Document:

RMB Capital Loan Contract 

 

Contract No.: [P2012M11SCSDQ0001-0003]

 

Type of loan: trust loan

 

	Borrower (Party A):  Chisen Electric Jiangsu Co., Ltd.
	 
	Domicile: Jinyuan Road, Xuyi Economic Development Zone, Jiangsu	Post code: 211700
	 	 
	Legal representative: Xu Kecheng
	 
	Financial Institution for Deposit: Xuyi Xinhua Sub-branch, Industrial and Commercial Bank of China 
	 
	Account No.: 1110090309200077630
	 
	Tel:0517-88555599	Fax: 0517-88556166 

 

	Lender (Party B): CITIC Trust Co., Ltd.
	 
	
        Domicile: F/13, Capital Mansion,
No. 6, Xinyuan South Road, Chaoyang District, Beijing
	Post Code: 100004
	 	 
	Legal representative: Pu Jian 
	 
	Financial Institution for Deposit: Beijing Capital Mansion Sub-branch, China CITIC Bank
	 
	Account No.: 7110210186800061319
	 
	Tel: 010-84861327	Fax: 010-84861380

 

Whereas, Party B agrees to grant the trust
loan to Party A out of the trust fund under the Fund Trust Contract for Stage 1201 of Chaowei Power and Jiangsu Chisen Trust Loan
Project (hereinafter referred to as “Fund Trust Contract”, No. P2012M11SCSDQ0001-0001) with the entrustment of the
Trustor, Chaowei Power Co., Ltd. (hereinafter referred to as “Trustor”), NOW, THEREFORE, the Contract is entered into
by and between the Parties through negotiation with respect to Party B’s disbursement of the trust loan to Party A. Either
party hereto shall abide by the Contract.

 

Article 1 Amount of the Loan 

 

1.1 The Loan under the Contract is of trust
loan. With respect to the trust fund under the Fund Trust Contract, the loan to be disbursed by Party B to Party A may not exceed
two hundred million RMB only (RMB200,000,000). The Loan shall be disbursed on installment according to the progress of Trustor’s
delivery of the trust fund and subject to Trustor’s written instructions.

 

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1.2 Within the loan period under the Contract,
the balance of the principal of the Loan may in no case exceed two hundred million (RMB200,000,000).

 

Article 2 Purpose of the Loan 

 

Party A shall use the Loan for supplementing
the working fund necessary for operating activities. Without Party B’s written consent, Party A shall not change the loan
purpose, including, but not limited to, investment in stocks, futures or financial derivatives, use for any project to which access
is prohibited by laws, regulations, regulatory rules and national policies or other projects which have not been approved in law,
and investment in other prohibited projects and purposes.

 

Article 3 Period of the Loan 

 

3.1 The loan period set forth herein
shall be 3 years from the date of disbursement, namely, from the 17th day of December, 2012 to the 16th day of December, 2015.

 

Regardless of the installments on which
the Loan hereunder is to be disbursed and the specific amount of the first installment of the Loan, the date of loan disbursement
as mentioned in the preceding paragraph refers to the date when the first installment of the Loan is disbursed.

 

Where the commencement date of the loan
period hereunder is different from the date of actual disbursement, the latter shall prevail.

 

3.2 Regardless of the specific amount of
the subsequent installment loans other than the first installment and the date of disbursement, each installment loan shall be
mature on the maturity date of the first installment of the Loan.

 

Article 4 Interest Rate, Interest Calculation
and Settlement 

 

4.1 Interest rate of the Loan

 

The interest rate of the Loan hereunder
is an annual interest. The interest rate is fixed, namely, 8% per year.

 

4.2 Interests

 

Interests on the installment of the Loan
hereunder shall be calculated on a daily basis. Daily rate = the annual rate/360.

 

The interests on each installment of the
Loan hereunder shall be calculated from the date of disbursement thereof. The interests on each installment of the Loan hereunder
shall be calculated on the basis of 360 days per year, from the aforesaid date of interest calculation to the last day of Borrower’s
occupation of such installment of the Loan. The formula of interest calculation is:

 

Interests on each installment of the Loan
= the balance of the principal of the installment of the Loan up to the date of interest calculation * actual days from the date
of interest calculation to the last day of Borrower’s occupation of such installment of the Loan * daily rate

 

Interests on the Loan shall be the sum
of interests of all installments of the Loan.

 

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Article 5 Disbursement of the Loan 

 

5.1 Conditions precedent for loan disbursement

 

Except for Party B’s waiver of all
or part of its rights, Party B shall not be obligated to disburse the installment loans hereunder until the following conditions
precedent are satisfied constantly:

 

1) the Contract is legally effective and
remains effective; the procedures for enforcement of notarization have been completed for the Contract and the notarial deed issued
by a notary office has been received;

 

2) the Parties have entered into the Joint
Repayment Contract (No. P2012M11SCSDQ0001-0012, recognized by Trustor) with Zhejiang Chisen Electric Co., Ltd.; the contract is
legally effective and remains effective; the procedures for enforcement of notarization have been completed for the contract and
the notarial deed issued by a notary office has been received;

 

3) the trust under the Fund Trust Contract
has been made in law; Trustor has, according to the Fund Trust Contract, pay each installment of trust fund on schedule and in
full amount and, with respect to each installment of trust fund, has issued a written instruction to Trustee for disbursement of
the trust loan to Borrower;

 

4) Party B has entered into the Pledge
Contract for Equity Interest in Maximum Amount (No. P2012M11SCSDQ0001-0006, recognized by Trustor) with Fast More Limited; the
contract is legally effective and remains effective; the procedures for enforcement of notarization have been completed for the
contract, the notarial deed issued by a notary office has been received and the impawn right thereunder has been created in law;

 

5) Party B has entered into the Pledge
Contract for Equity Interest in Maximum Amount (No. P2012M11SCSDQ0001-0007, recognized by Trustor) with Zhejiang Chisen Electric
Co., Ltd.; the contract is legally effective and remains effective; the procedures for enforcement of notarization have been completed
for the contract, the notarial deed issued by a notary office has been received and the impawn right thereunder has been created
in law;

 

6) Party B has entered into the Mortgage
Contract for Movable Estate in Maximum Amount (No. P2012M11SCSDQ0001-0008, recognized by Trustor) with Zhejiang Chisen Electric
Co., Ltd.; the contract is legally effective and remains effective; the procedures for enforcement of notarization have been completed
for the contract, the notarial deed issued by a notary office has been received and the mortgage right thereunder has been created
in law;

 

7) Party B has entered into the Mortgage
Contract for Movable Estate in Maximum Amount (No. P2012M11SCSDQ0001-0009, recognized by Trustor) with Party A; the contract is
legally effective and remains effective; the procedures for enforcement of notarization have been completed for the contract, the
notarial deed issued by a notary office has been received and the mortgage right thereunder has been created in law;

 

8) Party B has entered into the Floating
Mortgage Contract for Movable Estate in Maximum Amount (No. P2012M11SCSDQ0001-0010, recognized by Trustor) with Zhejiang Chisen
Electric Co., Ltd.; the contract is legally effective and remains effective; the procedures for enforcement of notarization have
been completed for the contract, the notarial deed issued by a notary office has been received and the mortgage right thereunder
has been created in law;

