debtor, or this contract is terminated by the Creditor and the Guarantor;

(4)      the Debtor
and the Guarantor are declared bankrupt or are rescinded, withdrawn, written off or dismissed;

(5)      other circumstances
prescribed by the laws for determining the debt.

 

Chapter four     Ways
of Guarantee

 

Article 3       
The guarantee provided hereunder by the Guarantor shall be the joint liability guarantee.

 

Chapter five    
Scope of Guarantee

 

Article 4      
The secured scope hereunder shall include the debt principal, interests (including legal interests, contract interests and default
interests), compound interests, handling charges, breach penalty, liquidated damages, expenses for achieving debt(including but
not limited to litigation expenses, legal expenses, notary fees, execution expenses, etc.) and all the other expenses payable (hereinafter
collectively referred to as the "Secured Debts") which shall be reimbursed or paid to the Creditor by the Debtor according
to the main contract.

 

Article 5        Any
certificates used by the Creditor for stating any Secured Debts or any payables hereunder shall be the conclusive evidence for
proving the debtor-creditor relationship between the Debtor and the Creditor, and shall be binding on the Guarantor, unless there
is obvious error.

 

Chapter six      Period
of Guarantee

 

Article 6        The
guarantee period for each specific credit line business under the Comprehensive Credit Line Agreement shall be calculated independently,
it shall be two(2) years from the date of the expiration of the period for fulfilling debts by the Debtor, such period is prescribed
by the contract or agreement for specific credit line business. If the contract or agreement for specific credit line business
expires in advance due to legal provisions or the occurrence of pre-concerted events, then such guarantee period shall be two (2)
years from the date of early expiration.

 

Chapter seven      
Documents Submitted by the Guarantor

 

Article 7      
Guarantor shall ensure that the Creditor has received the following documents which were submitted by the guarantor before the
Debtor first used the credit provided under the main contract specific credit business:

 

1.       The
original contract signed by Guarantor or an agent effectively;

 

2.       Identity
documents of Guarantor;

 

3.       Financial
statements or other information which can prove the credit situation of the Guarantor;

 

4.       Guarantor
reasonably required to provide credit and other documents.

 

  For a copy
of the above documents, are subject to the Guarantor or the authorized signatory signature confirmation that the copy is true,
complete and valid documents.

 

Chapter 8     
Representations and Warranties of Guarantor

 

Article 8 Guarantor make
the following representations and warranties to the Creditor here:

 

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1. Guarantor is a natural person with full
civil capacity has complete qualifications and right to enter into and perform this contract, and can independently bear civil
liability.

 

2. Guarantor has carefully read and fully
understood the contract and this contract to accept the Lord contents guarantor execution and performance of this contract is voluntary,
under this contract in the full meaning of true representation.

 

3. Guarantor to the creditor to provide all
the documents are accurate, true, complete and effective, and to provide a copy of the form of documents are consistent with the
original.

 

4. Guarantor enters into or performs this
contract does not violate any other contract or agreement which guarantor involved in or applicable to the laws and regulations.
The guaranty in this contract will not have any limitation.

 

5. To ensure that the contract legality, validity
or enforceability of the Guarantor, there has been completed or will be completed all required registration, filing or notary procedures.

 

6. This contract is legally valid on the Guarantor
and constitutes a legally binding obligation

 

7. There does not currently exist or will
be anything involving Guarantor or surety Guarantor's financial position that will make Guarantor unable to meet its obligations
under this contract and adversely affect the ability of litigation, arbitration or administrative proceedings.

 

8. Guarantor did not incur or cause to exist
any event of default.

 

9. Guarantor did not incur or cause to exist
any defaults.

 

Article 9 The above representations
and warranties made by the Guarantor in the period of this contract shall remain correct, and the Guarantor will be ready by the
Creditor's request for further documents.

 

Chapter nine     
Undertakings made by the Guarantor

 

Article 10 Before the
debt that be secured is paid off, the Guarantor shall comply with the following provisions:

 

1 The Guarantor shall immediately notify the
creditor any of the following events:

 

(1) the occurrence of any event of default;

(2) any litigation, arbitration or administrative
proceedings relate to the guarantor or its major operating assets;

(3) situations that Guarantor will lose or
may lose the ability to perform the responsibilities, such as a significant reduction in Guarantor’s revenue, a loss of economic
sources, and etc.

(4) the Guarantor changes his/her residence
address or contacts.

 

2. In the valid period of the contract, as
long as the secured debt is not paid off, or otherwise has the written agreement of the Creditor, the Guarantor can not sell, transfer,
break up or deal any of its major assets in other method.

 

3. In the valid period of the contract,
before the secured debt is paid off, Guarantor will not have recovery or claim any right to Creditor for the amount Guarantor pays
for Debtor or any other Creditor’s right Debtor may have.

 

4. If Debtor does not pay any due secured
debt on time, the Guarantor should unconditionally pay the debt to the Creditor for Debtor via the method Creditor requires within
seven working days of Guarantor receiving the written payment notice from Creditor.

 

5. If the Guarantor does not pay any amount
in this contract according to Creditor’s requirements on time, the Creditor has the right to deduct the amount from any account
that the Guarantor opened at the Creditor or any branch in Creditor’s system without the consent of Guarantor.

 

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6. Once Creditor requires, the Guarantor
will pay or compensate the following fees and losses according to requirements immediately:

(1) all costs and fees for fulfilling the
rights of Creditor under this contract (including but not limited to attorneys’ fees, litigation fees, execution fees and
all other actual fees); and

(2) any other losses caused by Guarantor’s
violating the agreements in this contract to Creditor.

 

Chapter ten     
Nature and Effectiveness of Guarantee

 

Article 11 The guarantee
established by this Contract shall be independent from any other guarantees obtained by the Creditor for the Secured Debts. The
Creditor shall, before exercising the rights hereunder, neither perform any other guarantee he holds, whether the material guarantee
or the personal guarantee, nor take any other relief measures from the Debtor or any other third party.

 

Chapter eleven    
Breach of Contract

 

Article 12 any of the
following events and items shall constitute the events of default hereunder conducted by the Guarantor:

 

1.  Any event of default occurs under
the main contract;

 

2. Any representation, warranty or undertaking
made by the Guarantor under this contract is deemed to be incorrect or untrue;

 

3. Any part of the main contract is not
fully legitimate and valid due to any cause, or is terminated or limited due to any reason;

 

4. Any significant litigation, arbitration
or administrative proceedings are instituted to the Guarantor or his major operating assets;

 

5. The Guarantor violates his other obligations
hereunder or conducts other acts which are deemed to will affect the Creditor’s rights hereunder severely and adversely.

 

Article 13   The Creditor
shall, depending on the circumstances, have the right to take one or more of the following measures after the occurrence of the
above events of default:

 

1. To exercise the remedies for breach
of contract of and under this Contract owned by the Creditor;

 

2. To require the Guarantor to bear the
liability for guarantee in accordance with this Contract;

 

3. To exercise any other security interests
that may be entitled to the Creditor on the Secured Debts.

 

Chapter twelve      Other
Provisions

 

Article 14    Without
the agreement of the Creditor, the Guarantor cannot transfer or dispose in whole or in part any of the obligations in this contract.

 

Article 15    Any
grace, preferential or delay Creditor gives to Guarantor shall not affect, damage or limit the Creditor to enjoy all rights in
accordance with this contract and laws and regulations; and will not be deemed as Creditor waiving rights in this Contract, and
will not affect any obligations of Guarantor in this contract.

 

Article 16    If
at any time, any provision in this contract at any aspect becomes illegal, invalid or unenforceable, will not affect the legitimacy,
validity or enforceability of other provisions.

 

Article 17    In
this contract, the Guarantor should pay all amount of the secured debt, and cannot apply for any offset suggested and with no conditions.

 

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Article 18    If
the parties hereto send notices and requirements related to this contract to each other, the notices and requirements shall be
made in writing and sent to the address or fax listed in the first page of this contract. Either party changes its address or fax,
shall promptly notify the other party.

 

Exchanges of files between
two parties, if delivered by hand, the delivery is deemed to be delivered; if sent by registered letter, the file is deemed to
be delivered three days after sending; if sent by fax, the file is deemed to be delivered when sent. If Guarantor sends files to
Creditor, the file is deemed to be delivered when Creditor actually receives the file.

 

Chapter thirteen     Applicable
Law and Dispute Resolution

 

Article 19    Any
event in this contract or involved in this contract is applicable to the laws of PRC (excluding the laws of Hong Kong, Macao and
Taiwan), and be explained by the laws of PRC (excluding the laws of Hong Kong, Macao and Taiwan).

 

Article 20    All
disputes arising from or relating to the implementation of this contract shall be settled by both parties through friendly consultations.
Where no agreement can be reached, either party can bring an action to the people's court where the Creditor is located.

 

Chapter fourteen       Effectiveness,
Modification and Rescission of the contract

 

Article 21    This
contract is entered into in force upon the date when it is signed or sealed and affixed with official seals by the legal representatives
or entrusted agents of the Guarantor and the Creditor.

 

Article 22    Neither
party may modify or terminate this contract after it is entered into in force. Where any modification or rescission is required,
such modification or rescission shall be agreed by the Guarantor and the Creditor through consultations, and a written agreement
shall be reached. All the provisions hereof shall remain in effect before a written agreement is reached.

 

Chapter fifteen      Appendix

 

Article 23    Matters
not mentioned herein, if any, shall be agreed in writing as the Appendix of this Contract by the Guarantor and the Creditor. The
Appendix hereof shall form an integral part of this contract, and shall be of legally equal effect with this Contract.

 

Article 24    The
Appendix hereof shall consist of:

1.

 

2.

 

Chapter sixteen       Supplementary

 

Article 25 This contract
is made in triplicate, one for the Guarantor and two for the Creditor, each of which
shall have the same legal effect.

 

Article 26 This Contract
was signed in Shenzhen by the guarantor and the creditor on September 4, 2013.

 

Article 27 Both parties
hereof agree to notarize this Contract and undertake to grant this contract enforceability. When the Debtor and the Guarantor fail
to perform or fully perform their obligations, or if the Creditor achieves its debts or security rights prescribed by the laws
and regulations or agreed by this Contract, the Creditor shall have the right to apply for enforcement directly from the people
court with jurisdiction. The Debtor, the Guarantor and the Creditor have no opposition against the application of enforcement made
in accordance with this Contract. (This clause shall be an optional clause, both parties may make the following choices in 2
of this contract. (1, To use; 2, Not to use.)

 

(This page is intentionally left blank
for the signature of both parties hereof)

 

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Guarantor (seal):

/S/ Pan Dangyu

 

Creditor (seal):

/s/ [COMPANY SEAL]

 

Legal Representative / CEO:

(or Entrusted Agent)

 

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REF: GB78191309001-1

 

Guaranty Contract of Maximum Amount

 

CHINA EVERBRIGHT BANK

 

Content

 

	Chapter one	General principle
	Chapter two	Definition
	Chapter three	The secured principal debt
	Chapter four	Ways of Guarantee
	Chapter five	Scope of Guarantee
	Chapter six	Period of Guarantee
	Chapter seven	Documents Submitted by the Guarantor
	Chapter eight	Representations and Warranties made by the Guarantor
	Chapter nine	Undertakings made by the Guarantor
	Chapter ten	Nature and Effectiveness of Guarantee
	Chapter eleven	Breach of Contract
	Chapter twelve	Other provisions
	Chapter thirteen	Applicable Laws and Disputes Resolution
	Chapter fourteen	Effectiveness, Modification and Rescission of the contract
	Chapter fifteen	Appendix
	Chapter sixteen	Supplementary

 

Guaranteed Maximum Contract

 

Guarantor:            SHENZHEN
HIGHPOWER TECHNOLOGY CO., LTD

Address:                Building
A1, 68 Xinxia Street, Pinghu, Longgang, Shenzhen, Guangdong, China

Post code:           518000

Legal representative: Dangyu Pan

Entrusted Agent:

Operated by:      Sun
Xun

TEL: 0755-89686263

FAX: 0755-89686819

Opening Bank:    China Everbright
Bank CO., LTD LongHua Branch

Account NO.:

 

Creditor:               China
Everbright Bank CO., LTD LongHua Branch

Address:               First
floor, No.3, 4 building, yinquan garden, people south road, Longhua, Baoan Post

code:           518000

Legal representative/Person in charge: Chen
Cheng

Managers:            Yang
Xiaolin

TEL:                      0755-81483044

FAX:                     0755-28138641

 

Chapter one      General
Principles

 

To ensure the performance
of the "Comprehensive Credit Agreement" (hereinafter referred to as " Comprehensive Credit Agreement") , which
contract number is “ZH78191309001” signed on September 4, 2013, entered into by SPRINGPOWER TECHNOLOGY (SHENZHEN) CO.,
LTD. (hereinafter referred to as "debtor"), guarantor agrees to provide maximum joint responsibility guarantee, to ensure
debtor pay off the coming debt in the "comprehensive credit agreement".

 

    	1

    	 

    

  

The creditor agrees to
accept the guarantee provided by the Guarantor after examination. This contract is made in accordance with relevant laws and regulations
on the basis of the principles of equality and mutual benefit for specifying the rights and obligations between the Guarantor and
the Creditor.

 

Chapter two      Definitions

 

Article 1    Unless
the context requires or the Contract requires, in this Contract:

 

Main contract: refers
to the "Comprehensive Credit Line Agreement" signed by the Creditor and the Debtor and the contract or agreement for
specific credit line business signed by the Creditor and the Debtor for each specific credit line business on the basis of the
Comprehensive Credit Line Agreement.

 

Specific credit line
business contract or agreement refers to the contract or agreement for single specific credit line business which is signed by
the Creditor and the Debtor when the Creditor provides credit granting in domestic and foreign currencies in the forms of loan,
trade financing, discount, acceptance, letters of credit, letter of guaranty, factoring, security, etc. on and off the balance
sheet (hereinafter referred to as the “Specific Credit Line Business”) to the Debtor.

 

Chapter three      The
secured principal debt

 

Article 2    The
principal debt secured by the guarantor shall be all the debts incurred under all the contracts or agreements for specific credit
line business signed by the Creditor and the Debtor on the basis of the Comprehensive Credit Line Agreement. The maximum principal
balance for the principal debt secured shall be the maximum line of credit as specified in the Comprehensive Credit Line Agreement,
namely, RMB 7 million Yuan.

 

The debt of the main
contract shall be determined under any of the following circumstances:

(1) the period prescribed by the main contract
for determining the debt expiration;

(2) the new debt has no possibility to occur;

(3) the main contract is terminated by the
creditor and the debtor, or this contract is terminated by the Creditor and the Guarantor;

(4) the Debtor and the Guarantor are declared
bankrupt or are rescinded, withdrawn, written off or dismissed;

(5) other circumstances prescribed by the
laws for determining the debt.

 

Chapter four      Ways
of Guarantee

 

Article 3    The
guarantee provided hereunder by the Guarantor shall be the joint liability guarantee.

 

Chapter five      
Scope of Guarantee

 

Article 4    The
secured scope hereunder shall include the debt principal, interests (including legal interests, contract interests and default
interests), compound interests, handling charges, breach penalty, liquidated damages, expenses for achieving debt (including but
not limited to litigation expenses, legal expenses, notary fees, execution expenses, etc.) and all the other expenses payable (hereinafter
collectively referred to as the "Secured Debts") which shall be reimbursed or paid to the Creditor by the Debtor according
to the main contract.

 

Article 5    Any
certificates used by the Creditor for stating any Secured Debts or any payables hereunder shall be the conclusive evidence for
proving the debtor-creditor relationship between the Debtor and the Creditor, and shall be binding on the Guarantor, unless there
is obvious error.

 

Chapter six      Period
of Guarantee

 

Article 6    The
guarantee period for each specific credit line business under the Comprehensive Credit Line Agreement shall be calculated independently,
it shall be two years from the date of the expiration of the period for fulfilling debts by the Debtor, such period is prescribed
by the contract or agreement for specific credit line business. If the contract or agreement for specific credit line business
expires in advance due to legal provisions or the occurrence of pre-concerted events, then such guarantee period shall be two years
from the date of early expiration.

 

    	2

    	 

    

  

Chapter seven      Documents
Submitted by the Guarantor

 

Article 7    Guarantor
shall ensure that the creditor has received the following documents which were submitted by the guarantor before the debtor first
used the credit provided under the main contract specific credit business:

 

1. The original contract which is signed
or sealed and affixed with official seals by the legal representative or entrusted agent of the guarantor;

 

2. Guarantor's articles of association
or the approval documentation of establishment and the latest business license of enterprise legal person by annual inspection,
or certificate of legal institutions, or other documents that can prove the legal existence of guarantor;

 

3. financial statements or other information
which can prove the credit situation of the Guarantor;

 

4. The resolution that Guarantor's board
of directors or other internal agencies of the guarantor who have the right to decide matters of this warranty agreed the Guarantor
to provide guarantee in accordance with this Contract;

 

5. Other documents that provided by the
Guarantor with reasonable requirement of the Creditor.

 

In order to ensure the
above documents are true, complete, valid files, they shall be stamped with official seal by the Guarantor if the documents are
copies.

 

Chapter eight    
Representations and Warranties made by the Guarantor

 

Article 8    The
Guarantor hereby makes the following representations and warranties to the creditor:

 

1. The guarantor is a validly existing legal
entity / other organization established in accordance with Chinese laws with independent civil capacity, and enjoys the full power,
authority and rights to bear civil liability and conduct business activities with its total assets.

