EXHIBIT 4.28


 


 SECURITIES PURCHASE AGREEMENT


 


This
Securities Purchase Agreement (this “Agreement”) is dated as of March 31, 2021, between Kaixin Auto Holdings,
an exempted company incorporated under the laws of the Cayman Islands (the “Company”), and Renren Inc., an exempted
company incorporated under the laws of the Cayman Islands and a controlling shareholder of the Company as of the date of this Agreement
(the “Purchaser”).


 


WHEREAS, subject to the terms
and conditions set forth in this Agreement and pursuant to Section 4(a)(2) of the Securities Act of 1933, as amended (the “Securities
Act”), and Rule 506 promulgated thereunder, the Company desires to issue and sell to each Purchaser, and each Purchaser,
severally and not jointly, desires to purchase from the Company, securities of the Company as more fully described in this Agreement.


 


NOW, THEREFORE, IN CONSIDERATION
of the mutual covenants contained in this Agreement, and for other good and valuable consideration the receipt and adequacy of which are
hereby acknowledged, the Company and each Purchaser agree as follows:


 


ARTICLE I. DEFINITIONS


 


1.1          Definitions.
In addition to the terms defined elsewhere in this Agreement: (a) capitalized terms that are not otherwise defined herein have the
meanings given to such terms in the Certificate of Designation (as defined herein), and (b) the following terms have the meanings
set forth in this Section 1.1:


 


“Affiliate”
means any Person that, directly or indirectly through one or more intermediaries, controls or is controlled by or is under common control
with a Person, as such terms are used in and construed under Rule 405 under the Securities Act.


 


“Board of Directors” means the board of
directors of the Company.


 


“Business
Day” means any day other than Saturday, Sunday or other day on which commercial banks in The City of New York are authorized
or required by law to remain closed; provided, however, for clarification, commercial banks shall not be deemed to be authorized
or required by law to remain closed due to “stay at home”, “shelter-in-place”, “non-essential employee”
or any other similar orders or restrictions or the closure of any physical branch locations at the direction of any governmental authority
so long as the electronic funds transfer systems (including for wire transfers) of commercial banks in The City of New York generally
are open for use by customers on such day.


 


“Certificate of Designation”
means the Certificate of Designation duly approved by the Board of Directors, in the form of Exhibit A attached hereto.


 






    	 	 	 



     


    

 


“Closing” means the
closing of the purchase and sale of the Preferred Shares pursuant to Section 2.1.


 


“Closing Date” means
March 31, 2021.


 


“Commission” means the United States
Securities and Exchange Commission.


 


“Conversion Price” shall have the meaning
ascribed to such term in the Certificate of Designation.


 


“Conversion Shares”
shall have the meaning ascribed to such term in the Certificate of Designation.


 


“Exchange
Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.


 


“HTC Merger”
means the proposed merger or acquisition upon the consummation of which Haitaoche Limited, an exempted company with limited liability
incorporated under the laws of the Cayman Islands, will become a wholly-owned subsidiary of the Company.


 


“Liens” means a lien,
charge, pledge, security interest, encumbrance, right of first refusal, preemptive right or other restriction.


 


“Ordinary
Shares” means the ordinary shares of the Company, par value $0.0001 per share, and any other class of securities into which
such securities may hereafter be reclassified or changed.


 


“Ordinary
Shares Equivalents” means any securities of the Company or the Subsidiaries which would entitle the holder thereof to acquire
at any time Ordinary Shares, including, without limitation, any debt, preferred stock, right, option, warrant or other instrument that
is at any time convertible into or exercisable or exchangeable for, or otherwise entitles the holder thereof to receive, Ordinary Shares.


 


“Person”
means an individual or corporation, partnership, trust, incorporated or unincorporated association, joint venture, limited liability company,
joint stock company, government (or an agency or subdivision thereof) or other entity of any kind.


 


“Preferred
Shares” means the up to 6,000 shares of the Company’s Series D Convertible Preferred Shares issued hereunder having
the rights, preferences and privileges set forth in the Certificate of Designation.


 


“Proceeding”
means an action, claim, suit, investigation or proceeding (including, without limitation, an informal investigation or partial proceeding,
such as a deposition), whether commenced or threatened.


 


“Required
Approvals” shall have the meaning ascribed to such term in Section3.1(e).


 






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“Rule 144”
means Rule 144 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended or interpreted from
time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same purpose and effect
as such Rule.


 


“Securities” means the Preferred Shares
and the Underlying Shares.


 


“Securities
Act” means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.


 


“Series A
Preferred Shares” means the up to 6,000 shares of the Company’s Series A Convertible Preferred Shares issued or to
be issued pursuant to the securities purchase agreement entered into by the Company and several purchasers therein on December 28,
2020.


 


“Stated Value” means $1,000 per Preferred
Share.


 


“Subsidiary”
means any direct or indirect subsidiary of the Company and shall, where applicable, also include any direct or indirect subsidiary of
the Company formed or acquired after the date hereof.


 


“Trading
Day” means a day on which the principal Trading Market is open for trading.


 


“Trading
Market” means any of the following markets or exchanges on which the Ordinary Shares are listed or quoted for trading on the
date in question: the NYSE American, the Nasdaq Capital Market, the Nasdaq Global Market, the Nasdaq Global Select Market or the New York
Stock Exchange (or any successors to any of the foregoing).


 


“Transaction
Documents” means this Agreement, the Certificate of Designation, and any other documents or agreements executed in connection
with the transactions contemplated hereunder.


 


“Transfer
Agent” means Continental Stock Transfer  & Trust Company, the current transfer agent of the Company, with a mailing
address of One State Street, 30th Floor, New York, NY10004-1561 and an email address of compliance@continentalstock.com,
and any successor transfer agent of the Company.


 


“Underlying
Shares” means the Ordinary Shares issued and issuable upon conversion of the Preferred Shares, and issued and issuable in lieu
of the cash payment of dividends on the Preferred Shares in accordance with the terms of the Certificate of Designation.


 






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ARTICLE II. PURCHASE AND SALE


 


2.1          Closings.


 


On the Closing
Date, upon the terms and subject to the conditions set forth herein, the Company agrees to sell, and the Purchaser agrees to purchase,
an aggregate of 6,000 Series D Preferred Shares for the aggregate consideration of US$6,000,000. The Purchaser shall deliver to the
Company, via wire transfer, immediately available funds of US$6,000,000, and the Company shall deliver to the Purchaser 6,000 Series D
Preferred Shares, and the Company and the Purchaser shall deliver the other items set forth in Section 2.2 deliverable at the Closing.


  


2.2
         Deliveries.


 


(a)           On
or prior to the Closing Date, the Company shall deliver or cause to be delivered to the Purchaser the following:


 


		(i)	this Agreement duly executed by the Company;



 


		(ii)	the resolutions of the Board of Directors approving the Certificate
of Designation; and



 


		(iii)	a certificate evidencing an aggregate of 6,000 Series D Preferred Shares.



 


(b)          The
Purchaser shall deliver or cause to be delivered to the Company the following:


 


		(i)	this Agreement duly executed by the Purchaser on or prior to
the Closing Date; and



 


		(ii)	the amount of US$6,000,000 by wire transfer to the account specified in writing by the Company within
five business Days of the Closing Date.



 


ARTICLE III. 


REPRESENTATIONS AND WARRANTIES


 


3.1          Representations
and Warranties of the Company. The Company hereby makes the following representations and warranties to the Purchaser:


 


(a)        Organization
and Qualification. The Company and each of the Subsidiaries is an entity duly incorporated or otherwise organized, validly existing
and in good standing under the laws of the jurisdiction of its incorporation or organization, with the requisite power and authority
to own and use its properties and assets and to carry on its business as currently conducted.


 


(b)        Authorization;
Enforcement. The Company has the requisite corporate power and authority to enter into and to consummate the transactions contemplated
by this Agreement and each of the other Transaction Documents and otherwise to carry out its obligations hereunder and thereunder. The
execution and delivery of this Agreement and each of the other Transaction Documents by the Company and the consummation by it of the
transactions contemplated hereby and thereby have been duly authorized by all necessary action on the part of the Company and no further
action is required by the Company, the Board of Directors or the Company’s stockholders in connection herewith or therewith other
than in connection with the Required Approvals. This Agreement and each other Transaction Document to which it is a party has been (or
upon delivery will have been) duly executed by the Company and, when delivered in accordance with the terms hereof and thereof, will constitute
the valid and binding obligation of the Company enforceable against the Company in accordance with its terms, except (i) as limited
by general equitable principles and applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application
affecting enforcement of creditors’ rights generally, (ii)  as limited by laws relating to the availability of specific performance,
injunctive relief or other equitable remedies and (iii) insofar as indemnification and contribution provisions may be limited by
applicable law.


 






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(c)         No
Conflicts. The execution, delivery and performance by the Company of this Agreement and the other Transaction Documents to which it
is a party, the issuance and sale of the Securities and the consummation by it of the transactions contemplated hereby and thereby do
not and will not (i) conflict with or violate any provision of the Company’s or any Subsidiary’s certificate or articles
of incorporation, bylaws or other organizational or charter documents, or (ii) conflict with, or constitute a default (or an event
that with notice or lapse of time or both would become a default) under, result in the creation of any Lien upon any of the properties
or assets of the Company or any Subsidiary, or give to others any rights of termination, amendment, anti- dilution or similar adjustments,
acceleration or cancellation (with or without notice, lapse of time or both) of, any agreement, credit facility, debt or other instrument
(evidencing a Company or Subsidiary debt or otherwise) or other understanding to which the Company or any Subsidiary is a party or by
which any property or asset of the Company or any Subsidiary is bound or affected, or (iii) subject to the Required Approvals, conflict
with or result in a violation of any law, rule, regulation, order, judgment, injunction, decree or other restriction of any court or governmental
authority to which the Company or a Subsidiary is subject (including federal and state securities laws and regulations), or by which any
property or asset of the Company or a Subsidiary is bound or affected; except in the case of each of clauses (ii) and (iii), such
as could not have or reasonably be expected to result in a material adverse effect.


