Document:

CALL OPTION AGREEMENT

选择权协议

 

 

 

BETWEEN

由

 

ZHANG ZHIHAO

 

 

AND

与

 

 

Individual Listed in Schedule A

附件A所列个人

 

 

 

 

Date: July 1, 2012

日期:2012年7月1日

 

    	 

    	 	

    
 

THIS CALL OPTION AGREEMENT
(this "Agreement") is made on July 1, 2012 by and between ZHANG ZHIHAO SABIO, with Philippine Passport number
of XX1545984 (the "Grantor"), and the individual listed in Schedule A (the "Grantee").

 

本选择权协议(“本协议”)由ZHANG
ZHIHAO SABIO,一位持有编号XX1545984的菲律宾护照持有人(“授予人”),和附件A所列个人(“被授予人”)于2012年7月1日签订。

 

The Grantor and the
Grantee are collectively referred to as the "Parties" and each of them as a "Party".

 

授予人和被授予人合称“各方”,单独称为“一方”

 

Whereas, the Grantor
owns 100% issued and outstanding shares of Hua Mei Investments Limited, a company incorporated under the laws of British Virgin
Islands, (“BVI Company”)

 

鉴于,授予人拥有英属维京群岛公司,华美投资有限公司
(“BVI 公司”)
的100%发行或已发行股份。

 

Whereas, the Grantor
has agreed to grant to the Grantee, and the Grantee has agreed to accept from the Grantor, a call option (the “Option”)
to purchase certain number of ordinary shares of BVI Company (the "Option Shares") as set forth in Schedule
A to this Agreement.

 

鉴于,授予人同意授予被授予人,且被授予人同意从授予人处接受BVI
公司于本协议附件A列明的一定数量普通股(“选择权股份”)的选择权(“选择权”)。

 

NOW, THEREFORE, in
consideration of the foregoing recitals, the mutual promises hereinafter set forth, and other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the Parties hereby agree as follows:

 

据此,基于前述事实以及各方在本协议项下所做的相互承诺与保证,以及各方在此确认收讫并确认充分的其他良好有价对价,协议各方现达成如下协议,以资信守:

 

		1	DEFINITIONS

定义

 

		1.1	Defined Terms : In this Agreement (including the Recitals and the Schedules), unless the
context otherwise requires, the following words and expressions shall have the following meanings:

定义的术语:本协议(包括鉴于条款及附件)中,除上下文另有所指外,下列词语表达的含义如下:

 

"Business Day"
means a day (other than Saturdays, Sundays and public holidays) on which banks are generally open for business in China;

“工作日”指中国境内银行通常营业日(除周六、周日及公众假日外);

 

"China" or "PRC"
means the People's Republic of China;

“中国”指中华人民共和国;

 

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"Completion Date"
means the date falling seven (7) Business Days after the service of the Exercise Notice by the Grantee on the Grantor;

“交割日”指被授予人向授予人发出行权通知后的七(7)个工作日届满之日;

 

"Completion" means
the completion of the sale to and purchase by the Grantee of the Option Shares under this Agreement;

“交割”指本协议项下选择权股份的买卖完成;

 

"Distributions"
means any cash proceeds arising from or in respect of, or in exchange for, or accruing to or in consequence of the Option Shares
from the Effective Date to the Completion Date, including without limitation the Dividends.

“分红”指自生效日始至交割日止,源自、有关于、基于交换、孳息于、或产生于选择权股份的任何现金收益,包括但不限于红利;

 

"Dividends" means
the dividends declared by BVI Company and accrued in respect of the Option Shares (whether or not such dividends shall have been
paid and received by the Grantee);

“红利”指由选择权股份而产生的经BVI
公司公告并累计的股息(无论该股息是否已被支付并由被授予人获得)

 

"Effective Date"
means the execution date of this Agreement;

“生效日”指本协议签署之日;

 

"Exercise" means
the exercise by the Grantee or his Nominee(s) of the Option pursuant to the terms of this Agreement;

“行权”指由选择权之被授予人或其提名人依本协议条款行权;

 

"Exercise Notice"
means the notice substantially in the form set out in Part I of Schedule B;

“行权通知”指符合附件B第I部分中指明格式之通知;

 

"Exercise Price"
means the exercise price to be paid by the Grantee (or his Nominee(s), as the case may be) to the Grantor in respect of the Option
Shares issued to such Grantee as set forth opposite his name in Schedule A;

“行权价”指就发行给附件A所列该被授予人(或其提名人,依情况而定)的相应选择权股份由被授予人向授予人所支付之行权价格。

 

"Nominee" means
such person nominated by a Grantee in the Transfer Notice to be the transferee of the Option or Option Shares;

“提名人”指由被授予人在转让通知中提名的选择权或选择权股份之受让人;

 

"Option Effective Date"
has the meaning ascribed to it in Clause 2.3;

“选择权生效日”之定义见第2.3条款;

 

"RMB" means the
lawful currency of China;

“人民币”指中国合法流通货币;

 

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"Transfer Notice"
means the notice substantially in the form set out in Part II of Schedule B;

“转让通知”指符合附件B中指明格式之通知;

 

"US$" or "United
States Dollar" means the lawful currency of the United States of America.

“美元”或“美国元”指美利坚合众国之合法流通货币。

 

		1.2	Interpretation: Except to the extent that the context requires otherwise:

解释:除上下文另有要求外:

 

		1.2.1	words denoting the singular shall include the plural and vice versa; words denoting any
gender shall include all genders; words denoting persons shall include firms and corporations and vice versa;

单数词应包括复数含义,反之亦然;带有一种性别含义的词语包括每一性别,指一个人的词语包括公司和法人,反之亦然;

 

		1.2.2	any reference to a statutory provision shall include such provision and any regulations made in
pursuance thereof as from time to time modified or re-enacted whether before or after the date of this Agreement and (so far as
liability thereunder may exist or can arise) shall include also any past statutory provisions or regulations (as from time to time
modified or re-enacted) which such provisions or regulations have directly or indirectly replaced;

所指法律规定应包括其规定和依此制定的规章,以及任何修订、重新制定的内容,不论该修订或重新制定发生于本协议日之前或之后。并且(只要该规定项下之责任可能存在或可以出现)也应包括任何过去的被(修订、重新制定)直接或间接取代的法律规定或规章;

 

		1.2.3	the words "written" and "in writing" include any means of visible
reproduction;

词语“书面的”或“以书面形式”,包括可见性重现之任何方式;

 

		1.2.4	any reference to "Clauses", "Recitals" and "Schedules"
are to be construed as references to clauses and recitals of, and schedules to, this Agreement; and

引用“条款”、“鉴于条款”及“附件”,应解释为指向本协议之条款、鉴于条款及附件;及

 

		1.2.5	any reference to a time of day is a reference to China time unless provided otherwise.

除上下文另有所指外,时间指中国时间。

 

		1.3	Headings: The headings in this Agreement are inserted for convenience only and shall be
ignored in construing this Agreement.

标题:本协议标题之加入仅为方便之用且在解释本协议时应予忽略。

 

		2	OPTION

 

		2.1	Option: The Grantor hereby irrevocably and unconditionally grants to the Grantee an Option
for such Grantee to acquire from the Grantor, at the Exercise Price, at any time during the Exercise Period (defined below), to
the extent that the Option has vested, any or all of the Option Shares set forth opposite his/her name in Schedule A hereto,
free from all claims, liens, charges, pledges, mortgages, trust, equities and other encumbrances, and with all rights attaching
thereto on the Completion Date.

		2.1	选择权 授予人在此不可撤销地、无条件地授予被授予人在行权期间(定义见下文)内的任何时间在授予的选择权范围内按照行权价向授予人购买与附件A所列姓名相应的选择权股份的选择权,前述选择权股份在交割日不应存在任何索赔、留置、抵押、质押、担保、信托或其他权利负担,且应附有所有相关权利。

 

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		2.2	Vesting Schedule: Subject to the terms and conditions hereto, the Option may be exercised,
in whole or in part, in accordance with the following schedule:

授予方案:基于本协议条款和条件,选择权根据下列方案全部或部分行权:

 

34% of the Option Shares subject
to the Option shall vest and become exercisable on July 1, 2013; 33% of the Option Shares subject to the Option shall vest and
become exercisable on July 1, 2014 and 33% of the Option Shares subject to the Option shall vest and become exercisable on July
1, 2015.

选择权中34%的选择权股份应于2013年7月1日授予并可行权;选择权中33%的选择权股份应于2014年7月1日授予并可行权;选择权中33%的选择权股份应于2015年7月1日授予并可行权。

 

		2.3	Exercise Period: The Option shall vest and become effective and exercisable at the times
commencing on the dates set forth in Section 2.2 (the “Option Effective Date”) and shall expire five years from the
date of the Option. The Option may be exercised by the Grantee (or his Nominee on behalf of the Grantee), to the extent that the
Option shall have vested, and only to that extent, at any time prior to five years from the date of this Option (“Exercise
Period”).

		2.3	行权期间
选择权应自第2.2条所述日期起授予、生效和可行权(“选择权生效日”),并于选择权之日起5年到期。被授予人(或代表授予人的提名人)在本选择权日起5年内(“行权期间”)并在选择权已被授予的范围内也仅在该范围内,可以进行行权。

 

		2.4	Nominees: The Grantee may, at any time during the Exercise Period, at his sole discretion,
nominate one or more person(s) (each a “Nominee”) to be the transferee(s) of whole or part of the shares subject to
his Option, who shall hold and/or exercise the transferred Option on behalf of the Grantee.

		2.4	提名人
被授予人在行权期间内可以随时自行提名一人或多人(均称为“提名人”),作为他所享有受限于选择权的部分或全部股份受让人,前述提名人应代表被授予人持有和/或行使该项经转让的选择权。

 

		2.5	Exercise Notice: The Option may be exercised by the Grantee or his Nominee(s), in whole
or in part, at any time during the Exercise Period, by serving an Exercise Notice on the Grantor.

		2.5	行权通知
在行权期间内,被授予人或其提名人随时可以通过向授予人递送行权通知的方式行使全部或部分选择权。

 

		2.6	Exercise: The Grantor agrees that he shall, upon receipt of the Exercise Notice, transfer
to the Grantee (or his/her Nominee(s), as the case may be) any and all of the Option Shares specified in the Exercise Notice, free
from all claims, liens, charges, pledges, mortgages, trust, equities and other encumbrances, and with all rights now or hereafter
attaching thereto. The Option shall be exercisable only in compliance with the laws and regulations of the PRC and the British
Virgin Islands, and such Grantee (or his Nominee(s), as the case may be) shall complete any and all approval or registration procedures
regarding the exercise of his Option at PRC competent authorities in accordance with applicable PRC laws and regulations.

		2.6	行权 授予人同意,其将在收到行权通知的前提下,向被授予人(或其提名人,依情况而定)转让行权通知所述数额的选择权股份。前述选择权股份不应存在任何索赔、留置、抵押、质押、担保、信托或其他权利负担,且应附有所有相关权利。该等选择权仅在遵守中国和英属维京群岛法律、法规时可行权。且为遵守所适用的中国法律法规,该被授予人(或其提名人,依情况而定)应在中国主管当局就他/她的选择权的行权完成全部批准或登记程序。

 

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		2.7	Transfer Notice: In case that a Grantee transfers any or all of his/her Option to one or
more Nominee(s) in accordance with Clause 2.4 above, the Grantee shall serve a Transfer Notice on the Grantor.

