Document:

Exhibit 10.3

  

   

    

  

    EMPLOYMENT AGREEMENT

    THIS EMPLOYMENT AGREEMENT (this “Agreement”)
      is entered into on May 20, 2020, with an effective date of July 1, 2020, (the “Effective Date”), by and between Vishay Electronic GmbH, a company with limited
      liability organized under the laws of Germany (“Vishay Electronic”), Vishay Intertechnology, Inc., a Delaware corporation (“Vishay”), and ANDREAS RANDEBROCK (the “Executive”).

    W I T N E S S E T H:

    WHEREAS, Vishay Electronic desires to continue to employ Executive and Executive desires to accept such continued
      employment; and

    WHEREAS, Vishay Electronic and Executive intend for this Agreement to document the terms and conditions of the
      employment relationship.

    NOW, THEREFORE, in consideration of the mutual covenants hereinafter contained, and for other good and valuable
      consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows:

    
      	
              1.

            	
              Definitions.

            

    

    1.1. “Accrued Compensation” means (a) earned but unpaid Base Salary (as defined below) and
        (b) unpaid expense reimbursements.

    1.2. “Board of Directors” means the Board of Directors of Vishay.

    1.3. “Cause” means any of the following:

    (a) Executive’s conviction of a felony or any other crime involving moral turpitude (whether or not involving Vishay and/or its subsidiaries);

    (b) any act or failure to act by Executive involving dishonesty, fraud, misrepresentation, theft or embezzlement of assets from Vishay and/or its subsidiaries; or

    (c) Executive’s (i) willful and repeated failure to substantially perform his duties under this Agreement (other than as a result of total or partial incapacity due to physical or
        mental illness or injury) or (ii) willful and repeated failure to substantially comply with any policy of Vishay and/or its subsidiaries applicable to Executive; provided, however, that a termination pursuant to this clause (c) will not become
        effective unless Executive fails to cure such failure to perform or comply within twenty (20) days after written notice thereof from Vishay Electronic.

    For avoidance of doubt, a termination due to Disability will not constitute a termination without Cause.

    1.4. “Change in Control” has the meaning defined in the Stock Incentive Program and for the
        avoidance of doubt refers to a change in control of Vishay.

    1.5. “Compensation Committee” means the Compensation Committee of the Board of Directors.

    1.6. “Date of Termination” means the effective date of the cessation of Executive’s
        employment by Vishay Electronic.

    1.7. “Disability” means a disability entitling Executive to long-term disability benefits
        under a plan of Vishay (or a subsidiary or affiliate of Vishay).

    1.8. “Good Reason” means:

    (a) without Executive’s express written consent, the occurrence of any of the following events:

    (i) any material and adverse change in Executive’s titles, offices, duties or responsibilities (including reporting responsibilities) with respect to Vishay Electronic or Vishay
        from those set forth in this Agreement;

    (ii) a material reduction in Executive’s annual Base Salary (as the same may be increased from time to time after the Effective Date);

    (iii) relocation of Executive’s principal place of performance by more than 50 kilometers from Selb, Germany (excluding for this purpose reasonable travel from to time); or

    (iv) a material breach of this Agreement by Vishay Electronic;

    provided however, that none of the foregoing events or conditions will constitute Good Reason unless Executive provides Vishay
      Electronic with written objection to the event or condition within 30 days following the initial occurrence thereof, Vishay Electronic does not reverse or otherwise cure the event or condition within 30 days of receiving that written objection, and
      Executive resigns his employment within 90 days following the expiration of that cure period.

    
      
        

    

    (b) In addition, if there occurs a Change in Control that also constitutes a “change in control event” as described in Treas. Reg. § 1.409A-3(i)(5)(i), then any resignation by
        Executive (other than a resignation when Cause exists) for which notice is given after that change in control event and that is effective during the 12 month period beginning four months after that change in control event, will constitute a
        resignation for Good Reason solely for purposes of Section 6.1.

    1.9. “Stock Incentive Program” means the Vishay Intertechnology 2007 Stock Incentive
        Program.

    

    

    
      	
              2.

            	
              Employment; Term.

            

    

    2.1. Employment.  Vishay Electronic hereby continues to employ Executive, and Executive
        hereby accepts continued employment by Vishay Electronic, in accordance with and subject to the terms and conditions set forth herein.

    2.2. Term.  Executive’s employment pursuant to this Agreement shall commence on the
        Effective Date and continue for an indefinite term, until terminated in accordance with the terms of this Agreement.  Either party may terminate the employment relationship by delivery of written notice of termination to the other (a) at least
        seven months in advance of the Date of Termination, where notice of termination is given after a Change in Control that also constitutes a “change in control event” as described in Treas. Reg. § 1.409A-3(i)(5)(i) and the Date of Termination occurs
        during the sixteen month period after that change in control event, or (b) at least one year in advance of the effective Date of Termination, in any other case.  The Date of Termination will in any case occur on the last day of a calendar month.

    
      	
              3.

            	
              Duties.

            

    

    3.1. Position.  During the Term, Executive shall serve as Executive Vice President, Global
        Human Resources of Vishay, or any other position which will be agreed by the parties, reporting directly to the Chief Executive Officer of Vishay or such other individual as may be designated by the Chief Executive Officer of Vishay from time to
        time.

    3.2. Authority and Responsibility.  Executive shall have authority and responsibility
        customarily applicable to the positions described in Section 3.1, and shall
        perform such other duties as may be assigned by Vishay or Vishay Electronic from time to time.

    3.3. Activities.  Excluding any periods of vacation, personal, sick leave and other
        permitted absences to which Executive is entitled according to this Agreement and applicable law, Executive shall devote his full professional attention and best efforts during the Term to the business and affairs of Vishay and its subsidiaries and
        affiliates.  It shall not be considered a violation of the foregoing for Executive to (a) provide services to Vishay or any of its subsidiaries or affiliates, (b) serve on corporate, industry, civic or charitable boards or committees or (c) manage
        personal investments, so long as such activities do not violate Executive’s fiduciary duties and do not interfere with the performance of Executive’s responsibilities as an employee of Vishay Electronic in accordance with this Agreement.

    
      	
              4.

            	
              Compensation.

            

    

    4.1. Base Salary.  Vishay Electronic shall pay Executive a base salary of not less than
        €325,008 per year (the “Base Salary”), which shall be reviewed annually by the Compensation Committee.  Such Base Salary shall be paid in accordance with
        Vishay Electronic’s standard salary policies as they exist from time to time, subject to such deductions, if any, as are required by law or elected by Executive.

