Document:

Lexaria Corp. - Exhibit 10.1 - Filed by newsfilecorp.com

STOCK OPTION AGREEMENT 

LEXARIA CORP. 

THIS AGREEMENT is entered into as of the 28 day of September,
2012 (the “Date of Grant”) 

BETWEEN: 

  
    
      
        
          LEXARIA CORP., a company incorporated pursuant
            to the laws of the State of Nevada, of Suite 950-1130 West Pender,
            Vancouver, BC V6E 4A4 

          (the “Company”) 

        

      

    

  

AND: 

  
    
      
        
          Lona Coates of 3480 McTaggart Road, West Kelowna,
            BC V4T 1H6 

          (the “Optionee”) 

        

      

    

  

WHEREAS: 

A.          The
Board of Directors of the Company (the “Board”) has approved and adopted the
2010 Stock Option Plan (the “Plan”), pursuant to which the Board is authorized
to grant to employees and other selected persons stock options to purchase
common shares of the Company (the “Common Stock”); 

B.          The
Plan provides for the granting of stock options that either (i) are intended to
qualify as “Incentive Stock Options” within the meaning of Section 422 of the
Internal Revenue Code of 1986, as amended (the “Code”), or (ii) do not qualify
under Section 422 of the Code (“Non-Qualified Stock Options”); and 

C.          The
Board has authorized the grant to the Optionee of options to purchase a total of
25,000 shares of Common Stock (the “Options”), which Options are intended
to be (select one): 

[     ] Incentive
Stock Options; 

  [ X ] Non Qualified Stock Options 

NOW THEREFORE, the Company agrees to offer to the Optionee the
option to purchase, upon the terms and conditions set forth herein and in the
Plan, 25,000 shares of Common Stock. Capitalized terms not otherwise
defined herein shall have the meanings ascribed thereto in the Plan. 

1.         
Exercise Price. The exercise price of the options shall be US
$0.20 per share. 

- 2 - 

2.         
Limitation on the Number of Shares. If the Options granted hereby are
Incentive Stock Options, the number of shares which may be acquired upon
exercise thereof is subject to the limitations set forth in Section 5.1 of the
Plan. 

3.         
Vesting Schedule. The Options shall vest in accordance with Exhibit A.

4.         
Options not Transferable. The Options may not be transferred, assigned,
pledged or hypothecated in any manner (whether by operation of law or otherwise)
other than by will, by applicable laws of descent and distribution or, in the
case of a Non-Qualified Stock Option, pursuant to a qualified domestic relations
order, and shall not be subject to execution, attachment or similar process;
provided, however, that if the Options represent a Non-Qualified Stock
Option, such Option is transferable without payment of consideration to
immediate family members of the Optionee or to trusts or partnerships
established exclusively for the benefit of the Optionee and Optionee’s immediate
family members. Upon any attempt to transfer, pledge, hypothecate or otherwise
dispose of any Option or of any right or privilege conferred by the Plan
contrary to the provisions thereof, or upon the sale, levy or attachment or
similar process upon the rights and privileges conferred by the Plan, such
Option shall thereupon terminate and become null and void. 

5.         
Investment Intent. By accepting the Options, the Optionee represents and
agrees that none of the shares of Common Stock purchased upon exercise of the
Options will be distributed in violation of applicable federal and state laws
and regulations. In addition, the Company may require, as a condition of
exercising the Options, that the Optionee execute an undertaking, in such a form
as the Company shall reasonably specify, that the Stock is being purchased only
for investment and without any then-present intention to sell or distribute such
shares. 

6.         
Termination of Employment and Options. Vested Options shall terminate, to
the extent not previously exercised, upon the occurrence of the first of the
following events: 

	 	(a) 	
      Expiration. Five (5) years from the Date of
      Grant.

	 	 	 
	 	(b) 	
      Termination for Cause. The date of the first
      discovery by the Company of any reason for the termination of an
      Optionee’s employment or contractual relationship with the Company or any
      related company for cause (as determined in the sole discretion of the
      Plan Administrator), and, if an Optionee’s employment is suspended pending
      any investigation by the Company as to whether the Optionee’s employment
      should be terminated for cause, the Optionee’s rights under this Agreement
      and the Plan shall likewise be suspended during the period of any such
      investigation.

	 	 	 
	 	(c) 	
      Termination Due to Death or Disability. The
      expiration of one (1) year from the date of the death of the Optionee or
      cessation of an Optionee’s employment or contractual relationship by
      reason of disability (as defined in Section 5.1(g) of the Plan). If an
      Optionee’s employment or contractual relationship is terminated by death,
      any Option held by the Optionee shall be exercisable only by the person or
      persons to whom such Optionee’s rights under such Option shall pass by the
      Optionee’s will or by the laws of descent and
  distribution.

- 3 - 

	 	(d) 	
      Termination for Any Other Reason. The expiration
      of ninety (90) days from the date of an Optionee’s termination of
      employment or contractual relationship with the Company or any Related
      Corporation for any reason whatsoever other than termination of service as
      a director, cause, death or Disability (as defined in Section 5.1(g) of
      the Plan).

Each unvested Option granted pursuant hereto shall terminate
immediately upon termination of the Optionee’s employment or contractual
relationship with the Company for any reason whatsoever, including Disability
unless vesting is accelerated in accordance with Section 5.1(f) of the Plan.

7.         
Stock. In the case of any stock split, stock dividend or like change in
the nature of shares of Stock covered by this Agreement, the number of shares
and exercise price shall be proportionately adjusted as set forth in Section
5.1(m) of the Plan. 

8.         
Exercise of Option. Options shall be exercisable, in full or in part, at
any time after vesting, until termination; provided, however, that any
Optionee who is subject to the reporting and liability provisions of Section 16
of the Securities Exchange Act of 1934 with respect to the Common Stock
shall be precluded from selling or transferring any Common Stock or other
security underlying an Option during the six (6) months immediately following
the grant of that Option. If less than all of the shares included in the vested
portion of any Option are purchased, the remainder may be purchased at any
subsequent time prior to the expiration of the Option term. No portion of any
Option for less than fifty (50) shares (as adjusted pursuant to Section 5.1(m)
of the Plan) may be exercised; provided, that if the vested portion of any
Option is less than fifty (50) shares, it may be exercised with respect to all
shares for which it is vested. Only whole shares may be issued pursuant to an
Option, and to the extent that an Option covers less than one (1) share, it is
unexercisable. 

Each exercise of the Option shall be by means of delivery of a
notice of election to exercise (which may be in the form attached hereto as
Exhibit B) to the President of the Company at its principal executive
office, specifying the number of shares of Common Stock to be purchased and
accompanied by payment in cash by certified check or cashier’s check in the
amount of the full exercise price for the Common Stock to be purchased. In
addition to payment in cash by certified check or cashier’s check, an Optionee
or transferee of an Option may pay for all or any portion of the aggregate
exercise price by complying with one or more of the following alternatives: 

	 	(a) 	
      by delivering to the Company shares of Common Stock
      previously held by such person, duly endorsed for transfer to the Company,
      or by the Company withholding shares of Common Stock otherwise deliverable
      pursuant to exercise of the Option, which shares of Common Stock received
      or withheld shall have a fair market value at the date of exercise (as
      determined by the Plan Administrator) equal to the aggregate purchase
      price to be paid by the Optionee upon such exercise; or

	 	 	 
	 	(b) 	
      by complying with any other payment mechanism approved by
      the Plan Administrator at the time of
exercise.

- 4 - 

It is a condition precedent to the issuance of shares of Common
Stock that the Optionee execute and/or deliver to the Company all documents and
withholding taxes required in accordance with Section 5.1 of the Plan. 

9.         
Holding period for Incentive Stock Options. In order to obtain the tax
treatment provided for Incentive Stock Options by Section 422 of the Code, the
shares of Common Stock received upon exercising any Incentive Stock Options
received pursuant to this Agreement must be sold, if at all, after a date which
is later of two (2) years from the date of this agreement is entered into or one
(1) year from the date upon which the Options are exercised. The Optionee agrees
to report sales of shares prior to the above determined date to the Company
within one (1) business day after such sale is concluded. The Optionee also
agrees to pay to the Company, within five (5) business days after such sale is
concluded, the amount necessary for the Company to satisfy its withholding
requirement required by the Code in the manner specified in Section 5.1(l) of
the Plan. Nothing in this Section 9 is intended as a representation that Common
Stock may be sold without registration under state and federal securities laws
or an exemption therefrom or that such registration or exemption will be
available at any specified time. 

10.        Resale
restrictions may apply. Any resale of the shares of Common Stock received
upon exercising any Options will be subject to resale restrictions contained in
the securities legislation applicable to the Optionee. The Optionee acknowledges
and agrees that the Optionee is solely responsible (and the Company is not in
any way responsible) for compliance with applicable resale restrictions. 

11.        Subject to
2010 Stock Option Plan. The terms of the Options are subject to the
provisions of the Plan, as the same may from time to time be amended, and any
inconsistencies between this Agreement and the Plan, as the same may be from
time to time amended, shall be governed by the provisions of the Plan, a copy of
which has been delivered to the Optionee, and which is available for inspection
at the principal offices of the Company. 

12.        Professional
Advice. The acceptance of the Options and the sale of Common Stock issued
pursuant to the exercise of Options may have consequences under federal and
state tax and securities laws which may vary depending upon the individual
circumstances of the Optionee. Accordingly, the Optionee acknowledges that he or
she has been advised to consult his or her personal legal and tax advisor in
connection with this Agreement and his or her dealings with respect to Options.
Without limiting other matters to be considered with the assistance of the
Optionee’s professional advisors, the Optionee should consider: (a) whether upon
the exercise of Options, the Optionee will file an election with the Internal
Revenue Service pursuant to Section 83(b) of the Code and the implications of
alternative minimum tax pursuant to the Code; (b) the merits and risks of an
investment in the underlying shares of Common Stock; and (c) any resale
restrictions that might apply under applicable securities laws. 

13.        No Employment
Relationship. Whether or not any Options are to be granted under this Plan
shall be exclusively within the discretion of the Plan Administrator, and
nothing contained in this Plan shall be construed as giving any person any right
to participate under this Plan. The grant of an Option shall in no way
constitute any form of agreement or understanding binding on the Company or any
Related Company, express or implied, that the Company or any Related Company
will employ or contract with an Optionee, for any length of time, nor shall it
interfere in any way with the Company’s or, where applicable, a Related
Company’s right to terminate Optionee’s employment at any time, which right is
hereby reserved. 

- 5 - 

14.        Entire
Agreement. This Agreement is the only agreement between the Optionee and the
Company with respect to the Options, and this Agreement and the Plan supersede
all prior and contemporaneous oral and written statements and representations
and contain the entire agreement between the parties with respect to the
Options. 

15.        Notices. Any
notice required or permitted to be made or given hereunder shall be mailed or
delivered personally to the addresses set forth below, or as changed from time
to time by written notice to the other: 

	 	The Company: 	
	 	 	  
	 	 	Lexaria Corp. 
	 	 	Suite 950-1130 West Pender. 
	 	 	Vancouver, BC V6E 4A4 
	 	 	Attention: President 
	 	 	  
	 	With a copy to: 	
	 	 	  
	 	 	W.L. Macdonald Law Corporation 
	 	 	400-570 Granville Street 
	 	 	Vancouver, British Columbia V6C 3P1 
	 	 	Attention: William Macdonald 
	 	 	  
	 	The Optionee: 	
	 	 	  
	 	 	Lona Coates 
	 	 	3480 McTaggart Road 
	 	 	West Kelowna, BC 
	 	 	V4T 1H6 

LEXARIA CORP. 

	Per:	 
    	 
	 	Authorized Signatory 	 

 

 

	 	 
	[Lona Coates] 	 

- 6 - 

EXHIBIT A 

TERMS OF THE OPTION

	Name of the Optionee: 	Lona Coates 
	 	 
	Date of Grant: 	September 28, 2012 
	 	 
	Designation: 	Qualified Stock Options

	1. 	Number of Options granted: 	25,000 stock options 
	 	 	 
	2. 	Purchase Price: 	US$0.20 per share 
	 	 	 
	3. 	Vesting Date: 	25,000 options on September 28, 2012; 
	 	 	 
	4. 	Expiration Date: 	September 28 , 2017 

- 7 - 

EXHIBIT B 

To: 

Lexaria Corp. 
Suite 950 1130
West Pender 
Vancouver, BC V6E 4A4 

  Attention: President 

Notice of Election to Exercise

This Notice of Election to Exercise shall constitute proper
notice pursuant to Section 5.1(h) of Lexaria Corp.’s (the “Company”) 2010 Stock
Option Plan (the “Plan”) and Section 8 of that certain Stock Option Agreement
(the “Agreement”) dated as of the _______day of __________________, 20___,
between the Company and the undersigned. 

The undersigned hereby elects to exercise Optionee’s option to
purchase __________________shares of the common stock of the Company at a price
of US$_______per share, for aggregate consideration of US$__________, on the
terms and conditions set forth in the Agreement and the Plan. Such aggregate
consideration, in the form specified in Section 8 of the Agreement, accompanies
this notice. 

The Optionee hereby directs the Company to issue, register and
deliver the certificates representing the shares as follows: 

	Registration Information: 	 	Delivery Instructions: 
	 	 	 
	 	 	 
	Name to appear on
      certificates 	 	Name
  
	 	 	 
	 	 	 
	Address 	 	Address
    
	 	 	 
	 	 	 
	  	 	  
	 	 	 
	  	 	Telephone Number 

DATED at ____________________________________, the _______ day
of ________________________, 20___. 

	 	 
	 	(Name of Optionee – Please type or print)

	 	 
	 	 
	 	(Signature and, if applicable, Office) 
	 	 
	 	 
	 	(Address of Optionee) 
	 	 
	 	 
	 	(City, State, and Zip Code of Optionee)Kandi Technologies, Corp.: Exhibit 10.1 - Filed by newsfilecorp.com

Sales Contract of Electric Vehicles

Party A: China Aviation Lithium Battery (Hangzhou) Co., Ltd.

Party B: Zhejiang Kandi Vehicles Co., Ltd.

Section 1.  Sales contract

China Aviation Lithium Battery (Hangzhou) Co., Ltd. (hereinafter referred to as “Party A”) wishes to purchase electric vehicles (without battery) from Zhejiang Kandi Vehicles Co., Ltd. ( hereinafter referred to as “Party B”)
in order to implement the large-scale electric vehicle promotion project in Hangzhou.  Party A shall initially purchase 5, 000 pure electric vehicles according to letter of intent which has been signed previously.  The following clauses have been
reached through friendly negotiation and discussion between the two parties.  

	
1. 		
The terminologies used in this sales contract shall have the
same meanings as they have in their use in the special terms mentioned below and
in the technical specifications. 

	

	
 	
 
	
2. 		
The following constitute this contract:

	

	
    	
    	
	
	
    	
2.1	
sales contract

	
			
	
    	
2.2 		
special terms of the contract

	
			
	
    	
2.3 		
technical specifications

	

	
 	
 
	
3. 		
The above mentioned documents shall be supplementary and complementary to each other,
however, if there is any ambiguity or conflicts among them, they shall be determined by the sequence of the documents that are listed in the above order in item 2. 

	

	 	 
	4. 	Contract item, total price and term

	 	 	 

		4.1 	Vehicle Model: JNJ6290EV
			
		4.2	Quantity of purchase: 5,000 vehicles
			
		4.3	Total price of the contract: 199,000,000.00 including tax and
  detailed price break down please see appendix 1
			
		4.4  	Purchase period: tentatively from September 29th 2012 to December 31st 2012.

	 	 
	5. 	Representations

	
 	
 	
 
	
 	
5.1 		
All vehicles under this sales contract are in accordance with national and local standards and are
brand new vehicles. Party B warrants to provide vehicles and related technical service, as well as the warranty for their qualities according to this contract.
	
	
 	
 	
 
	
 	
  5.2  		
Party A promises to pay the contract price and other payables to Party B according to the terms of this contract. 

	

	 	 
	6.	Effectiveness of Contract

This contract shall take effect when it is signed by legal representatives or authorized representatives
of the parties and sealed with parties’ company chops.

	
7. 		
Amendment and termination of the contract

	

	
 	
 	
 
	
 	
7.1 		
The purpose of Party A’s purchase is to promote electric vehicles (EV) on a large-scale in
Hangzhou area, and it has the right to adjust vehicle delivery time based upon actual implementing situation of EV promotion in Hangzhou area and the market responses, as well as actual running conditions of EV (including vehicle quality and vehicle
market adaptability, etc.) 

	

2

	
 	
 	
 

	
 	
7.2 		

  If Party B develops and produces other new vehicle models that are suitable, based upon the vehicle purchase amount of this contract, the parties can discuss and agree to adjust the vehicle models and related prices.  

	

	
 	
 	
 

	
 	
7.3	

If purchased vehicles for a particular order have serious quality problems, and Party B cannot resolve such problems during agreed time, Party A has the right to terminate this contract.  If Party A fails to complete the purchases and make
timely payment during the term of this contract, Party B has the right to terminate this contract.  

	

	
 	
 	
 

	
 	
7.4	
 If either party cannot conduct normal production, provide technical services, or provide post-sale services, or is unable to make purchase or make payments for the products, or cannot perform its obligations under this contract due to
bankruptcy, reorganization and restrictions on qualification or permits to conduct certain manufacturing functions, or other internal or external reasons other than caused by mother nature and force majeure factors, the other party has the right to
terminate this contract, reserve the rights of claims and compensation and pursue the other party’s liability (except for force majeure).
	

	
    	
	
	
8.   		

Consignee:  

	

Consignee: China Aviation Lithium Battery (Hangzhou) Co., Ltd.,  and the delivery site is in Hangzhou city area that will be designated by Party A. 

	
9.   		
Copies of contract  
	

This contract has 6 original copies, party A holds 3 copies, party B holds 3 copies, all these copies have the same legal validity. 

	
10. 		
Miscellaneous

	

	
 	
 	
 

	
 	
10.1 		

Supplements may be entered into by the parties through negotiation for issues not settled in this
contract. Supplements and appendixes are inseparable parts of this contract and shall have the same legal effect as the contract.  

	

In case either party wants to have its authorized agent to have the rights and obligations of this contract, a written confirmation by both parties is required.  

3

	

    Appendix 1.itemized price list 

 
	No. 	Specifications 	
    Unit	 Qty. 	Unit price(‘000) 	Total price(‘000) 	Delivery place 	Remark 
	1 	JNJ6290EV 	 Set 	
    5,000	39.8 	199,000 	Place in Hangzhou City area
      designate by Party A 	Without battery 
	total 	199,000 		
	
    Total Contract Price (RMB): 199,000,000.00 

 

	
Remark: 

1. The total contract price is the price for delivery by Party B of the goods to the site that Party A designated.

2. The actual delivery time and quantity under this contract shall be subject to the delivery confirmation notice in
writing provided by Party A at 7 working days prior to the delivery and is confirmed by Party B.

3. Party B is responsible for the goods and their quality and safety during transportation from the factory to
delivery site. 

4. The vehicles in this contract shall adopt special battery frames and connectors required by the State Grid, and they shall meet the State Grid’s power switch technical requirement, more details please see technical specification section.

5. The vehicles in this contract do not include power batteries.   

    

(the remaining of this page is intentionally left blank)

 

4

 Signature Page  

	
Party A: China Aviation Lithium Battery (Hangzhou)
Co., Ltd.

		
Party B: Zhejiang Kandi Vehicles Co., Ltd.

	
	
 	
 
	
 	
 
	
Date: 9/29/2012
		
Date: 9/29/2012
	
	
Address : No. 159 Tianmushan Road
		
Address : Jinhua City Industrial Zone
	
	
zip code: 310000
		
zip code:321016
	
	
contact:
		
contact:
	
	
Tel:
		
Tel:
	
	
Fax:
		
FAX:
	
	
bank of deposit:
		
 
	
	
bank account:
		
 
	
	
tax code:
		
 
	
	
 
		
 
	
	
Signature of legal representative or authorized
		
Signature of legal representative or authorized
	
	
representative :
		
representative :
	

5

Section 2. Special terms  

	
1. 		
This section of special terms is to detail and supplement the sales contract and
the clause and item numbers in sales contract are used continuously in this
section.
	
	
 	
 
	
2. 		
Payment

	
	 	 	 
		
2.1 		
Currency of this contract is RMB

	
	 	 	 
		
2.2 		
Payment schedule

	
	 	 	 
			
(a) Once the contract is signed and takes effect, Party B shall deliver the vehicles specified in
the contract in different batches according to Party A’s purchase needs and delivery confirmation notice. Party B shall deliver vehicles within 7 working days of the time when Party A completes full payment, and Party B shall provide the
following documents to Party A as well: 

	

	
 	
 	
 	
 
	
 	
 	
(i) 		
The manufacturer certificate of the vehicles delivered.

	
	 	 	 	 
	
 	
 	
(ii) 		
The list of the vehicles delivered, in two copies (one copy shall be returned to Party B
upon Party A’s inspection and confirmation of receiving)

	

	
 	
 	
 	
 
	
 	
 	
(iii) 		
sales invoice for each vehicle (without battery)

	
	 	 	 	 
	
 	
 	
(iv) 		
Operating instruction or user manual of vehicles

	

	 	 	
 
			
(b) Date of payment for each batch of vehicles is the actual
date when Party B receives the bank
transfer from Party A. 

	

	
 	
 
	
3 		
Delivery

	

	 	 	 
	 	3.1 	Consignee, contact
  person and phone number will be indicated on the delivery notice issued by
Party A. 

	
 	
(a) 		
Delivery time: Party B shall deliver the goods according to delivery
confirmation notice issued
by Party A and confirmed by Party B.
	
	
 	
 	
 
	
 	
(b) 		
Delivery site: place in Hangzhou city area that is designated by Party A

	
	 	 	 
	
 	
(c) 		
Delivery method: Party B is responsible for transporting the goods and the transportation fee.
Party B shall assure the safety of transportation in order to guarantee the goods have no damage
when they arrive at the designated place. 

	

	
 	
 	
 
	
 	
(d) 		
Party B shall warrant that vehicles in this contract meet national and local standards and are brand new vehicles.

	
	
 	
 	
 
	
 	
(e)	

 Unless there is force majeure, if there is any delay of delivery for more than 5 working days, Party B shall pay Party A the corresponding bank loan interest for such delay on each additional working day. 

	

6

	
 	
 
	
4. 		
Quality Assurance

	

	
 	
 	
 
	
 	
4.1 		
If any defectiveness of vehicles or any mistakes of technical
documents that provided by Party B are found, or any vehicle cannot operate as a
result of wrong instructions by the technicians of Party B during the contract, Party B shall have the responsibility to repair or replace the defective vehicles according to Implementation Rules of Zhejiang Province to the People's Republic of China Consumer Protection Law; any costs incurred should be decided according to relevant regulations. 

	
	
 	
 	
 
	
 	
4.2 		
If there is any conflict between the contract and  technical specification,

technical specification
shall prevail.
	

	
 	
 
	
5. 		
Liability of Breach of Contract

	

	 	 	 
	
 	
5.1 		
Upon the examination and confirmation by the authorized vehicle inspection agency of China, if
there is a design or manufacturing defect in vehicles provided by Party B, Party
A shall assist Party B to recall the defective vehicles according to national
regulations on recalls. If there are any property or personal damages caused by
the defective vehicles, Party A has the right to request compensation from Party
B. If the vehicle has special operating requirements, Party B shall give express
notice and instructions in writing, otherwise Party B shall take responsibility
for the damages. If the damage is caused by false-operation or caused by battery
or battery box, Party B shall not have any responsibility. 

	
	
 	
 	
 
	
 	
5.2	

 If Party B fails to comply with this contract, or does not fulfill its obligation of providing post-sale
services according to its quality assurance terms, Party A has the right to any reasonable compensation from Party B for all cost related to repair work.  

	
	
 	
 	
 
	
 	
5.3 		

If Party B knows that there is serious defect or quality problem of the vehicle, but does not notify Party A about it in writing, Party A has the right to replace the defective vehicles or terminate the contract, and ask for compensations for
direct losses caused.  

	

	
 	
 

	
6. 		
Force Majeure

	

	 	 	 
	
 	
6.1 		
If any party is prevented from performing any of its obligations due to force majeure, the party shall
have no responsibility for it. However, if the delay in performance takes place before the event of force
majeure or the affected party does not take remedial actions and notify the other party, it shall not be
exempted from its obligations and responsibilities under this contract. 

	
	
 	
 	
 
	
 	
6.2 		

The party that is affected by force majeure shall notify the other party of the event within 3 working days in writing ( which may be made by fax, e-mail, cell phone text message, etc.) and shall provide a written report within 10 working days
confirming that it is unable to perform its obligations or partially unable to perform its obligations under the contract or requesting for an extension of performing its obligations.  

	

7

	
 	
 

	
	
7.  		
Settlement of disputes 
	

Any dispute arising out of this contract shall be resolved through consultation between the two parties or upon application for mediation with relevant institutions. If consultation or mediation fails to reach an agreement, the complaining party may
file a suit with the local court where it is located.  

	
8. 		
Miscellaneous

	

	 	 	 
	
 	
8.1 		
This contract shall take effect when it is signed and sealed. Neither side shall make any amendment or
terminate the contract at will. Supplements may be entered into by the parties through negotiation for issues not settled in the contract. 

	
	
 	
 	
 
	
 	
8.2 		
Supplements may be entered into by the parties through negotiation for issues
not settled in the contract or if Parties want to make amendment to this
contract. The supplement terms, agreement and appendix of this contract are
inseparable parts of this contract.
	

Section 3. Technical Agreement

	
1. 		
Summary

	

	 	 	 
	
 	
1.1 		
This agreement is applicable to the pure electric vehicles and relevant services that are provided by
Zhejiang Kandi Vehicles Co., Ltd. for China Aviation Lithium Battery (Hangzhou) Co., Ltd.

	
	
 	
 	
 
	
 	
1.2	
This agreement is regarded as an appendix of the contact upon its confirmation by both parties, and it
has the same legal effect as the contract.

	

	
 	
 
	
2. 		
Technical conditions

	

	 	 	 
	
 	
2.1 		
The design, manufacturing, inspection and test of all equipment shall meet the requirements of the
following use standards and technical conditions. If there is conflict among different standards, the
national standards or the standards agreed by the parties shall be followed. 

	

8

GB/T 18487.1 -2001 Electric vehicle conductive charging system—Part 1:General requirements

 GB/T 18487.2 -2001 Electric vehicle conductive charging system—Electric vehicles requirements for conductive connection to an
A.C/D.C. supply 

GB/T 18487.3 -2001 Electric vehicle conductive charging system A.C./D.C. Electric vehicle charging station

GB/T 19596-2004 Terminology of electric vehicles 

GB/T 20234-2006 Plugs, socket-outlets, vehicle couplers
and vehicle inlets for conductive charging of electric vehicles—General requirements  

Guidance of optimization design for electric engineering vehicles by State Grid Corporation 

Guidance of data collection and analysis of electric
vehicles demonstration operation by State Grid Corp. 

Terminal interface specification for electric vehicle and smart vehicle 
by State Grid Corp.

Other technical requirements related to battery exchange type EVs published by State Grid Corp. 

	
2.1 		
General requirement

	

	 	 	 
	
 	
2.1.1 		
Vehicles specified in the contract shall constantly meet the requirements of national compulsory
standards ( including basic performance, economic performance, dynamic
performance, operation steadiness and smoothness, environmental performance) 

	
	
 	
 	
 
	
 	
2.1.2 		
Vehicles specified in the contract shall constantly meet the requirement of
technical standards of State Grid’s charging and battery exchange station
(including battery model adaptability, connector interface and protocol
adaptability, electrical components adaptability and data collection
adaptability).
	
	
 	
 	
 
	
 	
2.1.3 		
Vehicles specified in the contract shall comply with List of Recommended Models for Energy Saving and New Energy Vehicles Promotion and Demonstration Program that is published by Ministry of Industry and Information Technology (MITT) as well as the
information contained in Vehicle Manufacturer and Product.  
	
	
 	
 	
 
	
 	
2.1.4 		
Party B shall paint the vehicle the color specified by Party A ( if additional
color is needed, both
parties shall negotiate to reach an agreement)
	

	
 	
 	
 
	
 	
2.1.5 		
The vehicle provided shall have good convenience for user and maintenance.

	

	 	 
	
2.2 		
Technical parameter of a completed vehicle

	

9

	
    Item 
	
    
      
      Technical index

	Model 	
    JNJ6290EV   

	
    Name
    	
    multi-purpose pure electric passenger vehicle
      

	
    Notification 	
    MIIT No. 240 public
      notification; List of Recommended Models for Energy Saving and New Energy
      Vehicles Promotion and Demonstration Program (No. 37)   

	Length ×Height × Width (mm) 	
    2900×1545×1590 
     

	wheel base (mm) 	
    2080   

	tread (mm) front/rear 	
    1280/1330   

	Total weight (kg) 	
    1340   

	
    Curb
      Weight (kg) 	
    1160 
    
    

	seats 	
    2   

	wheel specification 	
    165/70R13   

	number of wheels 	
    4   

	Maximum speed (km/h) 	
    80 
    
  

	steering type 	
    steering wheel   

	Driving Motor Model 	
    SCRMP10U1   

	MOTOR RATED POWER (kw/r/min) 	
    10   

	minimum ground clearance 	
    120 
    
  

	power assisted braking system 	
    Included   

	power assisted steering system 	
    Included   

	
    Air conditioner 	
    Included 
    

	3. 	
      Quality assurance

	 	 	 
	 	3.1 	
      Technical standard and quality
  requirement

	 	 	 

	 	 	3.1.1 	
      Vehicles specified in the contract shall be the
      passenger vehicles or sedans listed on vehicle directory that are
      published by or filed with related departments, and also are listed on the
      List of  Recommended Models for Energy Saving and New Energy Vehicles
Promotion and Demonstration Program by MIIT, and can pass the inspection by  motor vehicle department of the police bureau and can
be registered and issued license plates to drive on the road. 

10

	 	 	 	
       
	 	 	3.1.2 	
      Vehicles specified in the contract shall be in accordance with national
      standards or industry standards for new energy vehicles and related
      standards of State Grid Corp for battery exchange model EV. The vehicles
      shall meet the delivery inspection standard and meet the safe driving
      requirement as well as the basic use requirement on the manual ( Party B
      shall provide the above mentioned documents and chop company seal on them
      as confirmation)
	 	 	 	
       
	 	 	3.1.3 	

Party B shall warrant that all
materials (including parts that Party B purchases from third parties) and manufacturing process are in compliance with national standards and requirements.  

    
	 	 	 	
       
	 	 	3.1.4 	

Party B shall warrant that vehicles provided are appropriately assembled, processed and
maintained. 

    

	
 	
 	
 	
 

	
 	
3.2 		
Delivery, inspection, acceptance and personnel training

	

	 	 	 	 
	
 	
 	
3.2.1 		
Party A will inspect the vehicles delivered at the designated place for acceptance. After inspection
and acceptance, Party A shall sign the receipt sheet and confirm the acceptance. If Party A has issues with respect to the appearance or basic function of the vehicle, it shall raise these issues on site to Party B, for confirmation by both parties.
 If there is any inconsistency of vehicle property (such as safety features, appearance, other configuration of the vehicle, etc.) from that promised by Party B, Party A has the right to reject the goods. 

	
	
 	
 	
 	
 
	
 	
 	
3.2.2 		

Drivers of Party A or authorized personnel of Party A shall be trained, and  training session shall be organized by Party A and assisted by Party B.  Only trained and verified personnel can conduct relevant work. The training session should
include daily maintenance, driving of the vehicle, battery exchange technologies and practical operation skills.  Party B shall provide training documents in electronic or hard copies.

	

	
 	
 
	
4. 		
Technical service and post-sale service

	

	 	 	 
	
 	
4.1 		
Technical service

	

	 	 	 	 
	 	 	4.1.1 	
Party B shall provide the following documents along with vehicle delivery

	

(1) vehicle certificate

(2) user manual  

(3) vehicle maintenance manual 

11

	 	 	 	
 
	 	 	4.1.2 	

Party B shall assign technicians to be located in Hangzhou at the initial period of the project to provide 24 hour technical support, repair and maintenance services and its cost shall be assumed by Party B.  

  
	 	 	 	 
	 	 	4.1.3	

If other technical service clauses need to be signed, such new technical service clause will be
governing. 

  

	 	 	 
	
 	
4.2 		
Post-sale service

	

	 	 	 	 
	
 	
 	
4.2.1 		
Party B promises to provide 3-year or 60 thousand kilometer (whichever comes first) warranty for
key components and body of the vehicle (except for battery ). During the warranty, it will provide
maintenance for car body and its key components (except for battery) no less than 3 times. 

	

	
 	
 	
 	
 
	
 	
 	
4.2.2. 		
During warranty, if it is found that:

	
	 	 	 	 	 
	 	 		
(a) 		
The vehicle has defects, does not comply with technical requirements and cannot be used normally;

	
	 	 	 	 	 
	 	 		
(b) 		
There is sudden failure of vehicle, severe damage of key components or other emergencies that
cause failure of performance of a vehicle; 

	

Party B shall repair and fix the problem within 48 hours, if the problem cannot
be fixed within that time, a spare vehicle shall be provided for use for free.  

if it is found that:  

	 	 		
(a) 		
the same serious safety problem has been repaired for 3 times
( according to invoices and receipts) and the problem cannot be corrected, or
key assembly has been replaced for 3 times due to quality issue but the vehicle
still cannot be used;

	
	 	 	 	 	 
	 	 		
(b) 		
due to quality problem and repair work, the vehicle could not
be used for more than 1 month of working days or the same problem has been
repaired for more than 5 times and the problem still cannot be completely fixed. 