		2.7	转让通知
如果被授予人根据上述2.4条的规定向一位或多位提名人转让其全部或部分选择权,被授予人应向授予人递送转让通知。

 

		2.8	Transfer to Nominees: The Grantor agrees that he shall, upon receipt of the Transfer Notice,
take all actions necessary to allow the Nominee(s) to be entitled to any or all of Option Shares specified in the Transfer Notice.

		2.8	转让给提名人
授予人同意,在收到转让通知后,其将采取必要措施保证提名人按照转让通知载明的数额享有相应的选择权股份。

 

Upon exercise by any Nominee(s)
of the transferred Option on behalf of the Grantee, the Grantee shall serve the Exercise Notice on the Grantor in his own name
for the exercising Nominee(s). Upon receipt of such Exercise Option, the Grantor shall issue to such Nominee(s) any and all of
the relevant Option Shares in the same manner as specified in Clause 2.6.

在提名人代表被授予人行使转让选择权时,被授予人应以自己的名义为行权的提名人向授予人递送行权通知。在收到转让通知后,授予人应依与本协议2.6条款规定相同的方式,向该等提名人发行部分或全部相关选择权股份。

 

		2.9	Payment of Exercise Price: Upon Exercise of the Option in whole or in part, the Grantee
(or his Nominee(s), as the case may be) shall pay the Exercise Price to the Grantor.

		2.9	行权价款的支付
在上述选择权全部或部分行使之时,行权的被授予人(或其提名人,依情况而定)应向授予人支付行权价款。

 

		2.10	The Grantor’s Obligation upon Exercise: The Grantor agrees that upon the Exercise
of any Option by the Grantee (or his Nominee(s)), he shall cause and procure the number of Option Shares provided in the Exercise
Notice to be transferred to the Grantee (or his Nominee(s)) within seven (7) Business Days after the date of the Exercise Notice.

		2.10	行权时授予人的义务
授予人同意,在被授予人(或其提名人)行使选择权时,应在行权通知之日起七个工作日内,促使前述通知载明的选择权股份数额转让给被授予人(或其提名人)。

 

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		3	INFORMATION, distributionS AND ADJUSTMENTS

		3.	信息、分红和调整

 

		3.1	Information: The Grantee shall be entitled to request from the Grantor at any time before
the Completion, a copy of any information received from the Grantor which may be in the possession of the Grantor and, upon such
request, the Grantor shall provide such information to the Grantee.

		3.1	信息 在上述交割前的任何时间,被授予人有权要求授予人向其提供授予人获得的在授予人处的任何信息副本;授予人应根据此等要求向被授予人提供相应信息。

 

		3.2	Distributions: The Grantor agrees that the Grantee shall be entitled to all the Distributions
in respect of his Option Shares. In the event that any such Distributions have been received by the Grantor for any reason, the
Grantor shall cause the existing shareholder at the request of the Grantee to pay an amount equivalent to the Distributions received
to the Grantee.

		3.2	分红 授予人同意,被授予人有权获得对于其选择权股份的分红。如果授予人基于任何事由获得上述分红,授予人应促使现有股东应被授予人的要求,按照与获得的分红相同的金额,向上述被授予人支付等值款项。

 

		3.3	Adjustments: If, prior to the Completion, BVI Company shall effect any adjustment in its
share capital (such as share split, share dividend, share combination or other similar acts), then the number of Option Shares
and the Exercise Price shall be adjusted accordingly to take into account such adjustment.

		3.3	调整 如果在上述交割前,BVI
公司股本进行有效调整(例如:股份分拆、股份分红、股份合并或是其他类似调整),被授予人在行权时受让的选择权股份数额和行权价应在考虑到此等调整的情况下进行相应调整。

 

		4	COMPLETION

		4.	交割

 

		4.1	Time and Venue: Completion of the sale and purchase of the Option Shares pursuant to the
Exercise shall take place at such place decided by the Grantee on the Completion Date and reasonably acceptable to the Grantor.
The parties agree that Hong Kong is a reasonable place for the completion of the sale.

		4.1	时间和地点
基于上述行权而进行的选择权股份买卖应于交割日在被授予人确定的并且授予人可合理接受的地点进行交割。各方同意香港是一个出售交割的合理的地点。

 

		4.2	Business at Completion: At Completion of each Exercise, all (but not part only) of the following
shall be transacted:

		4.2	交割事项:
在每次行权交割之时,以下所有(而非部分)事项均应办理:

 

		4.2.1	the exercising Grantee shall pay the Exercise Price to the Grantor by wire transfer or such other
method as shall be reasonably acceptable to Grantor;

		4.2.1	行权的被授予人应以电汇或授予人可合理接受的其他方式向授予人支付行权价;

 

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		4.2.2	the Grantor shall, and to the extent that any action on the part of other shareholders or the directors
is required, procure the then existing shareholders and directors of BVI Company to, within seven (7) Business Days after the date
of Exercise Notice, deliver to the exercising Grantee (or his Nominee(s), same below) the following documents and take all corporate
actions necessary to give effect to such delivery:

		4.2.2	授予人及某种程度上被要求采取行动的其他股东或董事,应当并促使BVI
公司当时的股东和董事,在行权通知之日起七个工作日内,向行权的被授予人(或其提名人,以下相同)递送下列文件并采取使之生效的所有必备法人行动:

 

		4.2.2.1	a share certificate or share certificates in respect of the number of the Option Shares exercised
by the Grantee;

载明行权的被授予人行权的选择权股份数额的股权凭证;

 

		4.2.2.2	a certified true copy of the register of members of BVI Company updated to show the entry of the
Grantee as the holder of the Option Shares so exercised; and

更新过的BVI
公司的股东名册的经认证的真实副本,该副本应载明此行权的被授予人作为经行权的选择权股份的持有人进入股东名册;及

 

		4.2.2.3	any other documents as the Grantee may reasonably believe necessary to give effect to the transfer
of the exercised Option Shares.

被授予人合理地相信使行权选择权股份转让生效所必需的其他文件

 

		5	confidentiality

		5.	保密

 

The transaction contemplated
hereunder and any information exchanged between the Parties pursuant to this Agreement will be held in complete and strict confidence
by the concerned Parties and their respective advisors, and will not be disclosed to any person except: (i) to the Parties’
respective officers, directors, employees, agents, representatives, advisors, counsel and consultants that reasonably require such
information and who agree to comply with the obligation of non-disclosure pursuant to this Agreement; (ii) with the express prior
written consent of the other Party; or (iii) as may be required to comply with any applicable law, order, regulation or ruling,
or an order, request or direction of a government agency; provided, however, that the foregoing shall not apply to information
that: (1) was known to the receiving Party prior to its first receipt from the other Party; (2) becomes a matter of public knowledge
without the fault of the receiving Party; or (3) is lawfully received by the Party from a third person with no restrictions on
its further dissemination.

协议各方及其顾问应对于本协议相关交易及有关信息严格保密,不应向任何人员披露;除非:(i)
在协议各方的管理人员、董事、员工、代理、代表、顾问均同意遵守本条保密义务和无披露约定的前提下,根据前述人员的合理要求向该人员进行披露;(ii)
经本协议另一方书面同意的披露;(iii)
根据相关法律、法令、法规、判令的要求,或是根据有关部门的指示所进行的披露;但是,上述规定不应适用于以下信息:(1)
接受方在从协议另一方取得相关信息之前已经取得的信息;(2)
非因接受方违约而被公众知晓的信息;(3)协议一方从不受传播限制的第三方处合法取得的信息。

 

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		6	GRANTOR’s undertakings

		6.	授予人的保证

 

		6.1.	Grantor agrees that in its capacity as holder of Option Shares, it shall not and shall not cause
the BVI Company to, take any action or agree on behalf of the BVI Company to take any action to do the following, without the express
written direction of the Grantee:

授予人同意作为选择权股份持有人,在未经被授予人明示书面指示的前提下,其不得或不得促使BVI公司以BVI公司名义进行任何行动下列行动或同意进行下列活动:

 

		6.1.1	issue new shares, equity interests, registered capital, ownership interests, or equity-linked securities,
or any options or warrants that are directly convertible into, or exercisable or exchangeable for, shares, equity, registered capital,
ownership interest, or equity-linked securities of the BVI Company, other similar equivalent arrangements;

		6.1.1	发售或创设任何新股份、股权、注册资本、所有权益或类似股权的证券,以及可以直接行权转换为BVI
公司股份、股权、注册股本或所有权益的相关证券、购买选择权、认股权证或类似协议;

 

		6.1.2	alter the shareholding structure of the BVI Company (other than as a result of the transactions
contemplated by this agreement);

		6.1.2	变更BVI 公司的持股结构(但依本协议转让现存股份的结果除外);

 

		6.1.3	cancel, redeem, forefeit or otherwise alter the shares of the BVI Company that Grantor holds;

		6.1.3	注销、回赎、取消或变更授予人持有的选择权股份;

 

		6.1.4	amend the register of members or the memorandum and articles of association of the BVI Company;

		6.1.4	修订BVI 公司章程或公司股东名册;

 

		6.1.5	liquidate or wind up the BVI Company;

		6.1.5	对于BVI 公司进行清盘或歇业;

 

		6.1.6	act or omit to act in such a way that would effect the interest in the BVI Company that Grantor
holds;

		6.1.6	任何可能对于被授予人的选择权股份产生不利影响的作为或不作为

 

		6.1.7	transfer or dispose of any assets or liabilities of the BVI Company;

		6.1.7	转让或处分任何BVI公司资产或债务

 

		6.1.8	incur any obligations whatsoever, including any financial obligations, or borrow any money or assets
from any bank or third party;

		6.1.8	承诺任何种类的义务,包括财务义务,或向银行或第三方借款;

 

		6.1.9	appoint or remove any officer or manager of the BVI Company;

		6.1.9	任命或免职任何BVI公司高级管理人员或经理;

 

		6.1.10	acquire property from any person;

		6.1.10	从任何人处取得资产

 

    	Page 8 of 14

    	 

    
 

		6.1.11	enter into any contract with any third party;

6.1.11与第三方签署合同;

 

		6.1.12	invest funds or assets held by the BVI Company; or

		6.1.12	投资任何BVI公司持有的基金或资产;或

 

		6.1.13	take any action that would circumvent, oppose or interfere with the exercise of Grantees’
rights under this Agreement.

		6.1.13	进行任何限制、阻止或干扰被授予人行使本协议项下权利的行为。

 

		6.2	During the term of this agreement, Grantor hereby further agrees;

		6.2	在本协议期间,授予人同意:

 

		6.2.1	to execute and deliver to any party any document, agreement, instrument, notice, letter or other
item as requested by Grantee in connection with Grantee’s exercise of discretion and its rights hereunder;

		6.2.1	依被授予人要求就被授予人行使其本协议项下权利签署任何文件、协议、票证、通知、函件等事项并向第三方传送。

 

		6.2.2	Grantor shall take any action as reasonably necessary, whether or not directed by Grantee, in order
to realize the intent of the Parties under this Agreement.

		6.2.2	授予人不应采取任何行动变更BVI公司的管理层。

 

		7	MISCELLANEOUS

		7.	附则

 

		7.1	Indulgence, Waiver Etc: No failure on the part of any Party to exercise and no delay on
the part of such Party in exercising any right hereunder will operate as a release or waiver thereof, nor will any single or partial
exercise of any right under this Agreement preclude any other or further exercise of it or any other right or remedy.