 


(d)        Filings,
Consents and Approvals. The Company is not required to obtain any consent, waiver, authorization or order of, give any notice to,
or make any filing or registration with, any court or other federal, state, local or other governmental authority or other Person in connection
with the execution, delivery and performance by the Company of the Transaction Documents, other than: (i) the notice and/or application(s) to
each applicable Trading Market for the issuance and sale of the Securities and the listing of the Underlying Shares for trading thereon
in the time and manner required thereby, and (ii) the filing of Form D with the Commission and such filings as are required
to be made under applicable state securities laws (collectively, the “Required Approvals”).


 


(e)      Approvals
by other Rights Holders. The Company has obtained the requisite approvals, or waivers, as the case may be, from (i) Haitaoche
Limited in connection with the HTC Merger, and (ii) holders of the Series A Preferred Shares, as set forth in the respective
transactional documents.


 






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(f)       
Issuance of the Securities. The Securities are duly authorized and, when issued and paid for in accordance with the applicable
Transaction Documents, will be duly and validly issued, fully paid and nonassessable, free and clear of all Liens imposed by the Company
other than restrictions on transfer provided for in the Transaction Documents. The Underlying Shares, when issued in accordance with the
terms of the Transaction Documents, will be validly issued, fully paid and nonassessable, free and clear of all Liens imposed by the Company
other than restrictions on transfer provided for in the Transaction Documents. The Company has reserved from its duly authorized capital
stock a number of Ordinary Shares for issuance of the Underlying Shares at least equal to the Required Minimum on the date hereof.


 


(g)      Private
Placement. Assuming the accuracy of the Purchaser’s representations and warranties set forth in Section 3.2, no registration
under the Securities Act is required for the offer and sale of the Securities by the Company to the Purchaser as contemplated hereby.
The issuance and sale of the Securities hereunder does not contravene the rules and regulations of the Trading Market.


 


(h)       Investment
Company. The Company is not, and immediately after receipt of payment for the Securities, will not be, an “investment company”
within the meaning of the Investment Company Act of 1940, as amended. The Company shall conduct its business in a manner so that it will
not become an “investment company” subject to registration under the Investment Company Act of 1940, as amended.


 


(i)       No
Integrated Offering. Assuming the accuracy of the Purchaser’s representations and warranties set forth in Section 3.2,
neither the Company, nor any of its Affiliates, nor any Person acting on its or their behalf has, directly or indirectly, made any offers
or sales of any security or solicited any offers to buy any security, under circumstances that would cause this offering of the Securities
to be integrated with prior offerings by the Company for purposes of (i) the Securities Act which would require the registration
of any such securities under the Securities Act, or (ii)  any applicable shareholder approval provisions of any Trading Market on
which any of the securities of the Company are listed or designated.


 


(j)       No
General Solicitation. Neither the Company nor any Person acting on behalf of the Company has offered or sold any of the Securities
by any form of general solicitation or general advertising. The Company has offered the Securities for sale only to the Purchaser and
certain other “accredited investors” within the meaning of Rule 501 under the Securities Act.


  


(k)      Regulation
M Compliance. The Company has not, and to its knowledge no one acting on its behalf has, (i) taken, directly or indirectly, any
action designed to cause or to result in the stabilization or manipulation of the price of any security of the Company to facilitate the
sale or resale of any of the Securities, (ii)  sold, bid for, purchased, or paid any compensation for soliciting purchases of, any
of the Securities, or (iii) paid or agreed to pay to any Person any compensation for soliciting another to purchase any other securities
of the Company, other than, in the case of clauses (ii) and (iii), compensation paid to the Company’s placement agent in connection
with the placement of the Securities.


 






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(l)        No
Disqualification Events. With respect to the Securities to be offered and sold hereunder in reliance on Rule  506 under the
Securities Act, other than the Purchaser, none of the Company, any of its predecessors, any affiliated issuer, any director, executive
officer, other officer of the Company participating in the offering hereunder, any beneficial owner of 20% or more of the Company’s
outstanding voting equity securities, calculated on the basis of voting power, nor any promoter (as that term is defined in Rule 405
under the Securities Act) connected with the Company in any capacity at the time of sale (each, an "Issuer Covered Person"
and, together, "Issuer Covered Persons") is subject to any of the "Bad Actor" disqualifications described
in Rule 506(d)(1)(i) to (viii) under the Securities Act (a "Disqualification Event"), except for a Disqualification
Event covered by Rule 506(d)(2) or (d)(3). The Company has exercised reasonable care to determine whether any Issuer Covered
Person is subject to a Disqualification Event. The Company has complied, to the extent applicable, with its disclosure obligations under
Rule 506(e).


 


(m)       Other
Covered Persons. The Company is not aware of any person (other than any Issuer Covered Person) that has been or will be paid (directly
or indirectly) remuneration for solicitation of purchasers in connection with the sale of any Securities.


 


(n)       
Notice of Disqualification Events. The Company will notify the Purchaser in writing, prior to each Closing Date of (i)  any
Disqualification Event relating to any Issuer Covered Person and (ii) any event that would, with the passage of time, become a Disqualification
Event relating to any Issuer Covered Person.


 


3.2       Representations
and Warranties of the Purchaser. The Purchaser hereby represents and warrants as of the date hereof and as of the Closing Date to
the Company as follows (unless as of a specific date therein, in which case they shall be accurate as of such date):


 


(a)       Organization;
Authority. Such Purchaser is either an individual or an entity duly incorporated or formed, validly existing and in good standing
under the laws of the jurisdiction of its incorporation or formation with full right, corporate, partnership, limited liability company
or similar power and authority to enter into and to consummate the transactions contemplated by the Transaction Documents and otherwise
to carry out its obligations hereunder and thereunder. The execution and delivery of the Transaction Documents and performance by such
Purchaser of the transactions contemplated by the Transaction Documents have been duly authorized by all necessary corporate, partnership,
limited liability company or similar action, as applicable, on the part of such Purchaser. Each Transaction Document to which it is a
party has been duly executed by such Purchaser, and when delivered by such Purchaser in accordance with the terms hereof, will constitute
the valid and legally binding obligation of such Purchaser, enforceable against it in accordance with its terms, except (i) as limited
by general equitable principles and applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application
affecting enforcement of creditors’ rights generally, (ii) as limited by laws relating to the availability of specific performance,
injunctive relief or other equitable remedies and (iii)  insofar as indemnification and contribution provisions may be limited by
applicable law.


 






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(b)      Own Account.The
Purchaser understands that the Securities are “restricted securities” and have not been registered under the Securities Act
or any applicable state securities law and is acquiring the Securities as principal for its own account and not with a view to or for
distributing or reselling such Securities or any part thereof in violation of the Securities Act or any applicable state securities law,
has no present intention of distributing any of such Securities in violation of the Securities Act or any applicable state securities
law and has no direct or indirect arrangement or understandings with any other persons to distribute or regarding the distribution of
such Securities in violation of the Securities Act or any applicable state securities law (this representation and warranty not limiting
such Purchaser’s right to sell the Securities pursuant to a registration statement or otherwise in compliance with applicable federal
and state securities laws). Such Purchaser is acquiring the Securities hereunder in the ordinary course of its business.


 


(c)      
Purchaser Status. At the time such Purchaser was offered the Securities, it was, and as of the date hereof it is, and on each date
on which it converts any Preferred Shares, it will be an “accredited investor” as defined in Rule 501(a) under the
Securities Act.


 


(d)       Experience
of Such Purchaser. The Purchaser, either alone or together with its representatives, has such knowledge, sophistication and experience
in business and financial matters so as to be capable of evaluating the merits and risks of the prospective investment in the Securities,
and has so evaluated the merits and risks of such investment. The Purchaser is able to bear the economic risk of an investment in the
Securities and, at the present time, is able to afford a complete loss of such investment.


 


(e)     General
Solicitation.The Purchaser is not, to such Purchaser’s knowledge, purchasing the Securities as a result of any advertisement,
article, notice or other communication regarding the Securities published in any newspaper, magazine or similar media or broadcast over
television or radio or presented at any seminar or, to the knowledge of such Purchaser, any other general solicitation or general advertisement.


 


(f)        Disqualification
Event. The Purchaser is not subject to any Disqualification Event.


 


ARTICLE IV. 


OTHER AGREEMENTS OF THE PARTIES


 


4.1       Transfer
Restrictions.


 


(a)       The
Securities may only be disposed of in compliance with state and federal securities laws. In connection with any transfer of Securities
other than pursuant to an effective registration statement or Rule 144, to the Company or to an Affiliate of a Purchaser or in connection
with a pledge as contemplated in Section 4.1(b), the Company may require the transferor thereof to provide to the Company an opinion
of counsel selected by the transferor and reasonably acceptable to the Company, the form and substance of which opinion shall be reasonably
satisfactory to the Company, to the effect that such transfer does not require registration of such transferred Securities under the Securities
Act. As a condition of transfer, any such transferee shall agree in writing to be bound by the terms of this Agreement and shall have
the rights and obligations of a Purchaser under this Agreement.


 






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(b)       The
Purchaser agree to the imprinting, so long as is required by this Section 4.1, of a legend on any of the Securities in the following
form:





 


[NEITHER] THIS SECURITY [NOR THE SECURITIES
INTO WHICH THIS SECURITY IS [EXERCISABLE] [CONVERTIBLE]] HAS [NOT] BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”) OR THE SECURITIES COMMISSION OF ANY STATE, AND, ACCORDINGLY, MAY NOT
BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION
FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE
SECURITIES LAWS. THIS SECURITY[ANDTHESECURITIESISSUABLEUPON[EXERCISE]/[CONVERSION] OF THIS SECURITY] MAY 
BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT WITH A REGISTERED BROKER- DEALER OR OTHER LOAN WITH A FINANCIAL INSTITUTION THAT
IS AN “ACCREDITED INVESTOR” AS DEFINED IN RULE 501(a) UNDER THE SECURITIES ACT OR OTHER LOAN SECURED BY SUCH SECURITIES.


 


4.2       Acknowledgment
of Dilution. The Company acknowledges that the issuance of the Securities may result in dilution of the outstanding Ordinary Shares,
which dilution may be substantial under certain market conditions. The Company further acknowledges that its obligations under the Transaction
Documents, including, without limitation, its obligation to issue the Underlying Shares pursuant to the Transaction Documents, are unconditional
and absolute and not subject to any right of set off, counterclaim, delay or reduction, regardless of the effect of any such dilution
or any claim the Company may have against any Purchaser and regardless of the dilutive effect that such issuance may have on the ownership
of the other stockholders of the Company.


 


4.3       Integration.
The Company shall not sell, offer for sale or solicit offers to buy or otherwise negotiate in respect of any security (as defined in Section 2
of the Securities Act) that would be integrated with the offer or sale of the Securities in a manner that would require the registration
under the Securities Act of the sale of the Securities or that would be integrated with the offer or sale of the Securities for purposes
of the rules and regulations of any Trading Market such that it would require shareholder approval prior to the closing of such other
transaction unless shareholder approval is obtained before the closing of such subsequent transaction.


 


4.4       Indemnification
of Purchaser. Subject to the provisions of this Section 4.4, the Company will indemnify and hold the Purchaser and its directors,
officers, shareholders, members, partners, employees and agents (and any other Persons with a functionally equivalent role of a Person
holding such titles notwithstanding a lack of such title or any other title), each Person who controls such Purchaser (within the meaning
of Section 15 of the Securities Act and Section 20 of the Exchange Act), and the directors, officers, shareholders, agents,
members, partners or employees (and any other Persons with a functionally equivalent role of a Person holding such titles notwithstanding
a lack of such title or any other title) of such controlling persons (each, a “Purchaser Party”) harmless from any
and all losses, liabilities, obligations, claims, contingencies, damages, costs and expenses, including all judgments, amounts paid in
settlements, court costs and reasonable attorneys’ fees and costs of investigation that any such Purchaser Party may suffer or incur
as a result of or relating to (a) any breach of any of the representations, warranties, covenants or agreements made by the Company
in this Agreement or in the other Transaction Documents or (b) any action instituted against the Purchaser Parties in any capacity,
or any of them or their respective Affiliates, by any stockholder of the Company who is not an Affiliate of such Purchaser Party, with
respect to any of the transactions contemplated by the Transaction Documents (unless such action is solely based upon a material breach
of such Purchaser Party’s representations, warranties or covenants under the Transaction Documents or any agreements or understandings
such Purchaser Party may have with any such stockholder or any violations by such Purchaser Party of state or federal securities laws
or any conduct by such Purchaser Party which is finally judicially determined to constitute fraud, gross negligence or willful misconduct).
If any action shall be brought against any Purchaser Party in respect of which indemnity may be sought pursuant to this Agreement, such
Purchaser Party shall promptly notify the Company in writing, and the Company shall have the right to assume the defense thereof with
counsel of its own choosing reasonably acceptable to the Purchaser Party.


 






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4.5       Conversion
Procedures. The form of Notice of Conversion included in the Certificate of Designation set forth the totality of the procedures
required of the Purchasers in order to convert the Preferred Shares. Without limiting the preceding sentences, no ink-original Notice
of Conversion shall be required, nor shall any medallion guarantee (or other type of guarantee or notarization) of any Notice of Conversion
form be required in order to convert the Preferred Shares. No additional legal opinion, other information or instructions shall be required
of the Purchaser to convert its Preferred Shares. The Company shall honor conversions of the Preferred Shares and shall deliver Underlying
Shares in accordance with the terms, conditions and time periods set forth in the Transaction Documents.


 


4.6       Registration Rights.
Subject to the relevant restrictions set forth in the securities purchase agreement dated December 28, 2020 in connection with the
sales and purchase of Series A Preferred Shares, the Company grants to the Purchaser customary registration rights pursuant to which
the Company agrees to file one (1) shelf registration statement on Form F-3 to register any Underlying Shares following a written
demand by the Purchaser.


 


4.7       Use of Proceeds.
The Company shall not take, permit to occur, approve, authorize, or agree or commit to do anything related to the use of the net proceeds
from the sale of the Securities hereunder without the approval of the director appointed by the Purchaser.


 


ARTICLE V. MISCELLANEOUS


 


5.1       Termination.
This Agreement may be terminated by the Purchaser by written notice to the Company, if the Closing has not been consummated on or before
the Closing Date.


 


5.2       Entire
Agreement. The Transaction Documents, together with the exhibits and schedules thereto, contain the entire understanding of the parties
with respect to the subject matter hereof and thereof and supersede all prior agreements and understandings, oral or written, with respect
to such matters, which the parties acknowledge have been merged into such documents, exhibits and schedules.


 






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5.3       Notices.
Any and all notices or other communications or deliveries required or permitted to be provided hereunder shall be in writing and shall
be deemed given and effective on the earliest of: (a) the time of transmission, if such notice or communication is delivered via
facsimile at the facsimile number or email attachment at the e-mail address as set forth on the signature pages attached hereto at
or prior to 5:30 p.m. (New York City time) on a Trading Day, (b) the next Trading Day after the time of transmission, if such
notice or communication is delivered via facsimile or email attachment at the facsimile number or e-mail address as set forth on the signature
pages attached hereto on a day that is not a Trading Day or later than 5:30 p.m. (New York City time) on any Trading Day, or
(c) upon actual receipt by the party to whom such notice is required to be given. The address for such notices and communications
shall be as set forth on the signature pages attached hereto.


 


5.4       Amendments;
Waivers. No provision of this Agreement may be waived, modified, supplemented or amended except in a written instrument signed, in
the case of an amendment, by the Company and the Purchaser or, in the case of a waiver, by the party against whom enforcement of any such
waived provision is sought. No waiver of any default with respect to any provision, condition or requirement of this Agreement shall be
deemed to be a continuing waiver in the future or a waiver of any subsequent default or a waiver of any other provision, condition or
requirement hereof, nor shall any delay or omission of any party to exercise any right hereunder in any manner impair the exercise of
any such right. Any amendment effected in accordance with this Section 5.4 shall be binding upon each Purchaser and holder of Securities
and the Company.


 


5.5       Successors
and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their successors and permitted assigns.
The Company may not assign this Agreement or any rights or obligations hereunder without the prior written consent of the Purchaser (other
than by merger). The Purchaser may assign any or all of its rights under this Agreement to any Person to whom the Purchaser assigns or
transfers any Securities, provided that such transferee agrees in writing to be bound, with respect to the transferred Securities, by
the provisions of the Transaction Documents that apply to the “Purchaser.”


 


5.6       No
Third-Party Beneficiaries. This Agreement is intended for the benefit of the parties hereto and their respective successors and permitted
assigns and is not for the benefit of, nor may any provision hereof be enforced by, any other Person, except as otherwise set forth in
Section 4.4 and this Section 5.6.


 


5.7       Governing
Law. All questions concerning the construction, validity, enforcement and interpretation of the Transaction Documents shall be governed
by and construed and enforced in accordance with the internal laws of the State of New York, without regard to the principles of conflicts
of law thereof. Each party agrees that all legal Proceedings concerning the interpretations, enforcement and defense of the transactions
contemplated by this Agreement and any other Transaction Documents (whether brought against a party hereto or its respective affiliates,
directors, officers, shareholders, partners, members, employees or agents) shall be commenced exclusively in the state and federal courts
sitting in the City of New York.


 


5.8       Severability.
If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction to be invalid, illegal,
void or unenforceable, the remainder of the terms, provisions, covenants and restrictions set forth herein shall remain in full force
and effect and shall in no way be affected, impaired or invalidated, and the parties hereto shall use their commercially reasonable efforts
to find and employ an alternative means to achieve the same or substantially the same result as that contemplated by such term, provision,
covenant or restriction. It is hereby stipulated and declared to be the intention of the parties that they would have executed the remaining
terms, provisions, covenants and restrictions without including any of such that may be hereafter declared invalid, illegal, void or unenforceable.


 






    	 	11	 



     


    




 


5.9       WAIVER
OF JURY TRIAL. IN ANY ACTION, SUIT, OR PROCEEDING IN ANY JURISDICTION BROUGHT BY ANY PARTY AGAINST ANY OTHER PARTY, THE PARTIES EACH
KNOWINGLY AND INTENTIONALLY, TO THE GREATEST EXTENT PERMITTED BY APPLICABLE LAW, HEREBY ABSOLUTELY, UNCONDITIONALLY, IRREVOCABLY
AND EXPRESSLY WAIVES FOREVER TRIAL BY JURY.


 


(Signature Pages Follow)


 



    	 	12	 



     


    




  


IN WITNESS WHEREOF, the parties
hereto have caused this Securities Purchase Agreement to be duly executed by their respective authorized signatories as of the date first
indicated above.


 


 


	KAIXIN AUTO HOLDINGS	 
	 	 
	 	 
	By:	/s/ Joseph Chen	 
	 	Name: Joseph Chen	 
	 	Title: Director	 



 


 



    	 	 



     


    




 


IN WITNESS WHEREOF, the undersigned have caused
this Securities Purchase Agreement to be duly executed by their respective authorized signatories as of the date first indicated above.


 





	RENREN INC.	 
	 	 
	 	 
	By:	/s/ James Liu	 
	 	Name: James Liu
	 
	 	Title: Director
	 


 









    	 	 



     


    




 


EXHIBIT A


 


FORM OF CERTIFICATE OF DESIGNATION


 






    	 	 



     


    

 


KAIXIN AUTO HOLDINGS


 


CERTIFICATE OF DESIGNATION


OF


SERIES D CONVERTIBLE PREFERRED
SHARES


 


The undersigned,
the chairman of the board of directors (the “Board of Directors”) of Kaixin Auto Holdings, incorporated under the laws
of the Cayman Islands (the “Company”), does hereby certify that:


 


FIRST, according
to the Second Amended and Restated Memorandum of Association of the Company (the “Memorandum and Articles”), the authorized
share capital of the Company is US$50,000 divided into 500,000,000 ordinary shares of a par value of US$0.0001 each (“Ordinary
Shares”).


 


SECOND, according
to the Memorandum and Articles, the Board of Directors may provide, out of the unissued shares, for series of preferred shares, and before
any preferred shares of any such series are issued, the Board of Directors shall fix, among other things, the designation of such series,
the number of preferred shares to constitute such series, the subscription price thereof, the dividends, if any, payable on such series,
voting rights, redemption rights, conversion rights, liquidation preferences and other rights of the holders of such series.


 


THIRD, the Board
of Directors, pursuant to the authority designated to it under the Memorandum and Articles, has authorized, by unanimous written resolutions
of the Board of Directors dated March 31, 2021, the adoption of this Certificate of Designation of Series D Convertible Preferred Shares
(this “Certificate of Designation”) to create and issue a new series of convertible preferred shares of the Company
with preference, priority, special privilege and other rights provided herein and that 6,000 of the authorized but unissued Ordinary Shares
in the authorized share capital of the Company be re-designated as Series D Convertible Preferred Shares.


 


NOW, THEREFORE, a new series of preferred
shares of the Company shall be created and issued with the rights, preferences and restrictions as follows:


 








 



    	 	1	 



     


    

 





TERMS OF PREFERRED SHARES


 


Section 1.       Definitions.
For the purposes hereof, the following terms shall have the following meanings:


 


“Affiliate”
means any Person that, directly or indirectly through one or more intermediaries, controls or is controlled by or is under common control
with a Person, as such terms are used in and construed under Rule 405 of the Securities Act.


 


“Alternate Consideration” shall have the
meaning set forth in Section 7(d).


 


“Bankruptcy
Event” means any of the following events: (a) the Company or any Significant Subsidiary (as such term is defined in Rule 1-02(w)
of Regulation S-X) thereof commences a voluntary case or other proceeding under any bankruptcy, reorganization, arrangement, adjustment
of debt, relief of debtors, dissolution, insolvency or liquidation or similar law of any jurisdiction relating to the Company or any Significant
Subsidiary thereof, or (b) the Company or any Significant Subsidiary thereof calls a meeting of its creditors with a view to arranging
a composition, adjustment or restructuring of its debts.


 


“Base Conversion Price” shall have the
meaning set forth in Section 7(b).


 


“Business
Day” means any day other than Saturday, Sunday or other day on which commercial banks in The City of New York are authorized
or required by law to remain closed; provided, however, for clarification, commercial banks shall not be deemed to be authorized
or required by law to remain closed due to “stay at home”, “shelter-in-place”, “non-essential employee”
or any other similar orders or restrictions or the closure of any physical branch locations at the direction of any governmental authority
so long as the electronic funds transfer systems (including for wire transfers) of commercial banks in The City of New York generally
are open for use by customers on such day.


 


“Change
of Control Transaction” means the occurrence after the date hereof of any of (a) an acquisition after the date hereof by an
individual or legal entity or “group” (as described in Rule 13d-5(b)(1) promulgated under the Exchange Act) of effective control
(whether through legal or beneficial ownership of capital stock of the Company, by contract or otherwise) of in excess of 50% of the voting
securities of the Company (other than by means of conversion or exercise of Preferred Shares and the Securities issued together with the
Preferred Shares), (b) the Company merges into or consolidates with any other Person, or any Person merges into or consolidates with the
Company and, after giving effect to such transaction, the shareholders of the Company immediately prior to such transaction own less than
50% of the aggregate voting power of the Company or the successor entity of such transaction, (c) the Company sells or transfers all or
substantially all of its (and all of its Subsidiaries, taken as a whole) assets to another Person and the shareholders of the Company
immediately prior to such transaction own less than 50% of the aggregate voting power of the acquiring entity immediately after the transaction,
or (d) the execution by the Company of an agreement to which the Company is a party or by which it is bound, providing for any of the
events set forth in clauses (a) through (c) above. Notwithstanding anything herein to the contrary, the HTC Merger shall not be deemed
a Change of Control Transaction.


 






    	 	2	 



     


    







 


“Closing”
means the closing of the purchase and sale of the Securities pursuant to Section 2.1 of the Purchase Agreement.


 


“Commission” means the United States Securities
and Exchange Commission.


 


“Conversion Amount” means the sum of the
Stated Value at issue.


 


“Conversion Date” shall have the meaning
set forth in Section 6(a).


 


“Conversion Price” shall have the meaning
set forth in Section 6(b).


 


“Conversion Shares”
means the Ordinary Shares issuable upon conversion of the Preferred Shares in accordance with the terms hereof.


 


“Dilutive Issuance” shall have the meaning
set forth in Section 7(b).


 


“Dilutive Issuance Notice” shall have the
meaning set forth in Section 7(b).


 


“Dividend Payment Date” shall have the
meaning set forth in Section 3(a).


 


“Exchange Act”
means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.


 


“Exempt
Issuance” means the issuance of (a) Ordinary Shares or options to employees, officers or directors of the Company pursuant to
any stock or option plan duly adopted by a majority of the non-employee members of the Board of Directors of the Company or a majority
of the members of a committee of non-employee directors established for such purpose, (b) securities upon the exercise or exchange of
or conversion of any securities issued pursuant to the Purchase Agreement and/or other securities exercisable or exchangeable for or convertible
into Ordinary Shares issued and outstanding on the date of the Purchase Agreement, provided that such securities have not been amended
since the date of the Purchase Agreement to increase the number of such securities or to decrease the exercise price, exchange price or
conversion price of any such securities or to extend the term of such securities and (c) securities issued pursuant to acquisitions or
strategic transactions approved by a majority of the disinterested directors of the Company, but shall not include a transaction in which
the Company is issuing securities primarily for the purpose of raising capital or to an entity whose primary business is investing in
securities, (d) Ordinary Shares issued in connection with the HTC Merger, (e) Series A Preferred Shares and the corresponding underlying
Ordinary Shares and (f) in any 12-month period, up to 1,000,000 unregistered Ordinary Shares (subject to adjustment for reverse and forward
stock splits and the like) in transactions not described in (a)-(e) above.


 






    	 	3	 



     


    

 


“Fundamental Transaction” shall have the
meaning set forth in Section 7(d).


 


“GAAP” means United States generally accepted
accounting principles.


 


“Holder” shall have the meaning given such
term in Section 2.


 


“HTC
Merger” means the proposed merger or acquisition upon the consummation of which Haitaoche Limited, an exempted company with
limited liability incorporated under the laws of the Cayman Islands, will become a wholly-owned subsidiary of the Company.


 


“Junior
Securities” means the Ordinary Shares and all other Ordinary Shares Equivalents of the Company other than those securities which
are explicitly senior or pari passu to the Preferred Shares in dividend rights or liquidation preference.


 


“Liquidation” shall have the meaning set
forth in Section 5.


 


“New York Courts” shall have the meaning
set forth in Section 11(d).


 


“Notice of Conversion” shall have the meaning
set forth in Section 6(a).


 


“Optional Redemption” shall have the meaning
set forth in Section 8(b).


 


“Optional
Redemption Amount” means, in relation to each outstanding Preferred Share, the sum of (a) 105% of the Stated Value, (b) accrued
but unpaid dividends and (c) all liquidated damages and other amounts due in respect of the Preferred Shares.


 


“Optional Redemption Date” shall have the
meaning set forth in Section 8(a).


 


“Optional Redemption Notice” shall have
the meaning set forth in Section 8(a).


 


“Optional Redemption Notice Date”
shall have the meaning set forth in Section 8(a).


 


“Ordinary
Shares Equivalents” means any securities of the Company or the Subsidiaries which would entitle the holder thereof to acquire
at any time Ordinary Shares, including, without limitation, any debt, preferred stock, rights, options, warrants or other instrument that
is at any time convertible into or exercisable or exchangeable for, or otherwise entitles the holder thereof to receive, Ordinary Shares.


 


“Original Issue Date”
means, with respect to each Preferred Share, the date of the first issuance of such Preferred Share regardless of the number of transfers
of such Preferred Share and regardless of the number of certificates which may be issued to evidence such Preferred Share.


 






    	 	4	 



     


    

 


“Person”
means an individual or corporation, partnership, trust, incorporated or unincorporated association, joint venture, limited liability company,
joint stock company, government (or an agency or subdivision thereof) or other entity of any kind.


 


“Preferred Shares” shall have the meaning
set forth in Section 2.


 


“Purchase
Agreement” means the Securities Purchase Agreement, dated as of March 31, 2021, among the Company and the original Holder, as
amended, modified or supplemented from time to time in accordance with its terms.


 


“Rule
144” means Rule 144 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended from time to time,
or any similar rule or regulation hereafter adopted by the Commission having substantially the same effect as such Rule.


 


“Securities” means the Preferred Shares
and the Underlying Shares.


 


“Securities Act”
means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.


 


“Series
A Preferred Shares” means the up to 6,000 shares of the Company’s Series A Convertible Preferred Shares issued or to be
issued pursuant to the securities purchase agreement entered into by the Company and the several purchasers therein on December 28, 2020,
which are pari passu to the Preferred Shares in dividend rights or liquidation preference.


 


“Share Delivery Date” shall have the meaning
set forth in Section 6(c).


 


“Stated Value” shall
have the meaning set forth in Section 2.


 


“Subsidiary”
means any direct or indirect subsidiary of the Company and shall, where applicable, also include any direct or indirect subsidiary of
the Company formed or acquired after the date of the Purchase Agreement.


 


“Successor Entity” shall have the meaning
set forth in Section 7(d).