    4.2. Bonus.  Beginning with the 2021 calendar year, for each fiscal year ending both during
        the Term and prior to the time that notice of termination is given by either party, Executive shall be eligible to earn an annual performance bonus (“Bonus”),
        payable in cash, with a target and maximum opportunity equal to 100% of his Base Salary. The actual amount of Bonus payable to Executive shall be determined by the Compensation Committee, and shall be based upon Vishay’s achievement of certain
        corporate and/or individual performance goals to be established by the Compensation Committee in its discretion. There will be no change to Executive’s bonus opportunity with respect to the 2020 calendar year, as such bonus opportunity was
        communicated to Executive prior to the Effective Date.

    
      
        

    

    

    

    4.3. Annual Equity Grant.

    (a) Beginning with the 2021 calendar year, on or about each January 1st occurring both during the Term and prior to the time that notice of termination is given by either party,
        Vishay shall grant Executive an annual equity award under the Stock Incentive Program (or any successor plan or arrangement thereof) having a grant date fair value approximately equal to 30% of Executive’s Base Salary on such date. Subject to
        Executive’s continued service, such equity awards shall vest on January 1 of the third year following their grant, provided that the vesting of up to 75% of the equity awards granted in any year (determined as a percentage of grant date fair value)
        may also be subject to the achievement of performance goals established by the Compensation Committee.

    (b) With respect to equity awards granted to Executive pursuant to this Section 4.3, if Executive’s service ceases due to (i) termination by Vishay Electronic without Cause, (ii) resignation by Executive with Good Reason (or for any reason after
        Executive attains age 62, unless Cause then exists), or (iii) his death or Disability, then subject in each case (other than death) to Executive’s execution of a release of claims in favor of Vishay and its subsidiaries and affiliates in accordance
        with Section 6.2, any service-based vesting criteria applicable to such
        equity awards will be deemed satisfied and any performance-based vesting criteria applicable to such equity awards will remain in effect.

    (c) In the event of a Change in Control, all then outstanding equity awards granted pursuant to this Section
          4.3 shall immediately vest.

    (d) If Executive’s service ceases at any time due to his termination by Vishay Electronic with Cause or by the Executive without Good Reason, except as provided under Section 4.3(b), all unvested equity awards will then immediately and automatically
        be forfeited.

    
      	
              5.

            	
              Additional Rights.

            

    

    5.1. Health and Nursing Care Allowance.  Executive shall receive a monthly allowance
        equivalent to half of the contributions for adequate health and nursing care insurance for himself, his spouse and his dependent children.  This allowance shall be limited in amount to half of the general contribution rate of the state health and
        nursing care insurance system.

    5.2. Reimbursement of Expenses.  In accordance with Vishay Electronic’s standard
        reimbursement policies as they exist from time to time, Vishay Electronic shall reimburse Executive for all reasonable and documented travel, business entertainment and other business expenses incurred by Executive in connection with the
        performance of his duties under this Agreement.

    5.3. Vacation, Personal and Sick Days.

    (a) Executive shall be entitled to vacation days, holidays, military reserve service, personal and sick days (“Entitled Leave”) according to German law and Vishay Electronic’s policies for its senior executives, as in effect from time to time, provided that in no event shall Executive be entitled to fewer than 30 vacation days. 
        Executive shall be entitled to carry forward or to redeem his unused vacation days in accordance with and subject to Vishay Electronic’s policies for its senior executives, as in effect from time to time, (“Outstanding Entitled Leave”).

    (b) In the event that Executive exhausts the Entitled Leave with respect to paid sick days, Executive shall be entitled to receive a weekly payment, which shall be payable for up to
        20 weeks after the Entitled Leave has been exhausted, equal to (i) (A) the net amount of the last monthly payment of Base Salary paid to Executive, minus
        (B) the amount paid or payable to such Executive pursuant to the applicable health insurance policy with respect to one month of sick days, divided by (ii)
        four. Any such weekly payment shall be pro-rated to the extent that, during a given week, Executive returns to active duty at Vishay Electronic following his absence due to illness.

    5.4. Indemnification.  Vishay Electronic shall indemnify Executive to the extent provided
        in Vishay Electronic’s organizational documents, as in effect from time to time.

    5.5. Other.  Executive shall be entitled to such other benefits or perquisites, including
        contributions to Managers’ Insurance and the like, as is customary in Germany and as Vishay Electronic generally makes available to its senior executives.

    
      
        

    

    

    

    
      	
              6.

            	
              Compensation Upon
                    Termination.

            

    

    6.1. Termination by Vishay Electronic Without Cause; Termination by Executive With Good Reason. 
        In the event Executive's employment with Vishay Electronic is terminated by Vishay Electronic without Cause or by Executive with Good Reason, Executive shall be entitled to the following:

    (a) continued payment of Executive's then current Base Salary from the Date of Termination until the third anniversary of the Date of Termination, deducting the applicable notice
        period subject to continued salary payment in accordance with Section 2.2(b), to be paid in equal installments in accordance with Vishay Electronic’s standard payroll practices as in effect from time to time, but no less frequently
        than monthly, and which shall commence in accordance with Section 6.2; provided, however, that if the Date of Termination occurs within 16
        months following a Change in Control that also constitutes “change in control event” described in Treas. Reg. § 1.409A-3(i)(5)(i), then in lieu of the installments payments otherwise due under this Section 6.1(a), Executive will instead receive a single lump sum payment equal to 29 months’ Base Salary at the time specified
        in Section 6.2;

    (b) payment of any earned but unpaid Bonus for any fiscal year ending prior to the date that notice of termination is given, payable in the same manner and at the same time as such
        Bonus would have been paid in the absence of such termination; and

    (c) payment of a pro-rata Bonus for the fiscal year in which notice of termination is given, determined and paid in the same manner and at the same time as such Bonus would have
        been determined and paid in the absence of such termination.  The pro-ration of such Bonus will be determined based on the number of days of the applicable fiscal year that have transpired prior to the date that notice of termination is given
        relative to the total number of days contained in that fiscal year.

    6.2. Release.  Notwithstanding any provision of this Agreement, Executive shall not be
        entitled to receive any payments after the Date of Termination pursuant to Section 6.1 unless Executive has executed and delivered to Vishay Electronic and Vishay a release of all claims in the form prescribed by Vishay Electronic (“Release”),
        and such Release has become irrevocable.  The severance benefits described in Section 6.1(a) will be paid or begin to be paid, as applicable, as soon as practicable after the Release becomes irrevocable.