		7.1	豁免、弃权
任何协议一方对于本协议相关权利的不行使或是迟延行使均不应视为该项权利的弃权或豁免;行使本协议项下的某一或部分权利,并不影响行使进一步权利、行使其他权利或救济。

 

		7.2	Effective Date and Continuing Effect of Agreement: This Agreement shall take effect from
the Effective Date. All provisions of this Agreement shall not, so far as they have not been performed at Completion, be in any
respect extinguished or affected by Completion or by any other event or matter whatsoever and shall continue in full force and
effect so far as they are capable of being performed or observed, except in respect of those matters then already performed.

		7.2	生效日及协议的持续效力
本协议应自生效日起生效。除已经履行的相关条款外,本协议所有条款如在交割时尚未被履行,应保持完整的效力,均不应基于上述交割而失效或是受到其他相关事由的影响。

 

    	Page 9 of 14

    	 

    
 

		7.3	Successors and Assigns: This Agreement shall be binding on and shall ensure for the benefit
of each of the Parties' successors and permitted assigns. Any reference in this Agreement to any of the Parties shall be construed
accordingly.

		7.3	承继人和受让人
本协议基于协议各方及其承继方和许可受让方的利益而订立,并对于上述各方有约束效力。对本协议所涉的各方应作据此解释。

 

		7.4	Further Assurance: At any time after the date of this Agreement, each of the Parties shall,
and shall use its best endeavors to procure that any necessary third party shall, execute such documents and do such acts and things
as any other Party may reasonably require for the purpose of giving to such other Party the full benefit of all the provisions
of this Agreement.

		7.4	进一步保证
自本协议签署之日起,为使协议对方获得本协议项下的充分利益,协议各方均应根据协议对方的合理要求,签署必要文件或采取必要的行动;或尽最大努力促使必要的第三方签署必要文件或采取必要的行动。

 

		7.5	Remedies: No remedy conferred by any of the provisions of this Agreement is intended to
be exclusive of any other remedy which is otherwise available at law, in equity, by statute or otherwise, and each and every other
remedy shall be cumulative and shall be in addition to every other remedy given hereunder or now or hereafter existing at law,
in equity, by statute or otherwise. The election of any one or more of such remedies by any Party shall not constitute a waiver
by such Party of the right to pursue any other available remedies.

		7.5	救济 本协议约定的所有救济均不应排除普通法、衡平法、制订法等救济措施的适用;上述救济均应视为累积救济,且不应与前述普通法、衡平法、制订法等救济产生任何关联。协议方选择一项或是多项救济不应视为放弃其他救济措施。

 

		7.6	Severability of Provisions: If any provision of this Agreement is held to be illegal, invalid
or unenforceable in whole or in part in any jurisdiction, this Agreement shall, as to such jurisdiction, continue to be valid as
to its other provisions and the remainder of the affected provision; and the legality, validity and enforceability of such provision
in any other jurisdiction shall be unaffected.

		7.6	条款可分性
如果本协议的任何条款在任何法域被认定为非法、无效或不可履行,则本协议其他条款仍应保持完全的法律效力;并且,前述被认定无效的条款在其他法域内的合法性、有效性和可履行性均不应影响。

 

		7.7	Governing Law: This Agreement shall be governed by, and construed in accordance with, the
laws of the British Virgin Islands.

		7.7	适用法律
本协议应适用英属维京群岛的法律,并根据该法律进行解释。

 

		7.8	Dispute Resolution: In the event of any dispute, claim or difference (the "Dispute")
between any Parties arising out of or in connection with this Agreement, the Dispute shall be resolved in accordance with the following:

		7.8	争议解决
协议各方在本协议履行过程中产生的所有争议、索赔或分歧(“争议”)均应通过以下方式解决:

 

(a) Negotiation
between Parties; Mediations. The Parties agree to negotiate in good faith to resolve any Dispute. If the negotiations do not
resolve the Dispute to the reasonable satisfaction of all parties within thirty (30) days, subsection (b) below shall apply.

(a) 各方协商;调解
协议各方同意通过善意协商解决相关争议,如果协议各方未能在三十天内通过协商方式满意解决相关争议,则应按照下述约定解决该项争议。

 

    	Page 10 of 14

    	 

    
 

(b) Arbitration.
In the event the Parties are unable to settle a Dispute in accordance with subsection (a) above, such Dispute shall be referred
to and finally settled by arbitration at Hong Kong International Arbitration Centre in accordance with the UNCITRAL Arbitration
Rules (the “UNCITRAL Rules”) in effect, which rules are deemed to be incorporated by reference into this subsection
(b). The arbitration tribunal shall consist of three arbitrators to be appointed according to the UNCITRAL Rules. The language
of the arbitration shall be English.

(b) 仲裁:
如果协议方未能按照上述(a)款约定的方式解决相关争议,该项争议应递交香港国际仲裁中心根据有效的联合国国际贸易法委员会仲裁规则(“联合国仲裁规则”)进行终局裁决,前述规则应视为本款约定不可分割的组成部分。仲裁庭应根据联合国仲裁规则任命的三名仲裁员组成。仲裁程序应使用英语进行。

 

		7.9	Counterparts: This Agreement may be signed in any number of counterparts, all of which taken
together shall constitute one and the same instrument. Any Party hereto may enter into this Agreement by signing any such counterpart.

		7.9	份数 本协议可签署多份,各份共同构成同一协议文件。本协议任何一方均可通过签署任何一份的方式订立本协议。

 

[SIGNATURE PAGE FOLLOWS]

[以下是签名页]

 

 

    	Page 11 of 14

    	 

    
 

IN WITNESS WHEREOF the Parties hereto
have executed this Agreement on the date first above written.

兹证明,协议各方于本协议首页载明之日期签署本协议。

 

The Grantor

授予人

 

 

 

By: _/s/ Zhang Zhihao Sabio__________

签名:

Name: ZHANG ZHIHAO SABIO

姓名:

 

    	 

    	 	

    
 

IN WITNESS WHEREOF the Parties hereto
have executed this Agreement on the date first above written.

兹证明,协议各方于本协议首页载明之日期签署本协议。

 

The Grantee

被授予人

 

 

 

By: __/s/ Hou Xing Ping________

签名:

Name: HOU XING PING

姓名:
侯兴平

 

    	 

    	 	

    
 

SCHEDULE
A

附件A

 

Grantee and Option Shares

被授予人及选择权股份

 

 

	
        Grantee

         

        被授予人
	
        ID Card/Passport Number

         

        身份证/护照号码

         
	
        Number of

        Option Shares

         

        选择权股份数

         
	
        Exercise Price

         

        行权价

         

	
        HOU, Xingping

         

        侯兴平

         
	360102196101100092	50,000	USD 0.01

 

    	 

    	 	

    
 

SCHEDULE B

 

附件B

 

Part I

第I部分

 

Form of Exercise Notice 

行权通知格式

 

 

To: ZHANG ZHIHAO SABIO (the “Grantor”)
and board of directors of BVI Company

致:ZHANG
ZHIHAO SABIO(“授予人”)与
BVI公司董事会

 

From: HOU, Xingping (the “Grantee”)

递送方:侯兴平(“被授予人”)

 

We refer to the Call
Option Agreement (the "Option Agreement") dated July , 2012 made between the Grantee and the Grantor. Terms defined
in the Option Agreement shall have the same meanings as used herein.

我们参照被授予人与授予人于2012年7月
日签订的选择权协议(“选择权协议”)。此处所用术语与选择权协议的定义具有同等含义。

 

We hereby give you
notice that we require you to sell to us / [Nominees' names] in accordance with the terms and conditions of the Option Agreement,
the following Option Shares at the Exercise Price set out below, subject to the terms and conditions set out in the Option Agreement.
Completion shall take place at [ ] on [ ] at the office of [ ].

我们在此通知贵方,我们要求贵方依据选择权协议的条款和条件向我们/[提名人姓名]按下列行权价出售如下选择权股份。根据选择权协议所规定的条款和条件,交割应于【】日【】时在【】办公室进行。

 

	
        Grantee

        被授予人
	
        Option Shares

        选择权股份
	
        Exercise Price

        行权价

	
        HOU, Xingping

        侯兴平
	 	USD 0.01
	 	 	 
	 	 	 
	 	 	 

 

 

Dated [           ]

日期【          】

 

 

Yours faithfully

此致

敬礼

 

 

___________________________

Name: HOU, Xingping

姓名:侯兴平

 

    	 

    	 	

    
 

Party II

第II部分

 

Form of Transfer Notice I

转让通知格式一

 

To: ZHANG ZHIHAO SABIO (the “Grantor”)
and board of directors of BVI Company

致:ZHANG
ZHIHAO SABIO(“授予人”)与
BVI公司董事会

 

From: HOU, Xingping (the “Grantee”)

递送方:侯兴平(“被授予人”)

 

We refer to the Call
Option Agreement (the "Option Agreement") dated July , 2012 made between the Grantee and the Grantor. Terms defined
in the Option Agreement shall have the same meanings as used herein.

我们参照被授予人与授予人于2012年7月
日签订的选择权协议(“选择权协议”)。此处所用术语与选择权协议的定义具有同等含义。

 

We hereby give you
notice that we will transfer to [Nominees' names] the following portion of the Option, expressed in terms of the number
of Option Shares represented by the portion of the Option transferred in accordance with the terms and conditions of the Option
Agreement,.

我们在此通知贵方,我们将按照购买选择权的条款和条件,向[提名人姓名]转让下述部分选择权,以转让的部分选择权代表的选择权股份数额予以表示。

 

 

	
        Grantee

        被授予人
	
        Nominees

        提名人
	
        Option Shares Represented

        代表的选择权股份

	[  ]	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 

 

 

Dated [          ] 

日期

 

 

Yours faithfully

此致

 敬礼

 

 

___________________________

Name: HOU, Xingping

姓名:侯兴平[***] Represents information which has been redacted
and filed separately with the Commission pursuant to a request for confidential treatment under Rule 24b-2 of the Securities Exchange
Act of 1934, as amended.

 

PURCHASE ORDER - TERMS AND CONDITIONS

1. CONTRACT.

(a) Each purchase order and purchase order
revision (the “Order”) issued by GreenTech Automotive, Inc. (“Buyer”) is an offer to the Vendor named
on the previous page (“Vendor” and together the “Parties”) for the purchase of goods and/or services offered
by Vendor, and includes and is governed by the express terms contained on the face of this Order, these Purchase Order - Terms
and Conditions, the terms contained in any addendum or supplement to this Order issued by Buyer and accepted by Vendor and any
Release provided pursuant to Section 1(b) below (collectively, the “Terms”). Written acceptance of this Order by Vendor
solely constitutes an acceptance by Buyer for the goods and products offered by Vendor subject to this Order (the “Goods”)
or of the services offered by Vendor subject to Vendor’s quote and this Order (the “Services”). Any acceptance
of this Order is limited to and conditional upon Vendor’s acceptance of the Terms. Any proposal for additional or different
terms or any attempt by Vendor or Buyer to vary any of the Terms, whether in Vendor’s or Buyer’s quotation form, acknowledgement
form, invoice, correspondence or otherwise, shall be deemed material and is hereby objected to and rejected, but any such proposal
or attempted variance shall not operate as a rejection of this Order if Vendor accepts Buyer’s offer by commencement of
work, shipment of the Goods or performance of the Services, or by other means acceptable to Buyer, in which case this Order shall
be deemed accepted by Vendor without any additional or different terms or variations whatsoever. This Order does constitute an
acceptance of any prior offer or proposal by Vendor, and any reference in this Order to any such prior offer or proposal (including
any quotation issued by Vendor whether or not such quotation purports to contain Vendor’s terms of sale, if any) is solely
to incorporate the description or specifications of the Goods and/or Services contained in such offer or proposal, but only to
the extent that such description or specifications are not directly in conflict with the description and specifications contained
in this Order. If this Order is found to be an acceptance of any prior offer or proposal by Vendor, such acceptance shall be limited
to the Terms. Any additional or different terms in such prior offer or proposal shall be deemed material and are hereby objected
to and rejected by Buyer. Buyer may cancel all or any part of this Order at any time prior to acceptance by Vendor.

