Document:

Guaranty Contract of Maximum Amount

 

Shenzhen Development Bank

Version of July, 2009

 

Guarantee Contract
of Maximum Guarantee Amount

 

    	 

    	 

    

 

Contract NO: Shenfa
Shenxinzhou ebao zi di 20121207004-02

 

Party A (Main
contract creditor): Shenzhen Development Bank Limited Company, Xinzhou Branch

Address: Zhongcheng
Tianyi Garden, Xinzhou Road, Futian District, Shenzhen City

	Office number: 2348 0000	Fax: 2348 0005
	Person in charge: Li Jing	Position: Branch President

 

Party B (Guarantor):

Type of certification:

Certification number:

 

To ensure execution
of the Comprehensive Credit Line Contract (hereinafter referred to as “the Principal Contract”) signed between Party
A and Shenzhen Highpower Technology Co. Ltd. (hereinafter referred to as “Debtor”), Party B agrees to provide a joint
responsibility guarantee to all of the Borrower’s obligations hereunder, and WHEREAS, the Lender is willing to provide a
short-term revolving credit facility to the Borrower on the terms and conditions set forth herein.

 

Clause 1
The range of Guarantee

The range of
guarantee includes the principal debts (include contingent liabilities), interest, compound interest, punitive interest, and the
cost for realization of the creditor’s right under the Debtor as agreed in the “Comprehensive Credit Line Contract”
(Shenfa Shenxinzhou ebao zi di 20121207004). The maximum amount of the debt promised to guarantee is one hundred forty million
only in Chinese Currency.

 

The interest,
compound interest, punitive interest will be calculated according to the agreements of the Principal Contract, and will be calculated
until the date paid off. The cost for realization of the creditor’s right includes but is not limited to the announcement
fee, delivery fees, appraisal fees, legal fees, travel expenses, assessment fees, auction fees, the property preservation fee,
compulsory execution fee and etc.

 

For loans or credit businesses in currency
other than CNY, the currency exchange rates announced by Party A on the date of transaction will be applied.

 

Clause 2 Period of Guarantee

The period of
guarantee starts from the effective day of the Principal Contract and ends two years after the expiration date of each specific
credit line contract under the Principal Contract.

 

    	 

    	 

    

 

During the period
of guarantee, if Party A transfers the creditor's rights to a third party according to legal procedure, Party B should continue
to assume the guarantee responsibility over the period set forth in this contract.

 

Clause 3 On lending arrangements

Not Applicable

 

Clause 4
Other issues

Not Applicable

 

Clause 5
This contract will be printed and signed in two copies, Party A holds one copy, Party B and Debtor holds one copy, each copy has
the same legal effect.

 

Clause 6
Mandatory Implementation against property

Not Applicable

 

Clause 7
Definition of Guarantee Responsibilities

Party B agrees
to provide joint guarantee to all the principal debts (including contingent liabilities), interest, compound interest, punitive
interest, and the cost for realizing creditor’s right within the term of guarantee. If the debtor fails to fulfill the obligation
of repayment at the expiration date (including contract expiration date and earlier termination) or there is evidence that Debtor
has breached a loan covenant, Party A reserves the right to claim from the Debtor or Party B directly for paying off the debt.
Party B irrevocably provides Party A with rights to direct access to Party B’s bank account opened with Party A. Once the
Debtor fails to repay debt on expiration (including contract expiration and earlier maturity), Party A can directly deduct the
amount of due debt from the above bank account.

 

No matter whether
there is or is not real security on the creditor’s right provided by Debtor or third parties, Party A reserves the right
to request Party B assume guarantee responsibility before any disposal of real security.

 

Clause 8
The guarantee responsibility under this contract is an independent guarantee, will not be affected by any guarantee provided by
other guarantor.

 

Clause 9
 The guarantee under this contract is irrevocable, will not be affected by any other agreements
and documents signed by debtor with any other companies or institutions, and will not be changed by any situation changes of Debtor,
including but not limited to bankruptcy, insolvency, loss of business qualification, or change of articles of association.

 

    	 

    	 

    

 

Clause 10
Breach of Covenant and Default Liabilities

 

		A.	Breach of Covenant. Any of the following situations would be considered as breach of contract covenant:

 

		1.	Party B violates or intends to violate the terms herein.

 

		2.	Documents provided by Party B to Party A are untrue, inaccurate, or incomplete, or contain fake
records, misleading statements or major omissions.

 

		3.	Party B conceals a significant fact, does not cooperate with Party A for an investigation, examination
and inspection.

 

		4.	Party B has neglected to manage and claim rights for debt due, transferred or disposed of its main
assets for free or at a price significantly lower than the market price, or withdrawn its funds or evaded its debt.

 

		5.	Party B breaches the covenants of other credit line contracts between Party A or third parties
(including but not limited to credit line agreements, loan contracts and guarantee contracts) or violates any debt securities issued
by Party B, or is involved in any litigation or dispute arising from such contracts and the securities.

