Kandi Technologies Group, Inc.: Exhibit 10.26 - filed by
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Exhibit 10.26 

Zhejiang Wanxiang Ener1 Power System Co., Ltd.

 

 

 

Sales Contract

 

 

Number: YN20130905-01

 

Address: No.118 Jianshe Er Road Xiaoshan Economic Development
Zone, Hangzhou City, Zhejiang Province

ZIP:311215 

Tel:0571-82861078 

Fax:0571-82606587

Web:http://www.wanxiang .com.cn




Sales Contract of Zhejiang Wanxiang Ener1 Power System Co.,
Ltd.

Buyer: Jinhua Kandi New Energy Vehicles Co., Ltd (Hereinafter
referred to as Party A) 

Supplier: Zhejiang Wanxiang Ener1 Power System Co., Ltd
(Hereinafter referred to as Party B) 

Date:
10/23/2013                         
 Place: Jinhua 

Based on the principle of equality, mutual benefit and honesty,
both parties enter into a sales contract after serious consultation and
negotiation for abiding.

	I. 	
      The product name, type, specification and
  quality:

	 	 	 
		1. 	
      the product name, type and specification: 

	 	 	 
	 	 	       80V66Ah Lithium Iron Phosphate
    Battery
	 	 	 
		2. 	
      the product quantity and
price





	Name 
	Speciation s 
	Number 
(case) 	Price 
(RMB) 	Sub-total 
(RMB) 	Note 

	State Grid 
Standard Chassis 
Frame Battery 	WXL12Z080066A 

	36 

	16,600 

	597,600 

	Samples 


	State Grid 
Standard Chassis 
Frame Battery 	WXL12Z080066A 

	2,000 

	15,900 

	31,800,000 

	1-2,000 
cases 

	State Grid 
Standard Chassis 
Frame Battery 	WXL12Z080066A 

	10,000 

	15,000 

	150,000,000 

	2,001- 
12,000 
cases 
	Total (Include taxation) 	182,397,600.00(RMB) 				
	Note 
	The detailed Product amounts and delivery times
      will be subject to 
the written orders from Party A to Party B each
      month. 	
	
	
	





	A. 	
      The warranty for the Product

	 	 
		
      The warranty for the Product is 36 month or 150,000
      kilometers from the date of receipt of the Product by Party A.

	 	 
	B. 	
      Service :

	 	 
		
      Party B promises to repair or change the product if it is
      not caused by the wrong-use or abnormal wear or tear during the warranty
      period.

	 	 
	C. 	
      Compensation liability of quality
  issues:








		
      Party B promises to bear the cost of the product and
      two-way transportation expenses if the product has quality problems that
      not caused by the wrong-use or abnormal wear or tear.

	 	 
	II. 	
      The Unit and Measurement of the Product

	 	 
		
      Both parties agree to use "case" as a unit for the
      product in term of its parts including battery core groups, control
      system, accessories and battery box body, etc.

	 	 
	III. 	
      The package materials and standards:

	 	 
		
      The product supplied by Party B shall be packaged suit
      for transportation and Party B promises that it will take measures such as
      damp-proof, rain-proof, and shock-proof for protecting the products to be
      delivered safely to the Party A’s designated places (Hangzhou
    region).

	 	 
	IV. 	
      Delivery time and methods, modes of transportation and
      place of arrival:




	1. 	
      Delivery time: Party A shall provide purchase plan to
      Party B before the 19th of each month and provide detailed product
      delivery amounts and delivery times in its written orders.(Party B shall
      deliver the Product to Party A’s designated place within 30 days of the
      order unless special situation occurs)

	 	 
	2 	
      Delivery methods: Party B is responsible to deliver
      goods and bear 100% transportation fees and the risk of the products
      during the transportation shall be borne by Party B.

	 	 
	3 	
      Modes of transportation: road.

	 	 
	4 	
      Place of arrival: Hangzhou
Region.




	V. 	
      Price of Product and Payment




	 	1. 	Price:the agreed price of both
      parties. 
	 	  	  
	 	
      2 . 
	
      Payment: Party A shall pay 20% of the product price
      within 7 days of the issuance of monthly written order and the remaining
      80% shall be paid within 30 days after the arrival of government subsidies
      for the new energy vehicles and issuance of Value Added Tax ("VAT")
      invoices by Party B, but such payment shall not be more than 180 days from
      the date of arrival of delivery to Party A. 