 

(b) If an Order is placed by blanket purchase
order, such blanket purchase order (a “Blanket Purchaser Order”) shall: (i) state on its face that it is a Blanket
Purchase Order, (ii) identify an amount of time for fulfillment of the Blanket Purchase Order (the “Timeframe”), (iii)
identify the quantity or quantities of Goods or Services that Buyer may purchase during such Timeframe (the “Blanket Quantity”),
and (iv) identify the price(s) for such Blanket Quantity. Such Blanket Purchase Order may also give a specific delivery date for
all or a portion of the Blanket Quantity. From time to time, the Buyer shall provide the Vendor a written notice (each, a “Release”)
stating, (i) an amount of the Blanket Quantity to be delivered to Buyer, and (ii) the delivery location of such portion of the
Blanket Quantity. In addition to the other termination rights afforded the Buyer under this Purchase Order – Terms and Conditions,
Buyer shall have the right to terminate all or a portion of the Blanket Purchase Order pursuant to Section 16(a) and shall only
be liable for the amounts set forth in Section 16(d).

 

    	 

    	 

    
 

(c) This Order contains the entire agreement
between Buyer and Vendor and, except as otherwise expressly stated in this Order, supersedes all prior agreements, orders, quotations,
proposals and other communications relating to the subject matter hereof, and there are no other understandings or agreements,
verbal or otherwise, in relation hereto that exist between Buyer and Vendor. Notwithstanding the foregoing, any non-disclosure,
noncompetition, non-solicitation or other similar restrictions in any prior agreements shall not be affected by the Terms or this
Order.

 

(d) In the event of any conflict or inconsistency
between the express terms contained on the face of this Order and these Purchase Order - Terms and Conditions, the express terms
on the face of this Order shall govern.

 

2. QUALITY ASSURANCE. At the time of delivery,
all articles, materials and work furnished, as applicable, shall be of good quality and free from any defects, and shall at all
times be subject to inspection by Buyer and any applicable governmental authority or regulatory body (collectively, “Regulator”);
but neither Buyer’s nor Regulator’s inspection, nor failure to inspect, shall relieve Vendor of any obligation hereunder.
If in Buyer’s or Regulator’s opinion, any article, material or work fails to conform to specifications or is otherwise
defective, Buyers sole recourse shall be through Vendor’s Warranty. No acceptance or payment by Buyer shall constitute a
waiver of the foregoing; and nothing herein shall exclude or limit any warranties provided by law.

 

3. CUSTOMER REQUIREMENTS.

(a) Vendor acknowledges that the Goods
and/or Services under this Order may be sold, or incorporated into products or services that may be sold or leased, by Buyer as
or to an original equipment manufacturer of motor vehicles, whether directly or indirectly, to an upper tier supplier or any other
third party customer (collectively, the “Customer”). Vendor is not responsible for such changed warranty to the Customer
unless such is explicit in the Order and Buyer provides copy of specific terms or obligations. Vendor shall take reasonable steps
to comply with such requirements and do all other things as Buyer deems necessary or desirable and within Vendor’s control
without additional expense to Vendor, to enable Buyer to meet Buyer’s obligations under the terms and conditions of the
Customer Warranty and any contract, purchase order or other document related thereto (the “Customer Terms”), including:
delivery, packaging and labeling requirements; warranties and warranty periods; intellectual property rights and indemnification;
confidentiality; access to facilities and records; ensuring the Goods when sold to the Customer comply with any specification
set forth; and replacement and service parts; provided however that Vendor acknowledges that the Goods shall be sold or leased
by the Buyer to customers in the European Union so shall comply with any legal requirements relating thereto.

 

(b) Subject to Buyer’s and Vendor’s
acceptance of Customer Terms as set forth in Section 3(a), if there is any conflict or inconsistency between the provisions of
the Customer Terms and any provision of this Order, Buyer shall have the right to have the provisions of the Customer Terms prevail
to the extent necessary or desirable to resolve such conflict or inconsistency as long as Vendor has agreed and at Buyer’s
expense.

 

    	Page | 2	Confidential	 

    	 	 	 

    
 

(c) If the Customer directed, recommended
or requested that Vendor be the source from whom Buyer is to obtain the Goods and/or Services and Customer and Vendor have a formal
agreement relating to the Order: (i) Buyer reserves the absolute right to pay Vendor for the Goods and/or Services[***]; (ii)
any lengthening of the Customer’s payment terms to Buyer for those products or services into which the Goods and/or Services
are incorporated shall, be mutually agreed upon by the Parties.

 

4. TAXES. Unless otherwise provided herein
or by law, Vendor shall pay all sales, use, excise, port fees and other taxes, charges, and contributions now or hereafter imposed
on, or with respect to, or measured by the articles, materials or work furnished or the compensation paid to, persons employed
in connection with performance hereunder; and Vendor shall release, indemnify, defend and hold Buyer harmless against any liability
and expense by reason of Vendor’s failure to pay same.

 

5. DELIVERY DELAYS, SHIPPING AND DUTIES/TAXES.

(a) Other than by reason of an excusable
delay (as defined in Section 5(b)), if after accepting this Order pursuant to Section 1 Vendor fails or refuses to proceed with
this Order or fails to deliver the Goods and/or perform the Services within the delivery date(s) and time(s) specified in this
Order or any applicable Release (in any such case, a “delay”), Buyer may, without liability to Vendor and without
limiting or affecting Buyer’s other rights or remedies available hereunder or at law: (i) cancel the then remaining balance
of this Order; or (ii) direct expedited shipment and/or incur premium freight or special transportation costs, and Vendor shall
pay, upon demand, all excess costs incurred thereby, including additional handling charges and other expenses (whether related
or not) resulting therefrom; provided that if such costs exceed 30% of the Order (the “Threshold Costs”), Vendor shall
only be liable for the Threshold Costs and the reasonable expenses that exceed 30%. Vendor shall not be responsible for any other
direct, consequential and incidental damages incurred by Buyer as a result of a delay, other than by reason of an excusable delay,
including the cost of any line shutdown(s) and the cost of obtaining the Goods and/or Services from alternate sources. Buyer’s
actions in obtaining substitute or replacement Goods and/or Services shall not limit Buyer’s rights and remedies available
hereunder or at law.

 

(b) As used in this Order, the term “excusable
delay” means at any time Buyer requests to shorten a delivery date quoted by Vendor and any delay in making or accepting
deliveries or performance which results without fault or negligence on the part of the party involved and which is due to causes
or events beyond its reasonable control, such as acts of God, or of a public enemy that causes materials or component supply delays,
any preference, , priority or allocation order issued by government or any other acts of government, fires, floods, epidemics,
quarantine restrictions, freight embargoes, unusually severe weather, explosions, riots, war (whether declared or not), terrorism,
acts of the other party and delays of a subcontractor or supplier due to such causes. As used in this Order, the term “excusable
delay” shall not, however, mean or include any delay arising from or as a result of: (i) Vendor’s financial difficulties;
(ii) a change in cost or availability of materials or components based on market conditions or supplier actions affecting Vendor
or any of its subcontractors or suppliers.

 

    	Page | 3	Confidential	 

    	 	 	 

    
  

(c) An excusable delay shall not constitute
a default hereunder, provided that if Buyer or Vendor is subject to one or more excusable delays that persist for more than thirty
(30) days in the aggregate, Buyer or Vendor may cancel the then remaining balance of this Order, without liability to Vendor and
without limiting or affecting Buyer’s other rights or remedies available hereunder or at law.

 

(d) Vendor, shall use reasonable efforts
to mitigate any adverse effects or costs to Buyer due to any actual or potential delay, including: (i) the implementation of a
production and/or performance contingency plan; and (ii) upon Buyer’s express written authorization and Order that has been
accepted by Vendor, increasing Vendor’s inventory of finished Goods to a level sufficient to sustain deliveries during such
delay.

 

(e) Whenever any actual or reasonably
certain or significant potential delay threatens to delay deliveries or Vendor’s performance under this Order, Vendor shall
immediately give written notice thereof to Buyer. Such notice shall include all relevant information with respect to such delay,
including the anticipated duration and impact of such delay if known.

 

(f) Buyer may delay acceptance of delivery
of the Goods and/or performance of the Services and such delay does not affect or delay payment, by reason of an excusable delay,
in which case Vendor shall hold the Goods and/or delay performance of the Services, at Buyer’s direction, until the cause
of the excusable delay has been removed.

 

(g) If, under the express terms of this
Order, Buyer grants Vendor exclusive or “single source” rights to supply the Goods and/or Services to Buyer, such
rights shall not restrict Buyer’s right to procure substitute or replacement Goods and/or Services for the duration of any
delay (whether or not by reason of an excusable delay) and for a reasonable period thereafter, without liability to Vendor.

 

(h) Unless otherwise expressly stated
in this Order, Vendor shall not charge Buyer for shipment preparation, labeling, packing, boxing, crating or shipping. Vendor
shall promptly notify Buyer in writing if Vendor is unable to deliver and/or perform in the quantities and on the delivery dates
and times agreed upon by Vendor and Buyer. Goods delivered in excess of the quantities or in advance of delivery dates or times
so specified shall be at Vendor’s risk and may be returned to Vendor by Buyer, and all transportation charges both to and
from the original destination shall be paid by Vendor. Unless otherwise expressly stated in this Order, prices include customs
duties and expenses, tariffs and all federal, provincial, state and local taxes (including all export taxes, import taxes, excise
taxes, sales taxes and value added or similar “turnover” taxes) applicable to the manufacture, sale or provision of
the Goods and/or Services as they are delivered to Buyer.

 

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6. PAYMENT.

(a) Except as otherwise expressly stated
in this Order which shall match the Vendor’s quote, and subject to Section 3(c) and Section 7, Buyer shall pay net invoices
(subject to applicable withholding taxes, if any) by the later of: (i) [***] days after the end of the month during which the
Goods were delivered and/or Services performed, as the case may be; or (ii) [***] days after the invoice date. In the event of
late payment by Buyer, Vendor shall be entitled to any lien or retention of title against the Goods and/or Services or to claim
any set-off against amounts due or which may become due to Vendor from Buyer or its subsidiaries or affiliates. In order to be
payable, invoices must be correct and complete, with appropriate supporting documentation and other information reasonably required
by Buyer.