 


“Trading
Day” means a day on which the principal Trading Market is open for business.


 


“Trading
Market” means any of the following markets or exchanges on which the Ordinary Shares is listed or quoted for trading on the
date in question: the NYSE American, the Nasdaq Capital Market, the Nasdaq Global Market, the Nasdaq Global Select Market or the New York
Stock Exchange (or any successors to any of the foregoing).


 






    	 	5	 



     


    

 


“Transaction
Documents” means this Certificate of Designation, the Purchase Agreement, and any other documents or agreements executed in
connection with the transactions contemplated pursuant to the Purchase Agreement.


 


“Transfer
Agent” means Continental Stock Transfer & Trust Company, the current transfer agent of the Company with a mailing address
of One State Street, 30th Floor, New York, NY 10004-1561 and an email address of compliance@continentalstock.com, and any successor transfer
agent of the Company.


 


“Triggering Event” shall have the meaning
set forth in Section 10(a).


 


“Triggering
Redemption Amount” means, for each share of Preferred Shares, the sum of (a) 105% of the Stated Value, (b) all accrued but unpaid
dividends thereon and (c) all liquidated damages and other costs, expenses or amounts due in respect of the Preferred Shares.


 


“Triggering
Redemption Payment Date” shall have the meaning set forth in Section 10(b).


 


“Underlying
Shares” means the Ordinary Shares issued and issuable upon conversion or redemption of the Preferred Shares, or in lieu of the
cash payment of dividends on the Preferred Shares in accordance with the terms of this Certificate of Designation.


 


“Variable
Rate Transaction” means a transaction in which the Company (i) issues or sells any debt or equity securities that are convertible
into, exchangeable or exercisable for, or include the right to receive, additional Ordinary Shares either (A) at a conversion price, exercise
price or exchange rate or other price that is based upon, and/or varies with, the trading prices of or quotations for the Ordinary Shares
at any time after the initial issuance of such debt or equity securities or (B) with a conversion, exercise or exchange price that is
subject to being reset at some future date after the initial issuance of such debt or equity security or upon the occurrence of specified
or contingent events directly or indirectly related to the business of the Company or the market for the Ordinary Shares or (ii) enters
into, or effects a transaction under, any agreement, including, but not limited to, an equity line of credit, whereby the Company may
issue securities at a future determined price.


 


Section 2.         Designation,
Amount and Par Value. The series of preferred shares shall be designated as the Company’s Series D Convertible Preferred Shares
(the “Preferred Shares”) and the number of shares so designated shall be up to 6,000 (which shall not be subject to
increase without the written consent of the holders of a majority of the then outstanding Preferred Shares (each, a “Holder”
and collectively, the “Holders”)). Each Preferred Share shall have a par value of $0.0001 per share and a stated value
equal to $1,000 (the “Stated Value”).


 






    	 	6	 



     


    

 


Section 3.        Dividends.


 


a)       Dividends
in Cash or in Kind. Holders shall be entitled to receive, and the Company shall pay, cumulative dividends at the rate per share (as
a percentage of the Stated Value per share) of 5% per annum, payable annually every twelve months starting from the first twelve-month
anniversary of the applicable Original Issue Date and on each Conversion Date (with respect only to Preferred Shares being converted)
and on each Optional Redemption Date (with respect only to Preferred Shares being redeemed) (each such date, a “Dividend Payment
Date”) (if any Dividend Payment Date is not a Trading Day, the applicable payment shall be due on the next succeeding Trading
Day) in cash, or at the Company’s option, in duly authorized, validly issued, fully paid and non-assessable Ordinary Shares as set
forth in this Section 3(a), or a combination thereof. In addition, as a condition to paying dividends in Ordinary Shares, no later than
(5) Trading Days prior to the applicable Dividend Payment Date, the Company shall have delivered to each Holder a number of Ordinary Shares
that equal to the quotient of (x) the applicable dollar amount of dividends to be paid in Ordinary Shares divided by (y) the Conversion
Price. The Holders shall have the same rights and remedies with respect to the delivery of any such Ordinary Shares as if such Ordinary
Shares were being issued pursuant to Section 6.


 


b)       Company’s
Ability to Pay Dividends in Cash or Kind. If at any time the Company has the right to pay dividends in cash or Ordinary Shares, the
Company must provide the Holders with at least 5 Trading Days’ notice of its election to pay a regularly scheduled dividend in Ordinary
Shares (the Company may indicate in such notice that the election contained in such notice shall continue for later periods until revised
by a subsequent notice).


 


c)        Dividend
Calculations. Dividends on the Preferred Shares shall be calculated on the basis of a 360-day year, consisting of twelve 30 calendar
day periods, and shall accrue daily commencing on the applicable Original Issue Date, and shall be deemed to accrue from such date whether
or not earned or declared and whether or not there are profits, surplus or other funds of the Company legally available for the payment
of dividends. Payment of dividends in Ordinary Shares shall otherwise occur pursuant to Section 6(c)(i) herein and, solely for purposes
of the payment of dividends in Ordinary Shares, the Dividend Payment Date shall be deemed the Conversion Date. Dividends shall cease to
accrue with respect to any Preferred Shares converted, provided that, the Company actually delivers the Conversion Shares within the time
period required by Section 6(c)(i) herein. Except as otherwise provided herein, if at any time the Company pays dividends partially in
cash and partially in shares, then such payment shall be distributed ratably among the Holders based upon the number of Preferred Shares
held by each Holder on such Dividend Payment Date.


 


d)        Late
Fees. Any dividends, whether paid in cash or Ordinary Shares, that are not paid within three Trading Days following a Dividend Payment
Date shall continue to accrue and shall entail a late fee, which must be paid in cash, at the rate of 10% per annum or the lesser rate
permitted by applicable law which shall accrue daily from the Dividend Payment Date through and including the date of actual payment in
full.


 






    	 	7	 



     


    

 


e)       Other
Securities. So long as any Preferred Shares shall remain outstanding, neither the Company nor any Subsidiary thereof shall redeem,
purchase or otherwise acquire directly or indirectly any Junior Securities except as expressly permitted by Section 10(a)(iv). So long
as any Preferred Shares shall remain outstanding, neither the Company nor any Subsidiary thereof shall directly or indirectly pay or declare
any dividend or make any distribution upon (other than a dividend or distribution described in Section 6 or dividends due and paid in
the ordinary course on preferred stock of the Company at such times when the Company is in compliance with its payment and other obligations
hereunder), nor shall any distribution be made in respect of, any Junior Securities as long as any dividends due on the Preferred Shares
remain unpaid, nor shall any monies be set aside for or applied to the purchase or redemption (through a sinking fund or otherwise) of
any Junior Securities or shares pari passu with the Preferred Shares.


 


Section
4.       Voting Rights. Except as otherwise provided herein or as otherwise required
by law, the Preferred Shares shall have no voting rights. However, as long as any Preferred Shares are outstanding, except to the extent
required for the consummation of the HTC Merger, the Company shall not, without the affirmative vote of the Holders of a majority of
the then outstanding Preferred Shares, (a) alter or change adversely the powers, preferences or rights given to the Preferred Shares
or alter or amend this Certificate of Designation, (b) authorize or create any class of shares ranking as to dividends, redemption or
distribution of assets upon a Liquidation (as defined in Section 5) senior to, or otherwise pari passu with, the Preferred Shares,
(c) amend its memorandum and articles of association or other charter documents in any manner that adversely affects any rights of the
Holders, (d) increase the number of shares that are designated as the Preferred Shares, or (e) enter into any agreement with respect
to any of the foregoing.


 


Section
5.       Liquidation. Upon any liquidation, dissolution or winding-up of the Company, whether voluntary or involuntary (a “Liquidation”),
the Holders shall be entitled to receive out of the assets, whether capital or surplus, of the Company an amount equal to the Stated Value,
plus any accrued and unpaid dividends thereon and any other fees or liquidated damages then due and owing thereon under this Certificate
of Designation, for each Preferred Shares before any distribution or payment shall be made to the holders of any Junior Securities, and
if the assets of the Company shall be insufficient to pay in full such amounts, then the entire assets to be distributed to the Holders
shall be ratably distributed among the Holders in accordance with the respective amounts that would be payable on such shares if all amounts
payable thereon were paid in full. A Fundamental Transaction shall not be deemed a Liquidation. The Company shall mail written notice
of any such Liquidation, not less than 45 days prior to the payment date stated therein, to each Holder.


 






    	 	8	 



     


    

 


Section 6.       Conversion.


 


a)       Conversions
at Option of Holder. Subject to this Section 6(a), each Preferred Share shall be convertible, at any time and from time to time from
and after the Original Issue Date at the option of the Holder thereof, into that number of Ordinary Shares determined by dividing the
Stated Value of such Preferred Share by the Conversion Price. Holders shall effect conversions by providing the Company with the form
of conversion notice attached hereto as Annex A (a “Notice of Conversion”). Each Notice of Conversion shall
specify the number of Preferred Shares to be converted (provided that the number of Ordinary Shares issuable upon the conversion of such
Preferred Shares shall be no less than 50,000, unless all Preferred Shares held by such Holder are to be converted), the number of Preferred
Shares owned prior to the conversion at issue, the number of Preferred Shares owned subsequent to the conversion at issue and the date
on which such conversion is to be effected, which date may not be prior to the date the applicable Holder delivers by facsimile such Notice
of Conversion to the Company (such date, the “Conversion Date”). If no Conversion Date is specified in a Notice of
Conversion, the Conversion Date shall be the date that such Notice of Conversion to the Company is deemed delivered hereunder. No ink-original
Notice of Conversion shall be required, nor shall any medallion guarantee (or other type of guarantee or notarization) of any Notice of
Conversion form be required. The calculations and entries set forth in the Notice of Conversion shall control in the absence of manifest
or mathematical error. To effect conversions of Preferred Shares, a Holder shall not be required to surrender the certificate(s) representing
the Preferred Shares to the Company unless all of the Preferred Shares represented thereby are so converted, in which case such Holder
shall deliver the certificate representing such Preferred Shares promptly following the Conversion Date at issue. Preferred Shares converted
into Ordinary Shares or redeemed in accordance with the terms hereof shall be canceled and shall not be reissued.


