Document:

Exhibit 10.31

 

	 	Department
    of Health and Human Services

    National Institutes of Health
 NATIONAL
    INSTITUTE ON AGING	Notice of Award

                           FAIN# R01AG058660

                           Federal Award Date 

                           05/10/2021

 

 

	Recipient Information	 
	1. Recipient Name	 
	    COGNITION THERAPEUTICS, INC.	 
	    2403 SIDNEY ST STE 261	 
	 	 
	    PITTSBURGH, PA 15203	 
	 	 
	2. Congressional District of Recipient	 
	    14	 
	 	 
	3. Payment System Identifier (ID)	 
	    1134365359A1	 
	 	 
	4. Employer Identification Number (EIN)	 
	    134365359	 
	 	 
	5. Data Universal Numbering System (DUNS)	 
	    808434612	 
	 	 
	6. Recipient's Unique Entity Identifier	 
	 	 
	 	 
	7. Project Director or Principal Investigator	 
	    SUSAN M CATALANO, PHD (Contact)	 
	    President/founder	 
	    scatalano@cogrx.com	 
	     (412) 481-2210	 
	 	 
	8. Authorized Official	 
	    Dr. Susan Catalano Ph.D	 
	    scatalano@cogrx.com	 
	    412-481-2210	 
	 	 
	Federal Agency Information	 
	9. Awarding Agency Contact Information	 
	    Jennifer Edwards	 
	 	 
	    NATIONAL INSTITUTE ON AGING

     edwardsj@mail.nih.gov	 
	
     

        301-827-6689
	 
	 
	 	 
	10. Program Official Contact Information 	 
	    Laurie M. Ryan	 
	    Health Scientist Administrator	 
	    NATIONAL INSTITUTE ON AGING	 
	    ryanl@nia.nih.gov	 
	    301.496.9350	 
	 	 

 

	Federal Award Information	 
	 
	11. Award Number	 
	     3R01AG058660-03S1A1	 
	 	 
	12. Unique Federal Award Identification Number (FAIN)	 
	     R01AG058660	 
	 	 
	13. Statutory Authority	 
	     42 USC 241 42 CFR 52	 
	 	 
	14. Federal Award Project Title	 
	     Randomized Double Blind, Placebo Controlled, Parallel Group, Phase II Study to	 
	     Evaluate the Safety and Efficacy of CT1812 in Subjects with Mild to Moderate	 
	     Alzheimer’s Disease	 
	 	 
	15. Assistance Listing Number	 
	     93.866	 
	 	 
	16. Assistance Listing Program Title	 
	     Aging Research	 
	 	 
	17. Award Action Type	 
	     Supplement (REVISED)	 
	 	 
	18. Is the Award R&D?	 
	     Yes	 
	 	 
	Summary Federal Award Financial Information	 
	 	 	 

	19. Budget Period Start Date 05/01/2020 - End Date 05/31/2022	 	 	 	 
	20. Total Amount of Federal Funds Obligated by this Action	 	$	0	 
	20 a. Direct Cost Amount	 	$	0	 
	20 b. Indirect Cost Amount	 	$	0	 
	21. Authorized Carryover	 	$	0	 
	22. Offset	 	$	0	 
	23. Total Amount of Federal Funds Obligated this budget period	 	$	13,634,548	 
	24. Total Approved Cost Sharing or Matching, where applicable	 	$	0	 
	25. Total Federal and Non-Federal Approved this Budget Period	 	$	13,634,548	 
	 
	26. Project Period Start Date 09/15/2018 - End Date 05/31/2022
	27. Total Amount of the Federal Award including Approved Cost	 	$	30,482,877	 
	       Sharing or Matching this Project Period	 	 	 	 

 

	28.
    Authorized Treatment of Program Income	 
	     Additional
    Costs	 
	 	 
	29.
    Grants Management Officer - Signature	 
	     Robin
    Laney	 

 

30.
Remarks

Acceptance
of this award, including the “Terms and Conditions,” is acknowledged by the recipient when funds are drawn down or otherwise
requested from the grant payment system.