 

(b) Notwithstanding the foregoing and
except as otherwise expressly stated in this Order which shall match the Vendor’s quote, where Buyer is entitled to receive
payment or reimbursement from the Customer for the Goods and/or Services to be provided by Vendor to Buyer under this Order that
constitute Tooling (as such term is defined in Section 11(b)), Vendor shall be entitled to receive payment under this Order for
such Tooling[***].

 

7. DEDUCTION, SET-OFF, RECOUPMENT.

(a) In addition to any right of deduction,
set-off or recoupment provided by law, all amounts due or to become due to Vendor from Buyer (including any applicable value added
or similar “turnover” tax payable, if any) shall be considered net of indebtedness or obligations of Vendor to Buyer,
and upon agreement by Vendor, Buyer may deduct, set-off or recoup any such indebtedness or obligations from and against any amounts
due or to become due to Vendor from Buyer (including any applicable value added or similar turnover taxes payable, if any) and
however and whenever arising. Buyer may do so without notice to Vendor.

 

(b) In the event of any insolvency or
financial distress of Vendor or for any other reason(s) giving rise to Vendor’s inability (or, in Buyer’s opinion,
potential inability) to perform its obligations under this Order, if Buyer retains legal counsel, accountants or other third party
advisors to provide services related to Buyer’s business relationship with Vendor, Buyer shall have the right to fully recover
its out of pocket fees and costs related to such legal, accounting or other third party services, and to specifically deduct,
set-off or recoup such fees and costs from amounts due or to become due to Vendor from Buyer.

 

(c) In the event of any insolvency or
financial distress of Buyer or for any other reason(s) giving rise to Buyer’s inability (or, in Vendor’s opinion,
potential inability) to perform its obligations under this Order, if Buyer retains legal counsel, accountants or other third party
advisors to provide services related to Vendor’s business relationship with Buyer, Vendor shall have the right to fully
recover its out of pocket fees and costs related to such legal, accounting or other third party services, and to specifically
deduct, set-off or recoup such fees and costs from amounts due or to become due to Buyer from Vendor.

 

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(d) For purposes of this Agreement, the
terms “Buyer” and “Vendor” shall mean and include each of Buyer and Vendor, respectively, and its subsidiaries
and affiliates.

 

8. CHANGES.

(a) Buyer reserves the right upon Vendor’s
pre-approval to make changes, or to require Vendor to make changes, to the drawings, specifications and other provisions of this
Order, as well as any subcontractors or suppliers used or intended to be used by Vendor. If any such change results in an increase
or a decrease in the cost of, or the time required for, manufacturing or delivering the Goods and/or performing the Services,
an equitable adjustment may be made in the price or delivery schedule, or both, and this Order shall, subject to the agreement
of Buyer and Vendor, be modified in writing accordingly. No claim under this Section 8 shall be asserted by Vendor after ninty
(90) days following the notification of the change by Buyer.

 

(b) Vendor shall not, without Buyer’s
prior written authorization, make any changes to specifications, designs, drawings, materials, part numbers (or other types of
identification), processes, procedures or the location of the facilities used by Vendor for the performance of its obligations
under this Order.

 

9. PRICE WARRANTIES AND COMPETITIVENESS.

(a) Vendor represents and warrants that
the prices for the Goods and/or Services are, and shall remain, [***]. If Vendor [***] of such same or substantially similar goods
or services and quantities and delivery requirements during the term of this Order, Vendor shall [***] of the Goods and/or Services
correspondingly.

 

(b) Except as otherwise expressly stated
in this Order, Vendor represents and warrants that the prices for the Goods and/or Services are complete, and that no surcharges,
premiums or other additional charges of any type shall be added, without Buyer’s prior written consent. Vendor expressly
assumes the risk, but if such event results in an additional cost to Vendor [***] of an Order may terminate the Order, in any
event or cause (whether or not foreseen) affecting such prices, including any foreign exchange rate changes, increases in raw
materials costs, inflation, increases in labor, MRO (maintenance, repair and operations), utilities and other manufacturing costs,
etc.

 

(c) Vendor shall ensure that the Goods
and/or Services remain competitive, in terms of price, quality, delivery, performance and service, with substantially similar
goods, volumes and services provided by Vendor to 3rd parties.

 

(d) For a period of six months after each
Order, Buyer shall provide Vendor with the right to first quote any potential Orders that relate to the goods and services provided
by Vendor. Such right shall extend for a period of (5) days from the date Vendor receives request to quote from Buyer.

 

10. WARRANTIES REGARDING GOODS AND SERVICES.

(a) Vendor’s sole Warranty (“Warranty”)
is outlined in Exhibit A.

 

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(b) The Vendor’s Warranty and Warranty
period are available to, and for the benefit of, Buyer, its subsidiaries and affiliates, their respective successors and assigns,
the Customer and users of the Goods and/or Services but only Buyer may submit a claim under such Warranty.

 

11. MATERIALS, EQUIPMENT, TOOLS AND FACILITIES.

(a) Unless otherwise expressly stated
in this Order, Vendor shall, at its own expense, supply and, as applicable, maintain in good condition and repair and replace
when necessary or reasonably required, all materials, equipment, tools, jigs, dies, gauges, fixtures, moulds, patterns, drawings,
specifications, samples, supplies and facilities that are under control of or are owned by Vendor and that are required to perform
this Order.

 

(b) Notwithstanding any other provision
in this Order, Parties expressly acknowledges and agrees that: all materials, parts, components, assemblies, equipment, tools,
jigs, dies, gauges, fixtures, moulds, patterns, drawings, specifications, samples, supplies and facilities, including any replacements
thereof, any materials affixed or attached thereto and any special tooling manufactured, produced or provided by Vendor for the
performance of its obligations under this Order are and shall remain the property of Vendor (collectively, “Tooling”).
Parties further agree: (i) all materials, parts, components, assemblies, equipment, tools, jigs, dies, gauges, fixtures, moulds,
patterns, drawings, specifications, samples, supplies and facilities, including any replacements thereof, any materials affixed
or attached thereto and any special tooling manufactured, paid for (excluding any Tooling the cost of which is fully or substantially
amortized in the price of the Goods and/or Services), produced or provided and paid for by Buyer for the performance of its obligations
under this Order are and shall remain the property of Buyer (collectively, “Specialized Tooling”) or collectively,
the (“Buyer’s Property”), shall be held by Vendor on a bailment basis and remain the property of, with both
title and the right of possession in, Buyer and without limiting or affecting any other rights or remedies available hereunder.
Vendor shall assign to Buyer all contract rights or claims in which Vendor has an interest with respect to the Buyer’s Property
and, upon request by Buyer and in the event no payment is due and payable by Buyer beyond any applicable grace period, shall execute
bills of sale, financing statements or other documents reasonably requested by Buyer to evidence Buyer’s ownership of the
Buyer’s Property. In addition to any other right or remedy with respect to the Buyer’s Property given to Buyer by
statute or rule of law, Vendor acknowledges that this Order only to the extent the Order contains Specialized Tolling paid for
by Buyer creates or provides for a “security interest” and/or a “purchase-money security interest” (within
the meaning of applicable personal property security legislation) in favor of Buyer in the Buyer’s Property which may be
registered or otherwise protected by Buyer at any time in Buyer’s sole discretion. The Buyer’s Property, while in
the custody or control of Vendor or its subcontractors, suppliers or agents, shall be held at Vendor’s risk, shall be kept
insured by Vendor, at Vendor’s expense, against loss or damage in an amount equal to the replacement cost thereof, and shall
be subject to removal on Buyer’s written request. Vendor shall promptly notify Buyer of the location of the Buyer’s
Property, if any is located at any place other than Vendor’s cell supplier of or Vendor’s premises. Unless otherwise
expressly stated in this Order, Vendor shall maintain accounting and property control records for the Buyer’s Property in
accordance with sound industrial practices. Vendor shall, at Vendor’s expense, maintain the Buyer’s Property in good
condition and repair throughout the useful life thereof (as determined by Buyer in accordance with sound industrial practices),
and shall replace any of the Buyer’s Property if, as and when necessary or reasonably required. Buyer does not provide any
warranties with respect to the Buyer’s Property. Upon completion or termination of this Order, Vendor shall retain on a
bailment basis for Buyer, as aforesaid, all Buyer’s Property in the custody or control of Vendor, at Vendor’s expense,
until disposition directions are received from Buyer. Upon receipt of Buyer’s demand or disposition directions, Vendor shall,
at Vendor’s expense, properly prepare the Buyer’s Property for shipment and shall deliver it to such location(s) as
may be specified by Buyer. The Buyer’s Property shall be in no less than the same condition as originally received by Vendor,
normal use and reasonable wear and tear excepted. If Buyer or Vendor defaults under this Order, Vendor shall, upon Buyer’s
demand, immediately deliver the Buyer’s Property to Buyer and, if Buyer so requests, grant Buyer reasonable access to Vendor’s
premises (including, as applicable, the premises of Vendor’s subcontractors, suppliers and agents) for the purpose of removing
the Buyer’s Property. To the extent not prohibited by law, as long as Buyer does not owe any payables to Vendor that are
past the any applicable grace period, Vendor waives any lien or similar right which Vendor may have with respect to the Buyer’s
Property. Buyer shall be responsible for personal property taxes, if any, assessed against the Buyer’s Property while in
the custody or control of Vendor or its subcontractors, suppliers or agents.

 

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(c) All Buyer’s Property referenced
in Section 11(b)(i) to be manufactured, produced or provided by Vendor in conjunction with this Order must be in strict accordance
with the specifications set forth in this Order or as otherwise specified by Buyer to Vendor.

 

(d) Vendor shall use the Buyer’s
Property referenced in Section 11(b)(i) solely for the purpose of performing its obligations under this Order unless Buyer gives
its written consent to use Buyer’s Property for another purpose.

 

(e) All Buyer’s Property shall be
tagged, marked or otherwise clearly identified by Vendor as the property of Buyer (or as Buyer may otherwise direct).

 

(f) This Section 11 shall not apply to
any Tooling purchased under a purchase order unless such purchase order specifically states that it is governed by these terms
and conditions.

 

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12. INTELLECTUAL PROPERTY.