    6.3. Death and Disability.  In the event that Executive's employment with Vishay Electronic
        ceases due to his death or Disability, Executive will be entitled to receive:

    (a) payment of any earned but unpaid Bonus for any fiscal year ending prior to the Date of Termination, payable in the same manner and at the same time as such Bonus would have been
        paid in the absence of such termination; and

    (b) payment of a pro-rata Bonus for the fiscal year in which the Date of Termination occurs, determined and paid in the same manner and at the same time as such Bonus would have
        been determined and paid in the absence of such termination.  The pro-ration of such Bonus will be determined based on the number of days of the applicable fiscal year that have transpired prior to the Date of Termination relative to the total
        number of days contained in that fiscal year;

    provided, in the case of a cessation of employment due to Disability, such Bonus payments will be conditioned on Executive’s execution
      of a release of claims in favor of Vishay and its subsidiaries and affiliates in accordance with Section 6.2.

    
      
        

    

    

    

    
      	
              7.

            	
              Garden Leave.

            

    

    7.1. In connection with a termination of employment, especially following notice of termination pursuant to Section 2.2 above or in connection with the conclusion of a separation agreement, or prior to retirement pursuant to Section 7.3 below, Vishay Electronic reserves the right to release Executive in whole or in part
        from the obligation to work, while continuing to pay his remuneration (“Garden Leave”).  To the extent Executive has any Outstanding Entitled Leave at the
        time of Termination, the amount of Outstanding Entitled Leave, if any, will be deducted from the duration of Executive’s Garden Leave and all Outstanding Entitled Leave shall then be deemed settled.

    7.2. Garden Leave shall initially be irrevocable for the duration of any Outstanding Entitled Leave, if applicable.  Garden Leave remaining after any Outstanding Entitled Leave has
        been satisfied shall remain in effect and be revocable in case questions arise regarding the winding up of the contractual relationship or temporary work becomes necessary for operational reasons.  This shall not affect the remaining provisions of
        this Agreement or any restrictive covenant agreement between Vishay or any of its subsidiaries and the Executive.  In this respect, all terms of any restrictive covenant agreement, including but not limited to, terms regarding confidentiality and
        duty not to compete, shall remain in effect.  Any income earned elsewhere during Garden Leave shall be deducted pursuant to Sec. 615 sentence 2 of the Civil Code, however, this provision does not apply during any Outstanding Entitled Leave.

    7.3. The Pension Promise (Versorgungszusage) in accordance with § 8 of the employment contract between Vishay Electronic and the Executive dated 19 November 2014 remains in full
        force and effect. However, with effect as of the Effective Date, the Pension Promise will be modified to the extent that Vishay Electronic shall pay an annual amount equal to 18% (instead of 9%) of the annual Base Salary according to Section 4.1
        (not taking into account any variable remuneration components) into the agreed pension fund.

    7.4. Except as otherwise provided in Sections 1.8(b), 4.3(c), and 6.1(a) above, it is the understanding of the parties hereto that no payments under this
        Agreement are contingent upon or related to a change in control of Vishay or Vishay Electronic and all such payments are to be paid without regard to the occurrence of a change in control of Vishay or Vishay Electronic.

    
      	
              8.

            	
              Miscellaneous.

            

    

    8.1. Complete Understanding; Amendment; Waiver.  This Agreement constitutes the complete
        understanding between the parties with respect to the employment of Executive and supersedes all other prior agreements and understandings, both written and oral, between the Executive, Vishay, and Vishay Electronic (and/or any Vishay subsidiary or
        affiliate) with respect to the subject matter hereof, including without limitation that certain employment agreement, dated as of November 19, 2014, and as amended from time to time, and no statement, representation, warranty or covenant has been
        made by either party with respect thereto except as expressly set forth herein.  This Agreement shall not be altered, modified, amended or terminated except by a written instrument signed by each of the parties hereto (§ 126 German Civil Code);
        this excludes electronic form (§ 126a German Civil Code (BGB) and text form (§ 126b German Civil Code (BGB)). This also applies to any revocation of, amendment to or addition to the written form requirement itself. Individual agreements always take
        precedence and apply regardless of the written form requirement (§ 305b German Civil Code (BGB)). Any waiver of any term or provision hereof, or of the application of any such term or provision to any circumstances, shall be in writing signed by
        the party charged with giving such waiver.  Waiver by either party hereto of any breach hereunder by the other party shall not operate as a waiver of any other breach, whether similar to or different from the breach waived.  No delay on the part of
        Vishay, Vishay Electronic or Executive in the exercise of any of their respective rights or remedies shall operate as a waiver thereof, and no single or partial exercise by Vishay, Vishay Electronic or Executive of any such right or remedy shall
        preclude other or further exercise thereof.

    8.2. Withholding Taxes.  Vishay Electronic may withhold from all payments due to Executive
        (or his beneficiary or estate) under this Agreement all taxes which, by applicable law, Vishay Electronic is required to withhold therefrom.

    8.3. Severability.  The invalidity or unenforceability of any provision of this Agreement
        shall not affect the validity or enforceability of any other provision of this Agreement.  If any provision of this Agreement shall be held invalid or unenforceable in part, the remaining portion of such provision, together with all other
        provisions of this Agreement, shall remain valid and enforceable and continue in full force and effect to the fullest extent consistent with law.

    8.4. Other Conditions of Service.  Executive’s service will also be subject to all policies
        of Vishay and Vishay Electronic in effect from time to time with respect to its executives generally, including (without limitation) any policies regarding clawbacks, securities trading or hedging or pledging of securities.

    8.5. Governing Law and Jurisdiction.  This Agreement shall be governed by and construed in
        accordance with the laws of Germany, without regard to the principles of conflicts of law.

    8.6. Titles and Captions.  All Section titles or captions in this Agreement are for
        convenience only and in no way define, limit, extend or describe the scope or intent of any provision hereof.

    8.7. Collective Bargaining Agreements. The parties hereto acknowledge and confirm that the
        Executive does not fall within the scope of any tariff regulations and that this Agreement shall not be governed by any collective bargaining agreement.

    8.8. Counterparts.  This Agreement may be signed in one or more counterparts, each of which
        shall be deemed an original, and all such counterparts shall constitute but one and the same instrument.

    
      
        

    

    IN WITNESS WHEREOF, Executive has executed this Agreement and Vishay Electronic and Vishay have each caused this
      Agreement to be executed in its name and on its behalf, on the date(s) below indicated.

    

    

    	 June 26, 2020

          	 	
            By:

          	
            VISHAY ELECTRONIC GMBH

             

             /s/ Werner Gebhardt                                 /s/ Torsten Muellner

            

          
	
            Date

          	 	 	
            Name: W. Gebhardt                                   T. Muellner

            

            Title: Managing Director                            Managing Director

            

          
	 June 26, 2020

          	 	
            By:

          	
             

             

            VISHAY INTERTECHNOLOGY, INC.