 

    Page 1 of 7

     

    

 

 

Notice of Award

	 	RESEARCH

    Department of Health and Human Services

    National Institutes of Health

     

    NATIONAL INSTITUTE ON AGING
	 

 

SECTION I - AWARD DATA - 3R01AG058660-03S1A1
REVISED

 

Principal Investigator(s):

SUSAN M CATALANO, PHD

 

Award e-mailed to: scatalano@cogrx.com

 

Dear Authorized Official:

 

The National Institutes of Health hereby revises this award (see “Award
Calculation” in Section I and “Terms and Conditions” in Section III) to COGNITION THERAPEUTICS, INC. in support of
the above referenced project. This award is pursuant to the authority of 42 USC 241 42 CFR 52 and is subject to the requirements of this
statute and regulation and of other referenced, incorporated or attached terms and conditions.

 

Acceptance of this award, including the “Terms and Conditions,”
is acknowledged by the recipient when funds are drawn down or otherwise requested from the grant payment system.

 

Each publication, press release, or other document about research
supported by an NIH award must include an acknowledgment of NIH award support and a disclaimer such as “Research reported in this
publication was supported by the National Institute On Aging of the National Institutes of Health under Award Number R01AG058660. The
content is solely the responsibility of the authors and does not necessarily represent the official views of the National Institutes
of Health.” Prior to issuing a press release concerning the outcome of this research, please notify the NIH awarding IC in advance
to allow for coordination.

 

Award recipients must promote objectivity in research by establishing
standards that provide a reasonable expectation that the design, conduct and reporting of research funded under NIH awards will be free
from bias resulting from an Investigator’s Financial Conflict of Interest (FCOI), in accordance with the 2011 revised regulation
at 42 CFR Part 50 Subpart F. The Institution shall submit all FCOI reports to the NIH through the eRA Commons FCOI Module. The regulation
does not apply to Phase I Small Business Innovative Research (SBIR) and Small Business Technology Transfer (STTR) awards. Consult the
NIH website http://grants.nih.gov/grants/policy/coi/ for a link to the regulation and additional important information.

 

If you have any questions about this award, please direct questions
to the Federal Agency contacts.

 

Sincerely yours,

 

Robin Laney

Grants Management Officer

NATIONAL INSTITUTE ON AGING

 

Additional information follows

 

    Page 2 of 7

     

    

 

	Cumulative Award Calculations
for this Budget Period (U.S. Dollars)	 	 	 	 
	 Salaries and Wages	 	$	153,350	 
	Personnel Costs (Subtotal)	 	$	153,350	 
	Consultant Services	 	$	132,000	 
	Materials & Supplies	 	$	78,991	 
	Other	 	$	10,009,659	 
	 	 	 	 	 
	Federal Direct Costs	 	$	10,374,000	 
	Federal F&A Costs	 	$	3,260,548	 
	Approved Budget	 	$	13,634,548	 
	Total Amount of Federal Funds Authorized (Federal Share)	 	$	13,634,548	 
	TOTAL FEDERAL AWARD AMOUNT	 	$	13,634,548	 
	 	 	 	 	 
	AMOUNT OF THIS ACTION (FEDERAL SHARE)	 	$	0	 

 

	SUMMARY TOTAL FEDERAL
    AWARD AMOUNT YEAR ( 3 ) (for this Document Number)
	AWARD NUMBER	 	TOTAL FEDERAL AWARD AMOUNT	 
	3R01AG058660-03S1A1	 	$	13,634,548	 
	5R01AG058660-03	 	$	5,774,586	 
	3R01AG058660-03S2	 	$	278,623	 
	TOTAL	 	$	19,687,757	 

 

	SUMMARY TOTALS FOR
    ALL YEARS (for this Document Number)	 
	YR	 	 	THIS AWARD	 	 	CUMULATIVE TOTALS	 
	3	 	 	$	13,634,548	 	 	$	19,687,757	 

