Shareholders Right Proxy and Operation Management Service Agreement, dated July 19, 2010, among Jinhao New Energy (Zhaoqing) Development Co., Ltd., Zhaoqing Haoyan Industrial Co., Ltd., and Guangdong Jinhao Motorcycle Co., Ltd

Party A and Party C are the shareholders of Guangdong Jinhao Motorcycle Co., Ltd. (hereinafter referred to as “Guangdong Jinhao”); Party A holds 51% share equity of Guangdong Jinhao and Party C holds 49% share equity of Guangdong Jinhao.

Jinhao New Energy (Zhaoqing) Development Co., Ltd. (hereinafter referred to as “Party B”) is a wholly-foreign owned enterprise incorporated and existing within the territory of China in accordance with the law of the PRC, and the registration number of its legal and valid business license is 441200400011498 and its legal address is Painting workshop and No.1 factory, Guangdong Jinhao Motorcycle Co., Ltd., Dawang Industrial Park, High and new technology development Zone, Zhaoqing.

Party A desires to entrust Party B to exercise its shareholder’s rights in Guangdong Jinhao, including but not limited to shareholder voting right (or any similar right to decide or express its attitude as a shareholder), the right to appoint director(s) and any other rights Party A is entitled to as the shareholder of Guangdong Jinhao pursuant to laws, regulations and articles of association of Guangdong Jinhao (the “Shareholder’s Rights”), and appoint the person(s) designated by Party B as the proxy. Party B is willing to accept such proxy.

The Parties of this Agreement agree that, Guangdong Jinhao shall pay Party B the operation management service fee.

The term of this proxy (the “Proxy Period”) shall be from the effective date of this Agreement to the earlier of the following:

the winding up of Guangdong Jinhao, or

the date on which Party B or Party C completes the acquisition of Guangdong Jinhao.

During the Proxy Period, Party B shall excise the Shareholder’s Rights as the proxy for Party A in Guangdong Jinhao, including without limitation the following: to manage the operation of Guangdong Jinhao for Party A exclusively, including nominate and replace the director(s) of Guangdong Jinhao and engage the management of Guangdong Jinhao. Party A shall make shareholder’s resolutions and a board of directors’ resolutions accordingly based on the decision of Party B.

Party A shall pay Party B through Guangdong Jinhao according to Article 2 of this Agreement.

During the Proxy Period, Party A’s rights and obligations include:

to hand over all of business materials together with business license and corporate seal(s) of Guangdong Jinhao processed by it to Party B as of the effectiveness date of this Agreement;

Party A shall not make any decision regarding Guangdong Jinhao’s operations without the prior written consent of Party B;

to have the right to know the business conditions of Guangdong Jinhao at any time and provide proposals;

to assist Party B in carrying out the proxy of Shareholder’s Rights upon Party B’s requests;

not to intervene Party B’s management over Guangdong Jinhao in any form by making use of shareholder’s power;

not to entrust or grant its Shareholders’ Rights in Guangdong Jinhao to a third party other than Party B without Party B’s prior written consent;

not to terminate this Agreement unilaterally with for any reason whatsoever;

other rights and perform other obligations under the Agreement.

During the Proxy Period, Party B’s rights and obligations include:

to appoint director(s) of Guangdong Jinhao;

to nominate and decide tighter with Party C the legal representative, general manager, deputy general manager, financial manager and other senior managerial personnel of Guangdong Jinhao;

The Parties agree, in consideration of the proxy of Shareholder’s Rights for Party A and operation management services for Guangdong Jinhao provided by Party B hereunder, Guangdong Jinhao shall pay an operation management service fee (the “Management Fee”) to Party B, which shall be equal to the 51% of the earnings before tax (if any) of Guangdong Jinhao. The Management Fee shall be as follows: during the Proxy Period, the Management Fee shall be equal to 51% of Guangdong Jinhao’s estimated earnings before tax, being the monthly revenues after deduction of operating costs, expenses and taxes other than income tax. If the earnings before tax is zero, Guangdong Jinhao is not required to pay the e Management Fee; if Guangdong Jinhao sustains losses, 51% of such losses will be carried over to next month and deducted from next month’s Management Fee. The Parties shall calculate, and Guangdong Jinhao shall pay, the monthly Management Fee within 20 days of the following month.

The Parties agree and acknowledge, during the Proxy Period, Party B shall assume 51% of the operation risks out of Guangdong Jinhao and bear 51% of the losses of Guangdong Jinhao. If Guangdong Jinhao has no sufficient funds to repay its debts, Party B is responsible for paying 51% of these debts on behalf of Guangdong Jinhao.

The Parties agree and acknowledge, during the Proxy Period, whereas Guangdong Jinhao shall pay the Management Fee to Party B and Party B shall bear 51% of the operation risks of Guandong Jinhao, Party A shall not pay Party B any other consideration. Party A hereby irrevocably waives any immunity regarding Article 2 of this Agreement, to which Party A is entitled to in accordance with the laws and jurisdictions of PRC or elsewhere, whatever such immunity is procedural or substantial.

has the right to enter into and the ability to perform the Agreement;

the execution and delivery of this Agreement by each Party have been duly authorized by all necessary corporate action;

the execution of this Agreement by the officer or representative of each Party has been duly authorized:

Each Party has no reasons that will prevent this Agreement from becoming a binding and effective agreement among the Parties after execution;

the execution and performance of the obligations under this Agreement will not: (a) violate any provision of the business license, articles of association or other similar documents of its own; (b) violate any provision of the laws and regulations of PRC or other governmental or regulatory authority or approval; or (c) violate or result in a breach of any contract or agreement to which the Party is a party or by which it is bound.

Any provision of this Agreement that is invalid or unenforceable due to the laws and regulations shall be ineffective without affecting in any way the remaining provisions hereof.

In the event of the foregoing paragraph, the Parties hereto shall prepare supplemental agreement as soon as possible to replace the invalid provision through friendly consultation.

Any failure or delay by any Party in exercising its rights under this Agreement shall not constitute a waiver of such right.

Any failure of any Party to demand the other Parties to perform its obligations under this Agreement shall not be deemed as a waiver of its right to demand the other party to perform such obligations later.

If a Party excuses the non-performance by another Party of certain provisions under this Agreement, such excuse shall not be deemed to excuse any future non-performance by the other Parties of the same provision.

Any and all taxes arising from execution and performance of this Agreement and during the course of the entrusted management and operation shall be borne by the Parties respectively pursuant to the provisions of laws and regulations.

Any amendment entered into by the Parties hereto after the effectiveness of this Agreement shall be an integral part of this Agreement and have the same legal effect as part of this Agreement. In case of any discrepancy between the amendment and this Agreement, the amendment shall prevail. In case of several amendments, the amendment with the latest date shall prevail.

This Agreement is executed by Chinese and English and both the English version and Chinese version shall have the same effect. Each of the original Chinese and English versions of this Agreement shall be executed in four copies and each Party shall hold one.

In witness hereof, the Agreement is duly executed by the Parties hereto on the date first written above.