 

9) Trustor and Party B have entered into
the Commissioned Supervision Contract for Movable Estates (No. P2012M11SCSDQ0001-0004) with Zhejiang Chisen Electric Co., Ltd.
with respect to supervision of the mortgaged floating movable estates under the Floating Mortgage Contract for Movable Estate in
Maximum Amount (No. P2012M11SCSDQ0001-0010); the contract is legally effective and remains effective;

 

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10) Party B has entered into the Floating
Mortgage Contract for Movable Estate in Maximum Amount (No. P2012M11SCSDQ0001-0011, recognized by Trustor) with Party A; the contract
is legally effective and remains effective; the procedures for enforcement of notarization have been completed for the contract,
the notarial deed issued by a notary office has been received and the mortgage right thereunder has been created in law;

 

11) Trustor and Party B have entered into
the Commissioned Supervision Contract for Movable Estates (No.P2012M11SCSDQ0001-0005) with Party A with respect to supervision
of the mortgaged floating movable estates under the Floating Mortgage Contract for Movable Estate in Maximum Amount (No. P2012M11SCSDQ0001-0011);
the contract is legally effective and remains effective;

 

12) Party B has entered into the Guarantee
Contract (No.P2012M11SCSDQ0001-0013, recognized by Trustor) with Party A; the contract is effective legally and remains effective;
the procedures for enforcement of notarization have been completed for the contract and the notarial deed issued by a notary office
has been received;

 

13) Party A has not been involved in any
of the defaults set forth in the Contract or any of the circumstances set forth herein which may prejudice the safety of Party
B’s claims;

 

14) No law, regulation, rule or regulatory
department prohibits or restricts Party B’s disbursement or continual disbursement of each installment of the Loan hereunder.

 

5.2 Circulating disbursement

 

For the purpose of the Contract, circulating
disbursement refers to the activity that, from the date of loan disbursement hereunder until two years after expiration of the
loan period hereunder, Party B will continually disburse the Loan to Party A to the extent of total amount of the trust loan hereunder
after Party A early repays part of the principal of the Loan hereunder according to the Contract and Trustor issues a written instruction
to Party B. Each circulating disbursement shall be deemed as one installment of the trust loan hereunder.

 

With respect to the circulating disbursement
set forth in the preceding paragraph, the Parties hereto hereby confirm that

 

1) circulating disbursement shall not apply
in two years after expiration of the loan period hereunder;

 

2) if Party A early discharges the principals
of the Loan hereunder, the Contract shall be terminated and the circulating disbursement shall not apply;

 

3) circulating disbursement is of Party
B’s right (not Party A’s obligation in any case), and whether Party B’s exercise of such right is subject to
Trustor’s requirement.

 

5.3 Each installment of trust loan hereunder
shall be disbursed to the following account designated by Party A in full amount:

 

Name: Chisen Electric Jiangsu Co., Ltd.

 

Bank:

 

Account No.:

 

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Article 6 Repayment 

 

6.1 Joint repayment

 

Party A agrees and undertakes to agree
Zhejiang Chisen Electric Co., Ltd. to act as the joint repayer for the trust loan under the Contract and to assume joint and several
repayment liability together with Party A for the obligation to repay principals and pay interests on the trust loan hereunder.

 

6.2 Payment of interests

 

Method for payment of the interests on
the Loan under the Contract: the day of interest payment shall be March 10, June 10, September 10 and December 10 of every year
after the Contract becomes effective and the first installment of the trust loan hereunder is disbursed, and any day of pre-repayment
by Borrower (except for the payment day for the last installment of interest). Interests payable with respect to each installment
of the Loan shall be calculated on the basis of the specific days of occupation. In case of pre-repayment, Party A shall first
pay off the existing but outstanding interests. The payment day for the last installment of interest is the maturity date of the
Loan hereunder, on which Party A must pay off the remaining principals of the Lon and all interests due but unpaid.

 

If the day of interest payment set forth
in the preceding paragraph is not a business day, it shall be postponed to the next business day. In case of any other stipulation
in Article 6.8 hereof on the method for interest payment, such stipulation shall apply.

 

6.3 Repayment of principals

 

The principals of the Loan hereunder shall
be repaid as follows: to make repayment on a lump-sum basis on the maturity date.

 

In case of any other stipulation in Article
6.5 hereof, such stipulation shall apply.

 

In case of any other stipulation in Article
6.8 hereof on the method for principal repayment, such stipulation shall apply.

 

6.4 Principals repaid and interests paid
by Party A shall be remitted to the following account designated by Party B:

 

Name: CITIC Trust Co., Ltd.

 

Bank: CITIC Bank Beijing Capital Mansion
Sub-branch

 

Account No.: 7110210186800088263

 

6.5 Party B shall have the right to first
reimburse various costs which, according to the Contract, shall be assumed by Party A but paid in advance by Party B and the costs
and expenses incurred to Party B from realization of the claims out of the repayments received from Party A.

 

Where repayments received from Party A
are insufficient to cover the accounts payable to Party B hereunder, including, but not limited to, principal, interests, penalty,
damages, costs for realization of claims and all other accounts payable, Party B shall have the right to decide the payment order:
costs, default interests, interests and principal.

 

6.6 Pre-repayment

 

After the Contract becomes effective and
the first installment of the trust loan hereunder is disbursed, Party A may repay all or part of the Loan hereunder in advance,
in which case Party A shall send a written notice to Party B 5 business days in advance, unless otherwise stipulated in Paragraph
2 of this clause.

 

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Party A shall at least repay 25% of the
remaining principal of the Loan hereunder respectively on or prior to 27 months, 30 months and 33 months as of the expiry date
of the loan period hereunder.

 

Remaining principal of the Loan as mentioned
in the preceding paragraph refers to that when the loan period hereunder has been expired for 2 years.

 

If the day of interest payment set forth
in the preceding paragraphs 1 and 2 is not a business day, it shall be postponed to the next business day.

 

6.7 Extension

 

Unless Party B receives the consent from
Trustor to the Fund Trust Contract, the Loan hereunder may not be extended.

 

If Party B receives the written permission
of loan extension from Trustor to the Fund Trust Contract, the Parties hereto agree to extend the Loan and otherwise enter into
relevant contracts, agreements or other deeds, and Party A warrants that all guarantors and joint repayers (including Party A itself)
will enter into relevant contracts, agreements or other deeds with Party B.

 

6.8 Special stipulations on method for
repayment of principals

 

It is hereby confirmed that, if Party A
fails to discharge (include discharge in advance) principals and/or pay relevant interests on schedule on any day of principal
repayment and interest payment set forth herein, and the claims of Party A or joint repayer against Trustor set off the principal
of the trust loan hereunder according to relevant transaction contract between Party A or joint repayer and Party B, which has
been effective and exists constantly,

 

Party B will determine on the principal
to be released according to the amount set forth in the written notice of debt release which is sent to Party B from Trustor; and
Party B will send a written notice of debt release which is sent to Party A, releasing the principal set forth in the written notice;
meanwhile, Party B will require Party A to pay relevant interests on the debt released; and

 

Party A shall send a written letter to
Party B, confirming the fact of debt release; in addition, Party A shall, according to the Contract, pay relevant interests on
the debt released to Party B.

