Document:

EX-4.2

 Exhibit 4.2 

PURSUANT TO THE TERMS OF SECTION 1 OF THIS WARRANT, ALL OR A PORTION OF THIS WARRANT MAY HAVE BEEN EXERCISED, AND THEREFORE THE ACTUAL NUMBER OF WARRANT
SHARES REPRESENTED BY THIS WARRANT MAY BE LESS THAN THE AMOUNT SET FORTH ON THE FACE HEREOF. 
 THIS WARRANT IS VOID AFTER 5:00 PM, EASTERN TIME ON
JANUARY 31, 2023. 
 ONE STOP SYSTEMS INC. 

WARRANT TO PURCHASE COMMON STOCK 

Warrant No.: 2018-UW-01     

Number of Shares of Common Stock: 
 Date of Issuance:
February 1, 2018 (“Issuance Date”) 
 One Stop Systems, Inc. a Delaware corporation (the “Company”),
hereby certifies that, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Roth Capital Partners, LLC, the registered holder hereof or its permitted assigns (the “Holder”), is entitled,
subject to the terms set forth below, to purchase from the Company, at the Exercise Price (as defined below) then in effect, upon surrender of this Warrant to Purchase Common Stock (including any Warrants to Purchase Common Stock issued in exchange,
transfer or replacement hereof, the “Warrant”), at any time or times on or after the Issuance Date (the “Exercisability Date”), but not after 5:00 p.m., Eastern time, on the Expiration Date (as defined below),
380,000 fully paid and non-assessable shares of Common Stock (the “Warrant Shares”). Except as otherwise defined herein, capitalized terms in this Warrant shall have the meanings set forth in
Section 15. This Warrant is one of the Underwriter Warrants to Purchase Common Stock (this “Warrant”) issued pursuant to (i) Section 3(d) of the Underwriting Agreement, dated as of
February 1, 2018, by and between the Company and Roth Capital Partners, LLC, as representative of the Underwriters (the “Underwriting Agreement”) and (ii) the Company’s Registration Statement on Form S-1 File No.: 333-222121). This Warrant is one of a series of warrants containing substantially identical terms and conditions issued pursuant to Section 3(d) of the
Underwriting Agreement (collectively, the “Warrants”). 
 1. EXERCISE OF WARRANT. 

(a) Mechanics of Exercise. Subject to the terms and conditions hereof (including, without limitation, the limitations set forth in
Section 1(e)), this Warrant may be exercised by the Holder on any day on or after the Exercisability Date, in whole or in part (but not as to fractional shares), by delivery of a written notice, in the form attached hereto as Exhibit A
(the “Exercise Notice”) of the Holder’s election to exercise this Warrant. No ink-original Notice of Exercise shall be required, nor shall any medallion guarantee (or other type of
guarantee or notarization) of any Notice of Exercise form be required. The Holder shall, upon delivery of such Exercise Notice, pay to the Company an amount equal to the applicable Exercise Price multiplied by the number of Warrant Shares as to
which this Warrant is being 

  
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exercised (the “Aggregate Exercise Price”) in cash or wire transfer of immediately available funds. The Holder shall not be required to surrender this Warrant in order to effect
an exercise hereunder; provided, however, that in the event that this Warrant is exercised in full or for the remaining unexercised portion hereof, the Holder shall deliver this Warrant to the Company for cancellation within a reasonable time after
such exercise, but in any event within five (5) Trading Days of the delivery of the Exercise Notice. On or before the first (1st) Trading Day following the date on which the Company has
received the Exercise Notice and the Aggregate Exercise Price (the date upon which the Company has received the Exercise Notice and the Aggregate Exercise Price, the “Exercise Date”), the Company shall transmit by facsimile or e-mail transmission an acknowledgment of confirmation of receipt of the Exercise Notice to the Holder and the Company’s transfer agent for the Common Stock (the “Transfer Agent”). The Company
shall deliver any objection to the Exercise Notice on or before the second (2nd) Trading Day following the date on which the Company has received the Exercise Notice. On or before the third (3rd) Trading Day following the date on which the Company has received the Exercise Notice and the Aggregate Exercise Price (the “Share Delivery Date”), the Company shall,
(X) provided that the Transfer Agent is participating in The Depository Trust Company (“DTC”) Fast Automated Securities Transfer Program (the “FAST Program”) and so long as the certificates therefor are
not required to bear a legend regarding restriction on transferability, upon the request of the Holder, credit such aggregate number of shares of Common Stock to which the Holder is entitled pursuant to such exercise to the Holder’s or its
designee’s balance account with DTC through its Deposit Withdrawal Agent Commission system, or (Y), if the Transfer Agent is not participating in the FAST Program or if the certificates are required to bear a legend regarding restriction on
transferability, issue and dispatch by overnight courier to the address as specified in the Exercise Notice, a certificate, registered in the Company’s share register in the name of the Holder or its designee, for the number of shares of Common
Stock to which the Holder is entitled pursuant to such exercise. Upon delivery of the Exercise Notice and payment of the Aggregate Exercise Price, the Holder shall be deemed for all corporate purposes to have become the holder of record of the
Warrant Shares with respect to which this Warrant has been exercised, irrespective of the date such Warrant Shares are credited to the Holder’s DTC account or the date of delivery of the certificates evidencing such Warrant Shares, as the case
may be. If this Warrant is submitted in connection with any exercise pursuant to this Section 1(a) and the number of Warrant Shares represented by this Warrant submitted for exercise is greater than the number of Warrant Shares being acquired
upon an exercise, then the Company shall as soon as practicable and in no event later than three (3) Trading Days after any such submission and at its own expense, issue a new Warrant (in accordance with Section 7(d)) representing the
right to purchase the number of Warrant Shares purchasable immediately prior to such exercise under this Warrant, less the number of Warrant Shares with respect to which this Warrant has been and/or is exercised, and shall deliver such new Warrant
to the Holder within three (3) Trading Days of the Holder’s surrender of the exercised Warrant to the Company. The Company shall pay any and all taxes and other expenses of the Company (including overnight delivery charges) that may be
payable with respect to the issuance and delivery of Warrant Shares upon exercise of this Warrant; provided, however, that the Company shall not be required to pay any tax which may be payable in respect of any transfer involved in the
registration of any certificates for Warrant Shares or Warrants in a name other than that of the Holder or an affiliate thereof. The Holder shall be responsible for all other tax liability that may arise as a result of holding or transferring this
Warrant or receiving Warrant Shares upon exercise hereof. 

  
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 (b) Exercise Price. For purposes of this Warrant, “Exercise Price” means
$6.00 per share of Common Stock, subject to adjustment as provided herein. 
 (c) Company’s Failure to Timely Deliver
Securities. If the Company shall fail for any reason or for no reason to issue to the Holder within five (5) Trading Days of the Exercise Date a certificate for the number of shares of Common Stock to which the Holder is entitled and
register such shares of Common Stock on the Company’s share register or to credit the Holder’s balance account with DTC for such number of shares of Common Stock to which the Holder is entitled upon the Holder’s exercise of this
Warrant, and if on or after such fifth (5th) Trading Day the Holder is required by its broker to purchase (in an open market transaction or otherwise) or the Holder’s brokerage firm otherwise
purchases shares of Common Stock to deliver in satisfaction of a sale by the Holder of shares of the Warrant Shares that the Holder anticipated receiving from the Company upon such exercise (a
“Buy-In”), then the Company shall, within three (3) Trading Days after the Holder’s written request and in the Holder’s discretion, either (i) pay cash to the
Holder in an amount equal to the Holder’s total purchase price (including brokerage commissions, if any) for the shares of Common Stock so purchased (the “Buy-In Price”), at
which point the Company’s obligation to deliver such certificate (and to issue such Warrant Shares) shall terminate, or (ii) promptly honor its obligation to deliver to the Holder a certificate or certificates representing such Warrant
Shares and pay cash to the Holder in an amount equal to the excess (if any) of the Buy-In Price over the product of (A) such number of shares of Common Stock, times (B) the Weighted Average Price (as
reported by Bloomberg) on the date of the event giving rise to the Company’s obligation to deliver such certificate. 
 (d)
Disputes. In the case of a dispute as to the determination of the Exercise Price or the arithmetic calculation of the Warrant Shares, the Company shall promptly issue to the Holder the number of Warrant Shares that are not disputed. 

(e) Beneficial Ownership. The Company shall not effect the exercise of this Warrant, and the Holder shall not have the right to
exercise this Warrant, to the extent that after giving effect to such exercise, such Person (together with such Person’s affiliates) would beneficially own in excess of 4.99% (the “Maximum Percentage”) of the shares of Common
Stock outstanding immediately after giving effect to such exercise. For purposes of the foregoing sentence, the aggregate number of shares of Common Stock beneficially owned by such Person and its affiliates shall include the number of shares of
Common Stock issuable upon exercise of this Warrant with respect to which the determination of such sentence is being made, but shall exclude shares of Common Stock which would be issuable upon (i) exercise of the remaining, unexercised portion
of this Warrant beneficially owned by such Person and its affiliates and (ii) exercise or conversion of the unexercised or unconverted portion of any other securities of the Company beneficially owned by such Person and its affiliates
(including, without limitation, any convertible notes or convertible preferred stock or warrants) subject to a limitation on conversion or exercise analogous to the limitation contained herein. Except as set forth in the preceding sentence, for
purposes of this paragraph, beneficial ownership shall be calculated in accordance with Section 13(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), it being acknowledged that the Company is not
representing to the Holder that such calculation is in compliance with Section 13(d) of the Exchange Act, and the Holder is solely responsible for any schedules required to be filed in accordance therewith.. For

  
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purposes of this Warrant, in determining the number of outstanding shares of Common Stock, the Holder may rely on the number of outstanding shares of Common Stock as reflected in the most recent
of (1) the Company’s most recent Form 10-K, Form 10-Q, Current Report on Form 8-K or other public filing with the
Securities and Exchange Commission, as the case may be, (2) a more recent public announcement by the Company or (3) any other notice by the Company or the Transfer Agent setting forth the number of shares of Common Stock outstanding. For
any reason at any time, upon the written or oral request of the Holder, where such request indicates that it is being made pursuant to this Warrant, the Company shall within two (2) Trading Days confirm to the Holder the number of shares of
Common Stock then outstanding. In any case, the number of outstanding shares of Common Stock shall be determined after giving effect to the conversion or exercise of securities of the Company, including this Warrant, by the Holder and its affiliates
since the date as of which such number of outstanding shares of Common Stock was reported. By written notice to the Company, the Holder may from time to time increase or decrease the Maximum Percentage to any other percentage not in excess of 9.99%
specified in such notice; provided that (i) any such increase will not be effective until the sixty-first (61st) day after such notice is delivered to the Company, and (ii) any such increase or decrease will apply only to the Holder and
not to any other holder of the Warrants. The provisions of this paragraph shall be construed and implemented in a manner otherwise than in strict conformity with the terms of this Section 1(g) to correct this paragraph (or any portion hereof)
which may be defective or inconsistent with the intended beneficial ownership limitation herein contained or to make changes or supplements necessary or desirable to properly give effect to such limitation. 

