Exhibit 10.22


 


ESCROW AGREEMENT


 


This Escrow Agreement
dated this [●] day of [●], 2022 (the “Escrow Agreement”), is entered into by and among Phoenix Motor
Inc., a Delaware company (the “Company” or “Phoenix Motor”), having an address at 1500 Lakeview
Loop, Anaheim, CA 92807, Prime Number Capital LLC, having an address at 14 Myrtle Drive, Great Neck, New York 11021, as the representative
of the Underwriters (as defined hereafter) (the “Representative”, and together with the Company, each a “Party”
and collectively, the “Parties”), and Wilmington Trust, National Association, as escrow agent (“Escrow
Agent”). Capitalized terms used herein without definition shall have the meanings assigned to them in the Underwriting
Agreement (as defined hereafter).


 


RECITALS


 


WHEREAS, the
Company proposes to sell an aggregate of 2,500,000 shares of common stock (the “Firm Shares”), par value $0.0004 per
share (“Common Stock”) in a public offering (the “Offering”) pursuant to that certain underwriting
agreement dated as of [●], 2022 (the “Underwriting Agreement”) by and between the Company and the Representative
as the representative of several underwriters named therein (the “Underwriters”). The Company has also granted to
the Underwriters an option to purchase up to 375,000 additional shares of Common Stock (the “Additional Shares”);
and


 


WHEREAS, upon
the closing of the Offering, the Company has agreed to deposit an aggregate amount of Two Hundred and Fifty Thousand Dollars ($250,000)
from the proceeds of the Offering to be received by the Company with the Escrow Agent in an escrow account, to be held, uninvested and
disbursed by the Escrow Agent pursuant to the terms and conditions of the Escrow Agreement.


 






    	 		 



     


    

 


NOW, THEREFORE,
in consideration of the premises, and further consideration of the covenants set forth hereafter, it is hereby agreed mutually as
follows:


 


ARTICLE 1


ESCROW DEPOSIT


 


1.1. Receipt of
Escrow Property.


 


(a) Upon
the execution of this Escrow Agreement by each of the parties hereto and upon the Closing of the Offering, the Company shall cause to
be deposited $250,000 into a United States Dollar denominated account (the “Escrow Account”) established by the Escrow
Agent. The Escrow Account is set forth below:


 


Manufacturers &
Traders Trust Co.


ABA# [●]


A/C# [●]


A/C Name:
Phoenix Motor Inc.


Attn: Ellen
Jean-Baptiste


 


(b) The
Escrow Agent will hold the deposit in the Escrow Account, together with all investments thereof and all interest accumulated thereon
and proceeds therefrom (the “Escrow Property”), in escrow upon the terms and conditions set forth in this Escrow Agreement
and shall not disburse funds from the Escrow Account except as provided herein.


 


1.2. Investments.
The Escrow Agent shall hold the Escrow Property un-invested, without interest thereon. In the event that market conditions are such that
negative interest applies to amounts deposited with the Escrow Agent, the Company shall be responsible for the payment of such interest
and the Escrow Agent shall be entitled to deduct from amounts on deposit with it an amount necessary to pay such negative interest. For
the avoidance of doubt, the indemnification protections afforded to the Escrow Agent under Section 3.1 of this Agreement shall cover
any interest-related expenses (including, but not limited to, negative interest) incurred by the Escrow Agent in the performance of its
duties hereunder.


 


1.3. Disbursements.


 


(a) The
Escrowed Property shall be held by the Escrow Agent for the purpose of satisfying the initial $250,000 of the indemnification obligations
of the Company, with respect to the Escrow Property, pursuant to Section 3(o) of the Underwriting Agreement, for a period of
24 months from the closing of the Offering. Disbursement of such Escrowed Property upon a claim of indemnity pursuant to the terms of
the Underwriting Agreement shall be determined by an independent third-party intermediary (who shall have the requisite experience in
determining indemnification claims) to be chosen by mutual written consent of the Company and the Representative. If the Company and
the Representative are unable to agree on such intermediary within 30 days upon a written claim for indemnity by the Representative,
such intermediary shall be a single arbitrator (with the requisite experience in determining indemnification claims) selected by the
American Arbitration Association’s New York office.


 






    	 		 



     


    

 


(b) In
the event that any litigation or proceeding arising out of any matter in connection with the Offering and the Representative acting in
its capacity as the representative of the Underwriters (which matter would be covered by the Company’s indemnification obligations
under the Underwriting Agreement) within 24 months following the Closing Date and in which the Company, the Representative, or the Escrow
Property becomes the subject of such litigation or proceeding, the Representative and the Company hereby authorize the Escrow Agent,
at the Representative’s sole instruction upon Representative’s written notice to the Escrow Agent, if not otherwise so required,
to release and deposit the Escrow Property with the clerk of the court in which the litigation is pending, and thereupon the Escrow Agent
shall be relieved and discharged of any further responsibility hereunder and this Agreement shall terminate pursuant to the terms hereof.
The Company and the Representative further hereby authorize the Escrow Agent, if it receives conflicting claims to any of the Escrow
Property, is threatened with litigation in its capacity as escrow agent under this Escrow Agreement, or if the Escrow Agent determines
it is necessary to do so for any other reason relating to this Escrow Agreement or the Offering, to interplead all interested parties
in any court of competent jurisdiction and to deposit the Escrow Property with the clerk of that court and thereupon the Escrow Agent
shall be relieved and discharged of any further responsibility hereunder and this Agreement shall terminate pursuant to the terms hereof.


 


(c) In
all instances, if either (i) no claim for indemnity is made by the Representative during the 24-month period from the closing of
the Offering or (ii) it is finally determined that the Representative is not entitled to any disbursement (or any further disbursement,
as the case may be) of Escrow Property by the conclusion of the 24-month period from the closing of the Offering, the Escrow Agent, upon
receipt of a Written Direction, shall disburse to the Company the full balance of the Escrow Property then held by wire transfer of immediately
available funds to an account designated by the Company.