 

6.9 Special stipulations on distribution
of interests by means of claims due to termination of the trust under the Fund Trust Contract

 

1) According to the Fund Trust Contract
between Trustor and Party B, if Party A fails to repay the principal and pay relevant interests in full amount and on schedule,
Trustor agrees Party B to pay trust interests out of the claims against Party A hereunder.

 

Party A is aware of and agrees on the arrangement
as mentioned in the preceding paragraph.

 

2) If Party A becomes aware that Trustor
intends to sign a confirmation with Party B, confirming trust interests and values received from Party B out of its claims against
Party A hereunder, Party A undertakes to actively cooperate with Trustor and Party B in making legal documents concerning transfer
of relevant claims and debts.

 

Party A is also aware that the security
interest will be transferred in case of transfer of the claim according to the preceding 2 paragraphs; legal documents concerning
transfer of relevant claims and debts which are executed according to the preceding paragraph include the legal documents concerning
transfer of security interest due to transfer of relevant claims and debts and the legal documents concerning alteration registration
of security interest. Party A undertakes that it and other guarantors will actively cooperate with Trustor in entering into the
legal documents concerning transfer of security interest due to transfer of relevant claims and debts and the legal documents concerning
alteration registration of security interest with Party B.

 

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Article 7 Guarantee 

 

7.1 The scope of guarantee provided by
Party A under the Contract and all debts hereunder include, but are not limited to, all principals, interests (including compound
interests and default interests), penalty, damages, other amounts to be paid by debtor to Party B (including, but not limited to,
relevant commissions, communications fee and incidental expenses), costs and expenses incurred to Party B from realization of claims
and security interest (including, but not limited to, legal cost, arbitration fee, property preservation fee, traveling expenses,
enforcement fee, evaluation fee, auction fee, notarization fee, service fee, announcement fee and attorney fee).

 

7.2
Party A warrants and will procure guarantors to agree that Party B has the right to choose one or more guarantors and one or more
guarantee methods to realize the security interests, and that Party B’s choice will not affect or exclude any right entitled
to Party B in law and under other guarantee contracts. Unless otherwise indicated by Party B in writing, Party B’s
non-exercise, partial exercise and/or late exercise of any security interest shall not constitute Party B’s waiver or partial
waiver thereof, nor affect, prevent and prejudice Party B’s further exercise of such right or exercise of any other right.

 

7.3
Party A provides the following guarantees to Party B for performance of the obligation to repay principals and pay interests with
respect to the Loan hereunder:

 

1)
Fast More Limited provides the pledge guarantee of equity interest in the maximum amount for the trust loan hereunder with 100%
of the equity interest it holds in Zhejiang Chisen Electric Co., Ltd. (relevant amount of capital contribution is RMB120 million);

 

2)
Zhejiang Chisen Electric Co., Ltd. provides the pledge guarantee of equity interest in the maximum amount for the trust loan hereunder
with 98% of the equity interest it holds in Chisen Electric Jiangsu Co., Ltd. (relevant amount of capital contribution is RMB147
million);

 

3)
Zhejiang Chisen Electric Co., Ltd. provides the mortgage guarantee of movable estates in the maximum amount for the trust loan
hereunder with all machinery equipment it owns;

 

4)
Party A provides the mortgage guarantee of movable estates in the maximum amount for the trust loan hereunder with all machinery
equipment it owns;

 

5)
Zhejiang Chisen Electric Co., Ltd. provides the floating mortgage guarantee of movable estates in the maximum amount for the trust
loan hereunder with all stocks it owns, including finished products or commodities which are for sale, goods in process, materials
and articles used during production;

 

6)
Party A provides the floating mortgage guarantee of movable estates in the maximum amount for the trust loan hereunder with all
stocks it owns, including finished products or commodities which are for sale, goods in process, materials and articles used during
production;

 

7)
Xu Kecheng, Party A’s actual controller, assumes joint and several liability for the guarantee for the trust loan hereunder.

 

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Article
8 Party A’s Rights and Obligations 

 

8.1
Party A has the right to require Party B to disburse the Loan according to the Contract.

 

8.2
Party A has the right to use the Loan for the purpose set forth herein.

 

8.3
Party A has the right to require Party B to keep confidential relevant financial materials and trade secrets with respect to the
production and operation which are provided by Party A, unless otherwise provided for by laws, regulations and rules, or required
by relevant authorities or agreed otherwise.

 

8.4
Party A shall draw the Loan according to the Contract, repay the principal and pay relevant interests in full amount. Party A
shall be responsible for various expenses and fees set forth herein, including, but not limited to, trust remuneration and costs
for notarization, evaluation, appraisal and registration, if any.

 

8.5
Party A shall use the Loan only for the purpose set forth in Article 2 hereof and may not appropriate or embezzle the Loan, nor
use the Loan for any transaction in violation of laws or regulations. Party A shall cooperate in and accept Buyer’s inspection
and supervision upon its production, operation and financial activities and use of the Loan hereunder. Party A may not withdraw
the funds, transfer its assets or escape from the debts to Party B by means of related-person transactions.

 

8.6
Party A shall ensure that the guarantee for the Loan under the Contract is true, valid and effective. In case of any circumstance
set forth in Article 11 of the Contract in which the guarantor, collateral or pawn may be involved, which may prejudice Party
B’s claim, Party A shall in time provide other guarantee accepted by Party B; otherwise, Party B shall have the right to
declare the Loan becomes due early.

 

8.7
Party A shall be responsible for the authenticity, accuracy and completeness of the materials provided during loan examination.

 

8.8
Party A shall consciously accept Party B’s investigation, understanding of and supervision upon use of the Loan hereunder
and submit the financial report to Party B on a quarterly basis.

 

8.9
With respect to the letter of collection or other similar document sent or otherwise served by Party B, Party A shall sign for
it and send the receipt thereof to Party B within 3 days.

 

8.10
In case of work contracting, lease, stock system reformation, joint operation, merger, combination, joint venture, division, reduction
of registered capital, changes in equity interests, transfer of major assets and any other activity which may affect realization
of Party B’s rights and interests, Party A shall notify Party B at least 30 days in advance and obtain Party B’s written
consent; otherwise, Party A may not conduct any of the aforesaid activities until it discharges all debts hereunder.

 

8.11
In case of alterations to domicile, correspondence address, scope of business, legal representative and other registered information,
Party A shall send a written notice to Party B within 7 days as of the date of alteration.

 

8.12
In case of any other event which may endanger Party A’s normal operation or take material adverse effect on Party A’s
performance of repayment obligation hereunder, including, but not limited to, major economic disputes, bankruptcy and bad financial
conditions, Party A shall send a written notice to Party B immediately.

 

8.13
In case of closure, dissolution, winding up, revocation of business license or cancellation, Party A shall send a written notice
to Party B within 5 days thereafter and ensure to repay all principals and pay relevant interests immediately.