2. ADJUSTMENT OF EXERCISE PRICE AND NUMBER OF WARRANT SHARES. The Exercise Price and the number of Warrant Shares shall be adjusted
from time to time as follows: 
 (a) Voluntary Adjustment by Company. The Company may, but shall have no obligation to, at any time
during the term of this Warrant reduce the then current Exercise Price to any amount and for any period of time deemed appropriate by the Board of Directors of the Company. 

(b) Adjustment upon Subdivision or Combination of Common Stock. If the Company at any time on or after the Issuance Date subdivides
(by any stock split, stock dividend, recapitalization, reorganization, scheme, arrangement or otherwise) one or more classes of its outstanding shares of Common Stock into a greater number of shares, the Exercise Price in effect immediately prior to
such subdivision will be proportionately reduced and the number of Warrant Shares will be proportionately increased. If the Company at any time on or after the Issuance Date combines (by any stock split, stock dividend, recapitalization,
reorganization, scheme, arrangement or otherwise) one or more classes of its outstanding shares of Common Stock into a smaller number of shares, the Exercise Price in effect immediately prior to such combination will be proportionately increased and
the number of Warrant Shares will be proportionately decreased. Any adjustment under this Section 2(b) shall become effective at the close of business on the date the subdivision or combination becomes effective. 

(c) Other Events. If any event occurs of the type contemplated by the provisions of this Section 2 but not expressly provided for
by such provisions (including, without limitation, the granting of stock appreciation rights or phantom stock rights), then the Company’s 

  
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Board of Directors will make an appropriate adjustment in the Exercise Price and the number of Warrant Shares so as to protect the rights of the Holder; provided that no such adjustment pursuant
to this Section 2(c) will increase the Exercise Price or decrease the number of Warrant Shares as otherwise determined pursuant to this Section 2. 

3. [RESERVED]. 
 4. PURCHASE
RIGHTS; FUNDAMENTAL TRANSACTIONS. 
 (a) Purchase Rights. In addition to any adjustments pursuant to Section 2 above, if at
any time prior to the Expiration Date the Company grants, issues or sells any Options, Convertible Securities or rights to purchase stock, warrants, securities or other property to the record holders of any class of Common Stock on a pro rata basis
(the “Purchase Rights”), then the Holder will be entitled to acquire, upon the terms applicable to such Purchase Rights, the aggregate Purchase Rights which the Holder could have acquired if the Holder had held the number of shares
of Common Stock acquirable upon complete exercise of this Warrant (without regard to any limitations on the exercise of this Warrant) immediately before the date on which a record is taken for the grant, issuance or sale of such Purchase Rights, or,
if no such record is taken, the date as of which the record holders of shares of Common Stock are to be determined for the grant, issue or sale of such Purchase Rights. 

(b) Fundamental Transactions. The Company shall not enter into or be party to a Fundamental Transaction unless the Successor Entity
assumes in writing (unless the Company is the Successor Entity) all of the obligations of the Company under this Warrant in accordance with the provisions of this Section (4)(b) pursuant to written agreements in form and substance reasonably
satisfactory to the Required Holders and approved by the Required Holders prior to such Fundamental Transaction, including agreements to deliver to each holder of the Warrants in exchange for such Warrants a security of the Successor Entity
evidenced by a written instrument substantially similar in form and substance to this Warrant, including, without limitation, an adjusted exercise price equal to the value for the shares of Common Stock reflected by the terms of such Fundamental
Transaction, and exercisable for a corresponding number of shares of capital stock equivalent to the shares of Common Stock acquirable and receivable upon exercise of this Warrant (without regard to any limitations on the exercise of this Warrant)
prior to such Fundamental Transaction, and reasonably satisfactory to the Required Holders. Upon the occurrence of any Fundamental Transaction, the Successor Entity shall succeed to, and be substituted for (so that from and after the date of such
Fundamental Transaction, the provisions of this Warrant referring to the “Company” shall refer instead to the Successor Entity), and may exercise every right and power of the Company and shall assume all of the obligations of the Company
under this Warrant with the same effect as if such Successor Entity had been named as the Company herein. Upon consummation of the Fundamental Transaction, the Successor Entity shall deliver to the Holder confirmation that there shall be issued upon
exercise of this Warrant at any time after the consummation of the Fundamental Transaction, in lieu of the shares of Common Stock (or other securities, cash, assets or other property) issuable upon the exercise of the Warrant prior to such
Fundamental Transaction, such shares of the publicly traded common stock or common shares (or its equivalent) of the Successor Entity (including its Parent Entity) which the Holder would have been entitled to receive upon the happening of such
Fundamental Transaction had this Warrant been converted immediately prior to such Fundamental 

  
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Transaction, as adjusted in accordance with the provisions of this Warrant. In addition to and not in substitution for any other rights hereunder, prior to the consummation of any Fundamental
Transaction pursuant to which holders of shares of Common Stock are entitled to receive securities or other assets with respect to or in exchange for shares of Common Stock (a “Corporate Event”), the Company shall make appropriate
provision to insure that the Holder will thereafter have the right to receive upon an exercise of this Warrant at any time after the consummation of the Corporate Event but prior to the Expiration Date, in lieu of shares of Common Stock (or other
securities, cash, assets or other property) purchasable upon the exercise of this Warrant prior to such Corporate Event, such shares of stock, securities, cash, assets or any other property whatsoever (including warrants or other purchase or
subscription rights) which the Holder would have been entitled to receive upon the happening of such Corporate Event had this Warrant been exercised immediately prior to such Corporate Event. Provision made pursuant to the preceding sentence shall
be in a form and substance reasonably satisfactory to the Required Holders. 
 (c) Applicability to Successive Transactions. The
provisions of this Section shall apply similarly and equally to successive Fundamental Transactions and Corporate Events and shall be applied without regard to any limitations on the exercise of this Warrant. 

5. NONCIRCUMVENTION. The Company hereby covenants and agrees that the Company will not, by amendment of its Certificate of
Incorporation, Bylaws or through any reorganization, transfer of assets, consolidation, merger, scheme of arrangement, dissolution, issuance or sale of securities, or any other voluntary action, avoid or seek to avoid the observance or performance
of any of the terms of this Warrant, and will at all times in good faith comply with all the provisions of this Warrant and take all actions consistent with effectuating the purposes of this Warrant. Without limiting the generality of the foregoing,
the Company (i) shall not increase the par value of any shares of Common Stock receivable upon the exercise of this Warrant above the Exercise Price then in effect, (ii) shall take all such actions as may be necessary or appropriate in
order that the Company may validly and legally issue fully paid and nonassessable shares of Common Stock upon the exercise of this Warrant, and (iii) shall, so long as this Warrant is outstanding, take all action necessary to reserve and keep
available out of its authorized and unissued shares of Common Stock, solely for the purpose of effecting the exercise of this Warrant, the number of shares of Common Stock which are then issuable upon exercise of this Warrant (without regard to any
limitations on exercise). 
 6. WARRANT HOLDER NOT DEEMED A STOCKHOLDER. Except as otherwise specifically provided herein, the
Holder, solely in such Person’s capacity as a holder of this Warrant, shall not be entitled to vote or receive dividends or be deemed the holder of share capital of the Company for any purpose, nor shall anything contained in this Warrant be
construed to confer upon the Holder, solely in such Person’s capacity as the Holder of this Warrant, any of the rights of a stockholder of the Company or any right to vote, give or withhold consent to any corporate action (whether any
reorganization, issue of stock, reclassification of stock, consolidation, merger, conveyance or otherwise), receive notice of meetings, receive dividends or subscription rights, or otherwise, prior to the issuance to the Holder of the Warrant Shares
which such Person is then entitled to receive upon the due exercise of this Warrant. In addition, nothing contained in this Warrant shall be construed as imposing any liabilities on the Holder to purchase any securities (upon exercise of this
Warrant or otherwise) or as a stockholder of the Company, whether such liabilities are asserted by the Company or by creditors of the Company. 

  
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 7. REISSUANCE OF WARRANTS. 