(a) Vendor shall indemnify and hold Buyer,
its subsidiaries and affiliates, their respective successors, assigns, representatives, employees and agents, the Customer and
users of products or services incorporating the Goods and/or Services, harmless from and against all liabilities, demands, claims,
losses, costs, damages and expenses of any nature or kind (including court costs, legal and other professional fees, and other
costs associated with any indemnified party’s administrative time, labor and materials) arising from or relating to the
infringement or alleged infringement of any patent, trademark, service mark, copyright, industrial design, mask work, trade secret
or other intellectual property right for or on account of the manufacture, sale or use of the Goods and/or Services, or of the
products or services incorporating the Goods and/or Services. Buyer shall indemnify and hold Vendor, its subsidiaries and affiliates,
their respective successors, assigns, representatives, employees and agents, the Customer and users of products or services harmless
from and against all liabilities, demands, claims, losses, costs, damages and expenses of any nature or kind (including court
costs, legal and other professional fees, and other costs associated with any indemnified party’s administrative time, labor
and materials) arising from or relating to the infringement or alleged infringement of any patent, trademark, service mark, copyright,
industrial design, mask work, trade secret or other intellectual property right for or on account of the manufacture, sale or
use is based on a claim that Buyer’s combination of the Goods and/or Services with other goods, services (including without
limitation Buyer’s products). Buyer shall notify Vendor of any suit filed against Buyer or other indemnified parties herein,
on account of any such infringement or alleged infringement as stated above and in the event infringement is solely relating to
the Goods’ and/or Services alone, shall give Vendor control of the defense of such suit, insofar as Buyer has the authority
to do so, and reasonable information and assistance in connection therewith, all at Vendor’s expense. Buyer and other indemnified
parties herein shall have the right to be represented by their own legal counsel and actively participate in any such suit, and
the reasonable costs of such representation shall be paid by Vendor on demand. If a claim of infringement or alleged infringement
based solely on the Goods and/or Services results or is reasonably anticipated to result in an injunction or other legal order
preventing Vendor from supplying or Buyer from using the Goods and/or Services for their intended purpose, Vendor shall, at its
expense, (i) secure a valid license or other applicable rights to permit such continued supply or use, (ii) modify (with the prior
approval of Buyer and, if applicable the Customer) the Goods and/or Services so that they become non-infringing, so long as the
modifications do not significantly alter or affect the form, fit, function, operation or performance of the Goods and/or Services,
or (iii) replace (with the prior consent of Buyer and, if applicable, the Customer) the Goods and/or Services with non-infringing,
but substantially equivalent goods and/or services.

 

(b) Solely with respect to the use, installation,
sale, lease or servicing of the Goods that have been paid in accordance with an Order by Buyer, Vendor hereby grants to Buyer,
its subsidiaries and affiliates, and their respective successors and assigns (including any of their authorized distributors or
dealers), and Buyer hereby accepts, a non-exclusive, irrevocable, royalty-free (such royalty deemed included in the price of the
Goods and Services), worldwide license, including the right to sublicense to others in connection with providing the Goods and/or
Services to Buyer or the Customer, under: (i) patents, industrial designs, technical information, know how, processes of manufacture,
trade secrets and other intellectual property, owned or controlled by Vendor or its subsidiaries and affiliates, and relating
to the Goods and/or Services under this Order or their installing, servicing, use, sell, lease and import the Goods and/or Services
under this Order, and (ii) any works of authorship fixed in any tangible medium of expression (including drawings, prints, manuals
and specifications) furnished by Vendor in the course of Vendor’s activities under this Order, (all items in clauses (i)
and (ii) above, collectively, “Vendor’s Intellectual Property”, and such license in respect thereof, the “License”).
In the event Buyer wishes to obtain the supply of the Goods and/or Services from a third party Buyer may request and upon written
agreement by Vendor, Buyer may obtain a royalty bearing License. Nothing herein shall grant Buyer or subsequent assigns the license
or right to create derivative works.

 

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(c) To the extent that Vendor creates
or develops any inventions, discoveries or improvements in the performance of Vendor’s obligations under this Order which
are paid for by Buyer and specified as development work in an Order, Vendor shall: (i) assign to Buyer each such invention, discovery
or improvement (whether or not patentable) that is conceived or first reduced to practice by Vendor, or by any person employed
by or working under the direction of Vendor, in the performance of Vendor’s obligations under this Order; and (ii) promptly
disclose in an acceptable form to Buyer all such inventions, discoveries or improvements and cause Vendor’s employees to
sign any papers necessary to enable Buyer to obtain title to and to file applications for patents throughout the world. To the
extent that any works of authorship (including, without limitation, software and computer programs) are created or developed in
the performance of Vendor’s obligations under this Order which are paid for by Buyer and specified as development work in
an Order, such works shall be considered “works made for hire”, and to the extent that such works do not qualify as
“works made for hire”, Vendor hereby assigns to Buyer all right, title, and interest in all copyrights and moral rights
therein.

 

(d) Vendor shall not manufacture or provide,
or offer to manufacture or provide, any goods or services that are significantly based upon Buyer’s intellectual property
and/or the drawings or specifications in respect of the Buyer’s goods and services, or any derivatives thereof, whether
for its own purposes (other than to satisfy its obligations under this Order), for the Customer or any other third parties, without
Buyer’s prior written consent. The foregoing restriction shall not apply in respect of “standard”, “off-the-shelf”
or “catalogue” goods or services that have been routinely manufactured or provided by Vendor and developed by Vendor,
in each case, prior to this Order and independently of Vendor’s relationship with Buyer.

 

(e) Buyer shall not manufacture or provide,
or offer to manufacture or provide, any goods or services that are based solely upon Vendor’s intellectual property and/or
the drawings or specifications in respect of the Goods and/or Services, or any derivatives thereof, whether for its own purposes
(other than to satisfy its obligations) for the Customer or any other third parties, without Vendor’s prior written consent.

 

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13. CONFIDENTIALITY AND NON-DISCLOSURE.

(a) Parties shall, and shall cause each
subcontractor to, consider and treat all Information (as defined in Section 13(b)) as confidential, shall safeguard such Information
in an appropriate and reasonable manner (but being at least the same as that used by either party alone to protect its own information
of the same or a similar nature and relative importance), and shall not disclose any Information to any other person (including
a competitor of Parties or a person, who with knowledge of the Information, could damage either Parties; competitive position),
or use any Information against the interests of the Parties or for any purpose except as required by this Order, without the other
party’s prior written consent; provided however that Buyer may disclose Vendor’s confidential information to a lender
or third party that is contemplated financing, making a loan, making an equity investment or entering into a joint venture or
other arrangement for the purchase or sale of the Goods or Buyer’s products provided such party enters into a confidentiality
agreement prior to such disclosure. Each party retains all rights with respect to their Information, and neither Party shall acquire,
nor attempt to obtain (whether by filing applications, asserting claims, disputing the other party’s rights or otherwise)
any patent, trademark, copyright, license or other rights in respect of the other Party’s Information. Neither Party shall
allow any Information to be reproduced, communicated or in any way used, in whole or in part, in connection with services or goods
furnished to others, without the other Party’s prior written consent.

 

(b) For the purposes of this Order, “Information”
means (i) all prints, designs, drawings, layouts, specifications, instructions, developments, technical data, test data, computations,
analyses, models, samples, prototypes, materials, products, parts lists, costs and pricing, methods, processes, systems, plans,
forecasts, reports, working papers and other information (whether or not commercial, financial, business or technical in nature)
furnished by or on behalf of either Party and/or, if applicable, the Customer and/or Sub-Contractors, (ii) all notes, analyses,
compilations, studies, interpretations or other documents, whether in hard copy or electronic form, prepared by the respective
Party or its subcontractor, which contain, reflect or are based upon, in whole or in part, the Information set forth in (i) above,
and (iii) all terms and conditions and any other information relating to this Order.

 

(c) Vendor shall not advertise or otherwise
publicly disclose the fact that Buyer has contracted to purchase the Goods and/or Services from Vendor, without Buyer’s
prior written consent or unless required to do so by operation of law or regulation.

 

(d) The Parties agrees, and agrees to
cause any subcontractor, to promptly return or destroy the Information upon the either Party’s request. The Parties will
promptly inform each other if it becomes aware of any misappropriation, misuse or improper disclosure of any Information. In the
event the Vendor uses any subcontractor to provide goods or services in connection with this Order, the Vendor agrees to cause
such subcontractor to be bound provisions substantially similar to this section. Nothing in this Section 13 shall restrict either
Party’s disclosure of information to the extent required by law.

 

14. COMPLIANCE WITH LAWS.

(a) Vendor’s performance of its
obligations under this Order shall be in compliance with all applicable laws, including foreign, federal, provincial, state and
local laws, ordinances, rules, codes, standards and regulations, as promulgated, enacted and amended from time to time, that are
applicable to this Order or the use of the Goods to the Customer, including any specifications for the Goods set forth in any
law applicable to the sale of the Goods to the Customer, (collectively, “Laws”). Vendor shall furnish Buyer with certificates
of compliance, where required under such applicable Laws or when requested by Buyer. Each invoice rendered to Buyer under this
Order shall constitute written assurance by Vendor that Vendor has fully complied with all applicable Laws.

 

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(b) Vendor shall package, label and transport
the Goods and their containers, in particular those which constitute a safety, health, poison, fire, explosion, environmental,
transportation or other hazard, in compliance with all applicable Laws in effect in the place to which the Goods are shipped or
as otherwise specified by Buyer. Upon request, Vendor shall furnish Buyer with information regarding the ingredients of the Goods.

 

(c) Vendor represents and warrants that
neither it nor any of its subcontractors or suppliers utilize or will utilize any form of forced or involuntary labor in the United
Status relating to the supply of the Goods and/or Services under this Order. Within the framework of its commercial dealings with
Buyer, Vendor shall not engage in any actions or practices which may lead to criminal or civil liability due to fraud, bribery,
embezzlement, unfair competition or other forms of corruption on the part of persons employed by Vendor or third parties for the
benefit of Vendor.

 

(d) Parties represents and warrants that
neither it, its subcontractors, nor any of their officers, directors, employees, agents or other representatives has or will perform
any act that violates the Foreign Corrupt Practices Act of 1977, as amended by the International Anti-bribery and Fair Competition
Act of 1998, including pay, offer or promise to pay or give any money, gift, service or anything else of value, either directly
or through a third party, to any (A) official or employee of any government authority or instrumentality, public international
organization, or of any agency or subdivision thereof, or (B) political party, official thereof or to any candidate for political
office; in each case for the purpose of (i) influencing any act or decision of that person in his official capacity, including
a decision to fail to perform his or her official function, (ii) inducing such person to use his or her influence with such organization
to affect or influence any act or decision thereof or (iii) securing any improper advantage. In the event either Party uses any
subcontractor to provide goods or services in connection with this Order, they agree to cause such subcontractor to be bound by
provisions substantially similar to this Section 14.

 

(e) Parties shall indemnify and hold the
other party, its subsidiaries and affiliates, their respective successors, assigns, representatives, employees and agents and
the Customer, harmless from and against all liabilities, demands, claims, losses, costs, damages and expenses of any kind and
nature (including personal injury, property damage, consequential and special damages, court costs, legal and other professional
fees, and other costs associated with any indemnified party’s administrative time, labor and materials) arising from or
relating to the other Party’s or any subcontractor’s failure to comply with this Section 14.

 

15. INSURANCE.

(a) Vendor shall maintain and carry: (i)
property and general liability insurance, including public liability, property damage liability, product liability and contractual
liability coverage; and (ii) workers’ compensation and employers’ liability insurance covering all employees engaged
in the performance of this Order; in each case, in such amounts and with such limits (subject to Section 15(b)) and with such
insurers that are acceptable to Buyer, acting reasonably.

 

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(b) Unless otherwise expressly stated
in this Order, Vendor’s liability insurance policies shall have combined single limits of no less than five million U.S.
dollars (U.S. $5,000,000) per occurrence and in the aggregate; provided that such limits shall not limit Vendor’s liability
under this Order. Vendor’s property insurance policies shall be written on a “replacement cost” basis, and Vendor’s
workers’ compensation policies shall be in compliance with applicable statutory requirements and limits.