 


(d) In
the event that Escrow Agent makes any payment to any other party pursuant to this Escrow Agreement and for any reason such payment (or
any portion thereof) is required to be returned to the Escrow Account or another party or is subsequently invalidated, declared to be
fraudulent or preferential, set aside and/or required to be repaid to a receiver, trustee or other party under any bankruptcy or insolvency
law, other federal or state law, common law or equitable doctrine, then the recipient shall repay to the Escrow Agent upon written request
the amount so paid to it.


 


(e) The
Escrow Agent shall, in its sole discretion, comply with judgments or orders issued or process entered by any court with respect to the
Escrow Property, including without limitation any attachment, levy or garnishment, without any obligation to determine such court’s
jurisdiction in the matter and in accordance with its normal business practices. If the Escrow Agent complies with any such judgment,
order or process, then Escrow Agent shall not be liable to either Party or any other person by reason of such compliance, regardless
of the final disposition of any such judgment, order or process.


 






    	 		 



     


    

 


(f) Each
Party understands and agrees that the Escrow Agent shall have no obligation or duty to act upon a Written Direction, in the form attached
hereto as Exhibit A, delivered to the Escrow Agent for the disbursement of Escrow Property under this Escrow Agreement if
such Written Direction is not (i) in writing, (ii) signed by, in the case of Company, any individual designated by Company
on Exhibit B-1 hereto or, in the case of Representative, any individual designated by Representative on Exhibit B-2
hereto (in each case, each such individual an “Authorized Representative” of such Party), and (iii) delivered
to, and able to be authenticated by, the Escrow Agent in accordance with Section 1.4.


 


(g) Upon
request, the Escrow Agent will furnish monthly statements to each Party setting forth the activity in the Escrow Account.


 


(h) A
party may specify in a Written Direction whether the Escrow Property shall be disbursed by way of wire transfer or check. If the written
notice for the disbursement of funds does not so specify the disbursement means, the Escrow Agent may disburse the Escrow Property by
any means chosen by the Escrow Agent.


 


1.4. Written Direction
and Other Instruction.


 


(a) With
respect to any Written Direction or any other notice, direction or other instruction required to be delivered by a Party to the Escrow
Agent under this Escrow Agreement, the Escrow Agent is authorized to follow and rely upon any and all such instructions given to it from
time to time if the Escrow Agent believes, in good faith, that such instruction is genuine and to have been signed by an Authorized Representative
of such Party. The Escrow Agent shall have no duty or obligation to verify that the person who sent such instruction is, in fact, a person
duly authorized to give instructions on behalf of a Party, other than to verify that the signature of the Authorized Representative on
any such instruction appears to be the signature of such person. Each Party acknowledges and agrees that it is fully informed of the
protections and risks associated with the various methods of transmitting instructions to the Escrow Agent, and that there may be more
secure methods of transmitting instructions other than the method selected by such Party. The Escrow Agent shall have no responsibility
or liability for any loss which may result from:


 


(i) any
action taken or not taken by the Escrow Agent in good faith reliance on any such signatures or instructions;


 






    	 		 



     


    

 


(ii) as
a result of a Party’s reliance upon or use of any particular method of delivering instructions to the Escrow Agent, including the
risk of interception of such instruction and misuse by third parties; or


 


(iii) any
officer or Authorized Representative of a Party named in an incumbency certificate, Exhibit B-1 or Exhibit B-2
delivered hereunder prior to actual receipt by the Escrow Agent of a more current incumbency certificate or an updated Exhibit B-1
or Exhibit B-2 and a reasonable time for the Escrow Agent to act upon such updated or more current certificate or Exhibit.


 


(b) Company
may, at any time, update Exhibit B-1 and Representative may, at any time, update Exhibit B-2 by signing and submitting
to the Escrow Agent an updated Exhibit. Any updated Exhibit shall not be effective unless the Escrow Agent countersigns a copy thereof.
The Escrow Agent shall be entitled to a reasonable time to act to implement any changes on an updated Exhibit.


 


1.5. Income Tax
Allocation and Reporting


 


(a) Each
Party agrees that, for tax reporting purposes, the Escrow Property shall be deemed to be the property of the Company and all interest
and other income from investment of the Escrow Property shall, as of the end of each calendar year and to the extent required by the
Internal Revenue Service, be reported as having been earned by such Party, whether or not such income was disbursed during such calendar
year. Notwithstanding anything to the contrary herein, the Escrow Agent shall have no duty to prepare or file any Federal or state tax
report or return with respect to the Escrow Property, except for the delivery and filing of tax information reporting forms required
to be delivered and filed with the Internal Revenue Service. With respect to the preparation, delivery and filing of such required tax
information reporting forms and all matters pertaining to the reporting of earnings on the Escrow Property, the Escrow Agent shall be
entitled to request and receive written instructions from the Company, and the Escrow Agent shall be entitled to rely conclusively and
without further inquiry on such written instructions. With respect to any other payments made under this Escrow Agreement, the Escrow
Agent shall not be deemed the payer and shall have no responsibility for performing tax reporting. The Escrow Agent’s function
of making such payments is solely ministerial and upon express direction of the Parties.


 


(b) Prior
to the execution of this Escrow Agreement, or within two days thereafter, each Party shall provide the Escrow Agent with certified tax
identification numbers by furnishing appropriate forms W-9 or W-8 and such other forms and documents that the Escrow Agent may request.
Each Party understands that if such tax reporting documentation is not provided and certified to the Escrow Agent, the Escrow Agent may
be required by the Internal Revenue Code of 1986, as amended, and the regulations promulgated thereunder, to withhold a portion of any
interest or other income earned on the investment of the Escrow Property.