 

8.14
Party A shall abide by other stipulations hereof.

 

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Article
9 Party B’s Rights and Obligations 

 

9.1
Party B shall have the right to require Party A to repay the principals and pay relevant interests and expenses with respect to
the Loan on schedule, to exercise other rights according to the Contract and to require Party A to perform other obligations hereunder.

 

9.2
Party B shall have the right to require Party A to provide all materials concerning application for the Loan.

 

9.3
In case of Party A’s violation of the payment obligation set forth herein, Party B shall, according to the Contract or laws,
deduct the principals, interests, compound interests, penalty interests and all other accounts payable by Party A hereunder from
any of Party A’s account with any financial institution

 

9.4
Where Party A escapes from Party B’s supervision, delays in repaying principals and paying interests due or conducts any
other default, Party B shall have the right to take necessary legal, economic and administrative measures to safeguard its own
legitimate rights and interests.

 

9.5
Party B shall disburse the Loan according to the Contract, except for delay due to any reason attributable to Party A or beyond
Party B’s control.

 

9.6
Party B shall have the right to take back, whether early or according to laws or the Contract, the principals, interests, interests
on overdue payment, penalty and other accounts payable in connection with the Loan.

 

9.7
Party B shall keep confidential all the materials and information provided by Party A concerning debts, finance, production and
operation, unless otherwise stipulated herein or provided for by laws and regulations.

 

9.8
Party B shall abide by other stipulations hereof.

 

Article
10 Party A’s Statements and Covenants 

 

Party
A makes the following statements and covenants to Party B and Party B may disburse the Loan hereunder on the basis of the statements
and covenants:

 

10.1
Party A is a legal person registered in accordance with the laws and regulations of the People’s Republic of China; as of
the date of loan disbursement, Party A is conducting normal operating activities and there is not any factor which results or
may result according to reasonable expectation that Party A cannot conduct normal operation during the loan period;

 

10.2
Party A’s execution of the Contract and performance of the obligations hereunder conform to laws, administrative rules and
regulations and Party A’s articles of association or internal constitutional documents; Party A has obtained the approvals
and legal authorizations from its internal departments and/or state authorities;

 

10.3
All documents and materials provided by Party A to Party B, including, but not limited to, financial statements, existing loan
contracts with other financial institutions and guarantees provided for other persons and/or itself, are true, accurate, legal
and valid;

 

Party
A’s execution and performance of the Contract do not conflict any provisions (including articles of association) which are
binding upon Party A and its assets and other stipulations, including, but not limited to, any guarantee provided to other persons
and/or itself;

 

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10.4
Except for the information disclosed to Party B in writing, Party A has not kept Party B from any of the existing or possible
events as follows under which Party B may refuse disbursement of the Loan hereunder:

 

1)
major activity in violation of disciplines and laws or claims in which Party A or its main leaders are involved;

 

2)
defaults under the contracts between Party A and any other creditors;

 

3)
pending suits and arbitrations;

 

4)
debts or contingent debts assumed by Party A, mortgage or pawn guarantee to third persons;

 

5)
other circumstances which may affect Party A’s financial conditions and repayment capability;

 

10.5
No matter whether Party A has executed, or will execute, any counter-guarantee agreement or other similar agreements with the
guarantor hereunder with respect to the guarantee obligation, such agreement will not prejudice any of Party B’s rights
and interests hereunder, whether in law or actually.

 

10.6
Party A agrees Party B to investigate Party A’s credit status via the credit database which is established with approval
of the People’s Bank of China and the competent department of loans and credits or via other relevant entities or departments,
and to provide Party A’s information to such credit database. In addition, Party A agrees that Party B may use and disclose
Party A’s information in a reasonable way in terms of specific demands for business.

 

10.7
Party A hereby specially covenants that, during the loan period hereunder, Party A may not increase its capital except with Trustor’s
written consent;

 

Party
A warrants that it shareholders will make a written covenant to Trustor that, during the loan period hereunder, they will not
exercise the voting right, whether separately or jointly, to form a resolution of the shareholders’ meeting on the increase
of Party A’s capital.

 

For
the purpose of this clause, “Increase of Capital” refers to increase of Party A’s registered capital by Party
A’s existing shareholders or other persons in currency or non-currency asset, exclusive of the shares granted by Party A
out of the undistributed profits, conversion of surplus reserves and capital reserves to registered capital.

 

10.8
Party A hereby specially covenants that, during the loan period hereunder, Party A will agree on Trustor’s requirements
to increase capitals to Party A;

 

Party
A covenants that its shareholders will make a written promise to Trustor that, during the loan period hereunder, they will exercise
the voting right, whether separately or jointly, to form effective resolutions on the increase of Party A’s capital if Trustor
requires for increase;

 

10.9
Party A hereby specially covenants that its shareholders will execute the Articles of Association of Chisen Electric Jiangsu Co.,
Ltd. (Amendment in 2012) and form effective resolutions with respect to amendment to the articles of association;

 

10.10
Party A hereby specially covenants that, during the loan period hereunder, it will appoint one person designated by Trustor as
Party A’s director (including supplementation) according to its articles of association.

 

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Party
A warrants that its shareholders will make a written covenant to Trustor that, during the loan period hereunder, they will exercise
the voting right, whether separately or jointly, to make the person designated by Trustor appointed as Party A’s director,
and that they will not exercise the voting right, whether separately or jointly, to dismiss such director except that the director
must be dismissed in accordance with laws, administrative regulations and Party A’s articles of association; if, during
the loan period hereunder, the director resigns or dies, they ensure to exercise the voting right, whether separately or jointly,
to add one person designated by Trustor as Party A’s director.

 

Article
11 Default Liability and Remedies against Circumstances Prejudicing Party B’s Claims 

 

11.1
Party B’s default and default liability

 

1)
If Party B fails to disburse the Loan according to the Contract without just cause, Party A may require Party B to continually
disburse the Loan according to the Contract;

 

2)
If Party B collects from Party A any interest or fee which should not be collected in violation of prohibition provisions of state
laws or regulations, Party A shall have the right to require Party B to refund it.

 

11.2
Party A’s defaults

 

1)
Party A is in breach of any of the terms hereof or any legal obligations;

 

2)
Party A or any of its shareholders is in breach of any covenants contained in Articles 10.7, 10.8, 10.9 and 10.10 hereof;

 

3)
Party A demonstrates, expressly or impliedly, that it will not perform any obligation hereunder.

