Document:

Exhibit
      10.8

     

    Employment
      Contract

    

    Shenzhen
      Ritar Power Co. Ltd (
      hereinafter “Party A”) agrees to employ
      Mr. Zhenghua Cai (
      hereinafter “Party B”) as the Chief
      Financial Officer (CFO).
      The two
      parties, pursuant to the principles of freedom
      of contract, equity, mutual benefits and trustworthiness,
      agree
      to sign this contract on August 1st,
      2006.

    

    I. Period
      

     

    The
      period of the employment contract will be three
      years, from the 1st of August 2006 to the 31st of July 2009.

    

    II. The
      Duty of Party B 

     

    Based
      on
      negotiation between Party A and Party B, Party B shall serve as Party A’s
Chief
      Financial Officer (CFO).
      During
      the period, Party A has the right to arrange and adjust Party B’s position in
      accordance with his capacity and relevant requirements. Party B shall comply
      with instructions from Party A’s management and finish the task assigned by
      Party A in the given time.

    

    III. Working
      hours

     

    The
      working hours of Party B shall not exceed eight hours each day.

    

    IV. Salary

     

    Party
      B's
      monthly salary will be RMB15,000 yuan (pretax income) in accordance with the
      company rule.

    

    Party
      B
      shall get the bonus in accordance with the company’s bonus system

    

    Party
      A
      shall pay Party B's salary regularly based on actual work days. Party B’s salary
      will be deducted for each absent day including leave for illness or personal
      affairs.

    

    V.
       Termination
      of the Contract

     

    Either
      of
      the both parties shall give written notice to the other party 30 days before
      it
      terminates the contract.

    

    VI. Breach
      of the Contract

     

    1
      If
      Party A terminates the contract without justified cause and this behavior
      infringes Party B’s interests, it should pay a breach penalty to Party
      B.

    

    2
      If
      Party B should pay breach penalty to Party A for terminates the contract without
      justified cause, breach of the working disciplines or breaking the operating
      rules. If the aforesaid behaviors infringes Party A’s interests, Party B shall
      pay the damages.

    

    VII. Party
      A
      and Party B entered into this Agreement under the principle of freedom of
      contract, equity, mutual benefits and trustworthiness. This contract takes
      effect on the date signed by both parties and will automatically expire when
      the
      contract ends.

    

    

    VIII.
       This
      contract shall be prepared in duplicate, and each Party holds one copy. Both
      copies have the same legal effect.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    Shenzhen
      Ritar Power Co. Ltd

    (Corporate
      Seal) 

    Date:
      08/01/06 

     

    
      	 	 	 	 	 
	
              Party
                B:

            	/s/ Zhenghua
              Cai	 	 	 
	 	
              
Zhenghua
              Cai	 	 	
            
	 	Date: 08/01/06 	 	 	
            

    

     

    
      
        
        

      

      
        2Exhibit
        10.9

      

      Our
        ref:
        P/S2254/00005/06

      Date:
        6th
        March,
        2006

      

      Customer:
        Shenzhen
        Ritar Power Co., Ltd.

      Address:
        Building
        9, Second Industrial Zone, Fuqiao, Qiaotou Village, Fuyong Town, Bao’an
        District, Shenzhen

      

      Dear
        Sirs,

      

      Banking
        Facilities: Shenzhen Ritar Power Co., Ltd. (the
“Borrower”)

      

      We,
        DBS
        Bank (Hong Kong) Limited Shenzhen Branch (the “Bank
        ”),
        are
        pleased to inform you that we propose to make available to you the following
        banking facilities (the “Facilities”)
        upon
        the following terms and conditions. The Facilities will be effective until
        the
        date when the Bank decides to terminate the Facilities and serve you the
        termination notice. The Bank shall have the right to review the Facilities
        anytime (including the annual review on the Facilities pursuant to the standard
        practice of banks), and to elect (not obliged) to notify the Borrower/or
        any
        security provider/or any guarantor of the decision to extend the term of
        the
        Facilities. Whether the aforesaid notice is served shall not affect any right
        under this letter/or any guaranty or mortgage documents:

      

      Facilities:

      

      
        	1.	
                Account
                  Receivables Based Credit - RMB 2,000,000 Yuan (non-affirmatory
                  limit)

              

      

      

      Payment
        under this Facility shall be made directly to the supplier as long as the
        trust
        receipt by evidence of the origin or counterpart (duly certified as a true
        counterpart by the Borrower) of the supplier’s invoice is
        presented.

      

      The
        maximum financing period for each invoice shall be 3 month, less:

       

      (1) Supplier’s
        credit period (if any); and

       

      (2) In
        case
        payment is made to the supplier after the payment due date, the period lapsed
        after such date.

      

      Suppliers
        of account payable financing and each of its individual limits shall be
        respectively subject to the Bank’s prior written approval on a case by case
        basis (if so required by the Bank). The Bank may from time to time carry
        out at
        the Borrower’s expense updated evaluations on the suppliers of Account
        Receivable Based Financing. All costs and fees incurred thereby may be charged
        on the Borrower’s account.

      

      Interest

       

      [35]%
        per
        annum over the prime rate by the People’s Bank of China in accordance with the
        corresponding level of the loan on the date when such loan is
        provided.

      

      
        
          
          

        

        
          1

          
            

          

        

        
          
          

        

         

      

      Account
        Payable Financing Charges:

       

      The
        charges shall be collected subject to the current standards of the Bank unless
        any other agreement is reached or any other provision is stipulated under
        this
        letter.

      

      
        	2.	
                Factoring(I)-USD
                  300,000 (non-affirmatory limit)

              

      

      

      Terms
        and
        conditions of the Factoring are stipulated in Appendix 2 and the Factoring
        Agreement.

      

      
        	3.	
                Factoring
                  (II)-RMB
                  5,000,000 Yuan or US dollars in equivalent value(converting in
                  accordance
                  with the rate decided by the Bank).

              

      

      

      (i) 
        Internal Factoring -
        RMB
        5,000,000 Yuan or US dollars in equivalent value (converted in accordance
        with
        the rate decided by the Bank).

      

      (ii)
        External Factoring - RMB 3,000,000 Yuan or US dollars in equivalent
        value (converted in accordance with the rate decided by the Bank).

      

      Terms
        and
        conditions of the Factoring are stipulated in Appendix 2 and the Factoring
        Agreement.

      

      Note:

      

      The
        unused limits of aforesaid external factoring may provide to Ritar Power
        Group
        (Hong Kong) Limited, but the unpaid loan to the Borrower and Ritar Power
        Group
        (Hong Kong) Limited (collectively, the “Co-borrowers”) shall not exceed RMB
        3,000,000 Yuan or US dollars in equivalent value (converted in accordance
        with
        the rate publicized by the Bank from time to time) at any time. 

      

      Facilities
        to Several Borrowers:

      

      The
        Facility used by the Borrower or any of the Co-borrowers shall not exceed
        the
        amount that is stipulated separately in this letter. If such Facility is
        used by
        the Borrower or any of the Co-borrowers, the Bank shall not be responsible
        for
        informing other borrowers the status of such usage. 

      

      However,
        all the borrowers and every Co-borrower shall be liable jointly and severally
        to
        the Facility.

      

      Every
        payment request made to any of the Co-borrowers shall be deemed as the same
        made
        to the Borrower.

      

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

       

      Even
        if
        the Bank terminates the agreement, reconcile, accept relevant articles or
        make
        any other arrangement with any of the Co-borrowers, the Bank shall not be
        liable
        to make a same arrangement with the Borrower.

      

      The
        insolvency or dissolution of any borrowers or co-borrowers shall not affect
        the
        effectiveness of this letter.

      

      For
        any
        reason if any of the Co-borrowers may not be bound by this letter anymore,
        the
        Borrower shall still be bound by the obligations under this letter.