 

2. The Guarantor has sufficient power, authority
and rights to sign this contract and conduct transactions under this contract, and has taken or obtained all necessary actions
of legal person and other actions and agreements to authorize the execution and performance of this contract. The contract is validly
signed the legal representative or agent of the Guarantor.

 

3. The Guarantor has carefully read and fully
understood and accept the contents of the main contract and this contract. The execution and performance by the Guarantor of this
contract is voluntary, and the full meaning of this contract hereunder is truly represented.

 

4. All the documents, materials and reports
provided by the Guarantor to the creditor are accurate, complete, valid and honestly presented, and documents provided as copies
are consistent with the original.

 

5. The Guarantor has been made to sign this
contract with all the necessary government approvals and third party consents, the execution and performance of this contract does
not violate the Guarantor’s corporate constituent documents / approval documents (if any) and as a party to any other contract
or agreement. Guaranties under this contract will not be subject to any restrictions.

 

6. To ensure the legality, validity or enforceability
of this Contract, the guarantor has been completed or will complete all required registration, filing or notary procedures.

 

    	3

    	 

    

  

7. This contract is legal and valid, which
has legally binding obligation to the Guarantor.

 

8. There is no litigation, arbitration or
administrative proceedings which involving the Guarantor or its major operating assets, and will have the critical adversely affect
on the guarantor's financial position or the ability to fulfill its obligations under this contract.

 

9. Guarantor did not occur or exist any defaults.

 

Article 9    The
above representations and warranties made by the guarantor in the period of this contract shall remain correct, and the guarantor
will be ready by the creditor's request for further documents.

 

Chapter nine      Undertakings
made by the Guarantor

 

Article 10    Before
the debt that is secured is paid off, the guarantor shall comply with the following provisions:

 

1. The guarantor shall immediately notify
the creditor any of the following events:

(1) the occurrence of any defaults;

(2) any litigation, arbitration or administrative
proceedings relate to the guarantor or its major operating assets;

(3) the deterioration of guarantor’s
financial position , suspension of business, or is declared bankrupt, dissolution, is revoked business license / certificate of
legal institutions or is revoked.

 

2. In the valid period of the contract, as
long as the secured debt is not paid off , without the prior written consent of the creditor, the guarantor cannot make any affiliation,
contracting, leasing, merger, separation, shareholding reform, or other changing arrangements of the mode of operation and ownership
structure; If indeed, due to operational needs or adjustment of national policies and laws, to have affiliation, contracting, leasing,
merger, separation, shareholding reform, or other changing arrangements of the mode of operation and ownership structure, the guarantor
shall firstly obtain the written consent of the creditor and make a satisfactory credit arrangement of its warranty liabilities
and obligations under the terms of this contract.

 

3. In the valid period of the contract, as
long as the secured debt is not paid off , otherwise has the written agreement of the creditor, the guarantor cannot sell, transfer,
break up or deal with its any major assets in other method.

 

4. In the valid period of the contract,
before the secured debt is paid off, guarantor will not has recovery or claim right to creditor for the amount guarantor pay for
debtor or any other creditor’s right debtor may have.

 

5. In the valid period of the contract,
if make any modification of registration at the department of administration for industry and commerce, guarantor should give a
written notice to the creditor after the modification within ten working days of the creditor and send a copy of the relevant registration
documents to the creditor.

 

6. If debtor not pay any due secured debt
on time, the guarantor should unconditionally pay the debt to the creditor for debtor via the method creditor requires within seven
working days of the creditor that guarantor receives the written payment notice of creditor.

 

7. If the guarantor does not pay any amount
in this contract according to creditor’s requirements on time, the creditor has the right to deduct the amount from any account
that the guarantor opened at the creditor or any branch in creditor’s system without the consent of guarantor.

 

8. Once creditor requires, the guarantor
will pay or compensate the following fees and losses according to requirements immediately:

 

(1) all costs and fees for fulfilling the
right of creditor in this contract (including but not limited to attorney fee, litigation fee, execution fees and all other actual
fees); and

(2) any other losses caused by guarantor
violating the agreements in this contract to creditor.

 

    	4

    	 

    

  

Chapter ten      Nature
and Effectiveness of Guarantee

 

Article 11    The
guarantee established by this Contract shall be independent from any other guarantees obtained by the Creditor for the Secured
Debts. The Creditor shall, before exercising the rights hereunder, neither perform any other guarantee he holds, whether the material
guarantee or the personal guarantee, nor take any other relief measures from the Debtor or any other third party.

 

Chapter eleven      Breach
of Contract

 

Article 12    Any
of the following events and items shall constitute the events of default hereunder conducted by the Guarantor:

 

1. Any event of default occurs under the
main contract;

 

2. Any representation, warranty or undertaking
made by the Guarantor under this contract is deemed to be incorrect or untrue;

 

3. Any part of the main contract is not
fully legitimate and valid due to any cause, or is terminated or limited due to any reason;

 

4. The Guarantor suspends or stops its
business or enters into bankruptcy, liquidation, stoppage or other similar procedures, or the Guarantor applied for bankruptcy
and liquidation or ordered to cease or suspend its business by competent authorities;

 

5. Any significant litigation, arbitration
or administrative proceedings are instituted against the Guarantor or his major operating assets;

 

6. The Guarantor violates its other obligations
hereunder or conducts other acts which are deemed to will affect the creditor rights hereunder severely and adversely.

 

Article 13 The Creditor shall, depending
on the circumstances, have the right to take one or more of the following measures after the occurrence of the above events of
default:

 

1. To exercise the remedies for breach
of contract of and under this Contract owned by the Creditor;

 

2. To require the Guarantor to bear the
liability for guarantee in accordance with this Contract;

 

3. To exercise any other security interests
that may be entitled to the Creditor on the Secured Debts.

 

Chapter twelve    
Other Provisions

 

Article 14    Without
the agreement of the creditor, the guarantor cannot transfer or disposition all or part of the obligations in this contract.