 

Fiscal Information:

	Payment System Identifier:	1134365359A1
	Document Number:	RAG058660A
	PMS Account Type:	P (Subaccount)
	Fiscal Year:	2021

 

	IC	 	CAN	 	 	2021	 
	AG	 	 	8033159	 	 	$	13,634,548	 

 

NIH Administrative Data:

PCC: 3CCCTLR / OC: 41023 / Released: Laney, Robin 05/07/2021

Award Processed: 05/10/2021 12:04:55 AM

 

SECTION II - PAYMENT/HOTLINE INFORMATION
- 3R01AG058660-03S1A1 REVISED

 

For payment and HHS Office of Inspector General Hotline information,
see the NIH Home Page at http://grants.nih.gov/grants/policy/awardconditions.htm

 

    Page 3 of 7

     

    

 

SECTION III - STANDARD TERMS AND
CONDITIONS - 3R01AG058660-03S1A1 REVISED

 

This award is based on the application submitted to, and as approved
by, NIH on the above-titled project and is subject to the terms and conditions incorporated either directly or by reference in the following:

 

		a.	The
                                            grant program legislation and program regulation cited in this Notice of Award.

		b.	Conditions
                                            on activities and expenditure of funds in other statutory requirements, such as those included
                                            in appropriations acts.

		c.	45
                                            CFR Part 75.

		d.	National
                                            Policy Requirements and all other requirements described in the NIH Grants Policy

Statement, including addenda in effect
as of the beginning date of the budget period.

		e.	Federal
                                            Award Performance Goals: As required by the periodic report in the RPPR or in the final progress
                                            report when applicable.

		f.	This
                                            award notice, INCLUDING THE TERMS AND CONDITIONS CITED BELOW.

 

(See NIH Home Page at http://grants.nih.gov/grants/policy/awardconditions.htm
for certain references cited above.)

 

Research and Development (R&D): All awards issued by the
National Institutes of Health (NIH) meet the definition of “Research and Development” at 45 CFR Part § 75.2. As
such, auditees should identify NIH awards as part of the R&D cluster on the Schedule of Expenditures of Federal Awards (SEFA). The
auditor should test NIH awards for compliance as instructed in Part V, Clusters of Programs. NIH recognizes that some awards may have
another classification for purposes of indirect costs. The auditor is not required to report the disconnect (i.e., the award is classified
as R&D for Federal Audit Requirement purposes but non-research for indirect cost rate purposes), unless the auditee is charging indirect
costs at a rate other than the rate(s) specified in the award document(s).

 

Carry over of an unobligated balance into the next budget period requires
Grants Management Officer prior approval.

 

This grant is excluded from Streamlined Noncompeting Award Procedures
(SNAP).

 

This award is subject to the requirements of 2 CFR Part 25 for institutions
to receive a Dun & Bradstreet Universal Numbering System (DUNS) number and maintain an active registration in the System for Award
Management (SAM). Should a consortium/subaward be issued under this award, a DUNS requirement must be included. See http://grants.nih.gov/grants/policy/awardconditions.htm
for the full NIH award term implementing this requirement and other additional information.

 

This award has been assigned the Federal Award Identification Number
(FAIN) R01AG058660. Recipients must document the assigned FAIN on each consortium/subaward issued under this award.

 

Based on the project period start date of this project, this award
is likely subject to the Transparency Act subaward and executive compensation reporting requirement of 2 CFR Part 170. There are conditions
that may exclude this award; see http://grants.nih.gov/grants/policy/awardconditions.htm for additional award applicability information.

 

In accordance with P.L. 110-161, compliance with the NIH Public Access
Policy is now mandatory. For more information, see NOT-OD-08-033 and the Public Access website: http://publicaccess.nih.gov/.

 

This award provides support for one or more clinical trials. By law
(Title VIII, Section 801 of Public Law 110-85), the “responsible party” must register “applicable clinical trials”
on the ClinicalTrials.gov Protocol Registration System Information Website. NIH encourages registration of all trials whether
required under the law or not. For more information, see http://grants.nih.gov/ClinicalTrials fdaaa/.