(a) Transfer of Warrant. If this Warrant is to be transferred, the Holder shall surrender this Warrant to the Company and deliver the
completed and executed Assignment Form, in the form attached hereto as Exhibit B, whereupon the Company will forthwith issue and deliver upon the order of the Holder a new Warrant (in accordance with Section 7(d)), registered as the
Holder may request, representing the right to purchase the number of Warrant Shares being transferred by the Holder and, if less then the total number of Warrant Shares then underlying this Warrant is being transferred, a new Warrant (in accordance
with Section 7(d)) to the Holder representing the right to purchase the number of Warrant Shares not being transferred. The acceptance of the new Warrant by the transferee thereof shall be deemed the acceptance by such transferee of all of the
rights and obligations in respect of the new Warrant that the Holder has in respect of this Warrant. 
 (b) Lost, Stolen or Mutilated
Warrant. Upon receipt by the Company of evidence reasonably satisfactory to the Company of the loss, theft, destruction or mutilation of this Warrant, and, in the case of loss, theft or destruction, of any indemnification undertaking by the
Holder to the Company in customary form and, in the case of mutilation, upon surrender and cancellation of this Warrant, the Company shall execute and deliver to the Holder a new Warrant (in accordance with Section 7(d)) representing the right
to purchase the Warrant Shares then underlying this Warrant. 
 (c) Exchangeable for Multiple Warrants. This Warrant is
exchangeable, upon the surrender hereof by the Holder at the principal office of the Company, for a new Warrant or Warrants (in accordance with Section 7(d)) representing in the aggregate the right to purchase the number of Warrant Shares then
underlying this Warrant, and each such new Warrant will represent the right to purchase such portion of such Warrant Shares as is designated by the Holder at the time of such surrender; provided, however, that no Warrants for fractional shares of
Common Stock shall be given. 
 (d) Issuance of New Warrants. Whenever the Company is required to issue a new Warrant pursuant to
the terms of this Warrant, such new Warrant (i) shall be of like tenor with this Warrant, (ii) shall represent, as indicated on the face of such new Warrant, the right to purchase the Warrant Shares then underlying this Warrant (or in the
case of a new Warrant being issued pursuant to Section 7(a) or Section 7(c), the Warrant Shares designated by the Holder which, when added to the number of shares of Common Stock underlying the other new Warrants issued in connection with
such issuance, does not exceed the number of Warrant Shares then underlying this Warrant), (iii) shall have an issuance date, as indicated on the face of such new Warrant which is the same as the Issuance Date, and (iv) shall have the same
rights and conditions as this Warrant. 
 8. NOTICES. Whenever notice is required to be given under this Warrant, unless otherwise
provided herein, such notice shall be given in writing, will be mailed (a) if within the domestic United States by first-class registered or certified airmail, or nationally 

  
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recognized overnight express courier, postage prepaid, or by facsimile or (b) if delivered from outside the United States, by International Federal Express or facsimile, and (c) will be
deemed given (i) if delivered by first-class registered or certified mail domestic, three (3) Business Days after so mailed, (ii) if delivered by nationally recognized overnight carrier, one (1) Business Day after so mailed,
(iii) if delivered by International Federal Express, two (2) Business Days after so mailed and (iv) if delivered by facsimile, upon electronic confirmation of receipt, and will be delivered and addressed as follows: 

(i) if to the Company, to: 

One Stop Systems, Inc. 
 2235
Enterprise Street #110 
 Escondido, California 92029 

Attn: Chief Executive Officer 

Email: scooper@onestopsystems.com 

with a copy to: 
 Procopio,
Cory, Hargreaves & Savitch LLP 
 12544 High Bluff Drive, Suite 300 

San Diego, California 92130 

Attn: Dennis Doucette 
 Email:
dennis.doucette@procopio.com 
 (ii) if to the Holder, at the address of the Holder appearing on the books of the Company. 

9. AMENDMENT AND WAIVER. Except as otherwise provided herein, the provisions of this Warrant may be amended and the Company may take
any action herein prohibited, or omit to perform any act herein required to be performed by it, only if the Company has obtained the written consent of the Required Holders. Any such amendment shall apply to all Warrants and be binding upon all
registered holders of such Warrants. 
 10. GOVERNING LAW; CONSENT TO JURISDICTION; WAIVER OF JURY TRIAL. This Warrant shall be
governed by, and construed in accordance with, the internal laws of the State of California, without reference to the choice of law provisions thereof. The Company and, by accepting this Warrant, the Holder, each irrevocably submits to the exclusive
jurisdiction of the courts of the State of California located in Orange County and the United States District Court for the Central District of California for the purpose of any suit, action, proceeding or judgment relating to or arising out of this
Warrant and the transactions contemplated hereby. Service of process in connection with any such suit, action or proceeding may be served on each party hereto anywhere in the world by the same methods as are specified for the giving of notices under
this Warrant. The Company and, by accepting this Warrant, the Holder, each irrevocably consents to the jurisdiction of any such court in any such suit, action or proceeding and to the laying of venue in such court. The Company and, by accepting this
Warrant, the Holder, each irrevocably waives any objection to the laying of venue of any such suit, action or proceeding brought in such courts and irrevocably waives any claim that any such 

  
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suit, action or proceeding brought in any such court has been brought in an inconvenient forum. EACH OF THE COMPANY AND, BY ITS ACCEPTANCE HEREOF, THE HOLDER HEREBY WAIVES ANY RIGHT TO REQUEST
A TRIAL BY JURY IN ANY LITIGATION WITH RESPECT TO THIS WARRANT AND REPRESENTS THAT COUNSEL HAS BEEN CONSULTED SPECIFICALLY AS TO THIS WAIVER. 

11. CONSTRUCTION; HEADINGS. This Warrant shall be deemed to be jointly drafted by the Company and the Holder and shall not be construed
against any person as the drafter hereof. The headings of this Warrant are for convenience of reference and shall not form part of, or affect the interpretation of, this Warrant. 

12. DISPUTE RESOLUTION. In the case of a dispute as to the determination of the Exercise Price or the arithmetic calculation of the
Warrant Shares, the Company shall submit the disputed determinations or arithmetic calculations via email or facsimile within two (2) Trading Days of receipt of the Exercise Notice giving rise to such dispute, as the case may be, to the Holder.
If the Holder and the Company are unable to agree upon such determination or calculation of the Exercise Price or the Warrant Shares within five (5) Trading Days of such disputed determination or arithmetic calculation being submitted to the
Holder, then the Company shall, within two (2) Trading Days submit via email or facsimile (a) the disputed determination of the Exercise Price to an independent, reputable investment bank selected by the Company and approved by the Holder,
which approval shall not be unreasonably withheld, or (b) the disputed arithmetic calculation of the Warrant Shares to the Company’s independent, outside accountant. The Company shall cause the investment bank or the accountant, as the
case may be, to perform the determinations or calculations and notify the Company and the Holder of the results no later than ten (10) Trading Days from the time it receives the disputed determinations or calculations. The prevailing party
(which, for purposes of this Warrant, is the party whose determinations or calculations is closest to those of the investment bank or the accountant, as the case may be) in any dispute resolved pursuant to this Section 12 shall be entitled to
the full amount of all reasonable expenses, including all costs and fees paid or incurred in good faith, in relation to the resolution of such dispute. Such investment bank’s or accountant’s determination or calculation, as the case may
be, shall be binding upon all parties absent demonstrable error. 
 13. REMEDIES, OTHER OBLIGATIONS, BREACHES AND INJUNCTIVE RELIEF.
The remedies provided in this Warrant shall be cumulative and in addition to all other remedies available under this Warrant, at law or in equity (including a decree of specific performance and/or other injunctive relief), and nothing herein shall
limit the right of the Holder to pursue actual damages for any failure by the Company to comply with the terms of this Warrant. 
 14.
TRANSFER. Subject to applicable laws and the restrictions set forth in this paragraph, this Warrant may be offered for sale, sold, transferred or assigned without the consent of the Company. The Holder agrees that, pursuant to the Lock-Up Period (as defined below) contained in Rule 5110(g)(1) of the Financial Industry Regulatory Authority, Inc. (“FINRA”), it will not (a) sell, transfer, assign, pledge, hypothecate or
otherwise transfer this Warrant (including any Warrant Shares issued or issuable hereunder) other than to a bona fide officer or partner of the Holder or any selected dealer in connection with the offering contemplated by the Underwriting Agreement,
in each case in accordance with FINRA Conduct Rule 5110(g)(1), or 

  
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(b) cause this Warrant or any Warrant Shares issued or issuable hereunder to be the subject of any hedging, short sale, derivative, put or call transaction that would result in the effective
economic disposition of this Warrant or any Warrant Shares issued or issuable hereunder, except as provided for in FINRA Rule 5110(g)(2). As used herein, the term “Lock-Up Period” means the
period beginning on the date that the registration statement registering this Warrant is declared effective by the Securities and Exchange Commission (the “Effective Date”) and ending on the one hundred eighty (180) day
anniversary of the Effective Date. Neither this Warrant, nor the shares of common stock underlying this Warrant, include separate demand or piggy-back registration rights. In addition, notwithstanding the other terms of this Warrant or any agreement
between the Company and the Holder, the Holder agrees that, as required by FINRA Rule 5110(f)(2)(G): (i) this Warrant may not be exercised more than five years from the Effective Date; (ii) this Warrant may not have anti-dilution terms that
allow the Holder and related persons to receive more shares or to exercise at a lower price than originally agreed upon at the time of the public offering, when the public shareholders have not been proportionally affected by a stock split, stock
dividend, or other similar event; and (iii) this Warrant may not have anti-dilution terms that allow the Holder and related persons to receive or accrue cash dividends prior to the exercise or conversion of the security. 

15. CERTAIN DEFINITIONS. For purposes of this Warrant, the following terms shall have the following meanings: 

(a) “Bloomberg” means Bloomberg Financial Markets. 