 






    	 		 



     


    

 


(c)
To the extent that the Escrow Agent becomes liable for the payment of any taxes in respect of income derived from the investment of
the Escrow Property, the Escrow Agent shall satisfy such liability to the extent possible from the Escrow Property. The Parties,
jointly and severally, hereby indemnify, defend and hold the Escrow Agent harmless from and against any tax, late payment, interest,
penalty or other cost or expense that may be assessed against the Escrow Agent on or with respect to the Escrow Property and the
investment thereof unless such tax, late payment, interest, penalty or other expense was finally adjudicated to have been directly
caused by the gross negligence or willful misconduct of the Escrow Agent. The indemnification provided by this
Section 1.5(c) is in addition to the indemnification provided in Section 3.1 and shall survive the resignation or
removal of the Escrow Agent and the termination of this Escrow Agreement.


 


1.6. Delivery and
Authentication of Written Direction.


 


(a) A
Written Direction must be delivered to the Escrow Agent by one of the delivery methods set forth in Section 4.3.


 


(b) Each
Party and the Escrow Agent hereby agree that the following security procedures will be used to verify the authenticity of a Written Direction
delivered by any Party to the Escrow Agent under this Escrow Agreement:


 


(i) The
Written Direction must include the name and signature of the person delivering the disbursement request to the Escrow Agent. The Escrow
Agent will check that the name and signature of the person identified on the Written Direction appears to be the same as the name and
signature of an Authorized Representative of such Party;


 


(ii) The
Escrow Agent will make a telephone call to an Authorized Representative of the Party purporting to deliver the Written Direction (which
Authorized Representative may be the same as the Authorized Representative who delivered the Written Direction) at any telephone number
for such Authorized Representative as set forth on Exhibit B-1 or Exhibit B-2, as applicable, to obtain oral
confirmation of delivery of the Written Direction. If the Written Direction is a joint written notice of the Parties, the Escrow Agent
shall call back an Authorized Representative of both of those Parties; and


 






    	 		 



     


    

 


(iii) If
the Written Direction is sent by email to the Escrow Agent, the Escrow Agent also shall review such email address to verify that it appears
to have been sent from an email address for an Authorized Representative of such Party as set forth on Exhibit B-1 or Exhibit B-2,
as applicable, or from an email address for a person authorized under Exhibit B-1 or Exhibit B-2, as applicable,
to email a Written Direction to the Escrow Agent on behalf of the Authorized Representative.


 


(c) Each
Party acknowledges and agrees that given its particular circumstances, including the nature of its business, the size, type and frequency
of its instructions, transactions and files, internal procedures and systems, the alternative security procedures offered by the Escrow
Agent and the security procedures in general use by other customers and banks similarly situated, the security procedures set forth in
this Section 1.4 are a commercially reasonable method of verifying the authenticity of a payment order in a Written Direction.


 


(d) The
Escrow Agent is authorized to execute, and each Party expressly agrees to be bound by any payment order in a Written Direction issued
in its name (and associated funds transfer) (i) that is accepted by the Escrow Agent in accordance with the security procedures
set forth in this Section 1.4, whether or not authorized by such Party and/or (ii) that is authorized by or on behalf of such
Party or for which such Party is otherwise bound under the law of agency, whether or not the security procedures set forth in this Section 1.4
were followed, and to debit the Escrow Account for the amount of the payment order. Notwithstanding anything else, the Escrow Agent shall
be deemed to have acted in good faith and without negligence, gross negligence or misconduct if the Escrow Agent is authorized to execute
the payment order under this Section 1.4. Any action taken by the Escrow Agent pursuant to this Section 1.4 prior to the Escrow
Agent’s actual receipt and acknowledgement of a notice of revocation, cancellation or amendment of a Written Direction shall not
be affected by such notice of revocation, cancellation or amendment of a Written Direction.


 


(e) The
security procedures set forth in this Section 1.4 are intended to verify the authenticity of payment orders provided to the Escrow
Agent and are not designed to, and do not, detect errors in the transmission or content of any payment order. The Escrow Agent is not
responsible for detecting an error in the payment order, regardless of whether either Party believes the error was apparent, and the
Escrow Agent is not liable for any losses arising from any failure to detect an error.


 






    	 		 



     


    

 


(f) When
instructed to credit or pay a party by both name and a unique numeric or alpha-numeric identifier (e.g. ABA number or account number),
the Escrow Agent, and any other banks participating in the funds transfer, may rely solely on the unique identifier, even if it identifies
a party different than the party named. Each Party agrees to be bound by the rules of any funds transfer network used in connection
with any payment order accepted by the Escrow Agent hereunder.


 


(g) The
Escrow Agent shall not be obliged to make any payment requested under this Escrow Agreement if it is unable to validate the authenticity
of the request by the security procedures set forth in this Section 1.4. The Escrow Agent’s inability to confirm a payment
order may result in a delay or failure to act on that payment order. Notwithstanding anything else in this Escrow Agreement, the Escrow
Agent shall not be required to treat a payment order as having been received until the Escrow Agent has authenticated it pursuant to
the security procedures in this Section 1.4 and shall not be liable or responsible for any losses arising in relation to such delay
or failure to act.


 


1.7. Termination.
This Escrow Agreement shall terminate on the earlier of (i) [●], 2024, or (ii) pursuant to the terms of Section 1.3(b);
provided that if the Escrow Agreement terminates by its terms on [●], 2024, at such time the Escrow Agent is authorized and directed
to disburse the Escrow Property in accordance with Section 1.3 (Disbursements). Upon termination pursuant to the terms hereof, this
Escrow Agreement shall be of no further force and effect, except that the provisions of Sections 1.5 (Tax Allocation and Reporting),
3.1(Indemnification), 3.2 (Limitation of Liability), and 3.4 (Compensation) hereof shall survive termination.