(c) Vendor shall furnish Buyer with certificates
or other satisfactory proof of insurance confirming the foregoing insurance coverage within ten (10) days of Buyer’s request.
Any such certificate shall provide for terms and conditions satisfactory to Buyer whereby, among other things: (i) the interest
of Buyer in such insurance coverage has been recognized, whether by way of designating Buyer as loss payee or otherwise as may
be requested by Buyer from time to time; and (ii) Buyer shall receive not less than thirty (30) days prior written notice from
the insurer before any termination or reduction in the amount or scope of coverage can occur, with Buyer having the right (at
Vendor’s expense), but not the obligation, to maintain such insurance coverage prior to the expiration of such notice. The
receipt or review of such certificates or other proof of insurance coverage at any time by Buyer shall not relieve Vendor from
its insurance obligations hereunder or reduce or modify such insurance obligations.

 

16. TERMINATION UPON NOTICE.

(a) In addition to any other rights of
Buyer to terminate this Order, Buyer may, in its sole discretion for any or no reason, upon thirty (30) days prior written notice
to Vendor or, if applicable, such shorter period as may be required by the Customer, terminate this Order, in whole or in part
at any time, and notwithstanding the existence of any excusable delay or other events or circumstances affecting Vendor. Buyer’s
notice to Vendor may be given by facsimile, e-mail or other form of electronic transmission, and shall state the extent and effective
date of termination. Vendor may not terminate this Order for any reason, except as otherwise expressly provided in this Order.

 

(b) Upon receipt of notice of termination
from Buyer under Section 16(a), Vendor shall, as of the effective date of termination and to the extent directed by Buyer: (i)
stop work under this Order and any other orders related to work terminated by such notice; (ii) protect all property in Vendor’s
possession or control in which Buyer has or may acquire an interest, including the Buyer’s Property; and (iii) if this Order
is terminated in full, cease to be bound to deliver and/or perform, and Buyer shall cease to be bound to receive delivery and/or
performance of, any further Goods and/or Services (other than the minimum quantities specified in this Order, if any). Vendor
shall promptly submit to Buyer any claims relating to such termination, and in any event within thirty (30) days (unless Buyer
agrees otherwise) from the effective date of such termination. Vendor hereby grants Buyer the right to audit and inspect its books,
records and other documents relating to any termination claims or any other claim under this Order.

 

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(c) Subject to Section 16(d), if Buyer
and Vendor cannot agree within a reasonable time upon the amount of fair compensation for Buyer’s termination of this Order,
Buyer shall, in addition to making payment of the price specified in this Order for the Goods and/or Services delivered or performed
and accepted by Buyer prior to the effective date of termination, pay to Vendor the following amounts, without duplication: (i)
the price specified in this Order for the Goods and/or Services manufactured or provided in accordance with the terms of this
Order but not previously paid for;(ii) the actual costs of work-in-process and parts and raw materials inventory incurred by Vendor
in performing its obligations under this Order, to the extent such costs are reasonable in amount and are properly allocated or
apportioned under generally accepted accounting principles to the terminated portion of this Order; and (iii) any other costs
or allowances that Buyer, in its sole discretion, may elect to recognize and pay. Buyer shall not be obligated to make any payment
for: (x) the Goods and/or Services or work-in-process or parts or raw materials inventory that are manufactured, provided or procured
by Vendor in amounts in excess of those authorized in any Order, that are damaged or destroyed or that are not merchantable or
useable; (y) work-in-process or parts or raw materials inventory that can be returned to Vendor’s suppliers or subcontractors
for credit. Payments made in connection with a termination of this Order under Section 16(a) shall not exceed the aggregate price
for the Goods and/or Services that would have been manufactured or provided by Vendor in the absence of termination. Except as
provided in this Section 16(c), Buyer shall not be liable for and shall not be required to make payments to Vendor, directly or
indirectly (whether on account of claims by Vendor’s subcontractors or otherwise), for any losses arising from or attributable
to failure to realize anticipated revenues, savings or profits, unabsorbed overheads, interest on claims, product development
and engineering costs, capital costs, facilities and equipment rearrangement costs or rentals, unamortized depreciation costs
or general and administrative burden charges, unless (and only to the extent that) any of the foregoing are otherwise expressly
stated in this Order . Notwithstanding anything herein, nothing shall limit Vendor’s remedy under law.

 

(d) If a Blanket Purchase Order is terminated,
in whole or in part, as set forth in Section 16(a), the liability of the Buyer to Vendor under Section 16 shall be limited solely
to the difference between (i) the aggregate price that would have been paid by the Buyer for the Goods and Services actually delivered
to Buyer under the Blanket Purchase Order if such reduced quantity had been know to Vendor at the time it accepted the Blanket
Purchase Order, and (ii) the aggregate invoice price for Goods and Services actually delivered to the Buyer under the Blanket
Purchase Order. Any pricing proposal delivered to the Buyer by Vendor prior to delivery of a Blanket Purchase Order shall be used
to calculate the amount owed by Buyer to Vendor pursuant to this Section 16(d). To the extent any Release has been issued by Buyer
to Vendor and such Goods or Services set forth in the Release have not been delivered to Buyer on or prior to termination in accordance
with Section 16(a), any liability relating to such Release shall be determined as set forth in Section 16(c). For purposes of
this Section 16(d), “actually delivered” shall mean any Goods or Services accepted by the Buyer as conforming Goods
or Services pursuant to a Blanket Purchase Order or related Release on or prior to the date this Order is terminated, in whole
or in part, pursuant to Section 16(a).

 

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(e) Vendor may, with Buyer’s prior
written consent, retain or sell at an agreed price any of the Goods and/or Services or work in process, parts or raw materials
inventory, the cost of which is allocated or apportioned to this Order under Section 16(c)(ii), and shall credit or pay the amounts
so agreed or delivery of any Goods, work in process, parts or raw materials inventory not so retained or sold.

 

(f) Any termination under this Section
18 shall not affect the entitlement of Buyer with respect to the Buyer’s Property, including pursuant to Section 11(b).

 

17. TERMINATION UPON INSOLVENCY, BANKRUPTCY,
ETC.

Either party may terminate this Order,
without liability to the other party: (i) in the event of the insolvency, bankruptcy, reorganization, arrangement, receivership
or liquidation by or against the other party; (ii) in the event that the other party makes an assignment for the benefit of its
creditors, seeks protection from its creditors under applicable laws or ceases to carry on business in the ordinary course; or
(iii) if a receiver is appointed in respect of the other party or all or part of its property (collectively, an “Insolvency
Event”). In the event of such termination, the other party shall be liable for all costs, damages and expenses suffered
by the party that terminates this Order. Any such termination shall not affect the entitlement of Buyer with respect to the Buyer’s
Property, including pursuant to Section 11(b).

 

18. SERVICE AND REPLACEMENT PARTS.

(a) Lifetime Buy Rights. Vendor acknowledges
its obligation to manufacture, supply and support the Goods and Services. If, however, Vendor seeks to discontinue the supply
or support of any Goods and Services (a “Discontinued Product”), Vendor will give notice to Buyer no less than twelve
(12) months in advance of the last date the Discontinued Product can be ordered. After receipt of notice of Discontinued Product,
Buyer may, at its option: (i) place a one-time order, such order shall not be a blanket order, from Vendor such quantity of the
Discontinued Product as Buyer deems necessary at a price no higher than the last price paid by Buyer to Vendor for the Goods;
and (ii) manufacture the Discontinued Product under a royalty agreement with Vendor.

 

(b) At Buyer’s request and expense,
Vendor shall make service literature and other materials available to support Buyer’s service part or replacement part sales
activities.

 

19. BUYER’S WEBSITE.

Unless otherwise provided
herein, this Agreement may not be modified unless in writing and signed by an authorized representative of each party. Any express
waiver or failure to exercise promptly any right under this Agreement will not create a continuing waiver or any expectation of
non-enforcement.

 

20. SUBCONTRACTS. Vendor shall ensure
that the terms of its contracts with its and subcontractors and suppliers provide Buyer and the Customer with all of the rights
specified in this Order, including but not limited to those set forth in Section 3(a).

 

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21. ASSIGNMENT.

Vendor shall not assign this Order hereunder
or any interest herein, except that Vendor may, with Buyer’s prior written consent, make an assignment of monies due or
which may become due hereunder to a bank or other financing institution; provided that any such assignment by Vendor shall be
subject to deduction, set-off, recoupment or any other lawful means of enforcing any present or future claims that Buyer may have
against Vendor, and provided further that any such assignment shall not be made to more than a single assignee. Buyer shall have
the right to assign this Order or its interest herein, without Vendor’s consent, to any of its subsidiaries or affiliates
or to any purchaser or successor to Buyer’s business.

 

22. REMEDIES.

The remedies reserved in this Order shall
be cumulative and not alternative, and may be exercised separately or together, in any order or combination, and are in addition
to any other remedies provided for or allowed by law, at equity or otherwise.

 

23. WAIVER. Either party’s failure
to insist on the performance by the other party of any Term or failure to exercise any right or remedy reserved in this Order,
or either party’s waiver of any breach or default hereunder by the other party shall not, thereafter, waive any other terms,
conditions, rights, remedies, breaches or defaults, whether of the same or a similar type or not.

 

24. MODIFICATIONS. No modification of
this Order, including any waiver of or addition to any of the Terms, shall be binding upon either Party, unless made in writing
and signed by the Parties’ authorized representative(s).

 

25. SEVERABILITY. If any provision of
this Order is invalid or unenforceable under any statute, regulation, ordinance, executive order or other rule of law, such provision
shall be deemed reformed or deleted, as the case may be, but only to the extent necessary to comply with such statute, regulation,
ordinance, order or rule, and the remaining provisions of this Order shall remain in full force and effect.

 

26. NOTICES. Except as otherwise expressly
stated in this Order, any notice given or other communication sent under this Order shall be in writing and shall be properly
delivered to its addressee by hand, prepaid courier, registered or certified mail, e-mail or other form of electronic transmission
(receipt confirmed) or facsimile (receipt confirmed) at the applicable address or facsimile number noted on the face of this Order.
Any notice or communication given as provided herein shall be deemed to have been received at the time of its delivery if delivered
by hand, on the business day following its dispatch if transmitted by courier, e-mail, other electronic transmission or facsimile,
or on the third business day following its mailing if sent by registered or certified mail. Either party may notify the other
party, in the manner provided for herein, of any change of applicable address or facsimile number for the purpose of giving notices
or sending communications under this Order.

 

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27. SURVIVAL. The obligations of Vendor
to Buyer that are intended to survive termination of the Order shall survive any termination of this Order, including the obligations
set forth in Section 18(a).

 

28. DEFAULT.

(a) If Vendor shall (i) materially breach
any provision hereof, and such breach shall not be corrected within five (5) days after written notice from Buyer to Vendor (or,
if such breach is not correctable within five (5) days, then immediately upon receipt of such notice in accordance with Section
26), (ii) become insolvent, enters voluntary or involuntary bankruptcy or receivership or in the event of default, sequestration
or seizure of Vendor’s operations under a mortgage, lien or privilege, then Buyer will have the right (without prejudice
to any other rights or remedies it may have hereunder or by operation of law) to terminate all or a portion of the Order without
any further liability to Vendor. A waiver of any one default hereunder shall not be considered a waiver to any subsequent default.
Time is of the essence hereof, and Buyer’s right to require strict performance by Vendor shall not be affected by any waiver,
forbearance or course of dealing.