(b) “Business Day” means any day other than Saturday, Sunday or other day on which commercial banks in The City of New York
are authorized or required by law to remain closed. 
 (c) “Common Stock” means (i) the Company’s shares of
Common Stock, par value $0.0001 per share, and (ii) any share capital into which such Common Stock shall have been changed or any share capital resulting from a reclassification of such Common Stock. 

(d) “Convertible Securities” means any stock or securities (other than Options) directly or indirectly convertible into or
exercisable or exchangeable for shares of Common Stock. 
 (e) “Eligible Market” means the Principal Market, The New York
Stock Exchange, Inc., The NYSE MKT, The NASDAQ Global Market or The NASDAQ Global Select Market. 
 (f) “Expiration Date”
means 5:00 pm Eastern time on January 31, 2023, and will not exceed five years from the effective date of the offering contemplated by the Underwriting Agreement, pursuant to FINRA Rule 5110(f)(2)(G)(i). 

(g) “Fundamental Transaction” means that the Company shall, directly or indirectly, in one or more related transactions,
(i) consolidate or merge with or into (whether or not the Company is the surviving corporation) another Person (but excluding a migratory merger effected solely for the purpose of changing the jurisdiction of incorporation of

  
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the Company), or (ii) sell, assign, transfer, convey or otherwise dispose of all or substantially all of the properties or assets of the Company to another Person, or (iii) allow
another Person to make a purchase, tender or exchange offer that is accepted by the holders of more than the 50% of the outstanding shares of Common Stock (not including any shares of Common Stock held by the Person or Persons making or party to, or
associated or affiliated with the Persons making or party to, such purchase, tender or exchange offer), or (iv) consummate a stock purchase agreement or other business combination (including, without limitation, a reorganization,
recapitalization, spin-off or scheme of arrangement) with another Person whereby such other Person acquires more than 50% of the outstanding shares of Common Stock (not including any shares of Common Stock
held by the other Person or other Persons making or party to, or associated or affiliated with the other Persons making or party to, such stock purchase agreement or other business combination), (v) reorganize, recapitalize or reclassify its Common
Stock, or (vi) any “person” or “group” (as these terms are used for purposes of Sections 13(d) and 14(d) of the Exchange Act) is or shall become the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of 50% of the aggregate ordinary voting power represented by issued and outstanding Common Stock. 

(h) “Options” means any rights, warrants or options to subscribe for or purchase shares of Common Stock or Convertible
Securities. 
 (i) “Parent Entity” of a Person means an entity that, directly or indirectly, controls the applicable
Person and whose common stock or equivalent equity security is quoted or listed on an Eligible Market, or, if there is more than one such Person or Parent Entity, the Person or Parent Entity with the largest public market capitalization as of the
date of consummation of the Fundamental Transaction. 
 (j) “Person” means an individual, a limited liability company, a
partnership, a joint venture, a corporation, a trust, an unincorporated organization, any other entity and a government or any department or agency thereof. 

(k) “Principal Market” means The NASDAQ Capital Market. 

(l) “Required Holders” means, as of any date, the holders of at least a majority of the Warrants outstanding as of such
date. 
 (m) “Successor Entity” means the Person (or, if so elected by the Holder, the Parent Entity) formed by, resulting
from or surviving any Fundamental Transaction or the Person (or, if so elected by the Holder, the Parent Entity) with which such Fundamental Transaction shall have been entered into. 

(n) “Trading Day” means any day on which the Common Stock is traded on the Principal Market, or, if the Principal Market is
not the principal trading market for the Common Stock, then on the principal securities exchange or securities market on which the Common Stock is then traded; provided that “Trading Day” shall not include any day on which the
Common Stock is scheduled to trade on such exchange or market for less than 4.5 hours or any day that the Common Stock is suspended from trading during the final hour of trading on such exchange or market (or if such exchange or market does not
designate in advance the closing time of trading on such exchange or market, then during the hour ending at 4:00:00 p.m., Eastern time). 

  
 - 11 - 

 (o) “Weighted Average Price” means, for any security as of any date, the dollar
volume-weighted average price for such security on the Principal Market during the period beginning at 9:30:01 a.m., Eastern time (or such other time as the Principal Market publicly announces is the official open of trading), and ending at 4:00:00
p.m., Eastern time (or such other time as the Principal Market publicly announces is the official close of trading), as reported by Bloomberg through its “Volume at Price” function or, if the foregoing does not apply, the dollar
volume-weighted average price of such security in the over-the-counter market on the electronic bulletin board for such security during the period beginning at 9:30:01
a.m., Eastern time (or such other time as the Principal Market publicly announces is the official open of trading), and ending at 4:00:00 p.m., Eastern time (or such other time as the Principal Market publicly announces is the official close of
trading), as reported by Bloomberg, or, if no dollar volume-weighted average price is reported for such security by Bloomberg for such hours, the average of the highest closing bid price and the lowest closing ask price of any of the market makers
for such security as reported in the “pink sheets” by OTC Markets Group, Inc. If the Weighted Average Price cannot be calculated for a security on a particular date on any of the foregoing bases, the Weighted Average Price of such security
on such date shall be the fair market value as mutually determined by the Company and the Holder. If the Company and the Holder are unable to agree upon the fair market value of such security, then such dispute shall be resolved pursuant to
Section 12 with the term “Weighted Average Price” being substituted for the term “Exercise Price.” All such determinations shall be appropriately adjusted for any stock dividend, stock split, stock combination or other
similar transaction during the applicable calculation period. 
 [Signature Page Follows] 

  
 - 12 - 

 IN WITNESS WHEREOF, the Company has caused this Warrant to Purchase Common Stock to be
duly executed as of the Issuance Date set out above. 
  

							
		 		 	ONE STOP SYSTEMS, INC.
				
		 		 	By:	 	 /s/ Steve Cooper

		 		 	Name:	 	Steve Cooper
		 		 	Title:	 	Chief Executive Officer

 EXHIBIT A 

EXERCISE NOTICE 
 TO BE
EXECUTED BY THE REGISTERED HOLDER TO EXERCISE THIS 
 WARRANT TO PURCHASE COMMON STOCK 

ONE STOP SYSTEMS, INC. 

The undersigned holder hereby exercises the right to
purchase                of the shares of Common Stock (“Warrant Shares”) of One Stop Systems, Inc., a Delaware corporation (the
“Company”), evidenced by the attached Warrant to Purchase Common Stock (the “Warrant”). Capitalized terms used herein and not otherwise defined shall have the respective meanings set forth in the Warrant. 

1. Payment of Exercise Price. The holder shall pay the Aggregate Exercise Price in the sum of
$                 to the Company in accordance with the terms of the Warrant. 

2. Delivery of Warrant Shares. The Company shall deliver to the holder
                 Warrant Shares in accordance with the terms of the Warrant and, after delivery of such Warrant Shares,
                     Warrant Shares remain subject to the Warrant. 

3. Representations and Warranties. By its delivery of this Exercise Notice, the undersigned represents and warrants to the Company that
in giving effect to the exercise evidenced hereby the Holder will not beneficially own in excess of the number of shares of Common Stock (determined in accordance with Section 13(d) of the Securities Exchange Act of 1934, as amended) permitted
to be owned under Section 1(d) of this Warrant to which this notice relates. 
  

			
	Date:	 	                                ,    
        
	  
  

    Name of Registered Holder

  

					
	By:	 	  

		 	Name:	 	
		 	Title:	 	

 (Signature must conform in all respects to 

name of the Holder as specified on the face of 
 the Warrant) 

  
 A-1 

 EXHIBIT B 

ASSIGNMENT FORM 
 ONE
STOP SYSTEMS, INC. 
 (To assign the foregoing Warrant, execute this form and supply required information. Do not use this form to
purchase shares.) 
 FOR VALUE RECEIVED, the foregoing Warrant and all rights evidenced thereby are hereby assigned to 

 

			
	 Name:
  
	  	  
 (Please Print)

		  	
	 Address:
  
	  	  
 (Please Print)

	Dated:                            ,        
    	  	
		
	Holder’s Signature:                            	  	
		
	Holder’s Address:                              	  	

 NOTE: The signature to this Assignment Form must correspond with the name as it appears on the face of the Warrant, without
alteration or enlargement or any change whatever. Officers of corporations and those acting in a fiduciary or other representative capacity should file proper evidence of authority to assign the foregoing Warrant. 

  
 A-1Blueprint

 

MANUFACTURING AGREEMENT

 

 

This Manufacturing Agreement (the “Agreement”) is effective February ____, 2017 (the
“Effective
Date”),

BETWEEN:

 

	
 

 

 

	

ELECTRAMECCANICA VEHICLES CORP., an entity incorporated
under the laws of the Province of British Columbia, Canada, with an
address of Suite 102 East 1st Avenue, Vancouver, British Columbia,
Canada, V5T 1A4 (“EMV”);

 

	

AND:

	

CHONGQING
ZONGSHEN AUTOMOBILE INDUSTRY CO., LTD., a company organized and
existing under the laws of China, with its head office located
at:

Zongshen
Industry Zone Banan District, Chongqing PC:
400054(“Manufacturer”)

	
 

	
 

	
 

	

ELECTRAMECCANICA VEHICLES CORP., (
“EMV”),Suite
102 East 1st Avenue, Vancouver, British Columbia, Canada, V5T
1A4

	
 

	
 

 

Recitals:

 

WHEREAS EMV has expended considerable time, effort, and resources
in the business of designing, manufacturing and selling electronic
vehicles; and

EMV在设计、

WHEREAS the Manufacturer desires to manufacture the Products and
represents to EMV that Manufacturer has sufficient expertise,
resources, and personnel to perform its obligations under this
Agreement; and

 

WHEREAS EMV desires to have Manufacturer act as a manufacturer of
the Products on the terms and conditions set forth
herein.

EMV。

Therefore, in consideration of the mutual covenants and promises
contained herein, the parties hereto agree as follows:

 

 

* Confidential treatment has been requested for certain portions of
this Exhibit. The confidential portions of this Exhibit have been
omitted and filed separately with the Securities and Exchange
Commission. Such portions have been marked with “****”
at the exact place where material has been omitted.

 

1

 

 

 

 

1.

DEFINITIONS

 

“GAAP” means International Accounting Standards
as promulgated by the International Accounting Standards Board
consistently applied.

 

“Lead-time” is defined as the amount of time between
Manufacturer receiving an order and EMV receipt of the goods
ordered. The ordering processes are listed in Section
4.

 

"Products" shall mean the electric vehicle named
Solo, together with any accompanying documentation, packaging, or
other materials identified (if any). The parties may add or delete
Products on mutual agreement.

 

"Proprietary
Rights" shall mean all rights
of EMV and its licensors in the Products including, without
limitation and whether registered or
unregistered other
than as required under this agreement,
copyright, patent, design patent, trademark, trade dress, trade
secret, and publicity rights, arising under applicable law and
international conventions.

 

“Purchase
Order” means a written
order submitted by EMV to purchase a specific quantity of a Product
or Products in accordance with this Agreement. Each Purchase Order
shall include the quantity and type of Products to be manufactured
and purchased; the unit price; the Product revision level;
scheduled delivery dates; and “sold to,” “invoice
to,” and “ship to” address.

 

"Specifications"
means the functional, appearance, fit-and-finish and performance
specifications (including,without limitation, bills of
materials, schematic diagrams, and Product, component and assembly
drawings) relating to the testing and manufacturing of each
confirmed Product by both parties as provided in writing by EMV to the
Manufacturer from time to
time.

 

"Territory" shall be defined as the
People’s Republic of China。

 

2.

MANUFACTURING

 

2.1

Manufacturing License

 

License to
Specifications. Subject to the
terms of this Agreement, subject to Manufacturer meeting
EMV’s requirements for quality, price and lead-time,
EMV hereby grants Manufacturer an exclusive, non-transferable,
license (without the right to
sublicense) under EMV's Proprietary Rights in the Territory, during the
term of this Agreement, to use the Specifications solely for the
purpose of manufacturing the Products to fulfil Purchase Orders for
EMV.

 

 

* Confidential treatment has been requested for certain portions of
this Exhibit. The confidential portions of this Exhibit have been
omitted and filed separately with the Securities and Exchange
Commission. Such portions have been marked with “****”
at the exact place where material has been omitted.

 

2

 

 

 

 

License to EMV
Firmware. Subject to the terms
of this Agreement, subject to Manufacturer meeting EMV’s
requirements for quality, price and lead-time, EMV hereby
grants Manufacturer an exclusive, non-transferable, license
(without the right to sublicense)
under EMV's Proprietary Rights in the Territory, during the term of
this Agreement, to copy the EMV firmware as may be provided by EMV
from time to time onto Product units in the manufacturing process
at each EMV-approved Manufacturer manufacturing
facility.

 

Subject to the terms of this Agreement, EMV grants
to Manufacturer and Manufacturer accepts, for the term of this
Agreement, the right to manufacture the Products only in the
Territory as necessary to fulfil Purchase Orders for
Products made by EMV, provided that such manufacturing is at
Manufacturer's own cost for the purchase of the components of each
order as well as assembling cost for finished products and in
accordance with this Agreement.

 

2.2 Specifications

 

2.2.1 Specification

 

EMV
shall provide the Manufacturer with the Specifications of the
Product pursuant to the terms of this Agreement, including 2D
drawing of the components (including material, surface treatment,
quality standard and testing item etc.), 3D drawing (including
detailed structure design), and the Manufacturer shall implement
development and manufacturing of the Product only in accordance
with the Specifications. In addition, EMV shall provide the
Manufacturer with the performance testing criteria and items for
the vehicle.

 

2.2.2

 

Manufacturer shall keep detailed manufacturing
records for all units manufactured. Manufacturer's manufacturing
records shall be available to EMV during spot checks and site
inspections pursuant to Section 2.4, and upon request to
allow EMV to provide such information to certification authorities
as may be required.

 

2.2.3

 

Manufacturer agrees
not to alter the Products from the Specifications (including
without limitation their packaging) without EMV's prior written
consent. EMV agrees not to alter the Products produced by
Manufacturer (including, without limitation their packaging)
without Manufacturer’s prior written consent.

 

 

* Confidential treatment has been requested for certain portions of
this Exhibit. The confidential portions of this Exhibit have been
omitted and filed separately with the Securities and Exchange
Commission. Such portions have been marked with “****”
at the exact place where material has been omitted.

 

3

 

 

 

 

2.2.4

 

Manufacturer warrants to EMV that the Products assembled or
manufactured by Manufacturer will (i) conform in all respects
to their Specifications; (ii) will be merchantable, of good
material and workmanship, with respect to such assembly or
manufacture under normal use and service for three (3) years from
the manufacture and assembly of the Products, not including
the easily worn parts, list to be confirmed by both
parties.

 

2.3 

Preferred Vendors

 

For the key components, including battery, motor, controller, the
Manufacturer shall provide the optional vendors list to EMV
according to the capability of the vendors in the Territory. EMV
shall specify in writing the preferred vendors list for specific
component parts for each of the Products, which may also differ by
market based on required standards for such markets. Manufacturer
shall acknowledge such preferred vendor component list in writing
and warrants that for each component for which preferred vendors
are specified such components shall only be sourced from the
preferred vendors specified by EMV for each
component. Upon an update of the preferred vendor component list by
either party, EMV and the Manufacture will negotiate and agree to
the updated vendor as well as price and lead time for the
Product(s) based on any such sourcing changes.

 

For the
components which are not key components, by its sole discretion,
the Manufacturer can determine the vendors list according to the
capability of the vendors and warrant the vendors can meet the
manufacturing standard of EMV.

 

2.4 Testing and Inspections

 

Spot
Testing. Upon prior written
notice to Manufacturer, EMV or its authorized representative(s) may
conduct spot functional tests of the Products at Manufacturer's
facility at which Products are being manufactured during
Manufacturer's normal business hours. The parties will mutually
agree upon the timing of such investigations, which will be
conducted in such a manner as not to unduly interfere with
Manufacturer's operations. If any Products fail any part of the
test procedure set forth on the Specifications, EMV may require
such Products to be rejected, and Manufacturer will promptly take
all steps necessary to correct such failures at its
expense.

 

Site
Inspections. Upon prior written
notice to Manufacturer, and subject to the confidentiality
provisions herein, EMV will have the right to perform on-site
inspections at Manufacturer's manufacturing facilities and
Manufacturer will fully cooperate with EMV in that regard at
mutually agreed upon times. If an inspection or test is made on
Manufacturer's premises, Manufacturer will provide EMV's inspectors
with reasonable assistance at no additional charge. In the event
that any on-site inspection of the Products indicates that the
Products do not conform to the requirements of this Agreement,
Manufacturer will not ship such Products until such nonconformity
has been cured and only Products meeting the conformance criteria
may be shipped.

 

 

* Confidential treatment has been requested for certain portions of
this Exhibit. The confidential portions of this Exhibit have been
omitted and filed separately with the Securities and Exchange
Commission. Such portions have been marked with “****”
at the exact place where material has been omitted.

 

4

 

 

 

 

2.5

Quality Assurance

 

Quality
Plan. Manufacturer will
establish, maintain and manage a quality assurance program for the
Products that is reasonable for the industry and sufficient to
achieve compliance with the Specifications. The parties will
prepare a final product quality evaluation form, and the Products
will not be shipped until the parties jointly inspect the quality
and complete such forms.

 

2.6

Engineering Changes.

 

ECOs. Either EMV or Manufacturer may, from time to
time, submit written requests to the other, for engineering change
orders ("ECOs") for changes to the Products. ECOs will include
documentation of the change to effectively support an investigation
of the impact of the engineering change. The Parties agree to
discuss the ECO within one month following the request for the ECO.
The parties agree that __1___ month is a reasonable
time period to permit Manufacturer to
evaluate ECO impact regarding potential excess manufacturing costs
and price, if any, and non-recurring costs, if
any.

 

No Changes. No changes will be made to the Products without
EMV's prior written consent and no approved change will be made
effective prior to the date approved by EMV in writing.
Manufacturer will not change or modify the processes for the
Products without EMV's prior written consent. Manufacturer will
reimburse EMV for all expenses incurred by EMV to qualify changes
to such materials or processes that are undertaken by Manufacturer
without EMV's prior written consent.

 

2.7

Limitations

 

Title
to all Proprietary Rights shall at all times be and remain with EMV
and its licensors. Except as expressly authorized by EMV in
writing, Manufacturer will not, and will legally require its
employees and agents not to: (i) modify, translate, reverse
engineer, decompile, disassemble, create derivative works of or
copy EMV Products or related documentation; (ii) remove, alter, or
cover any copyright or trademark notices or other proprietary
rights notices placed by EMV on or in the Products.

 

2.8

Exclusivity

 

The
manufacturing license granted in this Agreement is exclusive within
the Territory.

 

2.9

Packaging, Advertising and Promotion

 

Manufacturer
shall include the information provided by EMV in the packaging in
which the Products are sold and shall modify any of the packaging
if requested by EMV.

 

2.10

Reserved Rights

 

Except
as expressly provided in this Agreement, EMV does not grant any
right to Manufacturer to (a) use, copy, or display (except for
promotional purposes) the Products; (b) assign, sublicense, or
otherwise transfer its rights or delegate its obligations under
this Agreement or any of the rights, licenses, Products, or
materials to which it applies; or (c) modify, amend, alter or
otherwise vary the Products.

 

 

* Confidential treatment has been requested for certain portions of
this Exhibit. The confidential portions of this Exhibit have been
omitted and filed separately with the Securities and Exchange
Commission. Such portions have been marked with “****”
at the exact place where material has been omitted.

 

5

 

 

 

 

3. SHARING OF
INVESTMENT投资的分摊

 

3.1
Each of EMV and Manufacturer shall be responsible for certain
expenses, for the purposes of carrying out the development of
Products, in the following manner:

 

	

Activity

	

Contribution
(In Percentage)

	

EMV

	

Manufacturer

	

Design
and Development Costs

 

	

****%

	

****%

	

Manufacturing
equipment(including improvement on existing equipment)

	
 

	

****%

	

Road
Test and Laboratory Tests

 

	

****% by EMV for all the road test &
laboratory test during R&D stage before finalizing design of
overall vehicle and parts by EMV

	

****% by Manufacturer for all the road test & laboratory
test during mass production stage to reach the technical standard
after finalizing design of overall vehicle and parts by
EMV.

 

	

Homologation fees
for vehicle and spare parts

	

****% for EMV’s market.

 

	

 

****% for Manufacturer’s
market.

 

	

Mould
& tooling cost

	

****%

	

****%

 

3.2 The investment of production
preparation

 

The
Manufacturer will review and consider the Specifications and the
Products provided by EMV, and shall deliver to EMV a list and
estimated expense of all necessary equipment, mould, tooling, and
performance experiments. Manufacturer will not purchase or develop
any such equipment, mould or tooling, and EMV shall bear no such
related expense, until EMV has approved of such estimated
expenses.

 

 

* Confidential treatment has been requested for certain portions of
this Exhibit. The confidential portions of this Exhibit have been
omitted and filed separately with the Securities and Exchange
Commission. Such portions have been marked with “****”
at the exact place where material has been omitted.

 

6

 

 

 

 

3.3

 

Both
parties agree with the following timetable for the payment of the
mould & tooling cost:

	

Item

	

Percentage to be paid by EMV

	

When
Manufacturer begins making mould & tooling

 

	

 50 % of the total mould & tooling cost

50%

	

When Manufacturer completes mould & tooling

 

	

 40 % of the total mould & tooling cost

 

	

Delivery of the 1st
serial production
order

 

	

 10% of the total mould & tooling cost

 

 

3.4 Target Purchase Volume

 

Under this Agreement, subject to Manufacturer meeting EMV’s
requirements for quality, price and lead-time and being granted the
manufacturing license hereunder, the minimum purchase volume of the
Product (Solo) is 50,000 units within the period of three (3) years
(calendar year of 2018, 2019, 2020). In case that EMV fails to
reach the target volume within the specified period of the
agreement, EMV shall reimburse the Manufacturer the investment of
the equipment by the percentage of unachieved volume.

 

In
addition, during the valid period of this agreement, EMV guarantee
the annual purchase volume will be not less than the purchase
volume of the previous year.

 

4.

FORECASTS
AND PURCHASE ORDERS

 

4.1 Forecasts.

 

On a
periodic basis, EMV shall provide Manufacturer with a latest
_6_month
rolling forecast of Product
requirements (“Forecast”), as currently anticipated pursuant to
Exhibit A.

 

 

* Confidential treatment has been requested for certain portions of
this Exhibit. The confidential portions of this Exhibit have been
omitted and filed separately with the Securities and Exchange
Commission. Such portions have been marked with “****”
at the exact place where material has been omitted.

 

7

 

 

 

 

4.2

Purchase Orders.

 

EMV will order Products by issuing Purchase Orders to Manufacturer.
Each Purchase Order will include, at a minimum, quantities
of Product required and the price and Lead-time/requested delivery
dates. Manufacturer will confirm whether receipt of, and accept,
all Purchase Orders conforming hereto within seven (_7_) business days
of receipt for the orders started from the 2nd quarter of 2018.
The Manufacturer may need more time to confirm the trial orders at
the 1st
quarter of 2018. Manufacturer shall base such confirmations on its
manufacturing capability and spare reasonable business efforts to
satisfy all Purchase Orders that substantially conform with the
most recent Forecast issued by
EMV.

 

For purposes of this Agreement, Purchase Orders must be submitted
to Manufacturer, either via mail or electronic mail, to the
following address:

 

CHONGQING
ZONGSHEN AUTOMOBILE INDUSTRY CO., LTD.

Zongshen
Industry Zone Ba’nan District, Chongqing CHINA

400054

Email:
●

Phone:
+86 ●

Mobile:
+86 ●

 

Manufacturer will notify EMV for any change of the mailing address,
email address and the sales coordinator.

 

4.3

Manufacturer Assessment

 

Based on the Forecast, EMV and Manufacturer shall meet at least
quarterly to set and update mutually agreeable key performance
targets in a variety of areas including, without
limitations, annual pricing, Lead-time, quality and on-time delivery. EMV shall evaluate
Manufacturer’s performance against such targets and the
parties shall agree corrective actions.

 

4.4

Response Time.

 

Manufacturer shall make commercially reasonable efforts to
manufacture and deliver Products in accordance with the Purchase
Orders issued by EMV. If Manufacturer is unable to meet the
delivery schedule set forth in a Purchase Order,
Manufacturer shall notify EMV within_seven (_7_) business days
following EMV’s issuance of such
Purchase Order. If Manufacturer subsequently becomes aware of
circumstances that may lead to delays in delivery, Manufacturer
shall notify EMV as soon as reasonably
possible.

 

The Manufacturer will make commercially reasonable efforts to
deliver Products on or prior to the delivery date indicated on the
Purchase Order (the “Delivery
Target”). In order for a
Product to be included as an on time delivery each Product needs to
also meet all Specifications. The assessment of whether the
Delivery Target has been achieved shall be calculated on a per
shipment basis.

 

 

* Confidential treatment has been requested for certain portions of
this Exhibit. The confidential portions of this Exhibit have been
omitted and filed separately with the Securities and Exchange
Commission. Such portions have been marked with “****”
at the exact place where material has been omitted.

 

8

 

 

 

 

4.5

Order Adjustments.

 

4.5.1

Order Quantity Adjustment

 

After Manufacturer’s acceptance of Purchase Order, in case of
order quantity adjustment within the lead time set forth in
each Purchase Order, EMV shall inform
Manufacturer in written form as soon as reasonably possible.
Manufacturer will use commercially reasonable efforts to meet
increases/decreases requested by EMV, and will quote any applicable
charges resulting from changes in costs associated with such
quantity adjustment following the issuance of a Purchaser Order.
EMV shall bear such charges, subject to an updated Purchase Order
being signed by both parties.

 

4.5.2

Order
Specification Adjustment

 

After
Manufacturer’s acceptance of Purchase Order, in case of order
specification adjustment within the lead time set forth in each
Purchase Order, EMV shall inform Manufacturer in written form as
soon as reasonably possible. Manufacturer will use commercially
reasonable efforts to meet changes requested by EMV, and will quote
any applicable charges resulting from changes in costs and lead
time associated with such specification adjustment. EMV shall bear
such charges, subject to an updated Purchase Order being signed by
both parties. In the event that any such specification adjustment
results in Manufacturer accumulating stock, which is no longer
suitable for use by Manufacturer in mass production, EMV shall
reimburse the costs actually incurred by Manufacturer.

 

 

4.6

Rescheduling of Delivery Date

 

EMV may reschedule the delivery of Products by sending Manufacturer
a written change order pursuant to the schedule set forth in
each Purchase Order. Manufacturer
agrees to use commercially reasonable efforts to accommodate
requests for rescheduling (acceleration and delay), and before
accepting such rescheduling requests, will quote any applicable
charges resulting from changes in costs associated with such
rescheduling, which charges shall be the sole responsibility
of EMV, subject to an updated Purchase Order being signed by both
parties.

 

4.7

Cancellations

 

In the event that EMV desires to cancel some quantity of Products
ordered under a Purchase Order, Manufacturer shall, upon receipt of
such written notice, stop work to the extent specified
therein. EMV agrees to pay Manufacturer for completed work and work-in-process, under the
same terms and conditions as set out in section 5 below, that
cannot be used to fill other orders, including Manufacturer’s
costs for actual and reasonable labor and supplies incurred
pursuant to Purchase Orders [up to the date of receipt of notice of
cancellation].

 

 

* Confidential treatment has been requested for certain portions of
this Exhibit. The confidential portions of this Exhibit have been
omitted and filed separately with the Securities and Exchange
Commission. Such portions have been marked with “****”
at the exact place where material has been omitted.

 

9

 

 

 

 

4.8

Cancellation Documentation

 

Manufacturer will provide EMV with documentation adequate to
support such claim for cancellation charges. Notwithstanding the
foregoing, EMV shall have no obligation to pay cancellation charges
where cancellations are the result of any failure of Manufacturer
to perform its obligations under this Agreement. Upon payment of
the cancellation charges, all Products, components,
work-in-process, non-useable, and non-returnable/non-cancelable
components in-house or on order shall become the property of EMV.
Upon the request of EMV, all such Products, components, and
work-in-process shall be shipped to EMV in accordance with the
shipment terms below. The parties should use commercially
reasonable efforts to resolve any disagreement for the cancellation
charges or cancellation issues.

 

3

COMMERCIAL
CLAUSE

 

5

 

5.1

Invoices and Payment

 

5.1.1
EMV shall pay 30% of total amount of a Purchase Order as a deposit
after Manufacturer receives EMV’s order, and then
Manufacturer shall schedule the production.

5.1.2 Manufacturer will invoice EMV for Products
net ten (10) days from when the parties sign the Quality Evaluation
Form to confirm delivery of Products.

5.1.3
EMV shall pay 70% of total amount of a Purchase Order within ten
(10) days of receipt of Manufacturer’s invoice as provided in
Section 5.1.2 above.