 


ARTICLE 2


DUTIES OF THE ESCROW
AGENT


 


2.1. Scope of Responsibility.
Notwithstanding any provision to the contrary, the Escrow Agent is obligated only to perform the duties expressly and specifically set
forth in this Escrow Agreement, which shall be deemed purely ministerial in nature. Under no circumstances will the Escrow Agent be deemed
to be a fiduciary to either Party or any other person under this Escrow Agreement or otherwise. The Escrow Agent will not be responsible
or liable for the failure of either Party to perform in accordance with this Escrow Agreement. The Escrow Agent shall neither be responsible
for, nor chargeable with, knowledge of the terms and conditions of any other agreement, instrument, or document other than this Escrow
Agreement, whether or not an original or a copy of such agreement has been provided to the Escrow Agent; and the Escrow Agent shall have
no duty to know or inquire as to the performance or nonperformance of any provision of any such agreement, instrument, or document. References
in this Escrow Agreement to any other agreement, instrument, or document are for the convenience of the Parties and the Escrow Agent
has no duties or obligations with respect thereto. The Escrow Agent acts hereunder as escrow agent only, and is not responsible or liable
in any manner whatsoever for the sufficiency, correctness, genuineness or validity of the subject matter of this Escrow Agreement or
any part thereof. The Escrow Agent shall have no responsibilities (except as expressly set forth herein) as to the validity, sufficiency,
value, genuineness, ownership or transferability of the Escrow Property, written instructions, or any other documents in connection therewith,
and will not be regarded as making nor be required to make, any representations thereto. This Escrow Agreement sets forth all matters
pertinent to the escrow contemplated hereunder, and no additional obligations of the Escrow Agent shall be inferred or implied from the
terms of this Escrow Agreement, any other agreement or otherwise.


 






    	 		 



     


    

 


2.2. Rights of
the Escrow Agent. No provision of this Escrow Agreement shall require the Escrow Agent to expend or risk its own funds or otherwise
incur any financial liability or potential financial liability in the performance of its duties or the exercise of its rights under this
Escrow Agreement. The Escrow Agent shall not be obligated to take any legal action or to commence any proceedings in connection with
this Escrow Agreement or any property held hereunder or to appear in, prosecute or defend in any such legal action or proceedings. The
Escrow Agent shall be protected in acting upon any written instruction, notice, request, waiver, consent, certificate, receipt, authorization,
power of attorney or other paper or document which the Escrow Agent in good faith believes to be genuine and what it purports to be,
including, but not limited to, items directing investment or non-investment of funds, items requesting or authorizing release, disbursement
or retainage of the subject matter of this Escrow Agreement and items amending the terms of this Escrow Agreement.


 


2.3. Attorneys
and Agents. The Escrow Agent shall be entitled to rely on and shall not be liable for any action taken or omitted to be taken by
the Escrow Agent in accordance with the advice of counsel or other professionals retained or consulted by the Escrow Agent. The Escrow
Agent shall be reimbursed as set forth in Section 3.1 for reasonable and documented compensation (fees, expenses and other costs)
paid and/or reimbursed to such counsel and/or professionals. The Escrow Agent may perform any and all of its duties through its agents,
representatives, attorneys, custodians, and/or nominees and shall not be responsible for the acts or omissions of such agents, representatives,
attorneys, custodians or nominees appointed with due care.


 


2.4. Right Not
Duty Undertaken. The permissive rights of the Escrow Agent to do things enumerated in this Escrow Agreement shall not be construed
as duties.


 






    	 		 



     


    

 


ARTICLE 3


PROVISIONS CONCERNING
THE ESCROW AGENT


 


3.1. Indemnification.
The Parties, jointly and severally, hereby indemnify and defend the Escrow Agent and its directors, officers, employees and agents (collectively,
the “Indemnified Parties”), and hold the Indemnified Parties harmless from any and against all liabilities, losses,
actions, suits or proceedings at law or in equity, and any other expenses, fees or charges of any character or nature, (including, without
limitation, negative interest, reasonable and documented attorney’s fees and expenses and the costs of enforcement of this Escrow
Agreement or any provision thereof), which an Indemnified Party may incur or with which it may be threatened by reason of acting as or
on behalf of the Escrow Agent under this Escrow Agreement or arising out of the existence of the Escrow Account, except to the extent
the same shall be have been finally adjudicated to have been directly caused by the Escrow Agent’s gross negligence or willful
misconduct. The Escrow Agent shall have a first lien against the Escrow Account to secure the obligations of the parties hereunder. The
terms of this paragraph shall survive termination of this Escrow Agreement.


 


3.2.
Limitation of Liability. the escrow agent SHALL NOT
be liable, directly or indirectly, for any (i) damages, Losses or expenses arising out of OR IN CONNECTION WITH THIS ESCROW AGREEMENT,
THE ESCROW ACCOUNT, THE ESCROW PROPERTY, OR the services provided hereunder, other than damages, losses or expenses which have been finally
adjudicated to have DIRECTLY resulted from the escrow agent’s gross negligence or willful misconduct, (ii) special, Indirect
or consequential damages or LOSSES OF ANY KIND WHATSOEVER (INCLUDING WITHOUT LIMITATION LOST PROFITS), even if the escrow agent has been
advised of the possibility of such LOSSES OR damages AND REGARDLESS OF THE FORM OF ACTION, OR (III) ANY AMOUNT IN EXCESS OF
THE VALUE OF THE ESCROW PROPERTY.