 

    Page 4 of 7

     

    

 

This award represents the final year of the competitive segment for
this grant. See the NIH Grants Policy Statement Section 8.6 Closeout for complete closeout requirements at: http://grants.nih.gov/grants/policy/policy.htm#gps.

 

A final expenditure Federal Financial Report (FFR) (SF 425) must be
submitted through the eRA Commons (Commons) within 120 days of the period of performance end date; see the NIH Grants Policy Statement
Section 8.6.1 Financial Reports, http://grants.nih.gov/grants/policy/policy.htm#gps, for additional information on this submission
requirement. The final FFR must indicate the exact balance of unobligated funds and may not reflect any unliquidated obligations. There
must be no discrepancies between the final FFR expenditure data and the Payment Management System’s (PMS) quarterly cash transaction
data. A final quarterly federal cash transaction report is not required for awards in PMS B subaccounts (i.e., awards to foreign entities
and to Federal agencies). NIH will close the awards using the last recorded cash drawdown level in PMS for awards that do not require
a final FFR on expenditures or quarterly federal cash transaction reporting. It is important to note that for financial closeout, if
a grantee fails to submit a Page 4 of 7 required final expenditure FFR, NIH will close the grant using the last recorded cash drawdown
level. If the grantee submits a final expenditure FFR but does not reconcile any discrepancies between expenditures reported on the final
expenditure FFR and the last cash report to PMS, NIH will close the award at the lower amount. This could be considered a debt or result
in disallowed costs.

 

A Final Invention Statement and Certification form (HHS 568), (not
applicable to training, construction, conference or cancer education grants) must be submitted within 120 days of the expiration date.
The HHS 568 form may be downloaded at: http://grants.nih.gov/grants/forms.htm. This paragraph does not apply to Training grants,
Fellowships, and certain other programs—i.e., activity codes C06, D42, D43, D71, DP7, G07, G08, G11, K12, K16, K30, P09, P40, P41,
P51, R13, R25, R28, R30, R90, RL5, RL9, S10, S14, S15, U13, U14, U41, U42, U45, UC6, UC7, UR2, X01, X02.

 

Unless an application for competitive renewal is submitted, a Final
Research Performance Progress Report (Final RPPR) must also be submitted within 120 days of the period of performance end date. If a
competitive renewal application is submitted prior to that date, then an Interim RPPR must be submitted by that date as well. Instructions
for preparing an Interim or Final RPPR are at: https://grants.nih.gov/grants/rppr/rppr instruction guide.pdf. Any other specific
requirements set forth in the terms and conditions of the award must also be addressed in the Interim or Final RPPR. Note that data
reported within Section I of the Interim and Final RPPR forms will be made public and should be written for a lay person audience.

 

NIH strongly encourages electronic submission of the final invention
statement through the Closeout feature in the Commons, but will accept an email or hard copy submission as indicated below.

 

Email: The final invention statement may be e-mailed as PDF attachments
to: NIHCloseoutCenter@mail.nih.gov.

 

Hard copy: Paper submissions of the final invention statement may
be faxed to the NIH Division of Central Grants Processing, Grants Closeout Center, at 301-480-2304, or mailed to:

 

National Institutes of Health

Office of Extramural Research

Division of Central Grants Processing

Grants Closeout Center

6705 Rockledge Drive

Suite 5016, MSC 7986

Bethesda, MD 20892-7986 (for regular or U.S. Postal Service Express mail)

Bethesda, MD 20817 (for other courier/express deliveries only)

 

    Page 5 of 7

     

    

 

NOTE: If this is the final year of a competitive segment due to
the transfer of the grant to another institution, then a Final RPPR is not required. However, a final expenditure FFR is required
and should be submitted electronically as noted above. If not already submitted, the Final Invention Statement is required and
should be sent directly to the assigned Grants Management Specialist.