             

             /s/ Gerald Paul

            

          
	
            Date

          	 	 	
            Name: Dr. Gerald Paul

            

            Title: CEO

            

          
	 June 26, 2020

          	 	 	
             

             

            EXECUTIVE

             

             

             /s/ Andreas Randebrock

            

          
	
            Date

          	 	 	
            ANDREAS RANDEBROCKExhibit 10.1

 

THE EXCHANGE CONTEMPLATED HEREIN IS INTENDED
TO COMPORT WITH THE REQUIREMENTS OF SECTION 3(a)(9) OF THE SECURITIES ACT OF 1933, AS AMENDED.

 

EXCHANGE AGREEMENT

This Exchange Agreement
(this “Agreement”) is entered into as of July 29, 2020 by and between Atlas Sciences, LLC, a Utah limited liability
company (“Lender”), and CBAK Energy Technology, Inc., a Nevada corporation (“Borrower”).
Capitalized terms used in this Agreement without definition shall have the meanings given to them in the Original Note (as defined
below).

A.               
Borrower previously sold and issued to Lender that certain Promissory Note dated July 24, 2019 in the original principal
amount of $1,395,000.00 (the “Original Note”) pursuant to that certain Securities Purchase Agreement dated July
24, 2019 by and between Lender and Borrower (the “Purchase Agreement,” and together with the Original Note and
all other documents entered into in conjunction therewith, the “Transaction Documents”).

B.                
Subject to the terms of this Agreement, Borrower and Lender desire to partition a new Promissory Note in the original principal
amount of $365,000.00 substantially in the form attached hereto as Exhibit A (the “Partitioned Note”)
from the Original Note and then cause the outstanding balance of the Original Note to be reduced by an amount equal to the initial
outstanding balance of the Partitioned Note.

C.                
Borrower and Lender further desire to exchange (such exchange is referred to as the “Note Exchange”)
the Partitioned Note for 576,820 shares of the Company’s Common Stock, par value $0.001 (the “Common Stock”,
and such 576,820 shares of Common Stock, the “Exchange Shares”), according to the terms and conditions of this
Agreement.

D.               
The Note Exchange will consist of Lender surrendering the Partitioned Note in exchange for the Exchange Shares, which will
be issued free of any restrictive securities legend.

E.                
Other than the surrender of the Partitioned Note, no consideration of any kind whatsoever shall be given by Lender to Borrower
in connection with this Agreement.

F.                 
Lender and Borrower now desire to exchange the Partitioned Note for the Exchange Shares on the terms and conditions set
forth herein.

NOW, THEREFORE,
for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:

1.                 
Recitals and Definitions. Each of the parties hereto acknowledges and agrees that the recitals set forth above in
this Agreement are true and accurate, are contractual in nature, and are hereby incorporated into and made a part of this Agreement.

2.                 
Partition. Effective as of the date hereof, Borrower and Lender agree that the Partitioned Note is hereby partitioned
from the Original Note. Following such partition of the Original Note, Borrower and Lender agree that the Original Note shall remain
in full force and effect, provided that the outstanding balance of the Original Note shall be reduced by an amount equal to the
initial outstanding balance of the Partitioned Note.

 

    1

     

    

 

3.                 
Issuance of Shares. Pursuant to the terms and conditions of this Agreement, the Exchange Shares shall be delivered
to Lender on or before August 3, 2020 and the Note Exchange shall occur with Lender surrendering the Partitioned Note to Borrower
on the Free Trading Date (as defined below). On the Free Trading Date, the Partitioned Note shall be cancelled and all obligations
of Borrower under the Partitioned Note shall be deemed fulfilled and Lender shall thereby release, waive, discharge and relinquish
any and all rights, claims, demands, contentions and causes of action of every kind, nature, character and description whatsoever,
whether known or unknown, suspected or unsuspected, apparent or concealed, fixed or contingent, arising from the Partitioned Note.
All Exchange Shares delivered hereunder shall be delivered via DWAC to Lender’s designated brokerage account. Borrower agrees
to provide all necessary cooperation or assistance that may be required to cause all Exchange Shares delivered hereunder to become
Free Trading (the first date on which all Exchange Shares become Free Trading, the “Free Trading Date”). For
purposes hereof, the term “Free Trading” means that (a) the Exchange Shares have been cleared and approved for
public resale by the compliance departments of Lender’s brokerage firm and the clearing firm servicing such brokerage, and
(b) such shares are held in the name of the clearing firm servicing Lender’s brokerage firm and have been deposited into
such clearing firm’s account for the benefit of Lender.

4.                 
Closing. The closing of the transaction contemplated hereby (the “Closing”) along with the delivery
of the Exchange Shares to Lender shall occur on the date that is mutually agreed to by Borrower and Lender by means of the exchange
by email of .pdf documents, but shall be deemed to have occurred at the offices of Hansen Black Anderson Ashcraft PLLC in Lehi,
Utah.

5.                 
Holding Period, Tacking and Legal Opinion. Borrower represents, warrants and agrees that for the purposes of Rule
144 (“Rule 144”) of the Securities Act of 1933, as amended (the “Securities Act”), the holding
period of the Partitioned Note and the Exchange Shares will include Lender’s holding period of the Original Note from July
24, 2019. Borrower agrees not to take a position contrary to this Section 5 in any document, statement, setting, or situation.
Borrower agrees to take all action necessary to issue the Exchange Shares without restriction, and not containing any restrictive
legend without the need for any action by Lender; provided that the applicable holding period has been met. In furtherance thereof,
prior to the Closing, counsel to Lender may, in its sole discretion, provide an opinion that: (a) the Exchange Shares may be resold
pursuant to Rule 144 without volume or manner-of-sale restrictions; and (b) the transactions contemplated hereby and all other
documents associated with this transaction comport with the requirements of Section 3(a)(9) of the Securities Act. Borrower represents
that it is in full compliance with the tests and standards set forth in Rule 144(i)(2) as of the date of this Agreement. The Exchange
Shares are being issued in substitution of and exchange for and not in satisfaction of the Partitioned Note. The Exchange Shares
shall not constitute a novation or satisfaction and accord of the Partitioned Note. Borrower acknowledges and understands that
the representations and agreements of Borrower in this Section 5 are a material inducement to Lender’s decision to consummate
the transactions contemplated herein.