  


		b)	Conversion Price. The conversion price for the Preferred
Shares shall equal $3.00, subject to adjustment herein (the “Conversion Price”).



 


		c)	Mechanics of Conversion.



 


i.       
Delivery of Conversion Shares Upon Conversion. Not later than two (2) Trading Days after each Conversion Date (the “Share
Delivery Date”), the Company shall deliver, or cause to be delivered, to the converting Holder (A) the number of Conversion
Shares being acquired upon the conversion of the Preferred Shares (including Ordinary Shares representing the payment of accrued dividends
otherwise determined pursuant to Section 3(a), and (B) a bank check in the amount of accrued and unpaid dividends (if the Company has
elected or is required to pay accrued dividends in cash).


 


ii.       
Failure to Deliver Conversion Shares. If, in the case of any Notice of Conversion, such Conversion Shares are not delivered to
or as directed by the applicable Holder by the Share Delivery Date, the Holder shall be entitled to elect by written notice to the Company
at any time on or before its receipt of such Conversion Shares, to rescind such Conversion, in which event the Company shall promptly
return to the Holder any original Preferred Share certificate delivered to the Company and the Holder shall promptly return to the Company
the Conversion Shares issued to such Holder pursuant to the rescinded Notice of Conversion.


 






    	 	9	 



     


    

 


iii.       
Obligation Absolute; Partial Liquidated Damages. The Company’s obligation to issue and deliver the Conversion Shares upon
conversion of Preferred Shares in accordance with the terms hereof are absolute and unconditional, irrespective of any action or inaction
by a Holder to enforce the same, any waiver or consent with respect to any provision hereof, the recovery of any judgment against any
Person or any action to enforce the same, or any setoff, counterclaim, recoupment, limitation or termination, or any breach or alleged
breach by such Holder or any other Person of any obligation to the Company or any violation or alleged violation of law by such Holder
or any other person, and irrespective of any other circumstance which might otherwise limit such obligation of the Company to such Holder
in connection with the issuance of such Conversion Shares; provided, however, that such delivery shall not operate as a
waiver by the Company of any such action that the Company may have against such Holder. In the event a Holder shall elect to convert any
or all of the Stated Value of its Preferred Shares, the Company may not refuse conversion based on any claim that such Holder or anyone
associated or affiliated with such Holder has been engaged in any violation of law, agreement or for any other reason, unless an injunction
from a court, on notice to Holder, restraining and/or enjoining conversion of all or part of the Preferred Shares of such Holder shall
have been sought and obtained. In the absence of such injunction, the Company shall issue Conversion Shares upon a properly noticed conversion.
If the Company fails to deliver to a Holder such Conversion Shares pursuant to Section 6(c)(i) by the Share Delivery Date applicable to
such conversion, the Company shall pay to such Holder, in cash, as liquidated damages and not as a penalty, for each $5,000 of Stated
Value of Preferred Shares being converted, $50 per Trading Day for each Trading Day after the 2nd Trading Day following the Share Delivery
Date until such Conversion Shares are delivered or Holder rescinds such conversion. Nothing herein shall limit a Holder’s right
to pursue actual damages or declare a Triggering Event pursuant to Section 10 hereof for the Company’s failure to deliver Conversion
Shares within the period specified herein and such Holder shall have the right to pursue all remedies available to it hereunder, at law
or in equity including, without limitation, a decree of specific performance and/or injunctive relief. The exercise of any such rights
shall not prohibit a Holder from seeking to enforce damages pursuant to any other Section hereof or under applicable law.


 


iv.       
Reservation of Shares Issuable Upon Conversion. The Company covenants that it will at all times reserve and keep available out
of its authorized and unissued Ordinary Shares for the sole purpose of issuance upon conversion of the Preferred Shares and payment of
dividends on the Preferred Shares, each as herein provided, free from preemptive rights or any other actual contingent purchase rights
of Persons other than the Holder (and the other holders of the Preferred Shares), not less than such aggregate number of Ordinary Shares
as shall (subject to the terms and conditions set forth in the Purchase Agreement) be issuable (taking into account the adjustments and
restrictions of Section 7) upon the conversion of the then outstanding Preferred Shares and payment of dividends hereunder. The Company
covenants that all Ordinary Shares that shall be so issuable shall, upon issue, be duly authorized, validly issued, fully paid and nonassessable.


 






    	 	10	 



     


    

 


v.       
Fractional Shares. No fractional shares or scrip representing fractional shares shall be issued upon the conversion of the Preferred
Shares. As to any fraction of a share which the Holder would otherwise be entitled to purchase upon such conversion, the Company shall
at its election, either pay a cash adjustment in respect of such final fraction in an amount equal to such fraction multiplied by the
Conversion Price or round up to the next whole share. Notwithstanding anything to the contrary contained herein, but consistent with the
provisions of this subsection with respect to fractional Conversion Shares, nothing shall prevent any Holder from converting fractional
Preferred Shares.


 


vi.       
Transfer Taxes and Expenses. The issuance of Conversion Shares on conversion of the Preferred Shares shall be made without charge
to any Holder for any documentary stamp or similar taxes that may be payable in respect of the issue or delivery of such Conversion Shares,
provided that the Company shall not be required to pay any tax that may be payable in respect of any transfer involved in the issuance
and delivery of any such Conversion Shares upon conversion in a name other than that of the Holders of such Preferred Shares and the Company
shall not be required to issue or deliver such Conversion Shares unless or until the Person or Persons requesting the issuance thereof
shall have paid to the Company the amount of such tax or shall have established to the satisfaction of the Company that such tax has been
paid. The Company shall pay all Transfer Agent fees required for same-day processing of any Notice of Conversion and all fees to the Depository
Trust Company (or another established clearing corporation performing similar functions) required for same-day electronic delivery of
the Conversion Shares.


 


Section 7.        Certain Adjustments.


 


a)       Stock
Dividends and Stock Splits. If the Company, at any time while any Preferred Shares are outstanding: (i) pays a stock dividend or otherwise
makes a distribution or distributions payable in Ordinary Shares on Ordinary Shares or any other Ordinary Shares Equivalents (which, for
avoidance of doubt, shall not include any Ordinary Shares issued by the Company upon conversion of, or payment of a dividend on, the Preferred
Shares), (ii) subdivides outstanding Ordinary Shares into a larger number of shares, (iii) combines (including by way of a reverse stock
split) outstanding Ordinary Shares into a smaller number of shares, or (iv) issues, in the event of a reclassification of the Ordinary
Shares, any shares of capital stock of the Company, then the Conversion Price shall be multiplied by a fraction of which the numerator
shall be the number of Ordinary Shares (excluding any treasury shares of the Company) outstanding immediately before such event, and of
which the denominator shall be the number of Ordinary Shares outstanding immediately after such event. Any adjustment made pursuant to
this Section 7(a) shall become effective immediately after the record date for the determination of shareholders entitled to receive such
dividend or distribution and shall become effective immediately after the effective date in the case of a subdivision, combination or
re-classification.


 






    	 	11	 



     


    

 


b)       Subsequent
Equity Sales. If, at any time while any Preferred Shares are outstanding, the Company or any Subsidiary, as applicable sells or grants
any option to purchase or sells or grants any right to reprice, or otherwise disposes of or issues (or announces any sale, grant or any
option to purchase or other disposition), any Ordinary Shares or Ordinary Shares Equivalents entitling any Person to acquire Ordinary
Shares at an effective price per share that is lower than the then Conversion Price (such lower price, the “Base Conversion Price”
and such issuances, collectively, a “Dilutive Issuance”) (if the holder of the Ordinary Shares or Ordinary Shares Equivalents
so issued shall at any time, whether by operation of purchase price adjustments, reset provisions, floating conversion, exercise or exchange
prices or otherwise, or due to warrants, options or rights per share which are issued in connection with such issuance, be entitled to
receive Ordinary Shares at an effective price per share that is lower than the Conversion Price, such issuance shall be deemed to have
occurred for less than the Conversion Price on such date of the Dilutive Issuance), then simultaneously with the consummation (or, if
earlier, the announcement) of each Dilutive Issuance the Conversion Price shall be reduced to equal the Base Conversion Price. Notwithstanding
the foregoing, no adjustment will be made under this Section 7(b) in respect of an Exempt Issuance. If the Company enters into a Variable
Rate Transaction, the Company shall be deemed to have issued Ordinary Shares or Ordinary Shares Equivalents at the lowest possible conversion
price at which such securities may be converted or exercised. The Company shall notify the Holders in writing, no later than the Trading
Day following the issuance of any Ordinary Shares or Ordinary Shares Equivalents subject to this Section 7(b), indicating therein the
applicable issuance price, or applicable reset price, exchange price, conversion price and other pricing terms (such notice, the “Dilutive
Issuance Notice”). For purposes of clarification, whether or not the Company provides a Dilutive Issuance Notice pursuant to
this Section 7(b), upon the occurrence of any Dilutive Issuance, the Holders are entitled to receive a number of Conversion Shares based
upon the Base Conversion Price on or after the date of such Dilutive Issuance, regardless of whether a Holder accurately refers to the
Base Conversion Price in the Notice of Conversion. Notwithstanding the foregoing, the Conversion Price shall not be adjusted to a level
lower than $1.00 in any circumstances.


 


c)       Pro
Rata Distributions. During such time as any Preferred Shares are outstanding, if the Company declares or makes any dividend or other
distribution of its assets (or rights to acquire its assets) to holders of Ordinary Shares, by way of return of capital or otherwise (including,
without limitation, any distribution of cash, stock or other securities, property or options by way of a dividend, spin off, reclassification,
corporate rearrangement, scheme of arrangement or other similar transaction) (a "Distribution"), at any time after the
issuance of the Preferred Shares, then, in each such case, the Holder shall be entitled to participate in such Distribution to the same
extent that the Holder would have participated therein if the Holder had held the number of Ordinary Shares acquirable upon complete conversion
of the Preferred Shares (without regard to any limitations on conversion hereof, including without limitation, the Beneficial Ownership
Limitation) immediately before the date of which a record is taken for such Distribution, or, if no such record is taken, the date as
of which the record holders of Ordinary Shares are to be determined for the participation in such Distribution.


 






    	 	12	 



     


    

 


d)       Fundamental
Transaction. If, at any time while any Preferred Shares are outstanding, (i) the Company, directly or indirectly, in one or more related
transactions effects any merger or consolidation of the Company into another Person, (ii) the Company (and all of its Subsidiaries, taken
as a whole), directly or indirectly, effects any sale, lease, license, assignment, transfer, conveyance or other disposition of all or
substantially all of its assets in one or a series of related transactions, (iii) any, direct or indirect, purchase offer, tender offer
or exchange offer (whether by the Company or another Person) is completed pursuant to which holders of Ordinary Shares are permitted to
sell, tender or exchange their shares for other securities, cash or property and has been accepted by the holders of 50% or more of the
outstanding Ordinary Shares, (iv) the Company, directly or indirectly, in one or more related transactions effects any reclassification,
reorganization or recapitalization of the Ordinary Shares or any compulsory share exchange pursuant to which the Ordinary Shares is effectively
converted into or exchanged for other securities, cash or property, or (v) the Company, directly or indirectly, in one or more related
transactions consummates a stock or share purchase agreement or other business combination (including, without limitation, a reorganization,
recapitalization, spin-off or scheme of arrangement) with another Person whereby such other Person acquires more than 50% of the outstanding
Ordinary Shares (not including any Ordinary Shares held by the other Person or other Persons making or party to, or associated or affiliated
with the other Persons making or party to, such stock or share purchase agreement or other business combination), in each case of (i)-(v)
above, excluding the HTC Merger, (each a “Fundamental Transaction”), then, upon any subsequent conversion of the Preferred
Shares, the Holder shall have the right to receive, for each Conversion Share that would have been issuable upon such conversion immediately
prior to the occurrence of such Fundamental Transaction, the number of Ordinary Shares of the successor or acquiring Company or of the
Company, if it is the surviving Company, and any additional consideration (the “Alternate Consideration”) receivable
as a result of such Fundamental Transaction by a holder of the number of Ordinary Shares for which the Preferred Shares are convertible
immediately prior to such Fundamental Transaction. For purposes of any such conversion, the determination of the Conversion Price shall
be appropriately adjusted to apply to such Alternate Consideration based on the amount of Alternate Consideration issuable in respect
of one share of Ordinary Shares in such Fundamental Transaction, and the Company shall apportion the Conversion Price among the Alternate
Consideration in a reasonable manner reflecting the relative value of any different components of the Alternate Consideration. If holders
of Ordinary Shares are given any choice as to the securities, cash or property to be received in a Fundamental Transaction, then the Holder
shall be given the same choice as to the Alternate Consideration it receives upon any conversion of the Preferred Shares following such
Fundamental Transaction. To the extent necessary to effectuate the foregoing provisions, any successor to the Company or surviving entity
in such Fundamental Transaction shall file a new Certificate of Designation with the same terms and conditions and issue to the Holders
new preferred shares consistent with the foregoing provisions and evidencing the Holders’ right to convert such preferred shares
into Alternate Consideration. The Company shall cause any successor entity in a Fundamental Transaction in which the Company is not the
survivor (the “Successor Entity”) to assume in writing all of the obligations of the Company under this Certificate
of Designation and the other Transaction Documents (as defined in the Purchase Agreement) in accordance with the provisions of this Section
7(d) pursuant to written agreements in form and substance reasonably satisfactory to the Holder and approved by the Holder (without unreasonable
delay) prior to such Fundamental Transaction and shall, at the option of the holder of the Preferred Shares, deliver to the Holder in
exchange for the Preferred Shares a security of the Successor Entity evidenced by a written instrument substantially similar in form and
substance to the Preferred Shares which are convertible for a corresponding number of shares of capital stock of such Successor Entity
(or its parent entity) equivalent to the Ordinary Shares acquirable and receivable upon conversion of the Preferred Shares (without regard
to any limitations on the conversion of the Preferred Shares) prior to such Fundamental Transaction, and with a conversion price which
applies the conversion price hereunder to such shares of capital stock (but taking into account the relative value of the Ordinary Shares
pursuant to such Fundamental Transaction and the value of such shares of capital stock, such number of shares of capital stock and such
conversion price being for the purpose of protecting the economic value of the Preferred Shares immediately prior to the consummation
of such Fundamental Transaction), and which is reasonably satisfactory in form and substance to the Holder. Upon the occurrence of any
such Fundamental Transaction, the Successor Entity shall succeed to, and be substituted for (so that from and after the date of such Fundamental
Transaction, the provisions of this Certificate of Designation and the other Transaction Documents referring to the “Company”
shall refer instead to the Successor Entity), and may exercise every right and power of the Company and shall assume all of the obligations
of the Company under this Certificate of Designation and the other Transaction Documents with the same effect as if such Successor Entity
had been named as the Company herein.


 






    	 	13	 



     


    

 


e)         
Calculations. All calculations under this Section 7 shall be made to the nearest cent or the nearest 1/100th of a share, as the
case may be. For purposes of this Section 7, the number of Ordinary Shares deemed to be issued and outstanding as of a given date shall
be the sum of the number of Ordinary Shares (excluding any treasury shares of the Company) issued and outstanding.


 


f)          Notice to the
Holders.


 


i.       
Adjustment to Conversion Price. Whenever the Conversion Price is adjusted pursuant to any provision of this Section 7, the Company
shall promptly deliver to each Holder by facsimile or email a notice setting forth the Conversion Price after such adjustment and setting
forth a brief statement of the facts requiring such adjustment.


 


ii.       
Notice to Allow Conversion by Holder. If (A) the Company shall declare a dividend (or any other distribution in whatever form)
on the Ordinary Shares, (B) the Company shall declare a special nonrecurring cash dividend on or a redemption of the Ordinary Shares,
(C) the Company shall authorize the granting to all holders of the Ordinary Shares of rights or warrants to subscribe for or purchase
any shares of capital stock of any class or of any rights, (D) the approval of any shareholders of the Company shall be required in connection
with any reclassification of the Ordinary Shares, any consolidation or merger to which the Company is a party, any sale or transfer of
all or substantially all of the assets of the Company (and all of its Subsidiaries, taken as a whole), or any compulsory share exchange
whereby the Ordinary Shares is converted into other securities, cash or property or (E) the Company shall authorize the voluntary or involuntary
dissolution, liquidation or winding up of the affairs of the Company, then, in each case, the Company shall cause to be filed at each
office or agency maintained for the purpose of conversion of the Preferred Shares, and shall cause to be delivered by facsimile or email
to each Holder at its last facsimile number or email address as it shall appear upon the stock books of the Company, at least twenty (20)
calendar days prior to the applicable record or effective date hereinafter specified, a notice stating (x) the date on which a record
is to be taken for the purpose of such dividend, distribution, redemption, rights or warrants, or if a record is not to be taken, the
date as of which the holders of the Ordinary Shares of record to be entitled to such dividend, distributions, redemption, rights or warrants
are to be determined or (y) the date on which such reclassification, consolidation, merger, sale, transfer or share exchange is expected
to become effective or close, and the date as of which it is expected that holders of the Ordinary Shares of record shall be entitled
to exchange their Ordinary Shares for securities, cash or other property deliverable upon such reclassification, consolidation, merger,
sale, transfer or share exchange, provided that the failure to deliver such notice or any defect therein or in the delivery thereof shall
not affect the validity of the corporate action required to be specified in such notice. To the extent that any notice provided hereunder
constitutes, or contains, material, non-public information regarding the Company or any of the Subsidiaries, the Company shall simultaneously
file such notice with the Commission pursuant to a Current Report on Form 6-K. The Holder shall remain entitled to convert the Conversion
Amount of the Preferred Shares (or any part hereof) during the 20-day period commencing on the date of such notice through the effective
date of the event triggering such notice except as may otherwise be expressly set forth herein.


 






    	 	14	 



     


    

 


Section 8.         Optional
Redemption.


 


a)       Optional
Redemption at Election of Company. Subject to the provisions of this Section 8, at any time after March 30, 2022, the Company may
deliver a notice to the Holders (an “Optional Redemption Notice” and the date such notice is deemed delivered hereunder,
the “Optional Redemption Notice Date”) of its irrevocable election to redeem some or all of the then outstanding Preferred
Shares, for cash in an amount equal to the Optional Redemption Amount on the 20th Trading Day following the Optional Redemption Notice
Date (such date, the “Optional Redemption Date” and such redemption, the “Optional Redemption”).
The Optional Redemption Amount is payable in full on the Optional Redemption Date. The Company covenants and agrees that it will honor
all Notices of Conversion tendered from the time of delivery of the Optional Redemption Notice through the date the Optional Redemption
Amount is paid in full.


 


b)       Redemption
Procedure. If any portion of the payment pursuant to an Optional Redemption shall not be paid by the Company by the applicable due
date, interest shall accrue thereon at an interest rate equal to the lesser of 10% per annum or the maximum rate permitted by applicable
law until such amount is paid in full. Notwithstanding anything herein contained to the contrary, if any portion of the Optional Redemption
Amount remains unpaid after such date, the Holder may elect, by written notice to the Company given at any time thereafter, to invalidate
such Optional Redemption, ab initio, and the Company shall have no further right to exercise such Optional Redemption.