 

11.3
Circumstances which may prejudice Party B’s claims

 

1)
In case of any of the following circumstances which Party B deems may prejudice the safety of the claims hereunder: work contracting,
trust (takeover), lease, stock system reformation, reduction of registered capital, investment, joint operation, merger, combination,
acquisition, reorganization, division, joint venture, voluntary or passive application for winding up, application for dissolution,
being canceled, voluntary or passive application for bankruptcy, change in controlling shareholder/actual controller, transfer
of major assets, shut down, closure, high amount of fines by certain authorities, registered issues being imposed, business license
being revoked, being involved in major legal disputes, serious difficulties in production or operation, bad financial conditions,
or failure of legal representative or main principal and individual guarantor to perform normal duties;

 

2)
In case of any of the following circumstances which Party B deems may prejudice the safety of the claims hereunder: Party A fails
to discharge other due debts (including those to Party B or other third person), transfers its properties at a low price or without
consideration, reduce a third person’s debts, delays in exercising claims or other rights or provides a guarantee to a third
person;

 

3)
Party A’s shareholders misuse the company’s status of independent legal person or shareholders’ limited liability
and escape from debts, which Party B deem may prejudice the safety of the claims hereunder;

 

4)
Any of the conditions precedent for loan disbursement set forth herein cannot be satisfied constantly;

 

    	11

    	 

    

 

5)
In case of any of the following circumstances which Party B deems may prejudice the safety of the claims hereunder: (i) violation
of any of the terms of relevant guarantee contract, or the statements and warrants contain any false or error information, or
some information is omitted; (ii) work contracting, trust (takeover), lease, stock system reformation, reduction of registered
capital, investment, joint operation, merger, combination, acquisition, reorganization, division, joint venture, voluntary or
passive application for winding up, application for dissolution, being canceled, voluntary or passive application for bankruptcy,
change in controlling shareholder/actual controller, transfer of major assets, shut down, closure, high amount of fines by certain
authorities, registered issues being imposed, business license being revoked, being involved in major legal disputes, serious
difficulties in production or operation, bad financial conditions, or failure of legal representative or main principal and individual
guarantor to perform normal duties, which may affect the guarantor’s capability to assume the guarantee; (iii) other circumstances
which result in actual or possible loss of the warrant capability;

 

6)
the guarantee cannot be accepted, become effective or invalid, is canceled or rescinded, or the guarantor is in breach of the
contract or shows, expressly or impliedly, that it will not perform the guarantee liability, or the guarantor loses all or part
of the guarantee capability, or the value of collateral reduces, which Party B deems may prejudice the safety of the claims hereunder;

 

7)
Party A’s controlling shareholder/actual controller/legal representative/individual guarantor loses the civil capability
or is subject to criminal compulsory measures;

 

8)
There is any other circumstance which may prejudice the safety of the claims hereunder.

 

11.4
Party B’s remedies

 

In
case of any of the circumstances set forth in Article 11.2 or 11.3 hereof, Party A shall send a written notice to Party B within
two days thereafter. Party B shall have the right to require Party A to correct its default and to exercise the following rights,
separately or jointly. If Party A fails to correct its default within 5 business days after Party B sends the notice, Party B
shall have the right to exercise the following rights:

 

1)
to stop disbursing the Loan (including any loan in any period);

 

2)
to declare the Loan becomes due immediately and require Party A to forthwith repay all principals, interests and fees with respect
to all due and undue debts hereunder;

 

3)
to require Party A to pay the penalty equal to 5% of the embezzled funds if Party A fails to use the Loan for the purpose set
forth herein;

 

4)
to, if Party A fails to make repayment on the maturity date of the Loan or the date when Party B declares the Loan becomes due
early, collect penalty interest at a daily rate of 0.1% of the outstanding amount; to, if Party A fails to pay the interests in
full amount on schedule, collect compound interest at a daily rate of 0.1% of the outstanding amount;

 

5)
Items 3) and 4) shall apply if Party A fails to use Loan for the purpose set forth herein and to repay the Loan on schedule;

 

6)
to require Party A to provide new guarantee which meets Party B’s requirement for all debts hereunder;

 

7)
to exercise the security right;

 

8)
to rescind the Contract.

 

Article
12 Alteration, Transfer, Rescission or Termination 

 

12.1
After signing the Contract, neither party may alter or rescind the Contract unilaterally.

 

12.2
Alterations to the Contract shall be subject to unanimous consent of the Parties and specified in a written agreement.

 

    	12

    	 

    

 

12.3
Party B has the right to transfer its rights and obligations under the Contract and the Guarantee Contract to a third person.
Without Party B’s consent, Party A may not transfer its rights and obligations hereunder to a third person.

 

12.4
The Contract may be rescinded or terminated in case of the following circumstances:

 

1)
the Parties enter into a written agreement though negotiation;

 

2)
either party is in material breach of the Contract or fails to make correction within 3 days after receiving the other party’s
requirement for correction, the other party shall have the right to rescind or terminate the Contract;

 

3)
the Contract is to be rescinded or terminated according to pertinent laws or other clauses hereof.

 

Article
13 Applicable Law and Dispute Settlement 

 

13.1
The Contract shall be governed by the laws of the People’s Republic of China.

 

13.2
Any and all disputes arising from performance of the Contract may be settled through negotiation between the Parties; where negotiation
fails, the following method shall apply: either party may bring a suit with the People’s Court having the jurisdiction upon
the place where Party B is located.

 

Article
14 Enforcement of Notarization

 

14.1
Once notarized, the Contract becomes an enforceable deed of claim. Party A covenants that, if Party A fails to perform any or
all of its obligations hereunder, it is willing to accept the enforcement of certain judicial organ, without legal proceedings,
and that Party B may, in accordance with Article 214 of the Civil Procedure Law, apply to the People’s Court having jurisdiction
for enforcement; meanwhile, Party A waives the defense right. 

 

14.2
It is confirmed that the Parties hereto have fully understood the meanings, contents, procedures and effectiveness of pertinent
laws, regulations and regulatory documents concerning enforcement of notarization.

 

14.3
Where Party A fails to perform, or performs in an improper way, the notarized deed of claim which is enforceable, Party B shall
send a written notice to Party A of correction of such default within 5 business days as of the date of the notice; otherwise,
Party B may apply to the notary office for a certification of enforcement and Party A shall cooperate with the notary office within
the period notified by Party B in completing the face-to-face verification procedures. Party A undertakes to cooperate in Party
B’s application in all aspects, including, but not limited to, cooperation with the notary office within the period notified
by Party B in completing the face-to-face verification procedures. If Party A fails to perform the aforesaid obligation after
receiving a written notice from Party B, Party A hereby confirms that, in case of Party A’s absence, the notary office shall
be deemed having completed the face-to-face verification procedures after it completes the verification work subject to its internal
flow according to Party B’s application, and that Party A accepts all legal consequences arising therefrom.

 

14.4
The stipulations of Article 14 hereof on enforcement of notarization shall prevail over Article 13 hereof, Applicable Law and
Dispute Settlement.

 

14.5
It is agreed to appoint Beijing Fangyuan Notary Office to go through the legal procedures for enforcement of notarization with
respect to the Contract and to issue a notarial deed.

 

    	13

    	 

    

 

Article
15 Miscellaneous 

 

15.1
Cost

 

Party
A shall be responsible for

 

1)
insurance, evaluation, registration, safekeeping, appraisal and notarization in connection with the Contract and the guarantee
hereunder, unless otherwise agreed;

 

2)
all costs incurred to Party B from realization of claims and security right, including, but not limited to, legal cost, arbitration
fee, property preservation fee, traveling expenses, enforcement fee, evaluation fee, notarization fee, service fee, announcement
fee and attorney fee.

 

15.2
Notice

 

1)
Unless otherwise stipulated herein, each and all notices between the Parties under the Contract may be sent to the following addresses
by fax, mail, express or other methods agreed:

 

Party
A: Chisen Electric Jiangsu Co., Ltd.

