Document:

Exhibit 4.17

    

     

    Execution Version

    

    

    FIRST AMENDMENT TO THE AMENDED AND RESTATED PLEDGE AGREEMENT

     

    This First Amendment to the Amended and Restated Pledge Agreement (this “Amendment”) is entered into as of October 29,
      2020 by and between KENON HOLDINGS LTD. (Company Registration Number: 201406588W), a company incorporated in Singapore and having its registered office at 160 Robinson Road, #17-01, Singapore Business
      Federation Centre, Singapore 068914 ("Pledgor"); and NAUTILUS INKIA HOLDINGS SCS (f/k/a Nautilus Inkia Holding LLC(, a company organized and existing under the laws of
      the Grand Duchy of Luxembourg, for itself and on behalf and for the benefit of Nautilus Distribution Holdings LLC ("Buyer" and the "Pledgee").

     

    

    Recitals

    
      	
              (A)

            	
              the Pledgor and the Pledgee (formerly organized as a Limited Liability Company under the laws of the Cayman Islands, redomiciled and registered by way of continuation as a common limited
                partnership (société en commandite simple –SCS-) in the Grand Duchy of Luxembourg) have entered into an Amended and Restated Pledge Agreement dated February 15, 2018 (the “Pledge Agreement”), pursuant to which the Pledgor granted to the Pledgee a first ranking pledge over, inter alia, the Pledged Assets, all as further described in the Pledge Agreement as a security for the Secured
                Obligations; and

            

       

      

    

    
      	
              (B)

            	
              the Pledgor and the Pledgee wish to amend the Pledge Agreement on the terms set forth herein;

            

    

     

    Now, therefore, the parties hereby agree as follows:

     

    

    
      	
              1.

            	
              Defined Terms

            

    

     

    Capitalized terms used herein and not otherwise defined shall have the meaning given to such terms in the Pledge Agreement.

     

    

    
      	
              2.

            	
              Amendment to the Pledge Agreement

               

                

            

    

    
      	
              2.1

            	
              The following defined terms in the Pledge Agreement shall be amended as follows:

               

              

            

    

    
      	
              2.1.1

            	
              The definition of the term “Event of Default” shall be amended and replaced in its entirety by the following definition:

               

              

              
                “the occurrence of any event, condition or circumstance that constitutes an "Event of Default" under this Pledge Agreement and any amendment thereto.”

              

            

    

     

    
      	
              2.1.2

            	
              The definition of the term “Pledged Shares” shall be amended and replaced in its entirety by the following definition:

               

              

              
                “55,000,000 Company Shares, currently held in the Pledged Account, such amount of shares to be adjusted to take into account any share split, reverse share split, reclassification or any
                  similar event with respect to the Pledged Shares. The aforementioned amount of Pledged Shares will be reduced following interim release of the Pledged Shares in accordance with clause 4 of this Pledge Agreement and/or following the
                  release of the Pledged Shares pursuant to clause 6 of this Pledge Agreement. Pledged Shares shall include any Company Shares pledged pursuant to Clause 4 or 5.5 of this Agreement. Attached as Exhibit A is a confirmation of the Pledged Account Bank that the Pledged Shares are held in the
                  Pledged Account.”

              

            

    

     

    
      1

      
        

    

    

    

    
      	
              2.1.3

            	
              The definition of the term “Release Date” shall be amended and replaced in its entirety by the following definition:

               

              

              
                “the earlier of: (i) December 31, 2021, unless upon such date any unresolved indemnity claim(s) under the Share Purchase Agreement is outstanding, whereupon this Pledge
                    Agreement and the pledges created hereunder in favour of the Pledgor will continue to apply but only with respect to the Extended Assets (as defined below) in accordance with the provisions of clause 6 of this Pledge Agreement; and (ii)
                    the date all Pledged Shares (including all proceeds received from the sale of Pledged Shares in accordance with clause 5.5 below) have been released from the pledge in accordance with clause 4 of this Pledge Agreement.”

              

            

    

     

    
      	
              2.1.4

            	
              The definition of term “Secured Obligations” shall be amended and replaced in its entirety by the following definition:

               

              

              
                “i) all indemnification claims by the Pledgee or by any Buyer Indemnitees that are Finally Determined as defined in and in accordance with the Share Purchase Agreement and have not been
                  paid to Buyer less (a) the net proceeds from the realisation of the Pledged Assets that have been set-off by Buyer under clause 10.10 of the Share Purchase Agreement (if permissible thereunder), or (b) amounts actually paid to Buyer as
                  indemnification claims under Article X of the Share Purchase Agreement; (ii) all obligations of the Pledgor under the Side Letter; (iii) all obligations of the Pledgor under this Pledge Agreement and any amendment thereto (including any
                  rights to remedies of the Pledgee upon an Event of Default or any breach by the Pledgor of a representation, warranty covenant, agreement or condition contained herein); and (iv) any preservation and foreclosure costs and expenses
                  incurred by the Pledgee (including costs and expenses in connection with an Enforcement Event, lawyers’ fees and costs of any Receiver), in each case of (i)- (iv), unlimited in amount.”

              

            

    

     

    
      	
              2.1.5

            	
              The following definition of the term “Side Letter” shall be added:

               

              

              
                “Side Letter”- Side Letter, dated as of October 29, 2020, by and among, the Pledgor and the Pledgee, pursuant to which the Pledgor has undertaken upon itself to limit its ability to incur
                  additional debt, to maintain a cash amount, to deliver account statements and additional other obligations, all as set forth therein.”

              

            

    

    
      

      

      
        2

        
          

      

    

    

    

    
      	
              2.2

            	
              Section 5.4 shall be amended and replaced in its entirety as follows:

            

    

     

    "In addition to the right to draw dividends pursuant to clause 5.3 above, on one occasion during the period from October 29,2020 until
      the end of the term of this Agreement (and notwithstanding any exercise by the Pledgor of its right to draw dividends pursuant to this clause 5.4 prior to October 29,2020), and unless an Event of Default shall have occurred and be continuing, the
      Pledgor shall be entitled to receive and draw from the Applicable Account its pro rata share of dividends of up to the NIS equivalent (determined on the basis of the NIS/USD exchange rate quoted by Central Bank of Israel on the Tel Aviv Business Day
      immediately preceding the date of payment of the dividend) of USD 25 million paid by the Company in respect of all Pledged Shares. By way of example only, if the Company makes a distribution of US$ 50 million following the Original Effective Date,
      Pledgor shall be entitled to draw from the Applicable Account on account of such Pledged Shares US$ 6.25 million."

      

    

    
      	
              2.3

            	
              Section 6.1 shall be amended and replaced in its entirety as follows:

            

    

     

    “Following December 31, 2021, the Pledged Assets will be released in full from the pledge created hereby, provided that,
        to the extent on such date, there are any remaining Pledged Assets which were not released in accordance with clause 4 of this Pledge agreement (which such remaining Pledged Assets shall be defined as the "Remaining Pledged Assets"), and if there are unresolved claims for indemnity made by the Buyer under the Share Purchase Agreement, the pledges created under this Pledge Agreement will
        continue to apply for Pledged Assets not to exceed the Remaining Pledged Assets sufficient (in the case of Pledged Shares, based on a the VWAP Value per Company Share on December 31, 2021 (the "Extended Assets") to cover an amount determined by the Pledgor and the Pledgee together, each acting in good faith (or should the Pledgor and Pledgee be unable to agree, a third party evaluator; and
        in the absence of agreement on a third party evaluator, PwC shall act as third party evaluator or appoint a third party evaluator) equal to the sum, of (a) a reasonable estimate of the amount ultimately payable on an unresolved claim (including
        interest and penalties) to be paid under the Share Purchase Agreement, plus (b) a reasonable estimate of the amount of costs and expenses that are expected to be incurred to resolve the claim in accordance with the Share Purchase Agreement, plus
        (c) 10% of the aggregate of sub clauses (a) and (b) (together, the "Reserve Amount"); provided that (x) to the extent that such unresolved
        indemnity claims which results in an extension of the pledges created hereunder in a claim amount actually paid exceeding 110% of the Reserve Amount (for the avoidance of doubt being the value of the
        Extended Assets when the Reserve Amount is initially calculated), the Pledgor shall pay to the Pledgee interest in cash at a rate of 4% per annum on the difference between the amount paid and 110% of the Reserve Amount from December 31, 2021 until
        such payment, and (y) to the extent that such unresolved indemnity claims which in an extension of the pledges created hereunder results in a claim amount actually paid is less than 90% of the Reserve Amount (for the avoidance of doubt being the
        value of the relevant Extended Assets when the Reserve Amount is initially calculated), the Pledgee shall pay to the Pledgor interest in cash at a rate of 4% per annum on the difference between the amount paid and 90% of the Reserve Amount from
        December 31, 2021 until the Extended Assets are released from escrow.

    
      

      

      
        3

        
          

      

    

    

    

    Any Extended Assets shall be released from the pledge following final settlement of any claims as described above.”

     

    

    
      	
              2.4

            	
              Clause 11 (Events of Default) shall be amended and supplemented to include an additional Event of Default (Section 11.12), as follows:

            

    

     

    “11.12          The Pledgor breaches any covenant or undertaking made by it under
        the Side Letter which constitutes a Side Letter Event of Default (as defined in the Side Letter)"

     

      

    
      	
              2.5

            	
              Section 11.2 under Clause 11 (Events of Default) shall be amended and replaced in its entirety as follows:

            

       

      

      
        	
                 “11.2

              	
                
                  
                     A representation or warranty made by the Pledgor in this Pledge Agreement or any
                        amendment or supplement thereto, or the representation made by IC Power under the Undertaking and Consent, is incorrect in any material respect when made, unless the circumstances giving rise to the misrepresentation:

                     

                    

                    11.2.1 are reasonably likely to be capable of remedy within the time provided in clause 11.2.2; and

                     

                    

                    
                      11.2.2 are remedied within 30 days (or, with respect to clauses 9.1, 9.3 and/or 9.8- within 7 days) of the earlier of the Pledgee giving notice and the Pledgor or IC Power (as
                        relevant) becoming aware of the breach and/or non-compliance.”

                    

                  

                

              

      

    

     

    
      	
              2.6

            	
              Clause 12 (Realisation) shall be amended and supplemented to include the following additional provision (Clause 12.9) as follows:

            

      
        
           

          

          	
                  2.9

                	
                  
                    
                      Transfer of the Pledged Shares or any rights deriving therefrom upon realisation (including to a receiver) in a manner which is deemed to be a transfer or purchase
                        of control in the Company for the purpose of the Israeli Electricity Sector Law – 1996 ("Electricity Law") may require approval pursuant to the Electricity Law, and in such case, such transfer or purchase of control shall not be
                        made without prior receipt of such approval."

                    

                  

                

           

        

         

      

    

    
      4

      
        

    

    
      	
              3.

            	
              Additional obligations

            

       

      

    

    
      	
              3.1

            	
              The Pledgor hereby undertakes and confirms as follows:

            

       

      

    

    
      	
              3.1.1

            	
              it has furnished to the Pledgee certified corporate approvals of the Pledgor approving the execution, delivery and performance of all obligations under this Amendment.

            

       

      

    

    
      	
              3.1.2

            	
              it has furnished to the Pledgee a legal opinion from a reputable local counsel in Singapore in a form reasonably acceptable to the Pledgee.

            

       

      

    

    
      	
              3.1.3

            	
              it has furnished to the Pledgee a legal opinion from a reputable local counsel in Israel confirming that no consents, licenses, approvals or authorizations from any governmental authority
                in Israel are required by Pledgor for executing and performing its obligations under this Amendment.

            

       

      

    

    
      	
              3.1.4

            	
              it has provided the Pledged Account Bank a notice and irrevocable instructions, in the form attached hereto as Exhibit B, instructing the
                Pledged Account Bank to transfer 22,028,320 Company Shares and all Related Rights thereto to the Pledged Account, and has provided the Pledgee a countersigned acknowledgment thereof by the Pledged Account Bank.

            

       

      

    

    
      	
              3.1.5

            	
              it has duly signed and delivered to the Pledgee a Notice to the Pledges Registrar (form #5) for the purpose of amending the registration of the pledge created under the Pledge Agreement
                with the Israeli Pledges Registrar, adding to the registration the additional pledges hereby created under this Amendment, and has furnished to the Pledgee evidence of filing the aforementioned amendment to the registration for registration
                with the Israeli Pledges Registrar; and

            

       

      

    

    
      	
              3.1.6

            	
              it has duly signed and delivered to the Pledgee all such documents required under Singapore law for the purpose of registering the additional pledges hereby created under this Amendment
                with the ACRA and will furnish to the Pledgee evidence of its filing with the ACRA on the first succeeding day following the date of this Amendment.

            

       

      

    

    
      	
              3.2

            	
              Attached hereto as Exhibit C is a notice of the Pledgee to the Pledged Account Bank regarding the
                redomicile and migration of the Pledgee, acknowledged by the Pledged Account Bank.

            

       

      

    

    
      	
              3.3

            	
              Attached hereto as Exhibit D is a notice of the Pledgee to ESOP Management and Trust Services Ltd. (“ESOP”) regarding the redomicile and migration of the Pledgee, acknowledged by ESOP.

            

    

    
      

      

      
        5

        
          

      

    

    

    

    
      	
              4.

            	
              Representations and Warranties

            

    

     

    The Pledgor makes the following representations and warranties set out in this clause 4 as of the date of this Amendment.

     

    

    
      	
              4.1

            	
              The Pledgor is a limited liability company, duly incorporated and validly existing under the laws of Singapore.

            

       

      

    

    
      	
              4.2

            	
              The Pledgor has the requisite power and authority and the legal right to execute, deliver and perform this Amendment, including to create the pledge on the Pledged Assets pursuant to the
                Pledge Agreement as amended hereby, and has taken all necessary action to authorize its execution, delivery and performance of this Amendment.

            

       

      

    

    
      	
              4.1

            	
              The obligations of Pledgor hereunder are legal, valid and binding obligations and are enforceable in accordance with the terms hereof and, upon completion of proper registration with the
                Israeli Registrar of Pledges and the proper registration with the ACRA, this Amendment creates the first priority security which it purports to create and such security is valid, effective and enforceable.

            

       

      

    

    
      	
              4.2

            	
              Neither the execution and delivery of this Amendment or the other agreements and documents contemplated hereby to be executed and delivered by Pledgor, nor the performance or compliance
                with any of the provisions hereof or thereof, does or will (i) conflict with or result in a breach of any provisions of the constitutional documents of Pledgor, (ii) constitute or result in any default under any of its contracts, (iii)
                result in the creation or imposition of a lien upon any property or assets of Pledgor (other than the pledge contemplated by the Pledge Agreement as amended hereby), or (iv) violate any consent, permit, order or law applicable to Pledgor,
                the Pledged Assets or any of its other material properties, assets or businesses.

            

       

      

    

    
      	
              4.3

            	
              The Pledged Shares have been duly and validly granted and issued in accordance with Company’s constitutional documents and the Pledgor is the record and beneficial owner of the Pledged
                Shares.

            

       

      

    

    
      	
              4.4

            	
              The Pledged Shares are not subject to a Lockup.

            

    

    

    

    
      	
              4.5

            	
              Other than as expressly set out herein, the Pledgor reaffirms all representations and warranties provided under the Pledge Agreement.

            

       

      

    

    
      	
              5.

            	
              Effectiveness

            

    

     

    This Amendment shall become effective immediately as of the date first written above.

     

    

    
      	
              6.

            	
              Continuing Effect of the Pledge Agreement

            

       

      

    

    
      	
              6.1

            	
              This Amendment shall not constitute an amendment or waiver of any other provision of the Pledge Agreement or any other document and shall not be construed as such. Except as set forth
                expressly herein, the provisions of the Pledge Agreement shall remain in full force and effect.

            

    

    
      

      

      
        6

        
          

      

    

    

    

    
      	
              6.2

            	
              For the avoidance of doubt, nothing in this Amendment shall be deemed to constitute any waiver by the Pledgee of any of its rights under the Pledge Agreement, and the remaining provisions
                of the Pledge Agreement will continue to apply to this Amendment as if expressly set out herein.

            

       

      

    

    
      	
              7.

            	
              Governing Law

            

    

     

    This Amendment shall be governed by, and construed in accordance with, the laws of the State of Israel (without regard to the conflict of law principles
      thereof).

     

    

    
      	
              8.

            	
              Jurisdiction

            

    

     

    The Parties hereby irrevocably agree, that the courts of Tel-Aviv shall have the exclusive jurisdiction to hear and determine any suit, action or proceedings
      and to settle any disputes, which may arise out of or in connection with this Amendment and, for such purposes, irrevocably submits to the jurisdiction of such courts.

     

    The Pledgor hereby irrevocably waives any objection which it might now or hereafter have to the courts referred to in Clause 8 being nominated as the forum
      to hear and determine any actions and to settle any disputes and agrees not to claim that any such court is not a convenient or appropriate forum.

     

    

    
      	
              9.

            	
              Amendment

            

    

     

    This Amendment shall not be amended, modified or altered unless by an agreement in writing executed by Pledgor and Pledgee.

     

    

    
      	
              10.

            	
              Entire Agreement

            

    

     

    This Amendment (together with the Pledge Agreement, as amended hereby) contains the entire agreement between the Parties relating to the subject matter
      hereof and supersede all oral statements and prior writings with respect thereto. Prior drafts of this Amendment shall not be used for and shall have no affect with respect to the interpretation of this Amendment.

     

    

    
      	
              11.

            	
              Counterparts

            

    

     

    This Amendment and any ancillaries thereto may be executed in any number of counterparts (including counterparts transmitted via facsimile or in .pdf or
      similar format), and this has the same effect as if the signatures on the counterparts were on a single copy of this Amendment.

    

    

    [The remainder of this page is intentionally left blank]

    
      7

      
        

    

    
      

      

    

    
      The undersigned executed this Amendment as of the date first set forth above.

       

      

      
        	
                
                                       

                  _________________________________

                

                Name: Gino Antonio Sangalli de los Ríos

                Title:   Authorised Signatory

                 

              	
                
                  PLEDGEE:

                  
                    

                    

                  

                  NAUTILUS INKIA HOLDINGS SCS

                   

                  

                  
                    
                                

                    

                  

                   ______________________________

                  

                  Name: Sandra Carol Holme Bowdin

                   Title:   Authorised Signatory

                

              
	 	
                 

                
                  PLEDGOR:

                  

                  

                  KENON HOLDINGS LTD.

                

                 

                  ________________________

                 Name:___________________

                

                
                   Title:____________________

                

              

      

       

      

      
        
          

      

       

      

      
        The undersigned executed this Amendment as of the date first set forth above.

      

       

      

      
        
          	
                  
                                

                    

                  

                	
                  
                    PLEDGEE:

                    
                      

                      

                    

                    
                      NAUTILUS INKIA HOLDINGS SCS

                       

                        

                    

                    
                      _______________________
                         Name:___________________

                        

                        
                           Title:____________________

                        

                      

                    

                  

                
	 	
                   

                  
                    PLEDGOR:

                    

                    

                    KENON HOLDINGS LTD.

                  

                   

                    By: /s/ Robert Rosen

                      

                    Name: Robert Rosen

                        

                    Title: CEOExhibit 4.18

      

       

          

    

    
      PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED BECAUSE THEY ARE BOTH (i) NOT MATERIAL AND (ii) WOULD BE COMPETITIVELY HARMFUL IF
        PUBLICLY DISCLOSED. THE OMISSIONS HAVE BEEN INDICATED BY ASTERISKS (“[***]”)

    

     

    

    SALE AND PURCHASE AGREEMENT

    

    

    THIS SALE AND PURCHASE AGREEMENT (this “Agreement”) is entered into on April 13, 2021:

    

    

    By and Between:

    

    

    (1)          Quantum (2007) LLC, a company organized and validly existing under the laws of State of Delaware, the United States of America, with its
      registered address at 16192 Coastal Highway Lewes Delaware 19958 USA (the “Vendor”); and

    

    

    (2)          Hangzhou Chengmao Investment Co., Ltd., a company organized and validly existing under the laws of the PRC, with its registered address at Room
      302, Xintiandi Business Center, Xiacheng District, Hangzhou City, Zhejiang Province, the PRC (the “Purchaser”).

    

    

    WHEREAS, the Vendor is the legal and beneficial owner of the 12% equity interest of Qoros Automotive Co., Ltd., a limited liability
      company organized under the laws of the PRC with its registered capital of RMB16,925,480,000 (the “Company”); and

    

    

    WHEREAS, the Parties have agreed that the Vendor shall sell, and the Purchaser shall purchase, the Sale Shares (as defined below) on and
      subject to the terms and conditions of this Agreement.

    

    

    IT IS THEREFORE AGREED as follows:

    

    

    Article 1

      Definition

    

    

    1.1          Capitalized terms used herein and not otherwise defined in the context shall have the following meanings:

    

    

    “Affiliate” means, with respect to any specified Person, any other Person that directly or indirectly, through one or more intermediaries, controls, is controlled by, or
      is under common control with, such specified Person.

    

    

    “AOA” means, the Articles of Association of the Company, dated as of January 6, 2019 (as amended from time to time).

    

    

    “Business Day” means any day except a Saturday, Sunday, or other day on which commercial banks in New York, Hong Kong, or Beijing are authorized by law to close.

     

    

    
      
        

    

    
    

    

    “Encumbrance” means a mortgage, charge, pledge, lien, option, restriction, right of first refusal, right of pre-emption, third-party right or interest, other encumbrance or
      security interest of any kind, or any type of preferential arrangement (including, without limitation, a title transfer or retention arrangement) having similar effect, provided, however, that the Encumbrance shall not include any Encumbrance in
      favor of the Purchaser.

    

    

    “EXIM” means the Export-Import Bank of China.

    

    

    “First Payment Date” means September 30, 2021.

    

    

    “First Payment” means RMB 390,000,000 (equal to 25% of the Purchase Price).

    

    

    “First Tranche” means the sum of the First Payment and the Second Payment.

    

    

    “Fourth Payment Date” means March 31, 2023.

    

    

    “Fourth Payment” means RMB 390,000,000 (equal to 25% of the Purchase Price).

    

    

    “JV Contract” means the Joint Venture Contract, dated as of January 6, 2019, entered into by and among Wuhu Chery, the Purchaser and the Vendor (as amended from time to
      time).

    

    

    “MOFCOM” means the Ministry of Commerce of PRC or its local counterpart.

    

    

    “NDRC” means the National Development and Reform Commission or its local counterpart.

    

    

    “Party” means each of the Vendor and the Purchaser, and the “Parties” means all of them together.

    

    

    “Payment Date” means each of First Payment Date, Second Payment Date, Third Payment Date and Fourth Payment Date.

    

    

    “Payment” means each of First Payment, Second Payment, Third Payment and Fourth Payment.

    

    

    “Person” means an individual, partnership, corporation, business trust, joint-stock company, trust, unincorporated association, joint venture, or other similar entity.

    

    

    “PRC” means the People’s Republic of China, which for the purpose of this Agreement, does not include Hong Kong, Macau and Taiwan.

    

    

    “RMB” means Renminbi yuan, the lawful currency of the PRC.

    

    

    “Sale Shares” means 12% of the equity interest of the Company (equivalent to RMB 2,031,057,600 registered capital amount) held by the Vendor as of the date of this
      Agreement.

     

    

    
      2

      
        

    

    

    

    “SAMR” means the State Administration of Market Regulation or its local counterpart.

    

    

    “Second Payment Date” means March 31, 2022.

    

    

    “Second Payment” means RMB 390,000,000 (equal to 25% of the Purchase Price).

    

    

    “Second Tranche” means the sum of the Third Payment and the Fourth Payment.

    

    

    “Third Payment Date” means September 30, 2022.

    

    

    “Third Payment” means RMB 390,000,000 (equal to 25% of the Purchase Price).

    

    

    “Transfer Date” means the date when the First Tranche has been fully paid to the Vendor pursuant to Article 3.4.

    

    

    “Wuhu Chery” means Wuhu Chery Automobile Investment Company Limited.

    

    

    1.2          Any capitalized terms used but not defined herein shall have the meanings ascribed to them in the JV Contract.

    

    

    1.3          Any of the terms defined herein may, unless the context otherwise requires, be used in the singular or plural depending on the reference.
      References to an “Article” or a “Section” are, unless otherwise specified, to one of the articles or sections or subsections of this Agreement.

    

    

    1.4          The titles of the Articles and Sections of this Agreement are for convenience of reference only and are not to be considered in construing this Agreement.

    

    

    Article 2

      Sale and Purchase of Shares

    

    

    2.1          The Vendor agrees to sell to the Purchaser the Sale Shares free from all Encumbrances (except for any Encumbrance resulting from the Articles of Association of the Company and except as
      may be required to be pledged to EXIM or another consortium bank), and the Purchaser agrees to purchase such Sale Shares, on the terms and conditions set out in this Agreement (the “Transaction”).

    

    

    Article 3

      Purchase Price and Payment

    

    

    3.1          As consideration for its purchase of the Sale Shares hereunder, the Purchaser agrees to pay to the Vendor a purchase price of RMB 1,560,000,000
      (together with any late payment penalties, the “Purchase Price”). Please refer to Exhibit A attached hereto for the schedule of payment of the Purchase Price. If a payment with respect to any Payment Date fails
      to be fully paid within 30 days of the relevant Payment Date, such payment amount shall be subject to a “Price Adjustment” (which shall be deemed as late payment penalties) at a rate equal to the one-year loan prime rate (published by the People’s
      Bank of China on the most recent practicable date prior to the Payment Date) calculated for a period starting from the relevant Payment Date to the date when all the due payment and the Price Adjustment have been paid in full. For clarity, the
      remedies provided in this Section 3.1 will not be exclusive of or limit other remedies that may be available to the Non-defaulting Party.

     

    

    
      3

      
        

    

    

    

    3.2          To secure the performance of the Purchaser’s obligations under this Agreement, the Purchaser agrees to transfer an amount equal to RMB 78,000,000 (equal to 5% of the Purchase Price) (“Deposit”) into an escrow account set up in the name of the Purchaser (the “Escrow Account”) on the earlier of (i) the date on which Company or any of its subsidiaries resumes
      its production and (ii) July 31, 2021. The Parties agree that the Deposit shall be counted as part of the First Payment. On the First Payment Date, the Purchaser shall transfer an amount equal to the First
      Payment minus the Deposit to the Escrow Account; and on the Second Payment Date, the Purchaser shall transfer an amount equal to the Second Payment to the Escrow Account.

    

    

    3.3          The Vendor shall take all necessary actions, with assistance and cooperation from the Purchaser, to obtain the approval of/filing with NDRC (if required by Applicable Laws), and subject
      to the full payment of the First Tranche into the Escrow Account pursuant to Section 3.2, complete the registration with the SAMR in relation to the transfer of the Sale Shares, and filing with MOFCOM (to the extent required by Applicable Laws), the
      amendment filings of the Company’s foreign exchange information and tax filings with competent tax authority of the outbound remittance of the First Tranche under trade in services and other items. The Purchaser and the Vendor shall maintain their
      joint and respective specimen signatures/seals for the Escrow Account, and all funds under such Escrow Account shall be used and transferred only for the purpose of the payment of the Purchase Price or as otherwise provided by this Agreement.

    

    

    3.4          The Vendor and the Purchaser agree that subject to (1) the approval of/ filing with the NDRC (if required by Applicable Laws); (2) the registration with the SAMR of the transfer by the
      Vendor of the Sale Shares and filing with MOFCOM (to the extent required by Applicable Laws); (3) the completion of the Company’s foreign exchange information amendment filing for the transfer by the Vendor of the Sale Shares; and (4) the completion
      of the filing with competent tax authority of the outbound remittance of the First Tranche under trade in services and other items, the First Tranche shall be paid to the Vendor within five (5) Business Days
      upon the date when the matters set out in the aforesaid sub-sections (1), (2), (3) and (4) are completed. The Vendor further agrees that if it has received the First Tranche paid by the Purchaser before the Transfer Date, without the consent of the
      Purchaser, the Vendor shall not transfer or use the First Tranche in any manner.

    

    

    3.5          The Purchaser shall pay the Third Payment to the Vendor on or before the Third Payment Date and pay the Fourth Payment to the Vendor on or before the Fourth Payment Date. The Purchaser
      shall, with the cooperation of the Vendor, take, and cause to be taken, all actions and to do, or cause to be done, all things necessary, proper or advisable to complete the relevant tax filings and filing applications via the paying bank for the
      approval of the competent foreign exchange administration authority prior to the Third Payment Date and the Fourth Payment Date (as applicable).

     

    

    
      4

      
        

    

    

    

    3.6          If this Agreement is terminated in accordance with Article 8 of this Agreement or as a matter of law, (1) the Vendor shall (subject to the reversion set forth in sub-section (2) hereof)
      release the escrow so established under Section 3.2, and Section 3.5 (where applicable), and (2) in the event that the Purchaser has been registered as the holder of the Sale Shares, upon request by the Vendor, the Purchaser shall use its
      commercially reasonable efforts to cooperate with the Vendor to conduct the relevant formalities to reverse the Transaction, including assisting the Company to complete the approval, filing and registration procedures with relevant governmental
      authorities for the reversion of the title to the Sale Shares in the Company to the Vendor.

    

    

    For the avoidance of doubt, if this Agreement is terminated in accordance with Section 8.2 of this Agreement, such termination or any performance of the Non-Defaulting Party (as defined below) of its
      respective obligations set forth in this Section 3.6 above shall not be deemed to constitute a waiver of any available remedy (including specific performance, if available) of the Non-Defaulting Party for any breach or misrepresentation of the
      Defaulting Party (as defined below), nor shall the Defaulting Party be relieved of any liability that has arisen or occurred for its breach of, or for any misrepresentation under this Agreement.

    

    

    3.7          Both Parties shall procure the Company and shall use reasonable efforts to [***] take all necessary actions to obtain the approval or complete the registrations or filings set out in
      sub-sections (1), (2), (3) and (4) of Section 3.4, Section 3.5, Section 3.6 and Section 3.9, and the Parties shall cooperate with each other and the Company, and provide such information or assistance as may be required for the purpose of enabling
      the Company to obtain the said approval or complete the said registrations or filings. Further, the Purchaser shall sign all documents and perform such acts as may be necessary or desirable to effect the payment of the Purchase Price to the Vendor,
      including but not limited to filing applications via the paying bank for the approval of the competent foreign exchange administration authority of the payment of each Payment by the Purchaser and such paying bank.

    

    

    3.8          The Purchaser shall take, and shall cause the Company to take, any and all actions necessary or desirable as required for the purpose of the Closing, including but not limited to (i)
      preparing all the applicable documents required for the submission to the competent government authorities; and (ii) to the extent required, notifying all lending banks of the transaction contemplated in this Agreement in writing, and shall use its
      best efforts to, to the extent required, cause the Company to obtain the written consent of or the waiver by the lending banks. [***].

    

    

    3.9          The Purchaser agrees, and will take any action (and cause the Company and the other shareholders to take any action to ensure) that the Vendor is entitled to retain one (1) director at
      the board of directors of the Company, from the Transfer Date to the date the Purchaser has paid to Vendor the full amount of the Purchase Price. Notwithstanding the transfer of the Sale Shares, the Purchaser shall cause the person designated by the
      Vendor to be appointed as a director of the Company concurrently with the registration of the transfer of the Sale Shares with SAMR and the director designated by the Vendor shall be removed promptly after the Vendor has fully received the Fourth
      Payment pursuant to Section 3.5.

     

    

    
      5

      
        

    

    

    

    Article 4

      Share Transfer

    

    

    4.1          Subject to the Vendor’s receipt of collateral or other security acceptable to it in its sole discretion, the transfer of the Sale Shares shall take place on the date on which the Vendor
      has fully received the First Tranche, or such other dates designated by the Vendor after all conditions set forth in Article 5 are satisfied (or waived by the relevant Party), and at the primary office of the Company or other places as agreed by the
      Parties. For the avoidance of doubt, the SAMR registration as provided under Article 3.3 shall be completed after the Vendor’s receipt of such collateral or other security.

    

    

    4.2          (a) Without prejudice to any rights and entitlements of Vendor under this Agreement, any other document to which the Vendor is a party or otherwise as a matter of law, in the event that
      (i) the Purchaser fails to pay the full amount of any Payment within sixty (60) days after the corresponding Payment Date, or (ii) for whatever reason the Vendor fails to receive the full amount of the First Tranche by June 30, 2022 (each of (i) and
      (ii) is referred to as a “Put Triggering Event”), the Vendor may, at its sole election, immediately exercise the Put Option by serving the Party B Put Notice to the Purchaser.

    

    

    (b)           The Parties further agree that, by entering into this Agreement, for the purposes of paragraph (a) of this Article 4.2, such Party B Put Notice shall be deemed to
      have been served, and the Party B Expiration Date shall be the date on which a Put Triggering Event occurs.

    

    

    (c)           For the avoidance of doubt, (i) nothing contained in this Article 4.2 shall be interpreted to alter or release any of Purchaser’s obligations under this Agreement,
      the JV Contract or any other document to which the Purchaser is a party; and (ii) if the Vendor elects to exercise the Put Option, part or all of the amounts payable by the Purchaser under this Agreement shall be deemed as a part of the Put Price
      pursuant to Article 5.2.8(b) of the JV Contract.

    

    

    Article 5

      Conditions to Share Transfer

    

    

    5.1          The obligations of the Purchaser to pay to the Vendor the First Tranche shall be subject to the fulfillment or written waiver by the Parties, at or prior to the Transfer Date, of each of
      the following conditions:

    

    

    	

          	(a)	
            As of the Transfer Date, the Vendor shall not have materially breached this Agreement;

          

    

    

    
      6

      
        

    

    

    

    	

          	(b)	
            The release of the share pledge of the Sales Share; and

          

    

    

    	

          	(c)	
            The Transaction has been approved by the NDRC and registered with the SAMR.

          

    

    

    5.2          For avoidance of doubt, the Purchaser’s obligation to pay the Second Tranche shall not be conditioned upon the satisfaction of any condition precedent set out in Article 5.1.

    

    

    Article 6

      Representations And Warranties

    

    

    6.1          The Vendor hereby represents and warrants to the Purchaser that as of the date of this Agreement and the Transfer Date:

    

    

    	

          	(a)	
            it has been duly incorporated and is validly existing under the laws of its place of incorporation;

          

    

    

    	

          	(b)	
            it has valid, good and unencumbered title to the Sale Shares (except for any Encumbrance resulting from the Articles of Association of the Company and except as may be required to be pledged to EXIM or another consortium bank), and it has
              full right, power and authority to enter into and perform its obligations under this Agreement. Subject to the Purchaser’s compliance with Section 3.9, upon Vendor’s receipt of the First Tranche, the Purchaser will acquire valid and good
              title to the Sale Shares, free of any Encumbrance (except for any Encumbrance resulting from the Articles of Association of the Company and except as may be required to be pledged to EXIM or another consortium bank);

          

    

    

    	

          	(c)	
            this Agreement has been duly executed and delivered by the Vendor and constitutes legal and binding obligations of the Vendor enforceable against it in accordance with its terms. The Vendor’s execution, delivery and performance of this
              Agreement will not contravene, breach or violate or result in a contravention, violation or breach of (i) the memorandum and articles of association or other constitutive documents of the Vendor; (ii) the laws of the PRC or laws of any other
              jurisdiction which may otherwise be applicable to the Vendor or the transaction contemplated under this Agreement; or (iii) any agreement or other instrument binding upon the Vendor or any judgment, order or decree of any governmental body,
              agency or court having jurisdiction over the Vendor.

          

    

    

    
      7

      
        

    

    

    

    6.2          The Purchaser hereby represents and warrants to the Vendor that as of the date of this Agreement and the Transfer Date:

    

    

    	

          	(a)	
            it has been duly incorporated and is validly existing under the laws of its place of incorporation;

          

    

    

    	

          	(b)	
            it has full right, power and authority to enter into and perform its obligations under this Agreement;

          

    

    

    	

          	(c)	
            this Agreement has been duly executed and delivered by the Purchaser and constitutes legal and binding obligations of the Purchaser enforceable against it in accordance with its terms. The Purchaser’s execution, delivery and performance of
              this Agreement will not contravene, breach or violate or result in a contravention, violation or breach of (i) the articles of association of the Purchaser; (ii) the laws of the PRC or laws of any other jurisdiction which may otherwise be
              applicable to Purchaser or the transaction contemplated under this Agreement; or (iii) any agreement or other instrument binding upon the Purchaser or any judgment, order or decree of any governmental body, agency or court having jurisdiction
              over the Purchaser.

          

    

    

    Article 7

      Dispute Resolution

    

    

    7.1          The Parties shall make their efforts to resolve any disputes resulting from or relating to this Agreement through amicable negotiation. If the disputes cannot be resolved through
      negotiation within thirty (30) days after any Party serves a notice to other Parties, any Party may refer such dispute to arbitration in Beijing before China International Economic and Trade Arbitration Commission (“CIETAC”) in accordance with
      its arbitration rules then in effect. The arbitration tribunal shall consist of three (3) arbitrators. Each of the Parties shall have the right to appoint one (1) arbitrator. The third arbitrator shall be appointed by CIETAC. All arbitration
      proceedings shall be conducted in both English and Chinese languages, provided that if only one language is permitted, the proceedings shall be conducted in English. Any arbitration award rendered by the arbitration tribunal shall be final and
      binding upon the Parties. The arbitration costs, including attorney’s fees, shall be borne by the losing Party, unless otherwise specified in the arbitration award.

    

    

    7.2          In the process of resolving the disputes, the Parties shall continue exercising their rights and performing their obligations under this Agreement that are not affected in good faith,
      except for the disputed matters.

    

    

    Article 8

      Termination

     

      

    8.1          This Agreement may be terminated in writing by unanimous agreement of the Vendor and the Purchaser.

     

    

    
      8

      
        

    

    

    

    8.2          If (1) any of the obligations of any of the Parties under this Agreement which should have been fulfilled by such Party has not been duly and promptly performed in any material aspect or
      any of the Parties materially breaches this Agreement, or (2) any of the representations or warranties made by any of the Parties under this Agreement is or becomes apparent that any of such representations or warranties would be untrue, incorrect,
      incomplete or misleading in any material aspect, or any event occurs or matter arises which renders, or would render, any of the representations or warranties of any of the Parties under this Agreement untrue, incorrect, incomplete or misleading in
      any material aspect, then, in any such case, the other Party to which none of the foregoing situations has occurred (the “Non-Defaulting Party”) shall notify such default to the other Party (the “Defaulting Party”) requesting for the
      correction thereof within thirty (30) days. If the Defaulting Party fails to correct such default within the aforesaid thirty (30) days, the Non-Defaulting Party may, in its sole and absolute discretion, by notice in writing to the Defaulting Party,
      terminate this Agreement.

    

    

    8.3          Notwithstanding the foregoing, in no event shall the Purchaser unilaterally terminate this Agreement after the Transfer Date.

    

    

    8.4          The provisions of Article 7, this Article 8 and Article 9 shall survive the termination of this Agreement.

    

    

    Article 9

      General Provisions

    

    

    9.1          Governing Law.  This Agreement shall be governed by and construed exclusively in accordance with the laws of the PRC (excluding its choice of law rules).

    

    

    9.2          Effectiveness.  This Agreement shall take effect and be binding over the Parties hereto immediately upon its execution by the Parties.

    

    

    9.3          Confidentiality.  Unless otherwise agreed to in writing by the Parties, none of the Parties shall, directly or indirectly, disclose, or permit the disclosure of, to any third
      Person (i) the existence or content of this Agreement or of discussions regarding the transaction contemplated hereunder, (ii) any of the terms, conditions or other aspects of the transaction contemplated hereunder, or (iii) the status of performance
      of this Agreement, except (a) to advisors, agents, shareholders, limited partners, directors, officers or employees of the relevant Party and its Affiliates, (b) to financial institutions and banks whose consent or financing will be obtained for the
      transaction contemplated hereunder, (c) as may be compelled in a judicial or administrative proceeding or as otherwise required by law and regulation or pursuant to legal proceedings (in which case the disclosing Party shall notify the other Parties
      in writing promptly if lawfully permitted to do so), and (d) as may be required by government or regulatory authorities or stock exchanges or agencies that have jurisdiction over a Party (or its parent company) or the transaction contemplated
      hereunder (in which case the disclosing Party shall notify the other Parties in writing promptly thereof).

     

    

    
      9

      
        

    

    

    

    9.4          Successors and Assigns.  Except as otherwise specifically provided herein, this Agreement shall bind and inure to the benefit of each Party’s respective successors and permitted
      assigns; provided that no Party shall have any right to assign any of its rights hereunder or any interest herein without obtaining the written consent of the other Parties hereto to such assignment, and any
      purported assignment made without obtaining such written consent shall be null and void.

    

    

    9.5          Notices.  All notices under this Agreement shall be given in writing and shall be deemed to have been given upon delivery if delivered by hand or air courier, upon generation of
      confirmed receipt by the machine if sent by facsimile transmission, or on the seventh Business Day after mailing if sent by air mail, certified or registered mail, return receipt requested and postage prepaid, in each case to the address set forth
      below (or to such other address or addressee as a Party may specify by notice given hereunder);

    

    

    (a)          If to the Vendor

    

    

    	
            Address:

          	
            1 Temasek Avenue#37-02B

            Millenia Tower Singapore 039192

          
	
            Attention to:

          	
            Robert L. Rosen

          
	
            Tel:

          	
            (65) 6351 1788

          

    

    

    (b)          If to the Purchaser

    

    

    	
            Address:

          	
            Room 316, Building 9, 588 Feijiatang Road, Xiacheng District, Hangzhou City, Zhejiang Province, P.R.China, 310006

          
	
            Attention to:

          	
            Sun Li

          
	
            Tel:

          	
            (86) 136 0257 5157

          

    

    

    9.6          Severability.  Any provision of this Agreement that is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such
      prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall (to the full extent permitted by law) not invalidate or render unenforceable such provision
      in any other jurisdiction.

    

    

    9.7          Amendments.  Any term of this Agreement may be amended only with the written consent of the Parties.

    

    

    9.8          Counterparts.  This Agreement may be executed in any number of counterparts, each of which shall be an original but all of which together shall constitute one instrument. Each
      counterpart may consist of a number of copies hereof, each signed by less than all, but together signed by all, of the Parties hereto.

    

    

    9.9          Language.  This Agreement is written and executed in Chinese and English versions and both versions shall have equal validity.

    

    

    9.10        Taxes and Expenses.  Unless otherwise expressly provided in this Agreement, each Party hereto shall bear and be responsible for the payment of all taxes, government charges, costs
      and expenses it incurs in relation to the discussion, conclusion, delivery and performance of this Agreement.

    

    

    [Remainder of this page has been intentionally left blank]

     

    

    
      10

      
        

    

    

    

    IN WITNESS WHEREOF, the Parties hereto have caused this Sale and Purchase Agreement to be duly executed and delivered as of the day and year
      first above written.

    

    

    	
            Vendor:

             

            Quantum (2007) LLC

             

             

            By: /s/ Robert L. Rosen

            Name: Robert L. Rosen

            Title: CEO

             

          
	
            Purchaser:

             

            Hangzhou Chengmao Investment Co., Ltd.

             

            By: /s/ Sun Li

            Name: Sun Li/孙莉

            Title: Legal Representative

          

    

    

    
      
        

    

    
      

      

    

    Schedule A - Purchase Price Payment Schedule

    

    

    	
            Installment

          	
            Amount

            (RMB)

          	
            Percentage of the Aggregate Purchase Price

          	
            Payment Date

          
	
            Deposit

          	
            78,000,000

          	
            5%

          	
            earlier of (i) the date on which Company or any of its subsidiaries resumes its production and (ii) July 31, 2021

          
	
            First Payment (minus Deposit)

          	
            312,000,000

          	
            20%

          	
            September 30, 2021

          
	
            Second Payment

          	
            390,000,000

          	
            25%

          	
            March 31, 2022

          
	
            Third Payment

          	
            390,000,000

          	
            25%

          	
            September 30, 2022

          
	
            Fourth Payment

          	
            390,000,000

          	
            25%

          	
            March 31, 2023

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