 






    	 	15	 



     


    

 


Section
9.       Negative Covenants. As long as any Preferred Shares are outstanding, unless the Holders of at least 50.1% of the then
outstanding Preferred Shares shall have otherwise given prior written consent, the Company shall not, and shall not permit any of the
Subsidiaries to, directly or indirectly:


 


a)       amend
its charter documents, including, without limitation, its certificate of incorporation and bylaws, in any manner that materially and adversely
affects any rights of the Holder;


 


b)       repay,
repurchase or offer to repay, repurchase or otherwise acquire more than a de minimis number of shares of its Ordinary Shares, Ordinary
Shares Equivalents or Junior Securities, other than as to (i) the Conversion Shares as permitted or required under the Transaction Documents
and (ii) repurchases of Ordinary Shares or Ordinary Shares Equivalents of departing officers and directors of the Company, provided that
such repurchases shall not exceed an aggregate of $100,000 for all officers and directors for so long as the Preferred Shares is outstanding;


 


c)        pay cash dividends
or distributions on Junior Securities of the Company; and


 


d)       enter
into any agreement with respect to any of the foregoing.


 


Section 10.      Redemption Upon Triggering Events.


 


a)       “Triggering
Event” means, wherever used herein any of the following events:


 


i.        
the Company shall fail to have available a sufficient number of authorized and unreserved Ordinary Shares to issue to such Holder upon
a conversion hereunder;


 


ii.       
the Company shall fail to observe or perform any other covenant, agreement or warranty contained in, or otherwise commit any breach of
the Transaction Documents, and such failure or breach shall not, if subject to the possibility of a cure by the Company, have been cured
within 10 calendar days after the date on which written notice of such failure or breach shall have been delivered;


 


iii.      
the Company shall redeem more than a de minimis number of Junior Securities other than as to repurchases of Ordinary Shares or
Ordinary Shares Equivalents from departing officers and directors, provided that, while any of the Preferred Shares remains outstanding,
such repurchases shall not exceed an aggregate of $100,000 from all officers and directors;


 






    	 	16	 



     


    

 


iv.      
the Company shall be party to a Change of Control Transaction approved by the Company’s Board of Directors; or


 


v.       
there shall have occurred a Bankruptcy Event.


 


b)       Upon
the occurrence of a Triggering Event, each Holder shall (in addition to all other rights it may have hereunder or under applicable law)
have the right, exercisable at the sole option of such Holder, to require the Company to redeem all of the Preferred Shares then held
by such Holder for a redemption price, in cash, equal to the Triggering Redemption Amount. The Triggering Redemption Amount shall be due
and payable within five Trading Days of the date on which the notice for the payment therefor is provided by a Holder (the “Triggering
Redemption Payment Date”). If the Company fails to pay in full the Triggering Redemption Amount hereunder on the date such amount
is due in accordance with this Section, the Company will pay interest thereon at a rate equal to the lesser of 10% per annum or the maximum
rate permitted by applicable law, accruing daily from such date until the Triggering Redemption Amount, plus all such interest thereon,
is paid in full.


 


Section 11.Miscellaneous


 


a)       Notices.
Any and all notices or other communications or deliveries to be provided by the Holders hereunder including, without limitation, any Notice
of Conversion, shall be in writing and delivered personally, by facsimile or e-mail attachment, or sent by a nationally recognized overnight
courier service, addressed to the Company, at the address set forth above Attention: Investor Relations, e-mail address ir@kaixin.com,
or such other facsimile number, e-mail address or address as the Company may specify for such purposes by notice to the Holders delivered
in accordance with this Section 9. Any and all notices or other communications or deliveries to be provided by the Company hereunder shall
be in writing and delivered personally, by facsimile or e-mail attachment, or sent by a nationally recognized overnight courier service
addressed to each Holder at the facsimile number, e-mail address or address of such Holder appearing on the books of the Company, or if
no such facsimile number, e- mail address or address appears on the books of the Company, at the principal place of business of such Holder,
as set forth in the Purchase Agreement. Any notice or other communication or deliveries hereunder shall be deemed given and effective
on the earliest of (i) the time of transmission, if such notice or communication is delivered via facsimile at the facsimile number or
e-mail attachment at the e-mail address set forth in this Section prior to 5:30 p.m. (New York City time) on any date, (ii) the next Trading
Day after the time of transmission, if such notice or communication is delivered via facsimile at the facsimile number or e-mail attachment
at the e-mail address set forth in this Section on a day that is not a Trading Day or later than 5:30 p.m. (New York City time) on any
Trading Day, (iii) the second Trading Day following the date of mailing, if sent by U.S. nationally recognized overnight courier service,
or (iv) upon actual receipt by the party to whom such notice is required to be given.


 






    	 	17	 



     


    

 


b)       Absolute
Obligation. Except as expressly provided herein, no provision of this Certificate of Designation shall alter or impair the obligation
of the Company, which is absolute and unconditional, to pay liquidated damages, accrued dividends and accrued interest, as applicable,
on the Preferred Shares at the time, place, and rate, and in the coin or currency, herein prescribed.


 


c)       Lost
or Mutilated Preferred Share Certificate. If a Holder’s Preferred Share certificate shall be mutilated, lost, stolen or destroyed,
the Company shall execute and deliver, in exchange and substitution for and upon cancellation of a mutilated certificate, or in lieu of
or in substitution for a lost, stolen or destroyed certificate, a new certificate for the Preferred Shares so mutilated, lost, stolen
or destroyed, but only upon receipt of evidence of such loss, theft or destruction of such certificate, and of the ownership hereof reasonably
satisfactory to the Company (which shall not include the posting of any bond).


 


d)       Governing
Law. All questions concerning the construction, validity, enforcement and interpretation of this Certificate of Designation shall
be governed by and construed and enforced in accordance with the internal laws of the State of New York, without regard to the principles
of conflict of laws thereof. All legal proceedings concerning the interpretation, enforcement and defense of the transactions contemplated
by any of the Transaction Documents (whether brought against a party hereto or its respective Affiliates, directors, officers, shareholders,
employees or agents) shall be commenced in the state and federal courts sitting in the City of New York, Borough of Manhattan (the “New
York Courts”). The Company and each Holder hereby irrevocably submits to the exclusive jurisdiction of the New York Courts for
the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein (including
with respect to the enforcement of any of the Transaction Documents), and hereby irrevocably waives, and agrees not to assert in any suit,
action or proceeding, any claim that it is not personally subject to the jurisdiction of such New York Courts, or such New York Courts
are improper or inconvenient venue for such proceeding. .


  


e)       Waiver.
Any waiver by the Company or a Holder of a breach of any provision of this Certificate of Designation shall not operate as or be construed
to be a waiver of any other breach of such provision or of any breach of any other provision of this Certificate of Designation or a waiver
by any other Holders. The failure of the Company or a Holder to insist upon strict adherence to any term of this Certificate of Designation
on one or more occasions shall not be considered a waiver or deprive that party (or any other Holder) of the right thereafter to insist
upon strict adherence to that term or any other term of this Certificate of Designation on any other occasion. Any waiver by the Company
or a Holder must be in writing.


 


f)       
Severability. If any provision of this Certificate of Designation is invalid, illegal or unenforceable, the balance of this Certificate
of Designation shall remain in effect, and if any provision is inapplicable to any Person or circumstance, it shall nevertheless remain
applicable to all other Persons and circumstances. If it shall be found that any interest or other amount deemed interest due hereunder
violates the applicable law governing usury, the applicable rate of interest due hereunder shall automatically be lowered to equal the
maximum rate of interest permitted under applicable law.


 






    	 	18	 



     


    

 


g)       Next
Business Day. Whenever any payment or other obligation hereunder shall be due on a day other than a Business Day, such payment shall
be made on the next succeeding Business Day.


 


h)       Headings.
The headings contained herein are for convenience only, do not constitute a part of this Certificate of Designation and shall not be deemed
to limit or affect any of the provisions hereof.


 


i)       
Status of Converted or Redeemed Preferred Shares. Preferred Shares may only be issued pursuant to the Purchase Agreement. If any
Preferred Shares shall be converted, redeemed or reacquired by the Company, such shares shall resume the status of authorized but unissued
Ordinary Shares and shall no longer be designated as its Series D Convertible Preferred Shares.


 


*********************


 






    	 	19	 



     


    

 


IN WITNESS WHEREOF, the undersigned have executed this
Certificate this 31st day of March 2021.


  


 


	/s/ Joseph Chen	 
	Name: Joseph Chen	 
	Title: Chairman of the Board of Directors	 


 


[Signature page to Certificate of Designation]


 






    	 	20	 



     


    

  


ANNEX A


 


NOTICE OF CONVERSION


 


(TO BE EXECUTED BY THE REGISTERED HOLDER
IN ORDER TO CONVERT PREFERRED SHARES)


 


The undersigned hereby elects to convert
the number of Series D Convertible Preferred Shares indicated below into Ordinary Shares, par value $0.0001 per share (the “Ordinary
Shares”), of Kaixin Auto Holdings, a Cayman Islands Company (the “Company”), according to the conditions
hereof, as of the date written below. If Ordinary Shares are to be issued in the name of a Person other than the undersigned, the undersigned
will pay all transfer taxes payable with respect thereto and is delivering herewith such certificates and opinions as may be required
by the Company in accordance with the Purchase Agreement. No fee will be charged to the Holders for any conversion, except for any such
transfer taxes.


 


Conversion calculations: 


 


Date to Effect Conversion:                                                                                                           


 


Number of Preferred Shares owned prior to Conversion:                                          


 


Number of Preferred Shares to be Converted:                                                         


 


Stated Value of Preferred Shares to be Converted:                                                


 


Number of Ordinary Shares to be Issued:                                                               


 


Applicable Conversion Price:                                                                                                     


 


Number of Preferred Shares subsequent to Conversion:                                    


 


Address for Delivery:                                                               


or


DWAC Instructions:


Broker no:                          
 


Account no:                              


 


		[HOLDER]
	 	 
		By:	 
	 	 	Name:
	 	 	Title:





 



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