	VI. 	
      Product Reception Time and Inspection:

	 	 
		
      For Party B delivery products, the inspection time of the
      products is when the products reach the designated location. For Party A
      pick up products, the inspection time is the delivery time. The Inspection
      method is according to the technology agreement confirmed by both
      parties.

	 	 
	VII. 	
      The time and methods to raise claim for the
    products







1.During its inspection, if Party A
find the product’s type, model, specification, appearance, capacity etc. does
not meet the requirement, Party A shall keep it in good order and raise the
problem in writing to Party B within 10 days. Party B shall provide a battery
capacity inspection device to Party A for free, and Party A shall return the
device to Party B upon the completion of this contract. 

2.After receiving the written claim,
Party B shall deal it within 5 days (unless otherwise agreed in the agreement or
by the parties).

In the written claim, Party A shall
list the contract number, the date of shipment and arrival of the goods, explain
the misspecification product’s type, model, specification, appearance, quantity
and inspection report, and suggestions how to settle this issue and other items
that are agreed by both parties.

	VIII. 	
      Party B’s liability for the breach of
  contract



1. If
Party B fails to deliver the Product on time, it shall pay a 0.5% per day
penalty for the undelivered product price.

2. If the
product’s type, model, specification, appearance, quality etc. does not meet for
the requirements, Party B should be responsible to fix or change them.

3. If the product is delivered to the
wrong person or wrong location by Party B, Party B shall be responsible to
transport the product to the designated person or location according to the
contract, meanwhile; it also needs to bear all the extra fee paid by Party A and
pay penalty of late delivery.

	IX 	
      Party A’s liability for breach of contract

	 	 
		
      1. If Party A fails to deliver the payment on time, the
      product delivery time can be delayed accordingly and it shall also pay a
      0.5% per day penalty for the undelivered payments.

	 	
       

		
      2. If Party A sends the wrong person or wrong place
      information to Party B, it shall bear costs caused to Party B.

	 	
       

	X 	
      Force majeure

	 	
       

		
      If any party can’t perform the contract due to force
      majeure, it shall inform the other party of the reason that it can not
      perform or can not fully perform to reduce the damages to the other party.
      After obtaining certificate by the relevant authority, it will be allowed
      to delay, partly perform or default the contract , and can partly or
      completely free from the liability for the breach of contract.

	 	 
	XI 	
      Others

	 	 
		
      The Technical Agreement signed by the parties is an
      inseparable part of this contract and has the same legal effect as the
      contract.

	 	 
		
      Party B shall cooperate with Party A to complete the
      application report and public announcement of using Party B’s lithium
      battery standard frame and provide six sets of power systems for vehicles, Party A shall return them back
to Party B after the application report. The battery test fee shall be paid by
Party B.







The economic losses, such as penalty, compensation, storage and
maintenance fees according to the contract shall be paid according to the above
mentioned settlement methods after the responsibility is confirmed, otherwise it
will be considered as overdue payment. Either party shouldn’t detain goods or
withhold money paymet to off-set the damage compensations.

Any dispute during the performance of the contract shall be
solved through friendly negotiation between the parties, if parties can’t reach
an agreement, either party can submit it to Arbitration Commission for
arbitration.

Besides the signature (seal) signed by both parties, the
contract will take effect after the legal department of Kandi seals. Both
parties shall not change or terminate the contract at will, if there is any
unmentioned issues, both parties should negotiate with each other and make
supplements or form attachments. The supplements or attachments shall have the
same legal effect as the contract. This contract has 4 copies, each party keeps
2 copies.

Party A 

Name: Jinhua Kandi New Energy Vehicles Co., Ltd

Address: Industrial Zone Jinhua City 

Legal representative

Representative: 

Bank:

Account number:

ZIP:

Tel: 

Fax:

 

Party B

Name: Zhejiang Wanxiang Ener1 Power System Co., Ltd 

Address: No.118 Jianshe Er Road, Xiaoshan Economic Development
Zone, Hangzhou 

City, Zhejiang Province

Legal representative

Representative: 

Bank:


Account number:

ZIP: 

Tel: 

Fax: