Document:

Exhibit 4.1

 

First
Amendment to Rights Agreement

 

This
First Amendment to Rights Agreement (this “Amendment”) is made as of October 30, 2019, by
and among Highpower International, Inc., a Delaware corporation (the “Company”),
and Computershare Trust Company, N.A., successor rights agent to Corporate Stock Transfer, Inc., as the Rights
Agent (the “Rights Agent”).

 

Recitals

 

Whereas, on
September 12, 2017, the Company and Corporate Stock Transfer, Inc.  entered into a Rights Agreement (as amended or modified
from time to time, the “Rights Agreement”); and

  

Whereas,
 effective as of February 1, 2018, Company appointed Rights Agent as successor Rights Agent.

 

Whereas,
the Company entered into an Agreement and Plan of Merger dated as of June 28, 2019 (as amended, supplemented or otherwise modified
from time to time, and together with all exhibits and schedules thereto, the “Merger Agreement”), with
HPJ Parent Limited, an exempted company with limited liability incorporated under the laws of the Cayman Islands (“Parent”),
and HPJ Merger Sub Corp., a Delaware corporation and wholly-owned subsidiary of Parent (“Merger Sub”),
which provides for, among other things, the merger of Merger Sub with and into the Company with the Company surviving (the “Merger”);

 

Whereas,
Section 27 of the Rights Agreement provides that, prior to the Distribution Date (as defined in the Rights Agreement), the Company
may, in its sole and absolute discretion, and the Rights Agent shall if the Company so directs, supplement or amend any provision
of the Rights Agreement without the approval of any holders of the Rights;

 

Whereas,
as of the date hereof, no Distribution Date has occurred and no person is an Acquiring Person; and

 

Whereas,
in connection with the Merger, the Company desires to supplement and amend the Rights Agreement as provided herein.

 

Now,
Therefore, in consideration of these premises and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

 

1.       Amendment
of Rights Agreement.

 

a.       Section
1 of the Rights Agreement is hereby amended by adding the following term in alphabetical order:

 

“Merger Agreement”
means that certain Agreement and Plan of Merger dated as of June 28, 2019 (as amended, supplemented or otherwise modified from
time to time, and together with all exhibits and schedules thereto), among the Company, HPJ Parent Limited, an exempted company
with limited liability incorporated under the laws of the Cayman Islands, and HPJ Merger Sub Corp., a Delaware corporation and
wholly-owned subsidiary of Parent.”

 

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b.       Section
7(a) of the Rights Agreement is hereby amended and restated in its entirety as follows (bolded text included to show amendments
only):

 

“(a) Subject
to Section 7(e) hereof, at any time after the Distribution Date the registered holder of any Rights Certificate may exercise the
Rights evidenced thereby (except as otherwise provided herein including, without limitation, the restrictions on exercisability
set forth in Section 9(c), Section 11(a)(iii), and Section 23(a) hereof) in whole or in part upon surrender of the Rights Certificate,
with the form of election to purchase and the certificate contained therein properly completed and duly executed, to the Rights
Agent at the office or offices of the Rights Agent designated for such purpose, together with payment of the aggregate Purchase
Price with respect to the total number of one one-thousandths of a Preferred Share (or, following the occurrence of a Triggering
Event, Common Stock, other securities, cash or other assets, as the case may be) as to which such surrendered Rights are then exercisable,
at or prior to the earliest of (i) the Close of Business on September 20, 2020 (the “Final Expiration Date”), (ii)
the time at which the Rights are redeemed as provided in Section 23 hereof, (iii) the time at which the Rights are exchanged in
full as provided in Section 24 hereof and (iv) immediately prior to the Effective Time (as defined in the Merger Agreement)
of the Merger (as defined in the Merger Agreement) (but only if the Effective Time shall occur) (the earliest of (i), (ii),
(iii) and (iv) being herein referred to as the “Expiration Date”). Upon the Expiration Date, the Rights Agreement
and the Rights hereunder shall automatically terminate and the Company shall have no further obligation with respect thereto whatsoever,
except as to the Rights Agent.”

 

2.       Governing
Law. This Amendment shall be governed by and construed in accordance with the General Corporation Law of the State of Delaware
as to matters within the scope thereof, and as to all other matters shall be governed by and construed in accordance with the internal
laws of State of Delaware, without regard to its principles of conflicts of laws.

 

3.       Conflicts
with the Rights Agreement. The terms and provisions explicitly set forth herein shall modify and supersede
all inconsistent provisions set forth in the Rights Agreement, as amended. Except as expressly modified and superseded, the terms
and provisions of the Rights Agreement, as amended, are ratified and confirmed and shall continue in full force and effect and
shall continue to be legal, valid, binding and enforceable in accordance with its terms. Further, any references to the “entire
agreement” or similar term in the Rights Agreement shall be deemed to include this Amendment.

 

4.       Successors
and Assigns. The terms and conditions of this Amendment shall inure to the benefit of and be binding upon the respective
successors and assigns of the parties.

 

5.       Severability.
 In the event that any provision of this Amendment, or the application of any such provision to any person or set of circumstances,
shall be determined to be invalid, unlawful, void or unenforceable to any extent, the remainder of this Amendment, and the application
of such provision to persons or circumstances other than those as to which it is determined to be invalid, unlawful, void or unenforceable,
shall not be impaired or otherwise affected and shall continue to be valid and enforceable to the fullest extent permitted by law.

 

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6.       Amendments.
This Amendment may not be amended, modified, altered or supplemented other than by means of a written instrument duly executed
and delivered on behalf of each of the parties hereto.

 

7.       Entire
Agreement. This Amendment, together with the Rights Agreement, constitutes the full and entire understanding and agreement
between the parties with respect to the subject matter hereof, and any other written or oral agreement relating to the subject
matter hereof existing between the parties are expressly canceled.

 

8.       Counterparts;
Facsimile. This Amendment may be executed and delivered by facsimile signature and in two or more counterparts, each of
which shall be deemed an original, but all of which together shall constitute one and the same instrument. A signature to this
Amendment executed and/or transmitted electronically shall have the same authority, effect, and enforceability as an original signature

  

[SIGNATURE
PAGES FOLLOW]

 

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In
Witness Whereof, the undersigned have executed this Amendment as of the
date first above written.

 

	 	Highpower International, Inc.	 
	 	 	 	 
	 	 	 	 
	 	By:	/s/ Shengbin (Sunny) Pan	 
	 	 	Shengbin (Sunny) Pan	 
	 	 	Chief Financial Officer	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	Computershare Trust Company, N.A.	 
	 	 	 	 
	 	 	 	 
	 	By:	/s/
    Patrick Hayes	 
	 	Name:	Patrick Hayes	 
	 	Title:	Vice President and Manager	 

 

 

    	 	[Signature Page to Rights Agreement Amendment]Exhibit 4.2

 

HIGHPOWER INTERNATIONAL, INC.

AGREEMENT REGARDING CANCELLATION OF OPTIONS

 

This agreement ("Agreement") is
made and entered into as of October ___, 2019, by and between the undersigned ("Option Holder") and Highpower International,
Inc., a Delaware corporation ("Highpower"). Capitalized terms not otherwise defined herein shall have the meaning given
to them in the Merger Agreement, as defined below.

 

RECITALS

 

WHEREAS, Option Holder currently holds outstanding
Options (the "Options") to purchase the common stock of Highpower ("Highpower Common Stock") as set forth in
Attachment A hereto;

 

WHEREAS, Option Holder is aware that Highpower
has entered into an Agreement and Plan of Merger, dated June 28, 2019 (the “Merger Agreement”), by and among Highpower,
HPJ Parent Limited, an exempted company with limited liability incorporated under the laws of the Cayman Islands (“Parent”),
and HPJ Merger Sub Corp., a Delaware corporation and a wholly owned subsidiary of Parent (“Merger Sub” and together
with Parent, the “Parent Parties”), providing for the merger of Merger Sub into Highpower (the “Merger”)
and the conversion of the outstanding shares of Highpower in exchange for cash consideration consisting of the Per Share Merger
Consideration of $4.80 (as may be adjusted as provided in the Merger Agreement); and

 

WHEREAS, notwithstanding the provisions
of the Merger Agreement, Option Holder and Highpower have agreed to enter into agreements to cancel the outstanding Options to
purchase shares of Highpower Common Stock in exchange for no consideration.

 

NOW, THEREFORE, in consideration of the
foregoing and the mutual promises

and covenants contained herein, the parties agree as follows:

 

		1.	Option Holder agrees that the Options listed on Exhibit A are all of the outstanding stock options that Option Holder has been
granted by Highpower or any of its affiliates.

 

		2.	At the Effective Time, the Option Holder and Highpower agree that the Options shall irrevocably terminate and have no further
force or effect, including any right to Highpower Common Stock.

 

		3.	At the Effective Time, Option Holder hereby releases Highpower, the Parent Parties and their respective subsidiaries, boards
of directors, officers, employees, affiliates, agents, successors and assigns or representatives of any of the foregoing from any
and all obligations to Option Holder relating to the Options.

 

		4.	This Agreement shall be binding upon, inure to benefit of and be enforceable by the respective heirs, successors and assigns
of the parties hereto.

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		5.	This Agreement shall terminate forthwith in the event that the Merger Agreement is terminated in accordance with its terms
and the Options will remain in full force and effect.

 

		6.	Option Holder acknowledges that none of Highpower, the Parent Parties, any of their respective subsidiaries, boards of directors,
officers, employees, affiliates, agents, successors and assigns or representatives of the foregoing have provided the Option Holder
with any tax or financial advice or any guarantee of any particular tax treatment (including, without limitation, as it relates
to Section 409A of the U.S. Internal Revenue Code of 1986, as amended (“Code Section 409A”)), and Option Holder
further acknowledges that he or she has been advised to consult with his or her own tax, legal and financial advisers regarding
the tax, legal and financial consequences as a result of the cancellation of the Options and entering into this Agreement. None
of the Highpower, the Parent Parties, any of their respective subsidiaries, boards of directors, officers, employees, affiliates,
agents, successors and assigns or representatives of the foregoing shall have any liability with respect to taxes in respect of
the cancellation of the Options.

 

		7.	This Agreement shall be governed by, and construed in accordance with, the laws of the State of Delaware, regardless of the
laws that might otherwise govern under applicable principles of conflicts of laws thereof, as to all matters, including matters
of validity, construction, effect, performance and remedies.

 

 

[Signature Page Follows]

 

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IN WITNESS WHEREOF, this Agreement has
been duly executed and delivered by the undersigned as of the day and year first written above.

 

 

	OPTION HOLDER	 	HIGHPOWER INTERNATIONAL, INC.
	 	 	 
	Name:	 	 	By: 	 	 
	  	  	Name: Shengbin (Sunny) Pan
	 	 	 
	 	 	Title: Chief Financial Officer

 

 

 

[Signature Page to Option Cancellation
Agreement]

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ATTACHMENT A

 

Highpower International, Inc.

2008 Incentive Plan

Option Award Agreement

 

	Participant:	 	 
	 	 	 
	Date of Grant:	 	 
	 	 	 
	Number of Shares Covered by this Option:	 	 
	 	 	 
	Number of Shares Covered by the Options vested upon a Change of Control:	 	 
	 	 	 
	Number of above Shares intended to be incentive Stock Options (“ISOs”) within the meaning of Internal Revenue Code Section 422:	 	 
	 	 	 
	Number of above shares intended to be Nonqualified Stock Options (“NQSOs”):	 	 
	 	 	 
	Option Price for each Share:	 	 
	 	 	 
	Date of Expiration:	 	 

 

Highpower International, Inc.

2017 Omnibus Incentive Pan

Option Award Agreement

 

	Participant:	 	 
	 	 	 
	Date of Grant:	 	 
	 	 	 
	Number of Shares Covered by this Option:	 	 
	 	 	 
	Number of Shares Covered by the Options vested upon a Change of Control:	 	 
	 	 	 
	Number of above Shares intended to be incentive Stock Options (“ISOs”) within the meaning of Internal Revenue Code Section 422:	 	 
	 	 	 
	Number of above shares intended to be Nonqualified Stock Options (“NQSOs”):	 	 
	 	 	 
	Option Price for each Share:	 	 
	 	 	 
	Date of Expiration:	 	 

 

Attachment A to Option Cancellation Agreement

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