 

    2

     

    

 

6.                 
Borrower’s Representations, Warranties and Agreements. In order to induce Lender to enter into this Agreement,
Borrower, for itself, and for its affiliates, successors and assigns, hereby acknowledges, represents, warrants and agrees as follows:
(a) Borrower has full power and authority to enter into this Agreement and to incur and perform all obligations and covenants contained
herein, all of which have been duly authorized by all proper and necessary action, (b) no consent, approval, filing or registration
with or notice to any governmental authority is required as a condition to the validity of this Agreement or the performance of
any of the obligations of Borrower hereunder, (c) no Event of Default has occurred under the Original Note and any Events of Default
that may have occurred thereunder have not been, and are not hereby, waived by Lender, (d) except as specifically set forth herein,
nothing herein shall in any manner release, lessen, modify or otherwise affect Borrower’s obligations under the Original
Note, (e) the issuance of the Exchange Shares is duly authorized by all necessary corporate action and the Exchange Shares are
validly issued, fully paid and non-assessable, free and clear of all taxes, liens, claims, pledges, mortgages, restrictions, obligations,
security interests and encumbrances of any kind, nature and description, (f) Borrower has not received any consideration in any
form whatsoever for entering into this Agreement, other than the surrender of the Partitioned Note, and (g) Borrower has taken
no action which would give rise to any claim by any person for a brokerage commission, placement agent or finder’s fee or
other similar payment by Borrower related to this Agreement.

7.                 
Lender’s Representations, Warranties and Agreements. In order to induce Borrower to enter into this Agreement,
Lender, for itself, and for its affiliates, successors and assigns, hereby acknowledges, represents, warrants and agrees as follows:
(a) Lender has full power and authority to enter into this Agreement and to incur and perform all obligations and covenants contained
herein, all of which have been duly authorized by all proper and necessary action, (b) no consent, approval, filing or registration
with or notice to any governmental authority is required as a condition to the validity of this Agreement or the performance of
any of the obligations of Lender hereunder, (c) no commission or other remuneration has been paid or given directly or directly
by Lender to Borrower for soliciting the Note Exchange, and (d) Lender has taken no action which would give rise to any claim by
any person for a brokerage commission, placement agent or finder’s fee or other similar payment by Borrower related to this
Agreement.

8.                 
Governing Law; Venue. This Agreement shall be construed and enforced in accordance with, and all questions concerning
the construction, validity, interpretation and performance of this Agreement shall be governed by, the internal laws of the State
of Utah, without giving effect to any choice of law or conflict of law provision or rule (whether of the State of Utah or any other
jurisdictions) that would cause the application of the laws of any jurisdictions other than the State of Utah. The provisions set
forth in the Purchase Agreement to determine the proper venue for any disputes are incorporated herein by this reference. BORROWER
HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE TO, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE
HEREUNDER OR IN CONNECTION WITH OR ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY.

9.                 
Arbitration of Claims. This Agreement shall be subject to the Arbitration Provisions (as defined in the Purchase
Agreement).

10.             
Counterparts. This Agreement may be executed in any number of counterparts with the same effect as if all signing
parties had signed the same document. All counterparts shall be construed together and constitute the same instrument. The exchange
of copies of this Agreement and of signature pages by facsimile transmission or other electronic transmission (including email)
shall constitute effective execution and delivery of this Agreement as to the parties and may be used in lieu of the original Agreement
for all purposes. Signatures of the parties transmitted by facsimile transmission or other electronic transmission (including email)
shall be deemed to be their original signatures for all purposes.

 

    3

     

    

 

11.             
Attorneys’ Fees. In the event of any arbitration or action at law or in equity to enforce or interpret the
terms of this Agreement, the parties agree that the prevailing party shall be entitled to an additional award of the full amount
of the attorneys’ fees and expenses  paid by such prevailing party in connection with the arbitration, litigation and/or
dispute without reduction or apportionment based upon the individual claims or defenses  giving rise to the fees and expenses.
The “prevailing party” shall be the party in whose favor a judgment is entered, regardless of whether judgment is entered
on all claims asserted by such party and regardless of the amount of the judgment; or where, due to the assertion of counterclaims,
judgments are entered in favor of and against both parties, then the arbitrator shall determine the “prevailing party”
by taking into account the relative dollar amounts of the judgments or, if the judgments involve nonmonetary relief, the relative
importance and value of such relief. Nothing herein shall restrict or impair an arbitrator’s or a court’s power to
award fees and expenses for frivolous or bad faith pleading.

12.             
No Reliance. Borrower acknowledges and agrees that neither Lender nor any of its officers, directors, members, managers,
equity holders, representatives or agents has made any representations or warranties to Borrower or any of its agents, representatives,
officers, directors, or employees except as expressly set forth in this Agreement and the Transaction Documents and, in making
its decision to enter into the transactions contemplated by this Agreement, Borrower is not relying on any representation, warranty,
covenant or promise of Lender or its officers, directors, members, managers, equity holders, agents or representatives other than
as set forth in this Agreement.

13.             
Severability. If any part of this Agreement is construed to be in violation of any law, such part shall be modified
to achieve the objective of the parties to the fullest extent permitted and the balance of this Agreement shall remain in full
force and effect.

14.             
Entire Agreement. This Agreement, together with the Transaction Documents, and all other documents referred to herein,
supersedes all other prior oral or written agreements between Borrower, Lender, its affiliates and persons acting on its behalf
with respect to the matters discussed herein, and this Agreement and the instruments referenced herein contain the entire understanding
of the parties with respect to the matters covered herein and therein and, except as specifically set forth herein or therein,
neither Lender nor Borrower makes any representation, warranty, covenant or undertaking with respect to such matters.

15.             
Amendments. This Agreement may be amended, modified, or supplemented only by written agreement of the parties. No
provision of this Agreement may be waived except in writing signed by the party against whom such waiver is sought to be enforced.

16.             
Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their respective
successors and assigns. This Agreement or any of the severable rights and obligations inuring to the benefit of or to be performed
by Lender hereunder may be assigned by Lender to a third party, including its financing sources, in whole or in part. Borrower
may not assign this Agreement or any of its obligations herein without the prior written consent of Lender.

 

    4

     

    

 

17.             
Continuing Enforceability; Conflict Between Documents. Except as otherwise modified by this Agreement, the Original
Note and each of the other Transaction Documents shall remain in full force and effect, enforceable in accordance with all of its
original terms and provisions. This Agreement shall not be effective or binding unless and until it is fully executed and delivered
by Lender and Borrower. If there is any conflict between the terms of this Agreement, on the one hand, and the Original Note or
any other Transaction Document, on the other hand, the terms of this Agreement shall prevail.

18.             
Time of Essence. Time is of the essence with respect to each and every provision of this Agreement.

19.             
Notices. Unless otherwise specifically provided for herein, all notices, demands or requests required or permitted
under this Agreement to be given to Borrower or Lender shall be given as set forth in the “Notices” section of the
Purchase Agreement.