 

Article 15    Any
grace, preferential or delay Creditor gives to guarantor shall not affect, damage or limit the creditor enjoy all rights in accordance
with this contract and laws and regulations; and will not be deemed as creditor gives up the rights in this Contract, and will
not affect any obligations of guarantor in this contract.

 

Article 16    If
at any time, any provision in this contract at any aspect becomes illegal, invalid or unenforceable, it will not affect the legitimacy,
validity or enforceability of other provisions.

 

Article 17    In
this contract, the guarantor should pay all amount of the secured debt, and cannot apply for any offset suggest and with no conditions.

 

    	5

    	 

    

  

Article 18    If
the parties hereto send notices and requirements related to this contract to each other, the notices and requirements shall be
made in writing and sent to the address or fax listed in the first page of this contract. Either party changes its address or fax,
shall promptly notify the other party

 

Exchanges of files between
two parties, if delivered by hand, the delivery is deemed to be delivered; if sent by registered letter, three days after registered
is deemed to be delivered; if sent by fax, the sending time is deemed to be delivered. But if guarantor sends files to creditor,
the file is deemed to be delivered when creditor actually received.

 

Chapter thirteen     
Applicable Law and Dispute Resolution

 

Article 19    This
contract and any matters concerning this Contract shall be governed by and construed in accordance with the
laws of PRC.

 

Article 20    All
disputes arising from or relating to the implementation of this contract shall be settled by both parties through friendly consultations.
Where no agreement can be reached, either party can bring an action to the people's court where the Creditor locates.

 

Chapter fourteen     Effectiveness,
Modification and Rescission of the contract

 

Article 21    This
contract enters into force upon the date when it is signed or sealed and affixed with official seals by the legal representatives
or entrusted agents of the Guarantor and the Creditor.

 

Article 22    Neither
party may modify nor terminate this contract upon it enters into force. Where any modification or rescission is required, such
modification or rescission shall be agreed by the guarantor and the creditor through consultations, and a written agreement shall
be reached. All the provisions hereof shall remain in effect before a written agreement is reached.

 

Chapter fifteen     Appendix

 

Article 23    Matters
not mentioned herein, if any, shall be agreed in writing as the Appendix of this Contract by the guarantor and the creditor. The
Appendix hereof shall form an integral part of this contract, and shall be of legally equal effect with this Contract.

 

Article 24    The
Appendix hereof shall consist of:

1.

2.

 

Chapter sixteen     Supplementary

 

Article 25    This
contract is made in triplicate, one for the guarantor and two for the Creditor, each
of which shall have the same legal effect.

 

Article 26    This
Contract was signed in Shenzhen by the guarantor and the creditor on September 4, 2013.

 

Article 27    Both
parties hereof agree to notarize this Contract and undertake to grant this contract with enforceability. When the Debtor and the
guarantor fails to perform or fully perform their obligations, or if the Creditor achieves his debts or security rights prescribed
by the laws and regulations or agreed by this Contract, the Creditor shall have the right to apply for enforcement directly from
the people court with jurisdiction. The Debtor, the guarantor and the Creditor have no opposition against the application of enforcement
made in accordance with this Contract. (This clause shall be an optional clause, both parties may make the following choices in
2 of this contract. (1, To use; 2, Not to use.)

 

    	6

    	 

    

  

(This page is intentionally left blank
for the signature of both parties hereof)

 

/s/ Danyu Pan

[COMPANY SEAL]

Guarantor (seal):

Legal representative

(Or Entrusted Agent)

 

Creditor
(seal):

/s/ [COMPANY SEAL]

 

Legal Representative / CEO:

(or Entrusted Agent)

 

    	7REF:
ZH78191309001-1JK

 

Working Capital Loan Contract

 

CHINA EVERBRIGHT BANK

 

Contents

 

	Article I	General Principal
	Article II	Purpose of the Loan
	Article III	Currency, Amount, Term and Disbursement of the Loan
	Article IV	Interest of the Loan and Calculation Method
	Article V	Release and Use of the Loan
	Article VI	Repayment of the Loan
	Article VII	Guarantee
	Article VIII	Assumption of Fees and Reimbursement
	Article IX	The Borrower’s Representations, Warranties and Promises
	Article X	Events of Breach
	Article XI	Others
	Article XII	Governing Law and Resolution of Dispute
	Article XIII	Effectuation, Revision and Dissolution of the Contract
	Article XIV	Attachments
	Article XV	Supplemental Provisions

 

Borrower: SPRINGPOWER
TECHNOLOGY (SHENZHEN) CO., LTD.

Address: Bao'an
District, Shenzhen Guanlan Dan Lake communit Superparamagnetic Renmin Road Industrial Area, Building A

Postal Code: 518000

Legal Representative: Dangyu
Pan

Authorized Agent: /

Processing Person: Xun Sun

Telephone: 0755-89686236

Fax: 0755-89686819

Account Bank: China
Everbright Bank Shenzhen Longhua Sub-branch 

Account Number:

 

Lender: China
Everbright Bank Shenzhen Longhua Sub-branch

Address: First
floor, No.3, 4building, yinquan
garden, people south road, Longhua, Baoan

Postal Code: 518000

Legal Representative: Cheng Chen

Authorized Agent: /

Processing Person: Xiaolin Yang

Telephone:
0755-81483044

Fax: 0755-28138641

 

Article I  General Principal

 

Because of the need of business operations, the
Borrower applies to the Lending Bank for a loan, and the Lending Bank, upon review, agrees to issue a loan to the Borrower on the
terms and conditions set forth in this contract.

Now, pursuant to the relevant law and the
policies of the regulatory authorities of our country, the two parties, after reaching consensus through consultation, have reached
the agreement on the following provisions, which are to be adhered to by both parties.

 

    	1

    	 

    

 

Article II  Purpose of the
Loan

 

1. The two parties agree that:

1.1 The loan amount hereunder is to
be used as revolving liquid capital, for the specific purpose of purchase of raw materials

1.2 The Borrower shall not change the purpose
of the loan specified herein without prior written consent from the Lending Bank.

 

Article III  Currency, Amount,
Term and Disbursement of the Loan

 

2. The currency of the loan hereunder is
Renminbi and the amount is SEVEN MOLLION YUAN ONLY.

3. The term of the loan hereunder
is from September 5, 2013 to September 4, 2014.

4. Upon complete satisfaction of the
preconditions set forth in Section 11 below, the Lending Bank must disburse the loan amount in one sum in full and have it deposited
into the Borrower's account established with the Lending Bank on September 5, 2013.

 

Article IV  Interest of the
Loan and Calculation Method

 

5. The Borrower must make interest
payments on the loan amount to the Lending Bank in accordance with the provisions herein.  The interest rate of the loan
hereunder is fixed annual rate of 7.8%

6. The two parties agree that, in
the event that the People's Bank of China adjusts loan base rate or the calculation method thereof and the said loan base rate
is applicable to the loan hereunder, the Lending Bank has the right to determine the contract's new loan interest rate on the basis
of the said adjusted loan base rate or the calculation method.  The Lending Bank shall not be required to obtain prior
consent from the Borrower before making such adjustment and shall have the right to assess interest according to the adjusted loan
rate or calculation method.

7. The interest on the loan hereunder
is settled monthly and the settlement date is the 20th of each month.

8. The loan interest calculation hereunder
is based on 360 days a year, starting on the date when the loan is disbursed.

9. If the Borrower fails to repay
the loan in accordance with the provisions herein, the Lending Bank shall have the right to charge past-due penalty rate; the past-due
penalty rate is 30% of the loan interest rate specified in Section 5 herein in addition to the said loan interest rate starting
from the past-due date, until the loan principal and interest are repaid in full.

If the Borrower uses the loan for any purpose
other than that specified herein, the Lending Bank shall have the right to charge loan misappropriation penalty rate; misappropriation
penalty rate is 50% of the loan interest rate specified in Section 5 herein in addition to the said loan interest rate starting
from the date when the loan is misappropriated, until the loan principal and interest are repaid in full.

10. If the Borrower fails to make
interest payment on time, the Lending Bank shall have the right to assess compound interest at the penalty rate.

 

Article V  Release and Use
of the Loan

 

11. The Lending Bank shall have no
obligation to provide the loan hereunder to the Borrower unless the following preconditions are satisfied:

11.1 The Borrower has provided all
the documents requested by the Lending Bank;

11.2 The Borrower has filled all the
forms and notes required for the withdrawal of the loan; such forms and notes are the component part of this contract and have
the same legal effect;

11.3 The Borrower has obtained all the
government permits, licenses and registrations in accordance with the relevant law and statutes;

11.4 If the loan hereunder is guaranteed,
the Borrower has processed all the certification and registration of, and obtained the insurance on, the security properties provided
as guarantee and such certification, registration and insurance remain effective and valid;

 

    	2

    	 

    

 

11.5 The Borrower has committed no
acts of breach specified herein;

Upon satisfaction of the above preconditions,
the Lending Bank will arrange the disbursement of the loan in accordance with Section 4 herein and have the loan amount deposited
into the Borrower's bank account.

12. Payment of the Loan

12.1 The loan payment methods hereunder
are entrusted payment by the Lending Bank and the payment by the Borrower at its own discretion.

12.2 The Borrower agrees that the
Lending Bank shall have the right to use the entrusted payment method in accordance with the relevant State law and policies of
regulatory authorities if:

(a) The loan relationship with the
Borrower is new and the Borrower's credit is just average;

(b)The recipient of the payment is very
clear and the amount of single loan payment is large;

(c) Other situations that the Lending
Bank deems appropriate.

If the method of payment by the Borrower
at its own discretion is used, the Borrower must submit loan fund payment plan to the Lending Bank for approval.

13. During the course of paying the
loan amount, if the Borrower experiences any of the following, the Lending Bank shall have the right to discuss with the Borrower
to supplement the conditions for loan release and payment or change the loan payment method or even suspend the release and payment
of the loan amount:

(a) the credit situation of the Borrower
deteriorates;

(b) the Borrower’s profit-making
ability is weak;

(c) there is abnormalities in the use of
the loan funds;

(d) other situations the Lending Bank considered
appropriate.

14. If the Lending Bank finds that the
Borrower fails to use the loan for the purpose specified or has other acts in violation of the provisions herein, the Lending Bank
shall have the right to declare the loan due in advance and pursue the Borrower for the corresponding liability for breach, including
but not limited to restricting or suspending the payment of the loan funds.

15. The Lending Bank has the right to request
that the Borrower provide records and documentation on the use of the loan funds.   

 

Article VI  Repayment of the
Loan

 

16. The Borrower must make interest
payments in accordance with the provisions herein and repay the principal in full and in one lump sum on September 4, 2014

17. The Borrower must ensure that
there is sufficient amount in the account set up with the Lending Bank on the interest settlement dates or on the loan principal
repayment date to repay interest, loan principal and other fees and must authorize the Lending Bank to deduct automatically from
that account on the said dates.

18. The Borrower must repay the loan
principal in full and on time to the Lending Bank.  If the Borrower fails to repay the loan principal or to make interest
payment on time, the Lending Bank shall have the right to deduct the corresponding amounts, in the order of fees payable, loan
interest and compound interest and loan principal, from any accounts set up with the Lending Bank or within the banking system
of the Lending Bank’s branch organizations.

19. If the Borrower desires to repay
the loan ahead of the schedule, the Borrower must submit an application to the Lending Bank 30 business days in advance for approval.

20. If the Borrower is unable to repay
the loan hereunder on time and desires to extend the term of the loan, the Borrower must submit an application for extension in
writing to the Lending Bank ___ business days in advance. Upon the Lending Bank’s approval, the two parties must execute
a loan extension contract as a supplement hereto.

 

Article  VII Guarantee

 

21. The guarantee method for the loan
hereunder is maximum natural person guarantee.  The guarantee is provided by Shenzhen Highpower Technology Company
Limited, Dangyu Pan and the guarantee is several liability guarantee (Guarantee Contract No. are GB78191309001-1, GB78191309001-2)

22. The Lending Bank and the guarantor
must enter into a guarantee contract and process necessary certification and registration of and insurance on the security property.