 

(b) If Buyer shall (i) fail to pay amounts
due and owing under this Order following any applicable grace period, and such breach shall not be corrected within five (5) days
after written notice from Vendor to Buyer, or (ii) become insolvent, enters voluntary or involuntary bankruptcy or receivership
or in the event of default, sequestration or seizure of Buyer’s operations under a mortgage, lien or privilege, then Vendor
will have the right (without prejudice to any other rights or remedies it may have hereunder or by operation of law) to terminate
all or a portion of the Order without any further liability to Buyer.

 

29. INDEPENDENT CONTRACTOR. Vendor is
an independent contractor with respect to performance of all work, materials and articles provided hereunder and neither Vendor
nor anyone employed by Vendor shall be deemed for any purpose to be the employee, agent, servant or representative of Buyer for
performance of any work or service hereunder. Buyer shall have no direction or control of Vendor or its employees, agents or subcontractors
and reserves no right to direct or control Vendor, its employees, agents or subcontractors, Buyer being interested only in the
results to be obtained. The articles, materials and work furnished, as applicable, hereunder shall meet the approval of Buyer
and be subject to the general right of inspection provided herein for Buyer to secure the satisfactory completion thereof for
such sole remedy shall be the Vendor’s Warranty or other remedies provided herein.

 

30. APPLICABLE LAW AND VENUE. This Order
shall be construed and enforced in accordance with and governed by the laws of the State of Mississippi (excluding conflicts of
law rules) and the federal laws of the United States, as applicable. For greater certainty, the United Nations Convention on Contracts
for the International Sale of Goods shall not apply to this Order.

 

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31. DISPUTE RESOLUTION. In the event of a dispute under this
Order, both Parties agree to negotiate in good faith for a period of thirty (30) days following delivery of a notice of dispute
by one party to the other party. If the parties fail to reach an agreement within such thirty (30) day period of time, then either
party may submit such dispute to binding arbitration to be governed by the Commercial Arbitration guidelines of the American Arbitration
Association with all such arbitrations to take place in Tunica, Mississippi.

 

	Flux Power, Inc.	 	GreenTech Automotive, Inc.
	 	 	 
	Signature: 	/s/ Chris Anthony	 	Signature: 	/s/ Gary Tang
	 	 	 	 	 
	Title:	Chief Executive Officer	 	Title:	EVP Finance
	 	 	 	 	 
	Date:	4/27/2012	 	Date:	4/27/2012

 

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EXHIBIT A

 

Flux Power, Inc.

Limited Warranty

 

Flux Power, Inc. Battery and Battery
Management Systems Limited Parts and Labor Goods Warranty for GreenTech Automotive as referenced in the Agreement.

 

General Warranty

Vendor provides
to Buyer this limited warranty of the Battery Management System, related hardware and any portion of the battery excluding battery
cells (“BMS”) for a period of [***] years or [***]
miles, whichever comes first. The Vendor warrants that the BMS shall (i) conform to all drawings and specifications furnished
by Vendor; (ii) comply with all applicable United States and European Union laws, regulations, rules, codes and standards, and
use reasonable efforts within the next year to comply with Denmark laws, regulations, rules, codes and standards of the BMS; (iii)
be free from any defects in design; (iv) be free from any defects in materials, service and workmanship; (v) be fit, sufficient
and suitable for the particular purpose for which Vendor has designed; and (vi) be free of all liens, claims, charges and encumbrances
whatsoever. 

 

Battery Cell Warranty

Vendor provides
to Buyer this limited, amortized over the life of the cell, warranty of Vendor’s battery cell (“Cell”) for a
period of [***] years or [***] miles whichever comes first
for [***] of the price paid or replacement thereof for a Failed Cell (as defined below) if the
failure occurs in the [***];[***] of the price paid or replacement
thereof for a Failed Cell if the failure occurs in the [***] year; and [***]
of the price paid or replacement thereof for a Failed Cell if the failure occurs in the [***]
year. The decision whether a Failed Cell will be result in a full (or partial) refund or a replacement shall be at the discretion
of the Buyer where Vendor has the ability to over a replaceable Cell in like condition within a year of the Failed Cell. A “Failed
Cell” shall mean at any time the Cell’s capacity, taken as a whole, is below [***] percent of the stated capacity
as specified in the cell specifications provided by the Vendor and is within the parameters covered under the Battery Cell Warranty
and all limitations defined herein (the “Capacity”). The
Vendor warrants that each Cell shall comply with all applicable United States and European Union laws, regulations, rules,
codes and standards, and use reasonable efforts within the next year to comply with Denmark laws, regulations, rules, codes and
standards of the Cell and its contents.

 

Goods Warranty

The BMS, Cell and all other portions of
the battery herein after (“Goods”) and the General Warranty and the Cell Warranty (herein after “Goods Warranty”)
period shall commence on the earlier of (i) the date the Goods were delivered by the Buyer to the end-user of the battery, or
(ii) six months from Buyer’s receipt of the Goods.

 

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Goods Remedy

The Buyer,
by itself or through a distributor, shall make an initial determination of whether a Good violates this warranty by using reasonably
appropriate testing of the Goods. If a claim is received by Vendor that any of the Goods fail to meet the Good’s
Warranty, Vendor shall, upon notice thereof from Buyer, shall promptly review and respond to claim. If Vendor needs to perform
additional analysis regarding the claim and needs the Goods to perform such analysis Vendor shall issue a return merchandise authorization
(“RMA”) number such that the Goods can be shipped back to Vendor, at Buyer’s costs. Upon completing an analysis,
which shall not exceed 30 thirty days, on the Goods relating to the claim Vendor shall issue an RMA analysis report which shall
provide details regarding the results of the analysis and if the Goods are warrantied per the Goods Warranty. In the event Vendor
agrees that the Goods are under warranty the RMA analysis report shall also identify the reimbursement method for the failed good
selected by Buyer where Vendor has the ability to over a replaceable Cell in like condition within
a year of the Failed Cell (“Failed Good”) which may include providing replacement Goods in the same or better
condition as it relates to the life of a Good. Any payment and shipping costs or other reasonable and related costs, upon pre-approval
by Vendor, made by Buyer for Failed Good shall be refunded by Vendor, except to the extent that Vendor promptly replaces or corrects
the same at Vendor’s expense. In the event Vendor fails to either replace or refund the amount
paid in accordance with the Goods Warranty or respond to a claim within (30) thirty days from receipt of the Goods under an RMA,
Vendor is deemed to agree to the Goods are covered by the Goods Warranty and Buyer may take a credit for such claim. If Vendor
disputes a claim made by Buyer than such dispute shall be discussed between Vendor and Buyer and if unresolved shall than be raised
to respective executive managements within each party for a discussion prior to taking further action. 

 

Additionally,
Vendor shall indemnify and hold Buyer, its subsidiaries and affiliates, their respective successors, assigns, representatives,
employees and agents, the Customer and users of the Goods, harmless from and against all liabilities, demands, claims, losses,
costs, damages and expenses of any nature or kind (including consequential and special damages, death, personal injury, property
damage, lost profits and other economic losses, recall or other Customer field service action costs at rates mutually agreed upon
in schedule, production interruption costs, inspection, handling and reworking charges, court costs, legal and other professional
fees, and other costs associated with any indemnified party’s administrative time, labor and materials) only as it relates
to a Failed Good, court costs, legal and other professional fees, labor and materials arising from or relating to: (i) any breach
of the Vendor’s Warranties; (ii) any other acts, omissions or negligence of Vendor or of any of its subcontractors or suppliers
in connection with Vendor’s performance of its obligations under this Order.

 

Buyer
shall indemnify and hold Vendor, its subsidiaries and affiliates, their respective successors, assigns, representatives, employees
and agents, harmless from and against all liabilities, demands, claims, losses, costs, damages and expenses of any nature or kind
(including consequential and special damages, death, personal injury, property damage, lost profits and other economic losses,
recall or other Customer field service action costs, production interruption costs, inspection, handling and reworking charges,
court costs, legal and other professional fees, and other costs associated with any indemnified party’s administrative time,
labor and materials) that are related to the failure of components of the Buyer’s vehicles that are not the Goods.

 

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Conditions, Limitation and Exclusions

Buyer must use reasonable efforts to notify
Vendor when made aware of a possible claim. Only Buyer and its authorized distributors may make a warranty claim on behalf of
their Customers, channel partners and users of the Goods.

 

Warranty Limitations

This warranty is void if (i) the Goods’
date code or serial number is intentionally defaced, missing or altered and there is no other means of determining ownership of
the Goods; (ii) the Goods have been damaged by improper installation, loose connections, failure of another part in the vehicle
system or the claim results from accident, misuse, improper charging, neglect, or improper service; (iii) the Goods have been
tampered with, modified or used in a manner contrary to its intended purpose which significantly affects the Goods ability to
perform in accordance with their stated purpose; and (iv) the Goods have been damaged as a result from abuse, accidents, fire
(if such fire is not caused by the battery, BMS or Cells), flood, or other acts of God; and (v) except in the event of normal
maintenance (including root cause analysis), a cell cannot be associated and identified with a specific BMS upon assembly with
a BMS at the Buyer’s facility and during the remainder of the cell life and such identification is at no fault of the BMS.

 

This Warranty does not cover damages that
result from abuse, accidents, or fire, flood or other acts of God unless such accident or fire resulted from the battery, the
BMS or a Cell. Removal, installation transportation, labor, damage to other components, personal damage or injury and/or any injury
or liability to other persons or property are specifically included from this limited warranty.

 

Additional warranty limitations are product
and use specific and will be further defined in the attachments hereto which may be updated and added to upon mutually agreement
by the parties.

  

General Provisions

The Goods may be modified or improved
over time in subsequent versions of the Goods. Vendor reserves the right to make changes to future versions of the Goods without
assuming any obligation to make such changes on your Goods unless such change is a result of a series of product liability claims
whether or not claims result in a product recall. Your Goods have been engineered and tested by Vendor. However, as Vendor gains
additional field experience with the Goods, if Vendor determines that there is a systematic defect in the Goods, Vendor may initiate
a voluntary Goods recall at Vendor’s cost. Any replacement Good shall have a warranty period equal to the warranty period
that would have been applicable to the original Good if it was not replaced. The remedies set forth in this paragraph are your
sole and exclusive remedy in the event of a voluntary recall unless a warranty claim is made prior to delivery of the Goods pursuant
to the voluntary recall. In the event you choose not to participate in a voluntary recall after three (3) months after delivery
of such voluntary recall notice, to the extent permitted by law, the express warranties set forth herein shall be void.

 

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THE
DURATION OF ANY IMPLIED WARRANTY INCLUDING THE IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE SHALL
BE LIMITED TO THE DURATION OF THE APPLICABLE EXPRESS WARRANTY SET FORTH ABOVE. 

 

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Attachement
A

Flux’s Acceptable Limitations:

Warranty Limitations for the Buyer’s Product (MyCar Model Number ____)

 

For a [***]yr [***]mile on Buyer’s
[***] systems using Buyer’s current [***] drive system: The Cell Warranty is void if at no cause
by the BMS: (a) any individual cell within a battery pack extends outside the voltage range of [***]
volts to [***] volts, (f) the amount of discharge current exceeds [***]
amp peak for longer than [***] seconds at any one time, (g) the maximum constant charge current
exceeds [***] amps at any one time and the maximum peak charge current exceeds [***]
amps at any one time, (h) the battery has exceeded the temperature rage of a negative [***]
degrees Celsius to a positive [***] degrees Celsius while in operation. 

 

    	Page | 23	Confidential

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