20.             
Further Assurances. Each party shall do and perform or cause to be done and performed, all such further acts and
things, and shall execute and deliver all such other agreements, certificates, instruments and documents, as the other party may
reasonably request in order to carry out the intent and accomplish the purposes of this Agreement and the consummation of the transactions
contemplated hereby.

[Remainder of page intentionally left
blank]

 

    5

     

    

 

IN WITNESS WHEREOF,
the undersigned have executed this Agreement as of the date first set forth above.

 

	 	Company:
	 	 
	 	CBAK ENERGY TECHNOLOGY, INC.
	 	 	 
	 	 	 
		By:	/s/ Yunfei Li
	 	Name:	Yunfei Li
	 	Title: 	CEO
	 	 	 
	 	 	 
	 	LENDER:
	 	 	 
	 	ATLAS SCIENCES, LLC
	 	 	 
	 	 	 
	 	By:	/s/ John Finlayson
	 	 	John Finlayson, CEO

 

 

 

[Signature Page to
Exchange Agreement]

 

    6

     

    

 

EXHBIT A

 

PARTITIONED NOTE

 

    

     

    

 

THIS NOTE (AS DEFINED BELOW) IS ISSUED IN
CONNECTION WITH AND PARTITIONED FROM THAT CERTAIN PROMISSORY NOTE IN THE ORIGINAL PRINCIPAL AMOUNT OF $1,395,000.00 HAVING AN ORIGINAL
ISSUE DATE OF JULY 24, 2019 FOR PURPOSES OF SECTION 3(a)(9) OF THE SECURITIES ACT (AS DEFINED BELOW). THIS NOTE SHALL BE DEEMED
TO HAVE BEEN ISSUED ON JULY 24, 2019.

 

THIS NOTE HAS NOT BEEN REGISTERED WITH THE
SECURITIES AND EXCHANGE COMMISSION IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED
(THE “SECURITIES ACT”), AND ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT
UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS
OF THE SECURITIES ACT.

 

PARTITIONED PROMISSORY
NOTE #7

	Original Issue Date: July 24, 2019	 	U.S. $365,000.00

This Partitioned
Promissory Note #7 (this “Note”) is issued and made effective as of July 29, 2020 (the “Effective Date”).
This Note is issued pursuant to that certain Exchange Agreement dated July 29, 2020, as the same may be amended from time to time,
by and between CBAK Energy Technology, Inc., a Nevada corporation (“Borrower”) and Atlas Sciences, LLC, a Utah
limited liability company, or its successors or assigns (“Lender”) (the “Exchange Agreement”)
pursuant to which Borrower and Lender agreed to, among other things, partition this Note from that certain Promissory Note in the
original principal amount of $1,395,000.00 issued July 24, 2019 by Borrower in favor of Lender (the “Original Note”).
The Original Note was issued pursuant to that certain Securities Purchase Agreement dated July 24, 2019, as the same may be amended
from time to time, by and between Borrower and Lender (the “Purchase Agreement”). Certain capitalized terms
used herein are defined in Attachment 1 attached hereto and incorporated herein by this reference.

The purchase price
for the Original Note was paid on July 25, 2019. Accordingly, the purchase price for this Note (the “Purchase Price”)
is deemed to have been paid in full as of such date.

1.                  
Payment; Prepayment.

1.1.            
Payment. All payments owing hereunder shall be in lawful money of the United States of America and delivered to Lender
at the address or bank account furnished to Borrower for that purpose. All payments shall be applied first to (a) costs of collection,
if any, then to (b) fees and charges, if any, then to (c) accrued and unpaid interest, and thereafter, to (d) principal.

1.2.            
Prepayment. Notwithstanding the foregoing, Borrower shall have the right to prepay all or any portion of the Outstanding
Balance. If Borrower exercises its right to prepay this Note, Borrower shall make payment to Lender of an amount in cash equal
to 125% multiplied by the portion of the Outstanding Balance Borrower elects to repay.

2.                  
Security. This Note is unsecured.

 

    

     

    

 

3.                  
Redemption. Beginning on the date that is six (6) months after the Purchase Price Date, Lender shall have the right,
exercisable at any time in its sole and absolute discretion, to redeem any amount of the Original Note up to $250,000.00 (such
amount, the “Redemption Amount”) per calendar month by providing written notice to Borrower (each, a “Redemption
Notice”). For the avoidance of doubt, Lender may submit to Borrower one (1) or more Redemption Notices in any given calendar
month so long as the aggregate amount being redeemed in such month does not exceed $250,000.00. The Redemption Amount must be at
least $50,000.00 unless the Outstanding Balance of the Original Note is less than $50,000.00. Upon receipt of any Redemption Notice,
Borrower shall pay the applicable Redemption Amount in cash to Lender within three (3) Trading Days of Borrower’s receipt
of such Redemption Notice.

4.                  
Defaults and Remedies.

4.1.            
Defaults. The following are events of default under the Original Note (each, an “Event of Default”):
(a) Borrower fails to pay any principal, interest, fees, charges, or any other amount when due and payable hereunder; (b) a receiver,
trustee or other similar official shall be appointed over Borrower or a material part of its assets and such appointment shall
remain uncontested for twenty (20) days or shall not be dismissed or discharged within sixty (60) days; (c) Borrower becomes insolvent
or generally fails to pay, or admits in writing its inability to pay, its debts as they become due, subject to applicable grace
periods, if any; (d) Borrower makes a general assignment for the benefit of creditors; (e) Borrower files a petition for relief
under any bankruptcy, insolvency or similar law (domestic or foreign); (f) an involuntary bankruptcy proceeding is commenced or
filed against Borrower; (g) Borrower or any pledgor, trustor, or guarantor of the Original Note defaults or otherwise fails to
observe or perform any covenant, obligation, condition or agreement of Borrower or such pledgor, trustor, or guarantor contained
herein or in any other Transaction Document (as defined in the Purchase Agreement), other than those specifically set forth in
this Section 4.1 and Section 4 of the Purchase Agreement; (h) any representation, warranty or other statement made or furnished
by or on behalf of Borrower or any pledgor, trustor, or guarantor of the Original Note to Lender herein, in any Transaction Document,
or otherwise in connection with the issuance of the Original Note is false, incorrect, incomplete or misleading in any material
respect when made or furnished; (i) the occurrence of a Fundamental Transaction without Lender’s prior written consent; (j)
Borrower effectuates a reverse split of its Common Stock without twenty (20) Trading Days prior written notice to Lender; (k) any
United States money judgment, writ or similar process is entered or filed against Borrower or any subsidiary of Borrower or any
of its property or other assets for more than $1,000,000.00, and shall remain unvacated, unbonded or unstayed for a period of twenty
(20) calendar days unless otherwise consented to by Lender; (l) Borrower fails to be DWAC Eligible at any time after the six (6)
month anniversary of the Purchase Price Date; (m) Borrower fails to observe or perform any covenant set forth in Section 4 of the
Purchase Agreement (other than the covenant with respect to Unapproved Restricted Issuances); (n) Borrower makes any Unapproved
Restricted Issuance; or (o) Borrower, any affiliate of Borrower, or any pledgor, trustor, or guarantor of the Original Note breaches
any covenant or other term or condition contained in any Other Agreements (after giving effect to any grace periods therein or
any waivers). Notwithstanding the foregoing, the occurrence of any event specified in Section 4.1(g) – (o) shall not be considered
an Event of Default hereunder if such event is cured within ten (10) days of the occurrence of such event.