      

      Conditions
        Precedent:
        The
        availability of the Facilities is conditional upon completion and delivery
        of
        the appropriate supporting board minutes and/or shareholders’ resolutions, and
        the following documentations, items and evidence in form and substance
        satisfactory to the Bank:

      

      (a) The
        Bank’s standard form General Commercial Agreement duly executed by the
        Borrower;

      

      (b) The
        Bank’s standard form Guarantee Agreement duly executed by Jiada Hu to provide
        guarantee for all the debts owed by the Borrower under this letter;

      

      (c)
        The
        originals of the certificate of the title to the property which is located
        in
        room 2201, Tian’an Digital Time Building, Xi Shennan road, Che Gongmiao
        industrial area (Certificate No. 3000217876) and the one which is located
        in
        room 706, D3 block, Fuyuan Shangzhu Garden, Baoshui Futian District, Shenzhen,
        Guangdong Province (Certificate No. 9001402); 

      

      (d)
        The
        bank’s standard form Guarantee Agreement duly executed by [name of guarantor]
        to
        secure all indebtedness owed by the Borrower to the Bank; The Borrower shall
        open a certain drawback account in the Bank and execute the authorization
        letter
        acceptable to the Bank in respect of the irrepealably account management
        and
        deduction;

      

      (e) The
        Bank’s standard form Factoring Agreement duly executed by the Borrow dated
        13th
        December, 2004;

      

      (f) The
        Bank’s standard form Factoring Agreement duly executed by the Borrow dated
        30th
        September, 2005;

      

      (g) Such
        other documents, items or evidence as the Bank may require (including the
        documents and relevant legal opinions in respect of the approval, registration
        and/or record in relation to this letter, any Facility and relevant guarantee
        and/or mortgage.

      

      Most
        Favored Rate: The
        most
        favored rate shall mean Hong Kong Dollar most favored rate quoted by DBS
        Bank
        (Hong Kong) Limited from time to time unless otherwise provided herein. If
        the
        interest rate in respect of any Facility is expressed to be a margin plus
        the
        most favorable rate quoted by the Bank from time to time, the Bank shall
        be
        entitled, in its reasonable discretion, at any time without reference or
        notice
        to the Borrower, to substitute the rate of “HIBOR plus 0.5%” for the most
        favorable rate in calculating the interest payable under such Facility. If
        the
        interest rate in respect of any Facility is expressed to be a percentage
        less
        than the most favorable rate quoted by the Bank from time to time, the Bank
        shall be entitled, in its reasonable discretion, at any time without reference
        or notice to the Borrower, to replace such interest rate by the rate of “HIBOR
        plus 0.5%” as the applicable interest rate in respect of such
        Facility.

      

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

         

      

      Operation
        Day: As
        far as
        the foreign currency is concerned, operation day shall mean the operation
        day of
        commercial banks in the main financial centre in Shenzhen and (if applicable)
        such main financial centre as relevant to the denominated currency of relevant
        Facilities (or part of them) (excluding Saturday) unless otherwise provided
        herein. As far as RMB is concerned, operation day shall mean the operation
        day
        of commercial banks in Shenzhen (excluding Saturday) unless otherwise provided
        herein. If the repayment day or the interests payment day is not an operation
        day, the Bank shall be entitled, in its own discretion, to adjust it to the
        operation day immediate after or preceding the operation day. Furthermore,
        if
        the repayment day or the interests payment day does not exist in the month,
        such
        payment day shall be adjusted to the last operation day of the month.

      

      Overdue
        Interest: As far as the foreign currency is concerned, if any amount of foreign
        currency under this letter which is unpaid on due date or exceeds the permitted
        Overdraft Facility limit, such overdue or excess sum will be subject to the
        Bank’s then prevailing overdue or over limit interest rate, and may be
        compounded monthly or at such other intervals as the Bank determines. The
        Bank
        may, without prejudice to its other rights, increase the interest rate on
        the
        entire amount outstanding under this Letter if any amount becomes
        overdue.

      

      As
        far as
        RMB is concerned, if any amount of RMB under this letter is unpaid on due
        date,
        the Borrower shall be liable to pay a penalty interest subject to the determined
        annual interest rate under this letter plus 2% (Whenever the overdue rate
        becomes higher or lower than the maximum or minimum overdue rate quoted by
        the
        People’s Bank of China, the aforesaid overdue rate shall be adjusted to the
        maximum or minimum overdue rate quoted by the People’s Bank of China.) before
        all the loan and interests are repaid, and such interest shall be adjusted
        and
        calculated in subsection. The interest which is unpaid when due shall be
        collected subject to a compounded monthly rate.

      

      Handling
        Fee/ Commission/ Commitment Fee: RMB
        5,000
        Yuan

      

      Stamp
        Duty:
        RMB 200
        Yuan

      

      Interest
        Calculation:
        Unless
        otherwise provided herein, interest will accrue on daily basis and will be
        calculated by reference to the number of days elapsed and 365-days per year
        (if
        the loan is denominated in HK Dollars, Pounds Sterling, Singapore Dollars
        or
        Malaysia Ringgit) or 360-days per year (if the loan is denominated in any
        other
        approved foreign currency).

      

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

         

      

      Payments:
        All
        payments by the Borrower are to be made to the Bank in accordance with the
        Bank’s directions in the currency in which the Facility (or the part in
        question) is denominated or, as the case may be, in which the same was incurred
        or, if the Bank shall so require, in HK Dollars, in each case in immediately
        available funds without set-off or counterclaim and free and clear and without
        any deduction or withholding for any taxes, duties or any other charges
        whatsoever. If any payment to the Bank is not denominated in the aforesaid
        currency as agreed, the Bank shall be entitled to convert it into the agreed
        currency in accordance with the rate quoted by the Bank at that time, and
        the
        Borrower shall complement the insufficient part (if any). In any case, all
        the
        fees incurred in respect of the converting of the currency shall at the
        Borrower’s expense.

      

      Fee
        and Expenses: The
        Borrower shall be responsible for the Stamp Tax in respect of this letter
        (including the part which shall be paid by the Bank). Without prejudice to
        the
        above clause, whether or not any monies are advanced to the Borrower pursuant
        to
        this Letter or otherwise; the Borrower shall pay on demand by the Bank all
        costs
        and expenses (including without limitation the debt collection agents’, legal
        and other professional adviser’ fees on a full indemnity basis, travel,
        communications, publicity and other expenses and charges) reasonably and
        properly incurred by the Bank in connection with the preparation, negotiation
        and entry into this Letter, the General Commercial Agreement and other security
        documents to be given by the Borrower or other security providers (collectively
        “Loan
        Document”)
        or in
        perfecting, preserving or protecting any rights under the Loan Documents
        or in
        exercising or enforcing or attempting to exercise or enforce any rights under
        the Loan Documents.

      

      A
        handling fee in an amount to be determined by the Bank will be payable in
        respect of the annual review to be carried out by the Bank so long as the
        Facilities are continuing. Such fee may be debited to the Borrower’s account.

      

      Undertakings:
        By
        signing this Letter, the Borrower shall be deemed to undertake to and in
        favor
        of the Bank the following;

       

      (a) The
        Borrower will keep and prepare its books of account and financial statements
        in
        accordance with applicable law and generally accepted accounting principles
        and
        practices in Hong Kong.

      

      (b) The
        Borrower shall deliver to the Bank:

       

      
        	
              	(i)	
                as
                  soon as available, and in any event within 10 months after the
                  end of each
                  of its financial years, copies of its audited (and, as appropriate,
                  consolidated) accounts and the related directors’ auditors’ reports for
                  each financial year of the Borrower and financial condition and
                  business
                  as the Bank may request;

              

      

      

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

         

      

      
        	
              	
                (ii)

              	
                With
                  reasonable promptness, details of any material litigation, arbitration
                  or
                  administrative proceeding current or, to its knowledge, threatened
                  by or
                  against it.

              

      

      

      (c) The
        Borrower will notify the Bank promptly of any change of its directors or
        beneficial shareholders or any amendment to its contracts (if any) or articles
        of association. Without the prior written approval of the Bank, the Borrower
        shall not make any change of its directors or beneficial shareholders or
        any
        amendment to its contracts (if any) or articles of association.

      

      (d) The
        Borrower will promptly notify the Bank upon becoming aware of any factor
        which
        may inhibit, impair or delay performance by the Borrower or any guarantor
        or
        security provider of its obligations under the Loan Documents.

      

      (e)
        Without the prior written consent of the Bank, the Borrower shall not mortgage
        the property ascribed to it in aforesaid article (c) to any bank or company
        excluding the guarantee and/or mortgage made pursuant to the Loan
        Documents.

      

      (f)
        The
        Borrower shall obtain all the approval, registration and/or record in respect
        of
        the Loan Documents obtained by all the relevant guarantors and/or security
        providers, and maintain the validity of such approval, registration and/or
        record until all the Facilities are repaid. Furthermore, the Borrower shall
        immediately deliver the origin or counterpart (which has been duly certified
        as
        a true counterpart by the Borrower or the guarantors or security providers
        (as
        the case may be)) to the Bank as soon as the approval, registration and/or
        record is/are obtained.

      

      Limitation
        to the Facilities:

      

      During
        the valid term of the Facilities pursuant to this letter, the amount of
        Facilities provided by the bank shall be on the basis of the fund raised
        by the
        Bank. If any restrictive regulation in respect of the Bank’s borrowing from
        other banks or any other restrictive regulation enacted by the People’s Bank of
        China/China Banking Regulatory Commission results in a failure for the Bank
        to
        provide the Borrower all or part of the Facilities under this letter, the
        currency of the Facilities should be adjusted to other currency on the basis
        of
        current law and regulation and the available money of the Bank. The Borrower
        shall agree to all the arrangements made by the Bank in respect of the aforesaid
        matter and give active cooperation, and the Borrower hereby further agrees
        that
        the Bank is not liable at all in this regard.

       

      Demand
        Facilities:

      

      (a) Without
        prejudice to following section (b), if the Borrower fails to make any payable
        payment on time or to perform any obligation under this letter or any other
        Loan
        Documents, or the Borrower is adjudicated a bankrupt or dissolved, the Bank
        shall be entitled to cancel the Facilities or any part thereof and/or to
        demand
        immediate repayment or payment (as the case may be )of all principal ,interest,
        fees and other amounts outstanding under this Letter or any part thereof
        (“Liabilities”)
        and/or
        to require the Borrower immediately to provide full cash collateral in respect
        of the Liabilities shall be immediately so payable and/or such cash collateral
        shall be so provided.

      

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

         

      

      (b) Notwithstanding
        any other provision of this Letter (including above section (a)),the Bank
        shall
        be entitled at any time in its absolute discretion to cancel the Facilities
        or
        any part thereof and/or to demand immediate repayment or payment (as the
        case
        may be )of all principal ,interest, fees and other amounts outstanding under
        this Letter or any part thereof (“Liabilities”)
        and/or
        to require the Borrower immediately to provide full cash collateral in respect
        of the Liabilities shall be immediately so payable and/or such cash collateral
        shall be so provided.

      

      (c) Notwithstanding
        the clause headed “payments”
above
        (which shall only apply where no demand has been made ), all monies received
        by
        the Bank at any time after the Bank has exercised its rights under paragraph
        (a)
        mentioned above shall be applied, subject to any prior ranking claims and
        the
        right of the Bank to place them in a suspense account pursuant to the General
        Commercial Agreement:

      

      First:
        in or
        towards discharging all costs and expenses incurred by the Bank in perfecting,
        preserving, enforcing or attempting to so perfect, preserve of enforce its
        rights under the Loan Documents; 

       

      Secondly:
        in or
        towards discharging all unpaid Liabilities in such order and manner as the
        Bank
        may prescribe;

       

      Thirdly:
        subject
        to the rights of third parties of which the Bank has actual notice, any balance
        in payment to the Borrower.

      

      Breaching
        Liability:
        Any
        loss or damage incurred from the Borrower’s failure to perform the obligations
        under this letter plus such profits as shall be obtained if the Borrower
        does
        not fail to perform aforesaid obligations shall be compensated by the
        Borrower.

      

      Assignment:

      

      (a)
        The
        Borrower shall not assign or transfer any or all of its rights or obligations
        under this Letter.

      

      (b)
        The
        Bank may at any time transfer all or any part of its rights and/or of its
        obligations under this letter. If the transferee is a member of DBS Group
        (DBS
        Group members shall mean all the subsidiaries, branches which engage in the
        banking businesses under the DBS Group, include but without limitation DBS
        Bank
        Ltd., DBS Bank (Hong Kong) Ltd. and their branches.), the Bank shall only
        be
        required to inform the Borrower with prior written notice. Such
        transfer/modification shall enter into effect on the date stipulated in the
        prior written notice. All references in this Letter to “Bank” include the
        successor, transferee and any other person with which the Bank merges or
        consolidates and will be deemed as if such entity formed by the merger or
        amalgamation, the successor or the transferee (as the case may be) had been
        a
        party to this Letter in place of the Bank.

      

      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

      

       

      Data
        Policy: The
        Borrower agrees that the applicable Data Policies and other communications
        to
        customers concerning its data from time to time issued by the Bank (a member
        of
        the DBS Group) shall apply. A copy is available on request at any Bank or
        from
        its website. The Borrower agrees that all information obtained from any sources
        or that arises from the relationship with the Bank (or any other DBS Group
        Company) (“data”)
        will be
        subject to such polices/or other communications. (as may be from time to
        time).
        The Borrower agrees in particular that:

      

      
        	
              	(a)	
                The
                  Bank may verify, provide and collect information about the Borrower’s data
                  from other organizations, institutions or other
                  persons.

              

      

      

      
        	
              	(b)	
                The
                  Bank may transfer the data outside the Hong Kong Special Administrative
                  Region including to Singapore; and

              

      

      

      
        	
              	(c)	
                The
                  Bank may compare any data obtained with the Borrower’s data, and use the
                  results for taking of any actions including actions that may be
                  adverse to
                  the Borrower’s interest (including declining any
                  application).

              

      

      

      The
        Borrower agrees to be bound by the provisions of such Data Policies, notices
        and
        other communications, which shall from part of the Borrower’s agreement with the
        Bank. 

      

      Relationship
        with Directors/Employees:
        As a
        licensed bank, the Bank is subject to certain limitations in advances to
        persons
        related to directors or employees of the Bank or of other DBS Group banks.
        By
        signing this Letter, the Borrower confirms that it is not in any way related
        to
        any of the directors or employees of the Bank and/or its parent Bank Ltd
        or its
        other indebtedness to the Bank is outstanding, immediately to advise the
        Bank in
        writing.

      

      Miscellaneous:

       

      (a) Without
        prejudice to any other provision of this letter, the Borrower shall be entitled
        at any time to repay all the loans or any part thereof under the Facilities
        on
        the precondition that it has obtained the Bank’s prior approval and met all the
        requirements made by the Bank (including requiring the Borrower to pay the
        interests calculated from the advance repayment date to original repayment
        date.)

      

      (b) Time
        shall be of essence of this Letter, but no failure or delay on the part of
        the
        Bank to exercise or enforce any right to remedy will operate as a waiver
        therefore, nor will any single or partial of defective exercise of any right
        or
        remedy. The rights and remedies in this Letter are cumulative, may be exercised
        as often as the Bank considers appropriate and are not exclusive of any rights
        or remedies provides by law. 

      

      
        
          
          

        

        
          8

          
            

          

        

        
          
          

        

         

      

      (c) Any
        notice or correspondence given hereunder or to be served in respect of this
        letter may be: 

      

      (i)
        by
        sending the same through the post from the Bank to the Borrower and shall
        be
        deemed to be served on the date it is sent; by sending the same through the
        post
        from the Borrower to the Bank and shall be deemed to be served on receipt.
        