23. If the term of the loan is extended,
the Borrower and the guarantor must continue to bear responsibility to provide guarantee for the loan during the extended term.

 

    	3

    	 

    

 

Article VIII Assumption of Fees and
Reimbursement

 

24. The Borrower must bear all the
fees paid by the Lending Bank in connection with this contract and the corresponding guarantee contract, including but not limited
to fees for notarization, insurance and registration.

25. Upon request by the Lending Bank,
the Borrower must immediately reimburse the Lending Bank in full for all the fees incurred by the Lending Bank in exercising its
rights hereunder, including but not limited to litigation expenses, attorney fees, travel and lodging expenses and other fees.

 

Article IX The Borrower’s Representations,
Warranties and Promises

 

26. The Borrower is a valid and existing
legal person entity incorporated in accordance with the PRC law, has the ability to conduct independent civil activities and has
the full power, authorization and assets to bear civil responsibilities and conduct business activities.

27. The Borrower has the full power
and authorization to execute this contract and conduct the transactions hereunder and has taken all actions necessary for the execution
and performance of this contract.

28. The Borrower has obtained all
the government approval and third party consent required for the execution of this contract and the execution and performance of
this contract will not violate any of the Borrower’s incorporation documents or any other contracts to which  the
Borrower is a party.

29. All the documents, material and
certificates provided by the Borrower in connection with the execution of this contract and the transaction hereunder are authentic,
complete, accurate and valid and the financial reports provided by the Borrower truthfully reflect the financial situation of the
Borrower as of the time of the issuance of such reports.

30. This contract is legally effective
and is legally binding to the Borrower.

31. The Borrower must set up an account
with the Lending Bank according to the Lending Bank’s requirements to be used as the settlement account for the loan hereunder.

32. The Borrower has completed or will
complete all the required registration, filing and certification procedures to ensure the validity, effectiveness and enforceability
of this contract.

33. The Borrower has no pending litigation,
arbitration or administrative proceedings that will have a substantively adverse effect on the Borrower’s ability to perform
its obligations hereunder.

34. The Borrower’s representations,
warranties and promises must remain true and accurate before the full repayment of the loan principal and interest and the Borrower
will provide any relevant documents at the Lending Bank’s request.

35. The Borrower has committed no
act of breach.

36. The Borrower has carefully read,
and fully understands and accepts, the contents herein and the execution and performance of this contract is voluntary; the Borrower
acknowledges that the intents expressed herein are the Borrower’s true intents.

37. The Borrower has provided truthful,
complete and effective documents according to the Lending Bank’s request.

38. The Borrower promises to cooperate
with the Lending Bank in the management of the loan payment, and in the management thereafter and the relevant examination.

39. The Borrower must accept, and
actively cooperate with, the Lending Bank’s investigation of, inquiries about and supervision on its production, operation
and financial situation and has the obligation to provide, on the monthly basis, the balance sheet and profit/loss statement for
the latest month or other documents that reflect the Borrower’s credit situation.

40. During the effective period of
the contract, the Borrower must notify the Lending Bank in writing 30 business days in advance in the event of any changes in the
name of the Borrower, its legal representative or its address.

41. If, before the full repayment
of the all the debt hereunder, the Borrower desires to engage in external investment or financing that will substantially increase
its debts, or to undertake merger, spin-off, reduction of capital, transfer of equity, transfer of assets, filing for suspension
of business for rectification, filing for dissolution or bankruptcy or any other actions sufficient to cause any changes to the
creditor/debtor relationship hereunder or to affect the rights of the Lending Bank, the Borrower must notify the Lending Bank in
writing 30 business days and obtain the Lending Bank’s written approval.  Otherwise, none of the transactions mentioned
above can be conducted.

 

    	4

    	 

    

 

42. The Borrower promises that, without
the Lending Bank’s written approval, the Borrower will not assume, for any other enterprise legal person or individual, debt
obligations, provide guarantee or establish pledges or liens on its assets that will affect the Borrower’s ability to repay
the loan hereunder.

43. If the Borrower experiences any
other events, other than those mentioned above, that will adversely affect the Borrower’s ability to fulfill its repayment
obligations, the Borrower must immediately notify the Lending Bank in writing.

44. The Lending Bank has the right
to demand that the Borrower set up a special account with the Lending Bank as the account for the return of the funds.

 

Article X Events of Breach

 

45. Any of the following events constitutes
an event of breach:

45.1 The Borrower fails to make interest
payments or repay the loan principal in accordance with the provisions herein;

45.2 The Borrower fails to use the
loan for the purpose specified herein;

45.3 The Borrower fails to pay loan
funds according to the method specified;

45.4 The Borrower fails to comply
with events promised;

45.5 The Borrower overfulfills the
financial targets specified;

45.6 The Borrower commits any act of cross-breach;

45.7 The Borrower provides false balance
sheet, profit/loss statements or other financial reports or withholds material facts therein, or refuses to accept the Lending
Bank’s supervision over and examination of the Borrower’s use of the loan and its production operation and financial
activities;

45.8 The representations, warranties
or promises made herein by the Borrower or the guarantor, or those made by the guarantor made in the relevant guarantee contract,
prove to be false or misleading;

45.9 The Borrower or the guarantor
violates other contract to which the Borrower or the guarantor is a party;

45.10 The Borrower’s or the guarantor’s
operation or financial situation materially deteriorates;

45.11 The value of the pledged or
mortgaged property in connection with the loan hereunder decreases or such property is damaged or lost;

45.12 The Borrower or the guarantor
fails to make arrangement to repay its debts to the satisfaction of the Lending Bank at the time of its merger, spin-off or reorganization
of share structure.