4.2.            
Remedies. At any time and from time to time after Lender becomes aware of the occurrence of any Event of Default,
Lender may accelerate the Original Note by written notice to Borrower, with the Outstanding Balance becoming immediately due and
payable in cash at the Mandatory Default Amount. Notwithstanding the foregoing, at any time following the occurrence of any Event
of Default, Lender may, at its option, elect to increase the Outstanding Balance by applying the Default Effect (subject to the
limitation set forth below) via written notice to Borrower without accelerating the Outstanding Balance, in which event the Outstanding
Balance shall be increased as of the date of the occurrence of the applicable Event of Default pursuant to the Default Effect,
but the Outstanding Balance shall not be immediately due and payable unless so declared by Lender (for the avoidance of doubt,
if Lender elects to apply the Default Effect pursuant to this sentence, it shall reserve the right to declare the Outstanding Balance
immediately due and payable at any time and no such election by Lender shall be deemed to be a waiver of its right to declare the
Outstanding Balance immediately due and payable as set forth herein unless otherwise agreed to by Lender in writing). Notwithstanding
the foregoing, upon the occurrence of any Event of Default described in clauses (b), (c), (d), (e) or (f) of Section 4.1, the Outstanding
Balance as of the date of acceleration shall become immediately and automatically due and payable in cash at the Mandatory Default
Amount, without any written notice required by Lender. At any time following the occurrence of any Event of Default, upon written
notice given by Lender to Borrower, interest shall accrue on the Outstanding Balance beginning on the date the applicable Event
of Default occurred at an interest rate equal to the lesser of twenty-two percent (22%) per annum or the maximum rate permitted
under applicable law (“Default Interest”). In connection with acceleration described herein, Lender need not
provide, and Borrower hereby waives, any presentment, demand, protest or other notice of any kind, and Lender may immediately and
without expiration of any grace period enforce any and all of its rights and remedies hereunder and all other remedies available
to it under applicable law. Such acceleration may be rescinded and annulled by Lender at any time prior to payment hereunder and
Lender shall have all rights as a holder of the Note until such time, if any, as Lender receives full payment pursuant to this
Section 4.2. No such rescission or annulment shall affect any subsequent Event of Default or impair any right consequent thereon.
Nothing herein shall limit Lender’s right to pursue any other remedies available to it at law or in equity including, without
limitation, a decree of specific performance and/or injunctive relief.

 

    

     

    

 

5.                  
Unconditional Obligation; No Offset. Borrower acknowledges that this Note is an unconditional, valid, binding and
enforceable obligation of Borrower not subject to offset, deduction or counterclaim of any kind. Borrower hereby waives any rights
of offset it now has or may have hereafter against Lender, its successors and assigns, and agrees to make the payments called for
herein in accordance with the terms of this Note.

6.                  
Waiver. No waiver of any provision of this Note shall be effective unless it is in the form of a writing signed by
the party granting the waiver. No waiver of any provision or consent to any prohibited action shall constitute a waiver of any
other provision or consent to any other prohibited action, whether or not similar. No waiver or consent shall constitute a continuing
waiver or consent or commit a party to provide a waiver or consent in the future except to the extent specifically set forth in
writing.

7.                  
Approved Restricted Issuance. The Outstanding Balance will automatically be increased by three percent (3%) for each
Approved Restricted Issuance made by Borrower (without the need for Lender to provide any notice to Borrower of such increase),
which increase will be effective as of the date of each applicable Approved Restricted Issuance.

8.                  
Opinion of Counsel. In the event that an opinion of counsel is needed for any matter related to this Note, Lender
has the right to have any such opinion provided by its counsel.

9.                  
Governing Law; Venue. This Note shall be construed and enforced in accordance with, and all questions concerning
the construction, validity, interpretation and performance of this Note shall be governed by, the internal laws of the State of
Utah, without giving effect to any choice of law or conflict of law provision or rule (whether of the State of Utah or any other
jurisdiction) that would cause the application of the laws of any jurisdiction other than the State of Utah. The provisions set
forth in the Purchase Agreement to determine the proper venue for any disputes are incorporated herein by this reference.

10.              
Arbitration of Disputes. By its issuance or acceptance of this Note, each party agrees to be bound by the Arbitration
Provisions (as defined in the Purchase Agreement) set forth as an exhibit to the Purchase Agreement.

 

    

     

    

 

11.              
Cancellation. After repayment of the entire Outstanding Balance, this Note shall be deemed paid in full, shall automatically
be deemed canceled, and shall not be reissued.

12.              
Amendments. The prior written consent of both parties hereto shall be required for any change or amendment to this
Note.

13.              
Assignments. Borrower may not assign this Note without the prior written consent of Lender. This Note may be offered,
sold, assigned or transferred by Lender without the consent of Borrower, so long as such transfer is in accordance with applicable
federal and state securities laws.

14.              
Notices. Whenever notice is required to be given under this Note, unless otherwise provided herein, such notice shall
be given in accordance with the subsection of the Purchase Agreement titled “Notices.”

15.              
Liquidated Damages. Lender and Borrower agree that in the event Borrower fails to comply with any of the terms or
provisions of this Note, Lender’s damages would be uncertain and difficult (if not impossible) to accurately estimate because
of the parties’ inability to predict future interest rates, future share prices, future trading volumes and other relevant
factors. Accordingly, Lender and Borrower agree that any fees, balance adjustments, Default Interest or other charges assessed
under this Note are not penalties but instead are intended by the parties to be, and shall be deemed, liquidated damages.

16.              
Severability. If any part of this Note is construed to be in violation of any law, such part shall be modified to
achieve the objective of Borrower and Lender to the fullest extent permitted by law and the balance of this Note shall remain in
full force and effect.