	

Then Party A shall have the right to request Party B to replace the vehicle or to return the vehicle. If Party A requests a replacement vehicle, and the vehicle that has a quality problem has been inspected by an inspection agency mutually agreed by
Party A and Party B, and the inspection confirms it is Party B’s quality issue, Party B shall satisfy the request of Party A to provide another vehicle within 7 working days. 

12

If party A requests to return the vehicle , Party B shall return the payment for this vehicle in one installment and also compensate Party A with amount of the vehicle purchase tax, insurance fee and license fee, etc. but shall deduct the
depreciation of the vehicle for the actual use period. The return process shall be completed within 7 working days.  Except for force majeure, if Party B didn’t complete the replacement or return process according to this contract, Party A has
the right to request Party B to pay for its direct losses within 7 working days.  

	
 	
 	
4.2.3 		
During the warranty period, Party B will follow the state
laws and regulations and Zhejiang Province Implementation Rules for PRC Consumer Protection Law to provide repair for the problems of the vehicle not intentionally caused by the
personnel from the date the vehicle is delivered. After the warranty period, Party B shall also assume repair, maintenance and replacement responsibility but Party A shall assume their costs. The prices for the parts to Party A shall not be higher
than the price that Party B supplies to the market. 

	
	
 	
 	
 	
 
	
 	
 	
4.2.4. 		
During the warranty period, if any serious quality defect is found and confirmed
by both parties, then the warranty period is suspended; when the defect has been
repaired, the warranty time shall resume.
	
	
 	
 	
 	
 
	
 	
 	
4.2.5 		
After the warranty period, if Party A’s operation has to stop due to Party B’s
product quality issue, within 24 hours of receiving the notice from Party A,
Party B or its authorized repair shop shall assist Party A to deal with the
problem, to repair, or to replace the damaged parts.
	
	
 	
 	
 	
 
	
 	
 	
4.2.6 		
During the operation of the vehicle, if any vehicle is not operational due
to vehicle failure or accident ( in the area of Hangzhou city), the driver of the vehicle shall seek towing service nearby;  if the failure or accident is caused by
quality of the vehicle and the vehicle is still in the warranty period, Party B shall be responsible for the towing cost and service fees. The verification of responsibilities shall refer to 4.2.7 below.
	
	
 	
 	
 	
 
	
 	
 	
4.2.7	
If there is any disputes between parties about quality problems of the vehicle, if the dispute can be settled by laws and regulations or the facts can be directly confirmed by daily life common sense, then they will be the basis for the
determination of the problem. If any verification is needed, the written verification report issued by a lawfully qualified vehicle inspection institution will govern. The inspection and verification fee shall be paid by the claiming party first and
shall be reimbursed by the responsible party within 7 working days upon the result of the verification report.
	
	
 	
 	
 	
 
	
 	
 	
4.2.8 		
When Party B delivers the vehicles, it shall provide spare vehicles of the same
model. (their
ownership and managing rights belong to party B)
	

13

	
 	
 	
 	
 	
 
	
 	
 	
 	
(1) 		
Upon the purchase of first batch of 100 vehicles, 5 spare vehicles shall be provided

	
	 	 	 	 	 
	
 	
 	
 	
(2) 		
Upon the purchase quantity cumulatively reaches 2,000 vehicles , an additional 20 spare vehicles
will be provided. 

	
	
 	
 	
 	
 	
 
	
 	
 	
 	
(3) 		
Spare vehicles shall comply with national standards and technical standards and
service terms too.
	

	
 	
 	
 	
 
	
 	
 	
4.2.9 		
Party B shall guarantee that maintenance network for the repair and maintenance
of the vehicles under this contract and the network shall be distributed in the
district of Hangzhou City.
	

	
 	
 	
 	
 	
 
	
 	
 	
 	
(1) 		
Before the end of 2012, Party B shall have no less than one
repair and maintenance shop in
Hangzhou City 

	
	
 	
 	
 	
 	
 
	
 	
 	
 	
(2) 		
Any additional repair network shall be added through negotiation between the two
parties according
to the size of purchases of Party A.
	

	
 	
 	
 	
 
	
 	
 	
4.2. 10. 		
When the purchased vehicle fails to perform and Party B or its authorized repair
and maintenance network is 20 kilometers away from the site, upon giving Party B
a notice, Party A or the actual user of the vehicle may choose nearby shops that
have lawful qualifications for repair work. If it occurs during the warranty
period, Party B shall be responsible to reimburse the repair cost against repair
invoices provided by the actual user within 7 working days (if the invoice price
is more than two times higher than the same repair price of Party B, the amount
in excess of the two times will not be reimbursed).
	
	
 	
 	
 	
 
	
 	
 	
4.2.11	
If the post-sale service and technical terms in this section are lower than national or local regulations, the latter shall prevail. During the actual issue solving process, if there is no term in this contract addressing the problem,
parties shall follow the national or local regulations.
	
	
 	
 	
 	
 
	
 	
 	
4.2.12	
If Parties need to sign any additional post-sale service clauses, the new
post-sale service clauses
shall prevail.
	

(the remaining of this page is intentionally left blank) 

 

 

14

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00208-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00208-of-00352.parquet"}]]