 

Add.:
Jinyuan Road, Xuyi Economic Development Zone, Jiangsu, 211700

 

Attn.:
Zhao Feng

 

Tel:
0517-88555599

 

Fax:
0517-88556166

 

Party
B: CITIC Trust Co., Ltd.

 

Add.:
Room 4602, Capital Mansion, No. 6 South Xinyuan Road, Chaoyang District, 100004, Beijing

 

Attn.:
Hao He

 

Tel:
010-84861259

 

Fax:
010-84861355

 

2)
Any party subject to any change in its correspondence address or contact information shall forthwith send a written notice to
the other party of such change; otherwise, the changing party shall be fully responsible for the losses arising from failure to
make a notice in time.

 

15.3
Right Reserved

 

Party
B’s rights under the Contract shall not prejudice or exclude any of its rights available in accordance with laws, regulations
and other contracts. Party B’s toleration, extension or preference of any default or delay, or Party B’s late exercise
of any of its rights hereunder, shall not be deemed as Party B’s waiver of its rights and interests hereunder or as permission
or acceptance of any breach of the Contract, nor restrict, prevent or affect Party B’s further exercise of such right or
exercise of any other right, nor create Party B’s obligation and liability to Party A.

 

15.4
The Contract takes effect with signatures or seals of the Parties’ respective legal representatives or authorized representatives
and the common seals of the Parties.

 

15.5
Any matter uncovered herein may be specified in a written agreement between the Parties; such agreement shall be deemed as an
annex to the Contract. Any annexes and modifications to or supplementation with the Contract shall be an integral part of the
Contract and have equal legal effect with the Contract.

 

    	14

    	 

    

 

Annexes
hereto:

 

1)
Joint Repayment Contract (No.P2012M11SCSDQ0001-0012) between the Parties hereto and Zhejiang Chisen Electric Co., Ltd.;

 

15.6
The Contract shall be in ten copies with equal legal effect, one for each party hereto, one for Guarantor and the remaining used
for the completion of relevant procedures for enforcement and notarization.

 

15.7
Party A has read all the clauses of the Contract. Party B has at Party A’s request explained relevant clauses hereof.Party
A has been fully aware of and understood the meanings of the clauses hereof and relevant legal consequences.

 

[The
Remainder of This Page is Intentionally Left Blank] 

 

    	15

    	 

    

 

This
page is intentionally left blank, solely for the signature of the RMB Capital Loan Contract numbered P2012M11SCSDQ0001-0003.

 

	 
	 
	 
	 
	Party
    A:  Chisen Electric Jiangsu Co., Ltd. (official seal)
	 
	 
	Legal
    representative/Authorized representative (signature/seal):  /s/ Authorized Representative
	 
	 
	Signed
    on: December 17, 2012
	 
	 
	 
	 
	Party
    B: CITIC Trust Co., Ltd. (official seal)
	 
	 
	Legal
    representative/Authorized representative (signature/seal):  /s/ Authorized Representative
	 
	 
	Signed
    on: December 17, 2012

 

    	16Entrusted Supervision Contract of Personal
Property

 

No.:
[P2012M11SCSDQ0001-0005]

 

	Trustor (Party A): CITIC Trust Co., Ltd.
	 
	Domicile: F/13, Capital Mansion, No.6, Xinyuan South Road, Chaoyang District, Beijing	Post Code: 100004
	 	 
	Legal representative: Pu Jian
	 
	Financial Institution for Deposit: Beijing Capital Mansion Branch, China CITIC Bank
	 
	Account No.: 7110210186800061319
	 
	Tel: 010-84861327	Fax: 010-84861380
	 	 
	Supervisor (Party B): Chaowei Power Supply Co., Ltd.
	 
	Domicile: Xinxing Industrial Park, Zhicheng, Changxing, Zhejiang Province	Postal code: 313100
	 	 
	Legal representative: Zhou Mingming
	 
	Financial Institution for Deposit: Changxing Jiefang East Road Branch, China Construction Bank
	 
	Account No.: 330647242012210000000120
	 
	Tel: 0572-6115081	Fax: 0572-6115081

 

	Supervisee (Party C): Chisen Electric Jiangsu Co., Ltd.
	 
	Domicile: Jinyuan Road, Xuyi Economic Development Zone, Jiangsu	Post Code: 211700
	 	 
	Legal representative: Xu Kecheng
	 
	Financial Institution for Deposit: Xuyi Xinhua Branch, Industrial and Commercial Bank of China
	 
	Account No.: 1110090309200077630
	 
	Tel: 0517-88555599	Fax: 0517-88556166

 

    	1

    	 

    

 

WHEREAS:

 

1. Party A (as the Trustee) accepts the
entrustment of Party B hereto, namely the principal under 1201 Period Capital Trust Contract of Loan Project Between Chaowei
Power Supply-Jiangsu Chisen numbered [P2012M11SCSDQ0001-0001] (hereinafter referred to as the Capital Trust Contract)
the entrustment by the Trustor, i.e. Party B under the Contract, to release the trust loan to Party C by using the trust fund under
Capital Trust Contract.

 

2.
Party A and the Borrower hereto entered into the RMB Capital Loan Contract (hereinafter referred to as Loan
Contract) numbered [P2012M11SCSDQ0001-0003] on  December 17, 2012, where Party B shall provide the trust loan no
exceeding RMB Two Hundred Million Yuan Only (in figure: ¥200,000,000.00 yuan), with
the annual interest rate of 8% and loan term of three years. 

 

Party A, Party C and Zhejiang Chisen
Electric Co., Ltd. (the co-payer) hereto entered into Joint Repayment Contract numbered [P2012M11SCSDQ0001-0012] on  December
17, 2012, where Party C and the Borrower shall jointly assume the obligation of paying off the principal and interest under
the Loan Contract.

 

The Loan Contract and Joint Repayment
Contract collectively constitute the Main Creditor’s Right Contract (hereinafter referred to as the “Main Contract”).

 

3. In order to guarantee Party
A’s creditor’s right under the Main Contract, Party A and Party C under the Contract entered into Contract for
Personal Property Mortgage in Maximum Amount numbered [P2012M11SCSDQ0001-0011] on  December 17, 2012, and Party C
shall, with its owned inventory, arrange the guaranty for maximum amount floating mortgage for Party A.

 

4. Party A is willing
to entrust Party B with the supervision of the mortgaged personal property under Contract for Personal Property Mortgage in
Maximum Amount (No. P2012M11SCSDQ0001-0011) by the means and conditions agreed in the Contract; Party B is willing to accept
Party A’s entrustment to supervise the mortgaged personal property under Contract for Personal Property Mortgage in Maximum
Amount (No. P2012M11SCSDQ0001-0011); and Party C, aware of and agreeing with such entrust relationship between Party A and
Party B as well as the related issues arising therefrom, is willing to accept the management of Party B with respect to the supervision
of mortgaged personal property under Contract for Personal Property Mortgage in Maximum Amount (No. P2012M11SCSDQ0001-0011)
in such ways and under such conditions as agreed upon herein.