 


3.3. Resignation
or Removal. The Escrow Agent may, at any time, resign as escrow agent hereunder by furnishing written notice of its resignation to
each Party. At the effectiveness of such resignation, all fees and expenses to which the Escrow Agent is entitled shall be immediately
due and payable to Escrow Agent. The Parties may remove the Escrow Agent by furnishing to the Escrow Agent a joint written notice of
its removal along with payment of all fees and expenses to which it is entitled through the date of termination. Such resignation or
removal, as the case may be, shall be effective thirty (30) days after the delivery of such notice or upon the earlier appointment of
a successor, and the Escrow Agent’s sole responsibility thereafter shall be to safely keep the Escrow Property and to deliver the
same to a successor escrow agent as shall be appointed by the Parties, as evidenced by a joint written notice filed with the Escrow Agent
or in accordance with a court order. If the Parties have failed to appoint a successor escrow agent prior to the expiration of thirty
(30) days following the delivery of such notice of resignation or removal, the Escrow Agent shall be entitled, at its sole discretion
and at the expense of Company, to (a) return the Escrow Property to Company, or (b) petition any court of competent jurisdiction
for the appointment of a successor escrow agent or for other appropriate relief, and any such resulting appointment shall be binding
upon the Parties.


 






    	 		 



     


    

 


3.4. Compensation.
(a) The Escrow Agent shall be entitled to compensation for its services as stated in the fee schedule attached hereto as Exhibit C,
which compensation shall be paid by the Company. Such compensation is intended for the Escrow Agent’s services as contemplated
by this Escrow Agreement. In addition to such compensation, in the event that the conditions for the disbursement of funds under this
Escrow Agreement are not fulfilled, or the Escrow Agent renders any service not contemplated in this Escrow Agreement, or there is any
assignment of interest in the subject matter of this Escrow Agreement, or any material modification hereof, or if any material controversy
arises hereunder, or the Escrow Agent is made a party to any litigation pertaining to this Escrow Agreement or the subject matter hereof,
then the Escrow Agent shall be compensated for such extraordinary services and any services or work performed by Escrow Agent in connection
with any delay, controversy, litigation or event, and reimbursed for all costs and expenses, including reasonable attorneys’ fees
and expenses, occasioned by any such delay, controversy, litigation or event. If any amount due to the Escrow Agent hereunder is not
paid within thirty (30) days of the date due, the Escrow Agent in its sole discretion may charge interest on such amount up to the highest
rate permitted by applicable law.


 


(b) As security
for the due and punctual performance of any and all of the Parties’ obligations to the Escrow Agent hereunder, now or hereafter
arising, the Parties, individually and collectively, hereby pledge, assign and grant to the Escrow Agent a continuing security interest
in, and a lien on and right of setoff against, the Escrow Property and all distributions thereon, investments thereof or additions thereto
(whether such additions are the result of deposits by the Parties or the investment of Escrow Property or otherwise). If any fees, expenses
or costs incurred by, or any obligations owed to, the Escrow Agent hereunder are not promptly paid when due, the Escrow Agent may reimburse
itself therefor from the Escrow Property, and may sell, convey or otherwise dispose of any Escrow Property for such purpose. The security
interest and setoff rights of the Escrow Agent shall at all times be valid, perfected and enforceable by the Escrow Agent against the
Parties and all third parties in accordance with the terms of this Escrow Agreement.


 


The terms of this
Section 3.4 shall survive termination of this Escrow Agreement.


 






    	 		 



     


    

 


3.5. Disagreements.
If any conflict, disagreement or dispute arises between, among, or involving any of the parties hereto concerning the meaning or validity
of any provision hereunder or concerning any other matter relating to this Escrow Agreement, or the Escrow Agent is in doubt as to the
action to be taken hereunder, the Escrow Agent may, at its option, refuse to act until the Escrow Agent (a) receives a final non-appealable
order of a court of competent jurisdiction directing delivery of the Escrow Property or (b) receives a written instruction, executed
by each of the parties involved in such disagreement or dispute, in a form reasonably acceptable to the Escrow Agent, directing delivery
of the Escrow Property. The Escrow Agent will be entitled to act on any such written instruction or final non-appealable order of a court
of competent jurisdiction without further question, inquiry or consent. The Escrow Agent may file an interpleader action in a state or
federal court, and upon the filing thereof, the Escrow Agent will be relieved of all liability as to the Escrow Property and will be
entitled to recover reasonable and documented out-of-pocket attorneys’ fees, expenses and other costs incurred in commencing and
maintaining any such interpleader action. In the event the Escrow Agent receives conflicting instructions hereunder, the Escrow Agent
shall be fully protected in refraining from acting until such conflict is resolved to the satisfaction of the Escrow Agent.


 


3.6. Merger or
Consolidation. Any corporation or association into which the Escrow Agent may be converted or merged, or with which it may be consolidated,
or to which it may sell or transfer all or substantially all of its corporate trust business and assets as a whole or substantially as
a whole, or any corporation or association resulting from any such conversion, sale, merger, consolidation or transfer to which the Escrow
Agent is a party, shall be and become the successor escrow agent under this Escrow Agreement and shall have and succeed to the rights,
powers, duties, immunities and privileges as its predecessor, without the execution or filing of any instrument or paper or the performance
of any further act.


 


3.7. Attachment
of Escrow Property; Compliance with Legal Orders. In the event that any Escrow Property shall be attached, garnished or levied upon
by any court order, or the delivery thereof shall be stayed or enjoined by an order of a court, or any order, judgment or decree shall
be made or entered by any court order affecting the Escrow Property, the Escrow Agent is hereby expressly authorized, in its sole discretion,
to respond as it deems appropriate or to comply with all writs, orders or decrees so entered or issued, or which it is advised by legal
counsel of its own choosing is binding upon it, whether with or without jurisdiction. In the event that the Escrow Agent obeys or complies
with any such writ, order or decree it shall not be liable to any Party or to any other person, firm or corporation, should, by reason
of such compliance notwithstanding, such writ, order or decree be subsequently reversed, modified, annulled, set aside or vacated.