 

		6.	The guarantee is defined as nullified or revoked.

 

		7.	When the deadline as set on the principal contract has passed and the Debtor has failed to pay
all or part of the debts as set under the Principal Contract.

 

		8.	Party B intended to evade bank’s debt through related party transactions.

 

		9.	For Party B as an Enterprise Legal Person:

		9.1	Party B is or will be under significant business difficulties or risks: deteriorated financials,
significant financial losses and loss of assets (including but not limited asset losses for fulfill guarantee obligations) or other
financial crisis.

		9.2	. Party B is subjected to an administrative penalty or criminal penalty. Or Party B is under an
investigation conducted by authorities, which could possibly result in an administrative penalty or criminal penalty from illegal
operations.

		9.3	Party B has undergone significant organizational changes, e.g. a business splitting, merger and
termination, disposal of major assets, capital reduction, liquidation, reorganization, withdrawal, bankruptcy, and dissolution.

		9.4	Change of controlling shareholders or de facto control of Party B, if Party A believes those changes
have endangered or may endanger the creditor's rights; or Party B’s controlling shareholders, de facto control, legal representative
or senior management reported significant issues, which include but are not limited to administrative or criminal penalties or
investigations by authorities which could possibly lead to an administrative penalty or criminal penalty from illegal operations,
has lawsuits, deteriorated financials, bankruptcy and dissolution.

    	 

    	 

    

 

		9.5	Adverse changes in the industry in which Party B engaged, and Party A believes the situation has
endangered or may endanger realization of the creditor's rights.

 

		10.	For Party B as a citizen:

		10.1	Any situation changes of Party B, such as disability, unemployment, change of career or change
of business operation, which Party A believes have affected or may affect Party B’s capability to fulfill the guarantee responsibilities.

		10.2	Under any circumstances if Party B was under investigation for criminal responsibility according
to the legal procedure, or was required for mandatory implementation in accordance with law, or was restricted from certain citizen’s
rights, which Party A believes have affected or may affect Party B’s capability to fulfill the guarantee responsibilities.

		10.3	The heir or legatee of Party B refuses to inherit or bequest, or refuses to continue to assume
the guarantee responsibilities after inheritance or bequest.

 

		11.	Any other occasions or situations relating to Party B that has led to or will soon lead to the degrading
of Party B’s guarantee capabilities or endangering Party A’s rights and interests.

 

		B.	Default Liabilities

If the situation
mentioned in the provision A happens, Party A has the right to take any or several of the following measures at that time:

 

		1.	Request Party B to assume the guarantee responsibilities and execute the right to access Party
B’s bank account to deduct all the principal debts (include contingent liabilities), interest, compound interest, punitive
interest, and the cost for realizing creditor’s right within the term of guarantee, which includes but is not limited to
credit investigation, examination and notary fees related to this contract, and all legal fees, arbitration fees, travel expenses,
announcement fees, delivery fees, execution fees and other fees that are paid for realization of the creditor's rights.

		2.	Request Party B to provide additional cover on the debts under the Principal Contract, including
but not limited to collateral and pledged assets.

		3.	Party B should compensate for all losses claimed by Party A.

		4.	Party A is entitled to claim for the right of subrogation from Party B’s debtor through legal
procedure, Party B needs to provide all necessary assistance and bear all costs during the application procedure.

		5.	In a claim for the People’s court to revoke an action that Party B gave up a due claim or
transferred property without payment or at an unreasonable lower price, Party B needs to provide all necessary assistance and bear
all costs during the legal procedure.

		6.	Other measures of compensation in accordance with the law and agreements.

 

    	 

    	 

    

 

Clause 11
If there is a circumstance in which all or part of a clause in the Principal Contract or any specific credit line contracts under
the Principal Contract is nullified in terms of law, Party A is still entitled to request that the Debtor repay the principal,
interests and other related costs of the issued loan in accordance with law. Under above circumstances, this contract remains valid,
and Party B should still assume the guarantee responsibilities towards Debtor in the term of guarantee stated in this contract.

 

Clause 12 Party B's commitments

		1.	Party B legally possessed the power, rights and authorizations for signing, delivering and executing
this contract. The covenants in this contract are able to form an effective binding and execution towards Party B.

		2.	If Party B is an enterprise legal person, Party B should be a well established company legally
set up and operating in its jurisdiction. Party B has full authorization of the company and is operating the business within the
scope legally registered with the government authorities.

		3.	Party B should guarantee the truth, completeness, legitimacy and validity of all the documents
provided, and that no fake record, misleading statement and significant omission is in the documents provided.

		4.	Party B promises herein, Party B will fully perform the burden of the contract in good faith, and
will not take any actions before obtaining Party A’s written consent that could damage the creditor’s rights (those
actions include but are not limited to performing what should not be performed, or refusing to perform what should be performed.)

		5.	Party B should notify Party A in writing about any changes of its domicile, address, phone of contact
as well as scope of business and legal representative. The written notification should be sent within 10 days after the registration.
If Party B fails to perform the said notification, all correspondence sent to the original address of Party B by Party A is considered
valid.

		6.	Party B herein confirms, Party B has full understanding and awareness of all the terms and conditions
listed in this contract, and signing this contract is the true expression of Party B’s will.

 

Clause 13
Amendment of the Contract

 

1.     Agreed
by both parties, this contract can be amended or dissolute in writing.

 

2.     When
the Principal Contract needs amendment, it is Party A’s responsibility to notify Party B in writing in time, once Party B
agrees, Party B continues to assume the guarantee responsibilities for the debt under the amended Principal Contract. However,
if the liability of the Debtor has relived (including but not limited to reducing the amount of debt, shortening the period of
debt, etc.) after the amendment, Party B should be deem to agree to the amendments, written agreements under this circumstance
are not necessary, and Party B continues to assume the guarantee responsibilities.

 

    	 

    	 

    

 

Clause 14 During the period of this
contract, Party A may sometimes tolerate, extend, or delay execution on Party B’s default or delay actions. These will
not damage, affect or limit Party A’s creditor’s rights by law. The tolerance, extension or delay execution cannot
be deemed as Party A’s approval and consent on the defaults nor can it be deemed as Party A giving up the creditor’s
rights for further execution.

 

Clause 15 Applicable Law and Resolution
for Dispute 

		1.	This contract is entered into according to the People’s Republic of China, and is applicable
to the law of the People’s Republic of China.

		2.	The resolution of dispute should be in accordance with the Principal Contract.

 

Clause 16 This Agreement is established
and entered into effect upon signing or sealing by the legal representatives (or person-in-charge) of Party A and Party B or
their duly authorized agents, together with sealing by the company chop.

 

Stamp of Party A

/s/ [COMPANY STAMP]

Signature of director or authorized
representative

November 22, 2012

 

Stamp of Party B (if Party B is a corporation)

Signature of legal representative or authorized
representative

 

Signature of Party B (if Party B is a individual)
or authorized representative:

/s/ Dangyu Pan

November 22, 2012

 

    	 

    	 

    

 

[INFORMATION FOR PURPOSES OF FILING WITH THE SECURITIES AND EXCHANGE
COMMISSION]

 

SCHEDULE A

 

GUARANTORS/PARTY B

 

	Springpower Technology (Shenzhen) Co., Ltd. 
	Dangyu PanASSIGNMENT

 

THIS ASSIGNMENT,
effective this 3rd day of August, 2010 between Medical Device International
Limited having its principal place at Unit 1001 Fourseas Building, 208-212 Nathan Road, Jordan Kowloon, Hong Kong “(hereinafter
referred to as “the Assignor(s)”) and Life Care Medical Devices Limited having its principal place at Unit
2508A, Bank of America Tower, Central Hong Kong (hereinafter referred to as “the Assignee(s)”);

 

WHEREAS THE ASSIGNOR
is the owner of International Patent Application No.PCT/IB2010/000797 (hereinafter referred to as the “Patent Rights”);

 

WHEREAS THE ASSIGNEE
is desirous of acquiring the entire right, title and interest in, to and under the said Patent Rights and the inventions covered
thereby;

 

NOW, THEREFORE,
for and in consideration of United States Dollar One only (USD 1.00) and other good and valuable consideration paid by the ASSIGNEE
to the said ASSIGNOR, the receipt and sufficiency of which are hereby acknowledge by the said ASSIGNOR, the said ASSIGNOR has sold,
assigned, transferred and conveyed to the said ASSIGNEE, its successors, legal representatives and assigns, the entire right, title
and interest in and the said Patent Rights including all patents that may issue thereof and the inventions covered thereby, as
fully and entirely as the same would have been held and enjoyed by the said ASSIGNOR if this assignment and sale has not been made,
to the end of the terms or terms for which the said Patent Rights are granted.

 

    	 

    	 

    

 

IN WITNESS WHEREOF
the said parties hereto have caused these presents to be duly executed by their respective officers duly authorized in their behalf
and shall be deemed effective from the date and year hereinbefore written.

 

	Medical Device International Limited	 
	 	 	 
	SIGNED AND DELIVERED by	)	 
	 	)	 
	In the presence of:-	)	/s/ 
	 	 	Name:  ARTHUR RAYMOND MALVETT
	 	 	Designation:  MANAGING DIRECTOR
	 	 	 
	/s/ 	 	 
	Name of Witness:  AIDA MALVETT	 	 
	Designation:  WITNESS	 	 
	 	 	 
	Life Care Medical Device Limited	 	 
	 	 	 
	SIGNED AND DELIVERED by	)	 
	 	)	 
	In the presence of:-	)	/s/ 
	 	 	Name: GLENN S. FOLEY
	 	 	Designation:  MANGING DIRECTOR
	 	 	 
	/s/ 	 	 
	Name of Witness:  RICHARD  KENT RIDDLE	 	 
	Designation:  WITNESS	 	 

 

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