 

The three parties hereby enter into this
Contract in respect to the supervision, entrusted supervision and other related matters of the mortgaged personal property under
Contract for Personal Property Mortgage in Maximum Amount (No.P2012M11SCSDQ0001-0011) upon consultation based on relevant
laws, administrative regulations and terms of Capital Trust Contract for joint observance.

 

Article 1Supervision of Personal
Property

 

Clause 1.1The personal property
under supervision herein refers to the inventories provided by Party C (as the Mortgagor) for Party A (as the Mortgagee) as the
floating mortgage of personal property under Contract for Personal Property Mortgage in Maximum Amount numbered as [P2012M11SCSDQ0001-0011].

 

    	2

    	 

    

 

The inventory mentioned in previous paragraph
include the finished products or commodities held by Party C and ready for sale (hereinafter referred as the “finished products”),
the unfinished products still in process (hereinafter referred as the “unfinished product”) and the materials used
and consumed during production (hereinafter referred as the “raw materials”).

 

Clause 1.2The supervision period
under the Contract falls in a time from the effective date of the Contract and the Contract for Personal Property Mortgage in
Maximum Amount (numbered as [P2012M11SCSDQ0001-0011]) to the settlement date of all liabilities and debts under the Main Contract.

 

Clause 1.3The supervision scope
of personal property under the Contract shall cover both the initial supervision scope and dynamic supervision scope.

 

The initial supervision scope previously
mentioned refers to the all inventory listed in Clause 17-“Mortgage Property List” of the Contract for Personal
Property Mortgage in Maximum Amount (numbered as [P2012M11SCSDQ0001-0011]).

 

The dynamic supervision scope provided
in paragraph 1 of this clause refers to the changed inventory resulting from the daily business of Party C, and such changes include
inventory type change (inventory of raw materials is changed to that of unfinished products or finished products, or inventory
of unfinished products is changed to that of finished products), inventory increase caused by purchase of raw materials or inventory
decrease caused by sales of products, inventory disposition with rational reasons and inventory short or inventory profit pursuant
to financial and accounting system.

 

Article 2Entrusted Supervision

 

Clause 2.1Party A is willing to entrust
Party B to supervise the personal property under the Contract in such ways and under such conditions as agreed upon in the Contract,
and Party B is willing to accept such entrustment, and Party C, aware of and agreeing with such entrustment relationship between
Party A and Party B as well as the related issues arising therefrom, is willing to accept the management of Party B with respect
to the supervision of personal property under the Contract in such ways and under such conditions as agreed upon herein.

 

Clause 2.2As regards the supervision
of personal property falling in the initial supervision scope, Party B shall confirm with Party C the details, entitlement (right
defect or limitation included), acquired value, book value and storage location in view of such supervision, and shall employ competent
evaluator to assess the value of the personal property under such supervision.

 

With respect to the personal property supervision
details of “Mortgage Property List” confirmed through such supervision as described above as well as the value of mortgaged
properties listed thereon and the assessment reports provided by the evaluator employed by Party B which have been accepted by
Party B, Party A shall directly adopt without any obligation to review. Party B shall, on its own, bear any legal and/or economic
responsibility for the authenticity of the inventory together with the value presented on the Mortgage Property List.

 

    	3

    	 

    

 

Clause 2.3Party B shall observe
the Management Manual of Mortgage Property when performing supervision of personal property falling in such dynamic supervision
scope as provided in paragraph 3 of Clause 1.3, and Party A is not obligated to review such manual. As opposed to Party A, Party
B shall, on its own, bear any legal and/or economic liability for any legal defect of such manual and any action together with
all results arising therefrom taken for the purpose of such manual. As opposed to Party C, both parties shall on their own settle
down any dispute arising from and/in connection with the establishment, execution, entry into force, effect, performance and interpretation
of such manual, with nothing to do with Party A.

 

The Management Manual of Mortgage Property
previously mentioned shall constitute an attachment to the Contract.

 

Clause 2.4For the purpose of
dynamic supervision, on March 31, June 30, September 30 and December 31 in each year following the effective date of the Contract
and the Contract for Personal Property Mortgage in Maximum Amount (numbered as [P2012M11SCSDQ0001-0011]), Party B shall
verify with Party C the details, entitlement (right defect or limitation included), acquired value, book value and storage location
in view of the personal property supervision then, and shall employ competent evaluator to assess the value of the supervised personal
property if required.

 

Any updated details of personal property
of Mortgage Property List confirmed through such supervision as described in last paragraph shall serve as an appendix to the Contract
and replace the previous Mortgage Property List. With respect to such list together with the value of mortgaged properties listed
thereon and all assessment reports provided by the evaluator employed by Party B (if any) which have been accepted by Party B,
Party A shall directly adopt without any obligation to review. Party B shall, on its own, bear any legal and/or economic responsibility
for the authenticity of the inventory together with the value presented on the updated Mortgage Property List. Party B shall also
on its own bear any legal liability and responsibility for any resulted change to and value decrease of the mortgaged properties
under the Contract for Personal Property Mortgage in Maximum Amount (numbered as [P2012M11SCSDQ0001-0011]) without any obligation
to Party A.

 

Article 3Agreements on Special Power
and Obligations of Each Party

 

Clause 3.1Party B hereby particularly
confirm and agree to be entrusted by Party A to perform, in such ways and under such conditions as agreed upon herein, the supervision
of personal property. Although such supervision is a re-entrusted one under the Capital Trust Contract, Party A is not obliged
to inspect and/or monitor the trustee in view of the entrusted supervision, which explains that any unfavorable legal result (including
decrease or loss of quantity or benefit of the trust property) shall be born by Party B (as the Trustor under Capital Trust
Contract and the Supervisor under the Contract) on its own, without nothing to do with Party A (as the Trustee under Capital
Trust Contract and the Trustor under the Contract).

 

Clause 3.2Party C hereby particularly
undertakes and ensures that it will provide Party B with authentic, well-prepared and complete documents, strictly follow the covenants
provided in Management Manual of Mortgage Property which is an appendix to the Contract, and proactively support Party B
in its supervision work, in respect of the supervision herein.

 

Clause 3.3Party B shall submit
any legal document it received in relation to the supervision herein (including but not limited to the Mortgage Property List together
with the follow-up updates made from time to time and the assessment reports) to Party A within ten (10) days as of the date of
receipt.

 

    	4

    	 

    

 

Clause 3.4Both Party B and Party
C shall work together to proactively support Party A to complete the competent legal registration procedures for any change to
the mortgage as agreed in the Contract for Personal Property Mortgage in Maximum Amount (numbered as [P2012M11SCSDQ0001-0011]),
with respect to all updates to the Mortgage Property List.

 

Clause 3.5Both Party B and Party
C particularly confirm that, for the purpose of the supervision herein, Party A is entitled to request Party B and/or Party C to
provide related files, documents and written reports on the supervision situation, and to access their sites for inspection.

 

Clause 3.6All parties of the
Contract confirm that, for the purpose of the entrusted supervision and supervision herein, any party is not obliged to pay any
expense to any other party.