 






    	 		 



     


    

 


3.8. Force Majeure.
The Escrow Agent shall not be responsible or liable for any failure or delay in the performance of its obligation under this Escrow Agreement
arising out of or caused, directly or indirectly, by circumstances beyond its reasonable control, including, without limitation, acts
of God; earthquakes; fire; flood; wars; acts of terrorism; civil or military disturbances; sabotage; epidemic; riots; interruptions;
loss or malfunctions of utilities including but not limited to, computer (hardware or software), payment systems, or communications services;
accidents; labor disputes; acts of civil or military authority or governmental action; it being understood that the Escrow Agent shall
use commercially reasonable efforts which are consistent with accepted practices in the banking industry to resume performance as soon
as reasonably practicable under the circumstances.


 


3.9. Compliance
with Legal Orders. The Escrow Agent shall be entitled to consult with legal counsel in the event that a question or dispute arises
with regard to the construction of any of the provisions hereof, and shall incur no liability and shall be fully protected in acting
in accordance with the advice or opinion of such counsel.


 


3.10. No Financial
Obligation. The Escrow Agent shall not be required to use its own funds in the performance of any of its obligations or duties or
the exercise of any of its rights or powers, and shall not be required to take any action which, in the Escrow Agent's sole and absolute
judgment, could involve it in expense or liability unless furnished with security and indemnity which it deems, in its sole and absolute
discretion, to be satisfactory.


 


ARTICLE 4


MISCELLANEOUS


 


4.1. Successors
and Assigns. This Escrow Agreement shall be binding on and inure to the benefit of each Party and the Escrow Agent and their respective
successors and permitted assigns. No other persons shall have any rights under this Escrow Agreement. No assignment of the interest of
any of the Parties and the Escrow Agent shall be binding unless and until written notice of such assignment shall be delivered to the
other Party and the Escrow Agent and shall require the prior written consent of the other Party and the Escrow Agent (such consent not
to be unreasonably withheld).


 


4.2. Escheat.
Each Party is aware that under applicable state law, property which is presumed abandoned may under certain circumstances escheat to
the applicable state. The Escrow Agent shall have no liability to either Party or any other party, should any or all of the Escrow Property
escheat by operation of law.


 






    	 		 



     


    

 


4.3. Notices.
All notices, requests, demands, and other communications required under this Escrow Agreement shall be in writing, in English, and shall
be deemed to have been duly given if delivered (i) personally, (ii) by facsimile transmission with written confirmation of
receipt, (iii) by overnight delivery with a reputable national overnight delivery service, (iv) by mail or by certified mail,
return receipt requested, and postage prepaid, or (v) by electronic transmission; including by way of e-mail (as long as such email
is accompanied by a PDF or similar version of the relevant document bearing the signature of an Authorized Representative for the Party
sending the notice) with email confirmation of receipt. If any notice is mailed, it shall be deemed given five (5) business days
after the date such notice is deposited in the United States mail. If notice is given to a party, it shall be given at the address for
such party set forth below. It shall be the responsibility of each Party to notify the Escrow Agent in writing of any name or address
changes. In the case of communications delivered to the Escrow Agent, such communications shall be deemed to have been given on the date
received by the Escrow Agent.


 


If
to Company:


 


Phoenix
Motor Inc.


1500
Lakeview Loop


Anaheim,
CA 92807


Attention:
W. Chris Wang


Telephone:
(909) 987-0815


Email:
ChrisW@phoenixmotorcars.com


 


With a
copy (which shall not constitute notice) to:


 


Loeb &
Loeb LLP


345 Park
Avenue


New York,
NY 10154


Attention:
Mitchell S. Nussbaum, Esq.; David C. Fischer, Esq.


Email:
mnussbaum@loeb.com; dfischer@loeb.com


Telephone
No.: (212) 407-4000


 


If to the
Representative:


 


Prime
Number Capital LLC


14 Myrtle
Drive


Great Neck,
NY 11021


Attention:
Xiaoyan Jiang


Telephone:
212-590-2303


Email:
xj@pncps.com


 






    	 		 



     


    

 


With a
copy (which shall not constitute notice) to:


 


Robinson &
Cole LLP


Chrysler
East Building


666 Third
Avenue, 20th Floor


Attention:
Arila E. Zhou, Esq.; Anna Jinhua Wang, Esq.


Email:
azhou@rc.com; awang@rc.com


Telephone:
(212) 451-2908


 


If to the
Escrow Agent:


 


Wilmington
Trust, National Association


Corporate
Client Services


350 Park
Avenue, 9th Floor


New York,
NY 10022


Attention:
Ellen Jean-Baptiste


Telephone:
(212) 941-4425


Email:
ejean-baptiste@wilmingtontrust.com


 


4.4. Governing
Law. This Escrow Agreement shall be governed by and construed in accordance with the laws of the State of Delaware without regard
to any laws relating to choice of laws (whether of the State of Delaware or any other jurisdiction) that would cause the application
of the laws of any jurisdiction other than the State of Delaware.


 


4.5. Venue.
Each Party and the Escrow Agent hereby consent to the exclusive personal jurisdiction of the courts located in New Castle County in the
State of Delaware in the event of a dispute arising out of or under this Escrow Agreement. Each Party and the Escrow Agent hereby irrevocably
waives any objection to the laying of the venue of any suit, action or proceeding and irrevocably submits to the exclusive jurisdiction
of such court in such suit, action or proceeding.


 






    	 		 



     


    

 


4.6. Entire Agreement.
This Escrow Agreement and the exhibits hereto set forth the entire agreement and understanding of the parties related to the Escrow
Property and supersedes all prior agreements and understandings, oral or written. If a court of competent jurisdiction declares a provision
invalid, it will be ineffective only to the extent of the invalidity, so that the remainder of the provision and Escrow Agreement will
continue in full force and effect. In the event of any direct conflict of the terms of this Escrow Agreement with the terms of the Underwriting
Agreement, as with respect to the rights of the Company and the Representative, the terms of the Underwriting Agreement shall control
and prevail; provided, in no event shall the Escrow Agent be bound by the terms of the Underwriting Agreement. This Escrow Agreement
is not intended to confer upon any person other than the parties hereto any rights or remedies.