5.1.4
The product settlement shall be in Chinese Yuan.

 

5.2

Pricing

 

The
price of Products will be determined by both parties at the
beginning of each calendar year.

 

The
Manufacturer shall have the right to make modifications to Product
pricing during a given year when the prices of raw materials,
within the order cycle, experience massive variations in prices
(massive variations in prices refer to the monthly average price
changes of five main raw materials: steel, aluminum, copper,
composite materials, engineering plastics exceed 5% from window
query of Chinese futures trading), upon providing EMV with not less
than sixty (60) days’ notice of such price change, provided
that no such price changes will apply to any Purchase Order already
submitted by EMV at such time, or within such sixty (60) day
period.

 

Subject
to the above, if there is a change on export tax policy in China,
the Manufacturer shall inform EMV in writing as soon as possible
and both parties shall confirm any price changes and Purchase
Orders which will be applied with new price prior to any change in
price being effective.

 

 

* Confidential treatment has been requested for certain portions of
this Exhibit. The confidential portions of this Exhibit have been
omitted and filed separately with the Securities and Exchange
Commission. Such portions have been marked with “****”
at the exact place where material has been omitted.

 

10

 

 

 

 

5.3

Packaging
and Shipping.

 

Manufacturer shall package each Product in accordance with
EMV’s Specifications, or, if not specified by EMV, in
accordance with generally accepted commercial standards. All
shipments made by Manufacturer to EMV or to EMV’ customers
shall be in accordance with the shipping term stated in EMV’s
Purchase Order. Shipments will be made in accordance with
EMV’s specific routing instructions, including method of
carrier to be used. EMV shall be responsible for all shipping costs
resulting from the shipment of Products in accordance with its
Purchase Orders.

 

5.4

Taxes.

 

EMV shall be responsible for customs taxes or duties resulting from
the sale or shipment of Products in accordance with its Purchase
Orders.

Manufacturer shall be responsible for value added, sales and use or
similar taxes levied by the Peoples Republic of China resulting
from the acquisition of components used in the manufacture of
Products in accordance with the Purchase Orders.

 

5.5

Shipping
Reports.

 

Manufacturer shall provide written shipping reports to EMV for each
delivery. Such reports shall include information concerning all
shipments of Products on that day, including type of Products,
quantities, and name/address of shipping destination.

 

5.6

Inspection and Claim

 

EMV has the right to examine the goods on arrival and has Fifteen
(15) business days to notify Manufacturer of any claim for
damages on account of the condition, grade or quality of the goods,
or non-conformity to the Specifications. The notice must set forth
the basis of the claim in reasonable detail. EMV acknowledges that
failure to notify Manufacturer of a claim within specified period
in reasonable detail shall constitute acceptance of the
goods.

Within 15 working days upon receiving the Claim Notice from EMV,
the Manufacturer shall analyze and respond to the Claim. The
Manufacturer shall promptly replace or repair, at its sole expense,
any defective Products arising from the assembly or manufacturing
by the Manufacturer due to failure of the set Standard and
Specification within the Product Warranty Period, including
without limitations related shipping expenses. The replacement
parts are preferred to be shipped by
vessel together with the next shipment of mass production order.
Shipment by air will be confirmed by both parties in emergency
case.

 

 

* Confidential treatment has been requested for certain portions of
this Exhibit. The confidential portions of this Exhibit have been
omitted and filed separately with the Securities and Exchange
Commission. Such portions have been marked with “****”
at the exact place where material has been omitted.

 

11

 

 

 

 

5

MARKETING
REGIONS销售区域s
of this Exhibit. The confidential portions of this Exhibit have
been omitted and filed separately with the Securities and Exchange
Commission. Such portions have been marked with “****”
at the exact place where material has been omitted.

 

12

 

 

 

 

8.3 Automatic Termination

 

This
Agreement shall be terminated automatically, without notice, (i)
upon the institution by or against either party of insolvency,
receivership or bankruptcy proceedings, (ii) upon either parties
making an assignment for the benefit of creditors, or (iii) upon
either parties dissolution.

 

8.4 Effect of Termination

 

Upon
the termination of this Agreement by either party: (i) the rights
and licenses granted to Manufacturer pursuant to this Agreement
(including, without limitation the right to manufacture) will
automatically cease; (ii) all payments owing from EMV to
Manufacturer shall become immediately due and payable upon
termination; (iii) all EMV trademarks, marks, trade names, patents,
copyrights, designs, drawings, formulae or other data, photographs,
samples, literature, and sales aids of every kind shall remain the
property of EMV; and (iv) within sixty (_60_) business days after the
termination of this Agreement, Manufacturer shall prepare all such
items in its possession for shipment, as EMV may direct, at EMV's
expense. Manufacturer shall not make or retain any copies of any
confidential items or information which may have been entrusted to
it.

 

8.5 Survival Provisions

 

If this
Agreement is terminated for any reason, those provisions which by
their nature would survive such termination, including without
limitations section 9 and section 10, will survive termination.
Termination shall not affect any other rights which either party
may have at law or in equity.

 

 

9.

CONFIDENTIALITY

 

9.1 Definitions

 

For
purposes of this Agreement, "Confidential Information" of a party
means information or materials disclosed or otherwise provided by
such party ("Disclosing Party") to the other party ("Receiving
Party") that are marked or otherwise identified as confidential or
proprietary, or which are known or ought to be known to be their
nature or the nature of disclosure to be confidential.

Without
limitation of the generality of the foregoing, and notwithstanding
any exclusions described below, "Confidential Information" of EMV
includes the EMV Proprietary Rights, including any portion thereof,
modifications and derivatives thereof, and information or materials
derived therefrom.

 

 

* Confidential treatment has been requested for certain portions of
this Exhibit. The confidential portions of this Exhibit have been
omitted and filed separately with the Securities and Exchange
Commission. Such portions have been marked with “****”
at the exact place where material has been omitted.

 

13

 

 

 

 

9.2 Use of Confidential Information

 

The
Receiving Party shall not use Confidential Information of the
Disclosing Party for any purpose other than in furtherance of this
Agreement and the activities described herein. The Receiving Party
shall not disclose Confidential Information of the Disclosing Party
to any third parties except as otherwise permitted hereunder. The
Receiving Party may disclose Confidential Information of the
Disclosing Party only to those employees, contractors or
consultants who have a need to know such Confidential Information
and who are bound to retain the confidentiality thereof under
provisions (including, without limitation, provisions relating to
non-use and nondisclosure) no less strict than those required by
the Receiving Party for its own comparable Confidential
Information. The Receiving Party shall maintain Confidential
Information of the Disclosing Party with at least the same degree
of care it uses to protect its own proprietary information of a
similar nature or sensitivity, but no less than reasonable care
under the circumstances. Any copies of the Disclosing Party's
Confidential Information shall be identified as belonging to the
Disclosing Party and prominently marked
"Confidential."

 

9.3 Exemptions

 

Notwithstanding
the foregoing, the Receiving Party’s confidentiality
obligations will not apply to Confidential Information which (i) is
already in the Receiving Party’s possession at the time of
disclosure to the Receiving Party, (ii) is or becomes part of
public knowledge other than as a result of any action or inaction
of the Receiving Party, (iii) is obtained by the Receiving Party
from an unrelated third party without a duty of confidentiality, or
(iv) is independently developed by the Receiving
Party.

 

9.4 Judicial Action

 

This
Agreement will not prevent the Receiving Party from disclosing
Confidential Information of the Disclosing Party to the extent
required by a judicial order or other legal obligation, provided
that, in such event, the Receiving Party shall promptly notify the
Disclosing Party to allow intervention (and shall cooperate with
the Disclosing Party) to contest or minimize the scope of the
disclosure (including application for a protective order). Each
party shall advise the other party in writing of any
misappropriation or misuse of Confidential Information of the other
party of which the notifying party becomes aware.

 

9.5 Remedies

 

Each
party (as Receiving Party) acknowledges that the Disclosing Party
considers its Confidential Information to contain trade secrets of
the Disclosing Party and that any unauthorized use or disclosure of
such information would cause the Disclosing Party irreparable harm
for which its remedies at law would be inadequate. Accordingly,
each party (as Receiving Party) acknowledges and agrees that the
Disclosing Party shall be entitled, in addition to any other
remedies available to it at law or in equity, to the issuance of
injunctive relief, without bond, enjoining any breach or threatened
breach of the Receiving Party's obligations hereunder with respect
to the Confidential Information of the Disclosing Party, and such
further relief as any court of competent jurisdiction may deem just
and proper.

 

 

* Confidential treatment has been requested for certain portions of
this Exhibit. The confidential portions of this Exhibit have been
omitted and filed separately with the Securities and Exchange
Commission. Such portions have been marked with “****”
at the exact place where material has been omitted.

 

14

 

 

 

 

9.6 Expiration of Agreement

 

Upon
(i) the expiration of this Agreement or termination of this
Agreement by mutual agreement of the parties, or (ii) termination
of the Manufacturer's rights under Section 8, above, each party (as
Receiving Party) shall immediately return to the Disclosing Party
all Confidential Information of the Disclosing Party embodied in
tangible (including electronic) form, or, at the option of the
Disclosing Party, certify in writing to the Disclosing Party that
all such Confidential Information has been destroyed.

 

9.7 Exceptions

 

Each
party agrees that the terms and conditions of this Agreement shall
be treated as Confidential Information of the other party; provided
that each party may disclose the terms and conditions of this
Agreement: (i) as required by judicial order or other legal
obligation, provided that, in such event, the party subject to such
obligation shall promptly notify the other party to allow
intervention (and shall cooperate with the other party) to contest
or minimize the scope of the disclosure (including application for
a protective order); (ii) as required by the applicable securities
laws, including, without limitation, requirements to file a copy of
this Agreement (redacted to the extent reasonably permitted by
applicable law) or to disclose information regarding the provisions
hereof or performance hereunder; (iii) in confidence, to legal
counsel; (iv) in confidence, to accountants, banks, and financing
sources and their advisors; and (v) in confidence, in connection
with the enforcement of this Agreement or any rights hereunder; and
(vi) in confidence (on a counsel-only basis), to outside counsel
for a third party which plans to acquire all or substantially all
the equity or assets of, or to merge with, such party, in
connection with a "due diligence" investigation for such a
transaction.

 

9.8 Reverse Engineering

 

The
Manufacturer shall not disassemble, decompile or otherwise reverse
engineer the Product unless for failure mode analysis
investigation.

 

10. GENERAL TERMS

 

10.1 Non-assignability and Binding Effect

 

Neither
Party shall assign any of its rights or obligations under this
Agreement to any third party directly or indirectly without the
prior written consent of the other Party. Subject to the foregoing,
this Agreement shall be binding upon and inure to the benefit of
the parties hereto, their successors and assigns.

 

 

* Confidential treatment has been requested for certain portions of
this Exhibit. The confidential portions of this Exhibit have been
omitted and filed separately with the Securities and Exchange
Commission. Such portions have been marked with “****”
at the exact place where material has been omitted.

 

15

 

 

 

 

10.2 Notices

 

Notices
under this Agreement shall be sufficient only if personally
delivered, delivered by a major commercial rapid delivery courier
service, or E-mail and other digital communication system , with
return receipt requested, to a party at its address first set forth
above or as amended by notice pursuant to this subsection. If not
received sooner, notice by any of these methods shall be deemed to
occur _seven_(7)
business days after deposit.

 

10.3              

Compliance
with Local Laws

Manufacturer
will comply with all applicable laws, restrictions and regulations
in the Peoples Republic of China. EMV will comply with all
applicable laws, restrictions and regulations in
Canada.

 

10.4              

Arbitration
and Governing Law

 

All
disputes arising out of or in connection with this contract, or in
respect of any defined legal relationship associated therewith or
derived therefrom, shall be referred to and finally resolved by
administered by the Hong Kong International Arbitration Centre
(HKIAC) under the UNCITRAL Arbitration Rules in force when the
Notice of Arbitration is submitted, as modified by the HKIAC
Procedures for the Administration of International Arbitration. The
place of arbitration shall be Hong Kong.This Agreement shall be
governed by and construed under the laws of Hong Kong without
regard to choice of laws principles. The language of arbitration
shall be English

 

10.5 Partial Invalidity

 

If any
provision of this Agreement is held to be invalid, then the
remaining provisions shall nevertheless remain in full force and
effect, and the invalid or unenforceable provision shall be
replaced by a term or provision that is valid and enforceable and
that comes closest to expressing the intention of such invalid or
unenforceable term or provision.

 

10.6 No Agency

 

The
parties hereto are independent contractors. Nothing contained
herein or done in pursuance of this Agreement shall constitute
either party the agent of the other party for any purpose or in any
sense whatsoever, or constitute the parties as partners or joint
venturers.

 

10.7 No Waiver

 

No
waiver of any term or condition of this Agreement shall be valid or
binding on either party unless the same shall have been mutually
assented to in writing by both parties. The failure of either party
to enforce at any time any of the provisions of this Agreement, or
the failure to require at any time performance by the other party
of any of the provisions of this Agreement, shall in no way be
construed to be a present or future waiver of such provisions, nor
in any way effect the ability of either party to enforce each and
every such provision thereafter.

 

 

* Confidential treatment has been requested for certain portions of
this Exhibit. The confidential portions of this Exhibit have been
omitted and filed separately with the Securities and Exchange
Commission. Such portions have been marked with “****”
at the exact place where material has been omitted.

 

16

 

 

 

 

10.8 No Publicity

 

Either
party, or any entity or representative acting on behalf of the
Party, shall not refer to the other party, the Products and
information furnished pursuant to the provisions of this contract
in any press release or commercial advertising, or in connection
with any news release or commercial advertising, without first
obtaining explicit written consent to do so from the other party.
The party, within 2 working days upon receiving the request for
publicity from the other party, shall reply the other
party.

 

10.9 Force Majeure

 

Non-performance by
either party shall be excused to the extent that performance is
rendered impossible by strike, fire, flood, earthquake, or
governmental acts, orders or restrictions; provided that the party
unable to so perform uses commercially reasonable efforts to
mitigate the impact of such non-performance. Notwithstanding any
such efforts, any such non-performance shall be cause for
termination of this Agreement by the other party if the
non-performance continues for more than six (6)
months.

 

 

10.10 Attorneys' Fees

 

The
prevailing party in any legal action brought by one party against
the other and arising out of this Agreement shall be entitled, in
addition to any other rights and remedies it may have, to
reimbursement for its expenses, including costs and reasonable
attorneys' fees.

 

10.11 Entire Agreement

 

This
Agreement sets forth the entire agreement and understanding of the
parties relating to the subject matter herein and merges all prior
discussions between them. No modification of or amendment to this
Agreement, nor any waiver of any rights under this Agreement, shall
be effective unless in writing signed by the parties.

 

10.12 Counterparts

 

This
Agreement may be executed in two or more counterparts and all
counterparts so executed shall for all purposes constitute one
agreement, binding on all parties hereto.

 

10.13
Language & Text

 

This
Agreement is made out in Chinese and English, both of which are of
the same legal effect. Where any inconsistency occurs in account of
the interpretation of these two texts, the English text shall be
deemed superior.

 

10.14
Effectiveness

 

This
agreement shall come into effect immediately when it is signed by
duly authoried representatives of both parties.

 

[Signature Page Follows]

 

 

* Confidential treatment has been requested for certain portions of
this Exhibit. The confidential portions of this Exhibit have been
omitted and filed separately with the Securities and Exchange
Commission. Such portions have been marked with “****”
at the exact place where material has been omitted.

 

17

 

 

 

IN
WITNESS WHEREOF, each party to this agreement has caused it to be
executed on the date indicated above.

 

 

 

ELECTRAMECCANICA VEHICLES
CORP.

 

s/
Jerry Kroll

Name:
Jerry Kroll

Title:
CEO and General Manager

 

CHONGQING ZONGSHEN
AUTOMOBILE INDUSTRY CO.,
LTD.

 

/s Liu
Gang

Name: LIU GANG  

Title:
Authorized Signatory

 

* Confidential treatment has been requested for certain portions of
this Exhibit. The confidential portions of this Exhibit have been
omitted and filed separately with the Securities and Exchange
Commission. Such portions have been marked with “****”
at the exact place where material has been omitted.

 

18

 

 

 

 

EXHIBIT A

3-YEAR PRODUCTION CAPACITY FORECAST

 

 

	
 

	

Total

	

2018

	

5000

	

2019

	

20000

	

2020

	

50000

	

Total

	

75000

 

1. At
the 1st stage, the facility & equipment is planned to be
equipped according to 30,000 units/year as production
capability.

 

2.
Production capability can be adjusted to 50,000 units/year or even
more according to market demand at the 2nd stage.

 

3. The
investment on facility & equipment at the 1st stage will
be discussed and confirmed according to the Development
Timetable.

 

 

* Confidential treatment has been requested for certain portions of
this Exhibit. The confidential portions of this Exhibit have been
omitted and filed separately with the Securities and Exchange
Commission. Such portions have been marked with “****”
at the exact place where material has been omitted.

 

19

 

 

 

	

Exhibit B

	

SOLO DEVELOPMENT TIMETABLE

	

Ref no.

	

Key Activity

	

Responsible party

	

Output

	

Target Finish Date

	

Remarks

	

1

	

Optimize design on 3D data

	

ZS

	

Evaluation report on 3D data

	

****

	
 

	

2

	

First round CAE analysis on optimized 3D data

	

ZS

	

CAE analysis report

	

****

	
 

	

3

	

Confirm suppliers

	

ZS

	

Suppliers list

	

****

	
 

	

4

	

Calculation on cost, including vehicle’s components cost,
tooling cost, testing cost on vehicle and components

	

ZS

	

List of vehicle’s components cost, toolings cost, vehicle and
components test cost

	

****

	
 

	

5

	

Improvement & modification on optimized 3D design and second
round CAE analysis

	

ZS

	

3D data, evaluation report and CAE analysis report

	

****

	
 

	

6

	

Prototype and evaluation

	

ZS & EMV

	

3 units of prototype and evaluation report

	

****

	

EMV engineer at ZS for evaluation & confirmation

	

7

	

Molding Sample

	

ZS

	

Sample assembly and evaluation report

	

****

	
 

	

8

	

Performance testing and sample improvement &
modification

	

ZS

	

Testing report & improvement plan

	

****

	
 

	

9

	

Sample homologation

	

EMV

	

Certificate

	

****

	
 

	

10

	

Small batch samples & test

	

ZS

	

1.sample, 2. Test report

	

****

	
 

	

11

	

Improvement & modification on small batch samples

	

ZS

	

Complete technical data after improvement

	

****

	
 

	

12

	

Small batch production

	

ZS

	

10 units sample

	

****

	

****, 10 units for each month

	

Notes:1. The timetable is based on the arrival date of the
sample from EMV. 2. Each item shall be subject to the finish date
of the previous item. 3. Both parties shall try best to find an
optimized solution in case of any problems which may lead to delay
of the project.

 

 

* Confidential treatment has been requested for certain portions of
this Exhibit. The confidential portions of this Exhibit have been
omitted and filed separately with the Securities and Exchange
Commission. Such portions have been marked with “****”
at the exact place where material has been omitted.

 

20

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