 

Article 4Liability for Breach of
Contract

 

Clause 4.1Any failure to perform
any obligation herein or any incompliance of any performance with any covenant herein shall be deemed as a breach. The breaching
party shall bear liability for breach by continuing to fulfill the performance, taking remedial measures and/or indemnifying for
the loss incurred etc.

 

In case of breach by all parties, each
party shall assume their respective liabilities accordingly.

 

Article 5Confidentiality Obligations

 

Each party hereto agrees that it shall
keep all information relating to this Contract and the important aspects of the transaction under this Contract signed by the parties
and/or the information contained in this Contract confidential, including relevant pricing information, but excluding those certified
to be received, disclosed or publicized by any third party duly authorized, and agrees that without written consent of other parties,
it shall not disclose such information to any third party outside this Contract, except to the employees, officers and directors
of the disclosing party in connection with the proposed transaction under this Contract and with a need to know such information,
except that:

 

(1)The disclosure is made to the investors
for purpose of the proposed transaction under this Contract;

 

(2)The disclosure is made to the lawyers,
accountants, advisers and consulting staff in connection with the transaction and with a need to know such information and subject
to the non-disclosure agreement;

 

(3)The disclosure is made to relevant
government departments or administration authorities in accordance with by applicable laws;

 

(4)The disclosure is made in accordance
with applicable laws, provided that the disclosing party shall notify the other parties of the proposed disclosure and the content
to be disclosed prior to such disclosure. Without prior written consent of the other parties, any party shall not disclose in public
the proposed transaction under this Contract to any news media or make any statement.

 

Article 6Governing Law and Dispute
Settlement

 

Clause 6.1The conclusion, validation,
performance, validity, interpretation, amendment, termination and dispute settlement of this Contract shall be governed by the
laws of the People’s Republic of China.

 

Clause 6.2Any dispute arising
from or in connection with this Contract shall be settled by the parties through negotiation. If the dispute cannot be settled
through consultation within 30 days, any party may bring it to the local people’s court with the jurisdiction where Party
A is located.

 

    	5

    	 

    

 

Clause 6.3Except for the dispute
matters, each party shall continue to perform its obligations under this Contract in good faith.

 

Article 7Validation, Validity and
Miscellaneous

 

Clause 7.1Notice

 

Clause 7.1.1Except where telephone
instructions or notices are otherwise specified in this Contract, all notices, requests, instructions and other communications
required or permitted to be given by one party to any other party under this Contract shall be in writing and signed by the sending
party or its representative. Notices shall be delivered personally, sent by facsimile transmission or by registered mail (postage
prepaid) or courier service to the respective address or fax number set forth in Clause 7.1.2 (or other address or fax number formally
noticed in accordance with this clause). The time when such notices shall be deemed to have been effectively given shall be determined
as follows:

 

(1)Notices given by personal delivery
shall be deemed effectively given at the time of personal delivery;

 

(2)Notices sent by facsimile transmission
shall be deemed effectively given at the time of transmission if the notice has been telecopied or the facsimile machine produces
a transmission report that the facsimile was successfully sent;

 

(3)Notices sent by registered mail
(postage prepaid) shall be deemed effectively given at 5 p.m. on the fifth day after the date on which they were mailed (return
receipt requested);

 

(4)Notices sent by courier shall be
deemed effectively at 9 a.m. on the third day after they were sent.

 

Clause 7.1.2The addresses and fax numbers
of the parties for the purpose of receiving the notices under Clause 7.1.1 are as follows:

 

To Party A:

 

Address: Room 4602, Capital Mansion, No.6,
Xinyuan South Road, Chaoyang District, Beijing

 

Contact: Hao He

 

Tel: 010-84861259

 

Fax: 010-84861355

 

Post Code: 100004

 

To Party B:

 

Address: Xinxing Industrial Park, Zhicheng,
Changxing, Zhejiang Province

 

Contact: Cheng Xing

 

Tel: 0572-6115081

 

Fax: 0572-6115081

 

    	6

    	 

    

 

Post Code: 313100

 

To Party C:

 

Address: Jinyuan Road, Xuyi Economic Development
Zone, Jiangsu

 

Contact: Zhao Feng

 

Tel: 0517-88555599

 

Fax: 0517-88556166

 

Post Code: 211700

 

Clause 7.1.3Any party may waive receipt
of any notice under this Contract by giving a written notice. Failure or delay in delivery of any notice, requirement, request,
agreement, approval, statement or any other communications within any company or entity shall not affect the validity of such notice,
requirement, request, agreement, approval, statement or any other communications.

 

Clause 7.2Validation

 

This Contract shall come into effect upon
signing by the legal representatives or authorized representatives of the parties and affixing with official seals of the parties.

 

Clause 7.3Severability

 

The parts of this Contract shall be severable.
If any of the terms, commitments, conditions or provisions contained in this Contract becomes illegal, invalid or unenforceable
for any reason, such illegality, invalidity or unenforceability shall not affect the remaining parts of this Contract, and the
remaining part of this Contract shall be still valid and enforceable and fully in force, as no illegal, invalid or unenforceable
content has been included in this Contract.

 

Clause 7.4Amendment

 

No amendment to this Contract shall become
effective unless made in writing and signed by each party or a duly authorized representative of each of the parties. Amendments
shall include any amendment, supplement, deletion or replacement. Any amendment shall constitute an integral part of this Contract.

 

Clause 7.5Waiver

 

Unless by express written waiver or change,
rights of the parties under this Contract shall not be waived or changed. Failure or delay on the part of any party to exercise
any right shall not operate as a waiver or change thereof or of any other rights. Any defective or partial exercise of any right
shall not preclude further exercise thereof or exercise of any other right. Any act, implementation process or negotiation of any
party shall in no manner preclude exercise thereof by such party, nor be construed as interruption or change thereof.

 

Clause 7.6Heading

 

The headings of clauses hereof and appendixes
hereto are for convenience of reading and shall not affect the meaning and interpretation of any provisions under this Contract.

 

    	7

    	 

    

 

Clause 7.7Appendix

 

The appendix hereto is an integral part
of this Contract and shall be equally authentic with this Contract.

 

The appendix to the Contract includes:

 

(1)Management Manual of Mortgage
Property.

 

Clause 7.8Counterparts

 

This Contract shall be executed in six
counterparts with same legal force, with two held by each party. (The remainder of this page is intentionally left blank)

 

Signature page for the Entrusted
Supervision Contract of Personal Property numbered [P2012M11SCSDQ0001-0005] (this page is intentionally left blank)

 

	 
	 
	Party A: CITIC Trust Co., Ltd. (official seal)
	 
	 
	 
	Legal representative/Authorized representative (signature/seal)  /s/ Authorized Representative
	 
	 
	Signed on: December 17, 2012
	 
	 
	 
	Party B: Chaowei Power Supply Co., Ltd. (official seal)
	 
	 
	Legal representative/Authorized representative (signature/seal)  /s/ Authorized Representative
	 
	 
	Signed on: December 17, 2012
	 
	 
	 
	Party C: Chisen Electric Jiangsu Co., Ltd. (official seal)
	 
	 
	Legal representative/Authorized representative (signature/seal)  /s/ Authorized Representative
	 
	 
	Signed on: December 17, 2012

 

    	8

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