 


4.7. Amendment.
This Escrow Agreement may be amended, modified, supplemented, superseded, rescinded, or canceled only by a written instrument executed
by the Parties and the Escrow Agent; provided that Exhibit B-1 or Exhibit B-2, as applicable, may be amended
at any time in accordance with Section 1.3.


 


4.8. Waivers.
The failure of any party to this Escrow Agreement at any time or times to require performance of any provision under this Escrow Agreement
shall in no manner affect the right at a later time to enforce the same performance. A waiver by any party to this Escrow Agreement of
any such condition or breach of any term, covenant, representation, or warranty contained in this Escrow Agreement, in any one or more
instances, shall neither be construed as a further or continuing waiver of any such condition or breach nor a waiver of any other condition
or breach of any other term, covenant, representation, or warranty contained in this Escrow Agreement.


 


4.9. Interpretation.
Section headings of this Escrow Agreement have been inserted for convenience of reference only and shall in no way restrict or otherwise
modify any of the terms or provisions of this Escrow Agreement. Unless otherwise indicated by the context, the singular shall include
the plural and the plural shall include the singular. Any references to an Exhibit is a reference to an Exhibit of this Escrow
Agreement.


 


4.10. Electronic
Signatures; Facsimile Signatures; Counterparts. This Escrow Agreement may be executed in one or more counterparts. Such execution
of counterparts may occur by manual signature, electronic signature, facsimile signature, manual signature transmitted by means of facsimile
transmission or manual signature contained in an imaged document attached to an email transmission, and any such execution that is not
by manual signature shall have the same legal effect, validity and enforceability as a manual signature. Each such counterpart executed
in accordance with the foregoing shall be deemed an original, with all such counterparts together constituting one and the same instrument.
The exchange of executed copies of this Escrow Agreement or of executed signature pages to this Escrow Agreement by electronic transmission,
facsimile transmission or as an imaged document attached to an email transmission shall constitute effective execution and delivery hereof.
Any copy of this Escrow Agreement which is fully executed and transmitted in accordance with the terms hereof may be used for all purposes
in lieu of a manually executed copy of this Escrow Agreement and shall have the same legal effect, validity and enforceability as if
executed by manual signature.


 






    	 		 



     


    

 


4.11. Waiver of
Jury Trial. EACH OF THE PARTIES HERETO EXPRESSLY WAIVES THE RIGHT TO TRIAL BY JURY IN RESOLVING ANY CLAIM OR COUNTERCLAIM RELATING
TO OR ARISING OUT OF THIS ESCROW AGREEMENT.


 


[The remainder of
this page left intentionally blank.]


 






    	 		 



     


    

 


IN
WITNESS WHEREOF, this Escrow Agreement has been duly executed as of the date first written above.


 


	 	PHOENIX MOTOR Inc.
	 	 	 
	 	By:	 
	 	Name: 	W. Chris Wang
	 	Title:	Chief Financial Officer 
	 	 	 
	 	 	 
	 	PRIME NUMBER CAPITAL LLC
	 	 	 
	 	By:	 
	 	Name: 	 Xiaoyan Jiang
	 	Title:	Chairwoman
	 	 	 
	 	 	 
	 	WILMINGTON TRUST, NATIONAL ASSOCIATION, as Escrow Agent
	 	 	 
	 	By:	 
	 	Name: 	Ellen Jean-Baptiste  
	 	Title:	Assistant Vice President 


 






    	 		 



     


    

 


EXHIBIT A


 


Form of
Written Direction


 


[Form to
be provided by Company/the Representative, provided that any alternative form contain substantially all information in the table below]


 


Example for reference purposes
only:


 


date


Wilmington Trust, National Association


Corporate Client Services


350 Park Avenue, 9th Floor


New York, NY 10022


Attention: Ellen Jean-Baptiste


 


Re: Escrow Account
No.: 156178-000, Phoenix Motor Inc.


 


Ladies and Gentlemen:


 


Reference
is made to the Escrow Agreement, dated as of _______, 2022 entered into by and among Phoenix Motor Inc. (the “Company”),
Prime Number Capital LLC (the “Representative”) and WILMINGTON TRUST, NATIONAL ASSOCIATION, a national banking association,
as escrow agent (the “Escrow Agent”). Capitalized terms defined in the Escrow Agreement shall have the same meanings
when used herein. This letter is a [__] Written Direction referred to in Section [___] of the Escrow Agreement.


 


[________]
and [_________] hereby jointly instruct the Escrow Agent to release the funds in the Escrow Account in the amounts, and to the account(s),
as follows:


 


	Amount:	 
	Beneficiary Bank Name:	 
	Beneficiary Bank Address

    Line 1:
	 
	Beneficiary Bank Address

    Line 2:
	 
	Beneficiary Bank Address

    Line 3:
	 
	ABA#:	 



 






    	 		 



     


    

 


	SWIFT#:	 
	Beneficiary Account Title:	 
	Beneficiary Account No./IBAN:	 
	Beneficiary Address

    Line 1:
	 
	Beneficiary Address

    Line 2:
	 
	Beneficiary Address

    Line 3:
	 
	Additional Information:	 


 


	 	PHOENIX MOTOR INC.
	 	 	 
	 	By: 	 
	 	Name:	 
	 	Title:	 
	 	 	 
	 	PRIME NUMBER CAPITAL LLC
	 	 	 
	 	By: 	 
	 	Name:	 
	 	Title:	 


 






    	 		 



     


    

 


EXHIBIT B


 


EXHIBIT B-1


 


Certificate
as to Authorized Signatures


of
Company


 


Company hereby designates
each of the following persons as its Authorized Representative for purposes of this Escrow Agreement, and confirms that the title, contact
information and specimen signature of each such person as set forth below is true and correct. Each such Authorized Representative is
authorized to initiate and approve transactions of all types for the Escrow Account established under this Escrow Agreement to which
this Exhibit B-1 is attached, on behalf of Company.