[Remainder of page intentionally left blank;
signature page follows]

 

 

 

    

     

    

 

IN WITNESS WHEREOF,
Borrower has caused this Note to be duly executed as of the Effective Date.

 

	 	BORROWER:
	 	 
	 	CBAK ENERGY TECHNOLOGY, INC.
	 	 	 
	 	 	 
		By:	/s/ Yunfei Li
	 	Name:	Yunfei Li
	 	Title: 	CEO

 

ACKNOWLEDGED, ACCEPTED AND AGREED:

 

LENDER:

 

Atlas Sciences, LLC

 

 

By: /s/ John Finlayson

John Finlayson, CEO

 

 

 

 

 

[Signature Page to
Partitioned Promissory Note #7]

 

    

     

    

 

ATTACHMENT 1

DEFINITIONS

 

For purposes
of this Note, the following terms shall have the following meanings:

A1.             
“Approved Restricted Issuance” means a Restricted Issuance (as defined in the Purchase Agreement) for
which Borrower received Lender’s written consent prior to the applicable issuance.

A2.             
“Default Effect” means multiplying the Outstanding Balance as of the date the applicable Event of Default
occurred by (a) fifteen percent (15%) for each occurrence of any Major Default, (b) ten percent (10%) for each occurrence of an
Unapproved Restricted Issuance Default, or (c) five percent (5%) for each occurrence of any Minor Default, and then adding the
resulting product to the Outstanding Balance as of the date the applicable Event of Default occurred, with the sum of the foregoing
then becoming the Outstanding Balance under this Note as of the date the applicable Event of Default occurred; provided that the
Default Effect may only be applied three (3) times hereunder with respect to Major Defaults and three (3) times hereunder with
respect to Minor Defaults. There shall be no limit on the number of times the Default Effect may be applied with respect to Unapproved
Restricted Issuance Defaults. Notwithstanding the forgoing, in no event shall the Default Effect result in the Outstanding Balance
to be increased by more than twenty-five percent (25%) in the aggregate.

A3.             
“DTC” means the Depository Trust Company or any successor thereto.

A4.             
“DTC/FAST Program” means the DTC’s Fast Automated Securities Transfer program.

A5.             
“DWAC” means the DTC’s Deposit/Withdrawal at Custodian system.

A6.             
“DWAC Eligible” means that (a) Borrower’s Common Stock is eligible at DTC for full services pursuant
to DTC’s operational arrangements, including without limitation transfer through DTC’s DWAC system; (b) Borrower has
been approved (without revocation) by DTC’s underwriting department; (c) Borrower’s transfer agent is approved as an
agent in the DTC/FAST Program; and (d) Borrower’s transfer agent does not have a policy prohibiting or limiting delivery
of Common Stock via DWAC.

A7.             
“Fundamental Transaction” means that (a) (i) Borrower or any of its subsidiaries shall, directly
or indirectly, in one or more related transactions, consolidate or merge with or into (whether or not Borrower or any of its subsidiaries
is the surviving corporation) any other person or entity, or (ii) Borrower or any of its subsidiaries shall, directly or indirectly,
in one or more related transactions, sell, lease, license, assign, transfer, convey or otherwise dispose of all or substantially
all of its respective properties or assets to any other person or entity, or (iii) Borrower or any of its subsidiaries shall,
directly or indirectly, in one or more related transactions, allow any other person or entity to make a purchase, tender or exchange
offer that is accepted by the holders of more than 50% of the outstanding shares of voting stock of Borrower (not including any
shares of voting stock of Borrower held by the person or persons making or party to, or associated or affiliated with the persons
or entities making or party to, such purchase, tender or exchange offer), or (iv) Borrower or any of its subsidiaries shall,
directly or indirectly, in one or more related transactions, consummate a stock or share purchase agreement or other business combination
(including, without limitation, a reorganization, recapitalization, spin-off or scheme of arrangement) with any other person or
entity whereby such other person or entity acquires more than 50% of the outstanding shares of voting stock of Borrower (not including
any shares of voting stock of Borrower held by the other persons or entities making or party to, or associated or affiliated with
the other persons or entities making or party to, such stock or share purchase agreement or other business combination), or (v) Borrower
or any of its subsidiaries shall, directly or indirectly, in one or more related transactions, reorganize, recapitalize or reclassify
the Common Stock, other than an increase in the number of authorized shares of Borrower’s Common Stock, or reverse splits
of its outstanding and authorized shares of Common Stock to meet Nasdaq listing requirements or (b) any “person”
or “group” (as these terms are used for purposes of Sections 13(d) and 14(d) of the 1934 Act and the rules and regulations
promulgated thereunder) is or shall become the “beneficial owner” (as defined in Rule 13d-3 under the 1934 Act),
directly or indirectly, of 50% of the aggregate ordinary voting power represented by issued and outstanding voting stock of Borrower.

A8.             
“Major Default” means any Event of Default occurring under Sections 4.1(a) or 4.1(m).

A9.             
“Mandatory Default Amount” means the Outstanding Balance following the application of the Default Effect.

 

    

     

    

 

A10.          
“Minor Default” means any Event of Default that is not a Major Default or an Unapproved Restricted Issuance
Default.

A11.          
“OID” means an original issue discount.

A12.          
“Other Agreements” means, collectively, (a) all existing and future agreements and instruments between,
among or by Borrower (or an affiliate), on the one hand, and Lender (or an affiliate), on the other hand, and (b) any financing
agreement or a material agreement that affects Borrower’s ongoing business operations.

A13.          
“Outstanding Balance” means as of any date of determination, the Purchase Price, as reduced or increased,
as the case may be, pursuant to the terms hereof for payment, offset, or otherwise, plus the OID, the Transaction Expense Amount,
accrued but unpaid interest, collection and enforcements costs (including attorneys’ fees) incurred by Lender, transfer,
stamp, issuance and similar taxes and fees incurred under this Note.

A14.          
“Purchase Price Date” means the date the Purchase Price is delivered by Lender to Borrower.

A15.          
“Trading Day” means any day on which the New York Stock Exchange (or such other principal market for
the Common Stock) is open for trading. For purposes of determining Borrower’s cash payment deadline under this Note, such
“Trading Day” shall exclude any day on which banking institutions in Dalian, China are authorized or required by law
or other governmental action to close.

A16.          
“Unapproved Restricted Issuance” means a Restricted Issuance for which Borrower did not receive Lender’s
written consent prior to the applicable issuance.

A17.          
“Unapproved Restricted Issuance Default” means an Event of Default occurring under Section 4.1(n) of
this Note.

 

[Remainder of page
intentionally left blank]

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