      

      (ii)
        by
        sending the same through the fax and shall be deemed to be served on the
        date it
        is sent if the sending day is the working day of the receiver or shall be
        deemed
        to be served on the first working day immediate after the sending day if
        the
        sending day is not the working day of the receiver.

      

      Should
        there be a change of address to which notices must be sent, the Borrower
        must
        promptly inform the Bank. Such changes shall not be effective until duly
        entered
        in the Bank’s records.

      

      (d) The
        illegality, invalidity or unenforceability or any provision of this Letter
        under
        the law of any jurisdiction shall not affect its legality, validity or
        enforceability under the laws of any other jurisdiction nor the legality,
        validity or enforceability of any other provision.

      

      General
        Commercial Agreement: The
        provisions of the General Commercial Agreement, including without limitation,
        provisions relating to interest periods, shall also apply to this Letter.
        If
        there is any conflict between them, this Letter shall prevail.

      

      Law:
        This
        Letter and the Facilities shall be governed by the laws of the PRC and the
        parties hereto submit to the non-exclusive jurisdiction of the China Courts.
        The
        aforesaid clause shall not limit the Bank’s right to perform this letter in the
        court located in any other jurisdiction area. If any lawsuit in respect of
        or
        arising out of this letter is brought to the China Courts, the jurisdiction
        court shall be the one located in the same place as the Bank.

      

      Please
        signify your understanding and acceptance of this offer by signing and returning
        to us the duplicate copy of this Letter for the attention of [name of RM],
        within one month from the date of this Letter, after which this offer will
        lapse. Ms. Jenny Ji or Mr. Paul Wu, within one month from the date of this
        Letter, after which this offer will lapse. [Add for 2nd
        new
        format full offer letter: When accepted, this Letter will supersede our previous
        facility letter dated 29 November, 2006 with referenced/P/S2254/0817/04.
        ]

      

      
        
          
          

        

        
          9

          
            

          

        

        
          
          

        

      

       

      We
        enclose a set of documents which should be completed and returned to us.
        If you
        have any queries, please contact Ms. Jenny Ji or Mr. Paul Wu at telephone
        number
        (755) 82691004 or 82691005.

      

      We
        are
        pleased to be of service to you.

       

      Signed
        for and on behalf of 

      DBS
        Bank
        (Hong Kong) Limited Shenzhen Branch 

      (Corporate
        Seal)

       

      Signed
        and accepted by: 

      Shenzhen
        Ritar Power Co., Ltd

      (Corporate
        Seal) 

      
        	 	 	 	 	 
	 By:	/s/ Jiada
                Hu	 	 	
              
	 	
                

                Jiada
                  Hu

                Date:
                  7 March, 2006

              	 	 	
              
	 	
              	 	 	
              

      

       

      
        
          
          

        

        
          10

          
            

          

        

        
          
          

        

      

      

      Appendix
        1 Borrower
        Information

       

      
        	
                Borrower

              	 	
                Shenzhen
                  Ritar Power Co., Ltd. 

              
	 	 	 
	
                Registration
                  No.

              	 	
                4403012089074

              
	 	 	 
	
                Registration
                  Address:

              	 	
                Building
                  9, Second Industrial Zone, 

                Fuqiao,
                  Qiaotou Village, Fuyongj Town, Bao’an District, Shenzhen

                P.R.C.

              
	 	 	 
	
                Legal
                  Representative

              	 	
                Jiada
                  Hu

              
	 	 	 
	
                Mailing
                  Address

              	 	
                Tian’an
                  Digital Time Building 2201#

                Futian
                  District, Shenzhen

              
	 	 	 
	
                Fax:

              	 	
                (755)
                  8347 5180

              

      

      

      
        
          
          

        

        
          11

          
            

          

        

        
          
          

        

      

      Appendix
        2: Disclosed
        Terms and Conditions for the Factoring 

      

      Disclosed
        Terms and Conditions for the Factoring, including:

       

      a)
        Advance: 

       

      Upon
        the
        Bank’s sole discretion, the Bank may determine the amount of the advance
        pursuant to certain qualification requirement and provide the Borrower with
        the
        prepayment as requested, before the “Payment Due Date.”

      

      b)
        Account Receivable Management

       

      The
        Bank
        agrees to manage the Borrower’s Sales Statements, send out monthly balance
        statement on behalf of the Borrower to the Borrower’s debtors, and accept
        payments on behalf of the Borrower relating to the Borrower’s account
        receivable. 

      

      
        	
                1.
                  (a) Maximum Amount of the Advance:

              	 	
                (i)
                  $300,000 U.S. dollars. 

              
	 	 	 
	 	 	
                (ii)RMB5,000,000,
                  or U.S. dollars in equivalent value. 

              
	 	 	 
	
                (b)
                  Percentage of the Advancet:

              	 	
                (i)
                  75%

              
	 	 	 
	 	 	
                (ii)
                  80%

              
	 	 	 
	
                (c)
                  Maximum Financing Period:

              	 	
                Not
                  to exceed 120 days from the date of invoice issuance. 

              
	 	 	 
	
                (d)
                  Management Fee: 

              	 	
                3%
                  of the face value of the invoice. (All remedies therein reserved,
                  except
                  remedies against Zhongda Electronic (Jiangsu) Ltd. 

              
	 	 	 
	
                (e)
                  Interest Rate on Cash Advance:

              	 	
                45%
                  per annum over the People’s Bank of China prime rate on the date when such
                  advance is provide. 

              
	
                 

              	 	 
	
                (f)
                  Interest Rate:

              	 	
                2%,
                  payable per month, accrued upon unpaid
                  balance

              

      

      .

      

      
        	2.	
                Respective
                  Maximum Advance Amount to certain debtors of the Borrower shall
                  be
                  determined by the Bank upon the Bank’s sole discretion, subject to the
                  Bank’s satisfaction with its evaluation on such debtor’s financial
                  conditions. 

              

      

      

      
        
          
          

        

        
          12

          
            

          

        

        
          
          

        

         

      

      
        	
                3.

              	
                The
                  Borrower shall notify its debtors in writing and in the form designated
                  by
                  the Bank. 

              

      

      

      
        	4.	
                When
                  requesting drawings by a debtor insured by China Export Credit
                  Insurance
                  Company, the Borrower shall tender relevant shipping documents
                  to China
                  Export Credit Insurance Company, and convey to the Bank the certificate
                  of
                  insurance acquired thereof together with other export documents
                  required
                  by the Bank. 

              

      

      

      
        	5.	
                Debtors
                  shall assign, transfer and convey to the Bank all interests and
                  rights
                  arising from the insurance policy pertaining to certain loans.
                  

              

      

      

      
        	6.	
                Any
                  advance to the Borrower shall be placed into the Borrower’s account with
                  the Bank, pursuant to the Borrower’s instructions via facsimile. The Bank
                  is not responsible for any delay, loss, damage caused by the delay,
                  damage
                  or transmission error during the facsimile process.
                  

              

      

      

      
        	7.	
                The
                  Borrower’s account receivables shall be duly evaluated before activation
                  of the Borrower’s account with the Bank. The terms and conditions of this
                  letter (including this appendix) may be modified according to the
                  result
                  of the evaluation. Periodic evaluations by the Bank thereafter
                  are also
                  allowed. The Bank reserves any right to modify this letter provided
                  it is
                  not satisfied with any result of the evaluation.
                  

              

      

      

      
        	8.	
                The
                  Standard Form Facility Agreements dated December 13, 2004 and September
                  30, 2005, by and between the Borrower and the Bank shall remain
                  full force
                  and effect notwithstanding the foregoing provisions. Any modification
                  of
                  terms or conditions made pursuant to this letter (including the
                  appendix)
                  shall become effective as of the date designated in the Bank’s written
                  notice pertaining to such modification.

              

      

       

       DBS
        Bank

      
        
          
          

        

        
          13

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