45.13 The Borrower or the guarantor
files bankruptcy, is dissolved or shut down, or its business permit is revoked, canceled or voided;

45.14 The Borrower fails to notify
the Lending Bank promptly of any major revision of its charter, any changes in its operation activities, major revision of its
accounting principles, or any material changes in the financial, economic or other situation of the Borrower or of its subsidiaries
or parent;

45.15 The Borrower is involved in
any litigation, arbitration or administrative proceeding that will adversely affect its ability to fulfill its obligations hereunder;

45.16 The Borrower’s assets
is frozen, seized, withheld or put into receivership in accordance with the law and such that the Borrower’s performance
of its obligations hereunder has been or will be materially affected;

45.17 The Borrower, a Group customer
confirmed by The Lending Bank according to the “Commercial Bank Group guidelines for customer credit risk management business”(hereinafter
referred to as “guideline”), use the false contracts which are signed with affiliated parties to discount or pledge
at bank and to obtain bank funds or credit with notes receivable and accounts receivable without actual trade background; the occurrence
of major mergers, acquisitions and reorganization which are considered by Party B may affect the loan safety; evasion or discarding
of bank debts on purpose through affiliated transactions; other circumstances stipulated in article eighteenth of “guidelines”;

45.18 The Borrower has violated any
other provision herein and fails to take any remedial actions to the satisfaction of the Lending Bank;

45.19 Any other event or situation that
will have a substantive adverse effect on the rights of the Lending Bank hereunder.

46. The Lending Bank shall make determination
as to whether any event of breach mentioned above has occurred and notify the Borrower.  Upon the occurrence of any of
the events of breach, the Lending Bank shall have the right to take one or more of the measures below:

 

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46.1 Suspend the disbursement of the
loan amount hereunder;

46.2 Declare that the loan already
released immediately due and demand that the Borrower repay the loan principal, interest and other fees immediately;

46.3 Demand that the Borrower provide
additional pledge or lien or replace the guarantor;

46.4 Deduct directly any outstanding
amount payable hereunder from the account established with the Lending Bank or any of the Lending Bank’s branches;

46.5 Declare the exercise of its rights
under the guarantee contract for the loan;

46.6 Other measured deemed appropriate
by the Lending Bank.

 

Article XI  Others

 

47. During the effective period of
this contract, the Lending Bank shall have the right to examine the Borrower’s use of the loan and the Borrower must provide
explanation and documents to the Lending Bank at the Lending Bank’s request.

48. Both parties hereto must maintain
confidentiality on the debts, financial, production and operation situation and other information obtained for the purpose of executing
and performing this contract from the other party; however, the situation of any inquiry on the Borrower’s situation in accordance
with the law is excepted.

49. Without prior consent from the
Lending Bank, the Borrower shall not transfer or dispose of all or part of its obligations hereunder.

50. The Lending Bank may transfer
the creditor’s right hereunder to any third party without the need to obtain prior consent from the Borrower, provided, however,
that the Borrower is notified in writing at the time of such transfer.

51. The Borrower must pay all the
amount due hereunder in full and shall not make offsets, deductions or withholdings of any nature or use any debt owed by the Lending
Bank to the Borrower to offset any debt obligations.

52. Any grace period, favorable treatment
or extension granted by the Lending Bank to the Borrower shall not affect, damage or restrict any other rights to which the Lending
Bank is entitled in accordance with the provisions herein and with the law and statutes, nor shall they be considered a waiver
by the Lending Bank of its rights and interests hereunder or affect the Lending Bank’s responsibilities and obligations hereunder.

53. If, at any time, any of the provisions
herein becomes illegal, invalid or unenforceable in any aspect, the legality, validity or enforceability of other provisions herein
shall not be affected or diminished.

54. Any revisions of or supplement
to this contract must be in writing and be signed by both parties.

55. The titles and headings herein
are inserted for reference only.

56. All notices or requests regarding
this contract must be sent in writing to the addresses or fax numbers listed on the first page of this contract.  One
party must notify the other party promptly of any changes of addresses or fax numbers.

57. The documents sent by one party
to the other shall be considered delivered  if sent by courier, three days after its being sent if by registered mail,
and immediately if by fax.

 

Article XII  Governing Law
and Resolution of Dispute

 

58. This contract is governed by the
Chinese law and must be interpreted accordingly.  Any dispute in connection with this contract must be settled through
consultation; if consultation fails, the dispute should be submitted to legal proceedings at the local court where the Lending
Bank resides.

 

Article XIII  Effectuation,
Revision and Dissolution of the Contract

 

59. This contract must be signed by
the representatives of both parties before it can become effective.

60. No party can revise or dissolve
this contract without authorization, unless otherwise stipulated or by law. Any revision or dissolution must be agreed to
by both parties in a signed written agreement.

 

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Article XIV  Attachments

 

61. Other matters not covered herein
may be provided in a written agreement to be attached hereto.

 

Article XV Supplemental Provisions

 

62.This contract in triplicate, the Borrower
has one copy and the Lending Bank has two copies, and all copies have the same legal effect.

63. This contract is signed on September
4, 2013 in Shenzhen.

64. The parties hereto agree that
this contract must be certified (optional provision; not applicable to this contract).

 

/s/ [COMPANY SEAL]

Borrower (Stamp): SPRINGPOWER TECHNOLOGY
(SHENZHEN) CO., LTD.

Signature of legal representative :

(Or Entrusted Agent)

/s/ Dangyu Pan

 

/s/ [COMPANY SEAL]

Lender (Stamp): China Everbright Bank Shenzhen
Longhua Sub-branch

Signature of legal representative or deputy:

(Or Entrusted Agent)

/s/ Cheng Chen

 

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[FOR GUARANTEE AGREEMENTS RELATED TO THIS
AGREEMENT, SEE THE GUARANTY CONTRACTS OF MAXIMUM AMOUNT FILED WITH EXHIBIT 10.6 TO THE REGISTRANT’S QUARTERLY REPORT ON FORM
10-Q FOR THE QUARTER ENDED SEPTEMBER 30, 2013 FILED WITH THE SEC ON NOVEMBER 14, 2013.]

 

    	8

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