 


	Name (print):	 
	Specimen Signature:	 
	Title:	 
	Telephone Number (required):

    If more than one, list all
	Office:

    Cell:

    Home:

    Other:

	E-mail (required):

    If more than one, list all
	Email 1:

    Email 2:

	Facsimile:	 


 


	Name (print):	 
	Specimen Signature:	 
	Title:	 
	Telephone Number (required):

    If more than one, list all
	Office:

    Cell:

    Home:

    Other:

	E-mail (required):

    If more than one, list all
	Email 1:

    Email 2:

	Facsimile:	 


 


	Name (print):	 
	Specimen Signature:	 
	Title:	 
	Telephone Number (required):

    If more than one, list all
	Office:

    Cell:

    Home:

    Other:

	E-mail (required):

    If more than one, list all
	Email 1:

    Email 2:

	Facsimile:	 


 






    	 		 



     


    

 


COMPLETE BELOW
TO UPDATE EXHIBIT B-1


 


If Company wishes
to change the names or details of any of its Authorized Representatives, Company must complete, sign and send to Escrow Agent an updated
copy of this Exhibit B-1 with such changes. Any updated Exhibit B-1 shall be effective once signed by Company
and Escrow Agent and shall entirely supersede and replace any prior Exhibit B-1 attached to this Escrow Agreement or submitted
to Escrow Agent.


 


	 	PHOENIX MOTOR INC.
	 	 	 
	 	By:	 
	 	Name: 	 
	 	Title:	 
	 	Date: 	 
	 	 	 
	 	WILMINGTON TRUST, NATIONAL ASSOCIATION
	 	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 
	 	Date: 	 


 


Internal Use Only:


 


☐
Updated details of Authorized Representatives completed in full


☐
Signed by a representative of Company per relevant board resolutions/certificate of incumbency on file
(if relevant).


☐
Call-back performed to Company to confirm authenticity of updated Exhibit B-1:


Person Called: Date of Call: Time of Call:
am/pm


Reviewed by (name): Signature: Date:


 






    	 		 



     


    

 


 


EXHIBIT B-2


 


Certificate
as to Authorized Signatures


of
the Representative


 


The Representative
hereby designates each of the following persons as its Authorized Representative for purposes of this Escrow Agreement, and confirms
that the title, contact information and specimen signature of each such person as set forth below is true and correct. Each such Authorized
Representative is authorized to initiate and approve transactions of all types for the Escrow Account[s] established under this Escrow
Agreement to which this Exhibit B-2 is attached, on behalf of the Representative.


 


	Name (print):	 
	Specimen Signature:	 
	Title:	 
	Telephone Number (required):

    If more than one, list all
	Office:

    Cell:

    Home:

    Other:

	E-mail (required):

    If more than one, list all
	Email 1:

    Email 2:

	Facsimile:	 


 


	Name (print):	 
	Specimen Signature:	 
	Title:	 
	Telephone Number (required):

    If more than one, list all
	Office:

    Cell:

    Home:

    Other:

	E-mail (required):

    If more than one, list all
	Email 1:

    Email 2:

	Facsimile:	 


 


	Name (print):	 
	Specimen Signature:	 
	Title:	 
	Telephone Number (required):

    If more than one, list all
	Office:

    Cell:

    Home:

    Other:

	E-mail (required):

    If more than one, list all
	Email 1:

    Email 2:

	Facsimile:	 


 






    	 		 



     


    

 


COMPLETE BELOW
TO UPDATE EXHIBIT B-2


 


If the Representative
wishes to change the names or details of any of its Authorized Representatives, the Representative must complete, sign and send to Escrow
Agent an updated copy of this Exhibit B-2 with such changes. Any updated Exhibit B-2 shall be effective once
signed by the Representative and Escrow Agent and shall entirely supersede and replace any prior Exhibit B-2 attached to
this Escrow Agreement or submitted to Escrow Agent.


 


	 	PRIME NUMBER CAPITAL LLC
	 	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 
	 	Date: 	 
	 	 	 
	 	 	 
	 	WILMINGTON TRUST, NATIONAL ASSOCIATION
	 	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 
	 	Date: 	 


 


Internal Use Only:


 


☐
Updated details of Authorized Representatives completed in full


☐
Signed by the Representative per relevant board resolutions/certificate of incumbency on file (if relevant).


☐
Call-back performed to the Representative to confirm authenticity of updated Exhibit B-2:


Person Called: Date of Call: Time of Call:
am/pm


Reviewed by (name): Signature: Date:


 






    	 		 



     


    

 


EXHIBIT C


 


Fees of Escrow Agent


 


	Acceptance Fee:	Waived


 


Initial Fees as they
relate to Wilmington Trust, N.A. acting in the capacity of Escrow Agent – includes review of the Escrow Agreement; acceptance of
the Escrow appointment; setting up of Escrow Account(s) and accounting records; and coordination of receipt of funds for deposit
to the Escrow Account(s). Acceptance Fee payable prior to, or within one business day after, the Escrow Agreement is executed by all
parties.


 


	Escrow Agent Administration Fee:	$3,500


 


For ordinary administrative
services by Escrow Agent – includes daily routine account management; investment transactions; cash transaction processing (including
wire and check processing); monitoring claim notices pursuant to the agreement; disbursement of funds in accordance with the agreement;
and mailing of trust account statements to all applicable parties. This fee shall be payable one-time at the time of the execution of
this agreement.


 


Wilmington Trust, N.A.’s fees
are based on the following assumptions:


 


	 	●	Number of Escrow Accounts to be established: One (1)


 


	 	●	Estimated Term of Escrow Agreement: 24 months


 


	 	●	Investment of Escrow Property in: TBD


 


	Out-of-Pocket Expenses:	Billed At Cost