 

In accordance with the regulatory requirements provided at 45 CFR
75.113 and Appendix XII to 45 CFR Part 75, recipients that have currently active Federal grants, cooperative agreements, and procurement
contracts with cumulative total value greater than $10,000,000 must report and maintain information in the System for Award Management
(SAM) about civil, criminal, and administrative proceedings in connection with the award or performance of a Federal award that reached
final disposition within the most recent five-year period. The recipient must also make semiannual disclosures regarding such proceedings.
Proceedings information will be made publicly available in the designated integrity and performance system (currently the Federal Awardee
Performance and Integrity Information System (FAPIIS)). Full reporting requirements and procedures are found in Appendix XII to 45 CFR
Part 75. This term does not apply to NIH fellowships.

 

Treatment of Program Income:

Additional Costs

 

SECTION IV - AG SPECIFIC AWARD CONDITIONS
- 3R01AG058660-03S1A1 REVISED

 

Clinical Trial Indicator: Yes

This award supports one or more NIH-defined Clinical Trials. See the NIH Grants Policy Statement Section 1.2 for NIH definition of Clinical
Trial.

 

This revised award changes the budget and project period end dates
to coincide with the parent grant.

 

Supersedes Notice of Award issued 04/29/2021. Previous terms and
conditions apply:

 

Funding for this award has been provided by Alzheimer’s Disease
Initiative funds.

 

No research involving human subjects may be conducted at any performance
site until OHRP has approved a Federalwide Assurance (FWA) for that site and the grantee has ensured that the research has received appropriate
Institutional Review Board (IRB) approval.

 

This award reflects the acceptance of the single Institutional Review
Board (sIRB) plan submitted with the application dated 07/01/2020. Any changes to this plan require the written prior approval of the
National Institute on Aging.

 

None of the funds in this award shall be used to pay the salary of
an individual at a rate in excess of the current salary cap. Therefore, this award and/or future years are adjusted accordingly, if applicable.
Current salary cap levels can be found at the following URL:

http://grants.nih.gov/grants/policy/salcap summary.htm.

 

ClinicalTrials.gov is a federal registry and results database
of publicly and privately supported clinical studies of human participants conducted around the world. In September 2016, NIH issued
a final policy to promote broad and responsible dissemination of information from NIH- funded clinical trials through ClinicalTrials.gov.
Under this policy, every clinical trial funded in whole or in part by NIH is expected to be registered on ClinicalTrials.gov and have
summary results information submitted and posted in a timely manner, whether subject to FDAAA 801 or not.

 

Public Policy Requirements and Objectives:

https://grants.nih.gov/grants/policy/nihgps/HTML5/section 4/4.1 public policy requirements and objectives.htm?Highlight=clinical

 

    Page 6 of 7

     

    

 

SPREADSHEET SUMMARY

AWARD NUMBER: 3R01AG058660-03S1A1 REVISED

 

INSTITUTION: COGNITION THERAPEUTICS, INC.

 

	Budget	 	Year 3	 
	Salaries and Wages	 	$	153,350	 
	Personnel Costs (Subtotal)	 	$	153,350	 
	Consultant Services	 	$	132,000	 
	Materials & Supplies	 	$	78,991	 
	Other	 	$	10,009,659	 
	TOTAL FEDERAL DC	 	$	10,374,000	 
	TOTAL FEDERAL F&A	 	$	3,260,548	 
	TOTAL COST	 	$	13,634,548	 

 

	Facilities and Administrative Costs	 	Year 3	 
	F&A Cost Rate 1	 	 	31.43	%
	F&A Cost Base 1	 	$	10,374,000	 
	F&A Costs 1	 	$	3,260,548	 

 

    Page 7 of 7Exhibit 10.1

 

Portions of the agreement (where was marked with
“XXXXXX”) have been omitted as per Item 601(b)(10)(iv) of Regulation S-K because it is both not material and is the type that
the registrant treats as private or confidential.

 

 

 

 

Share Transfer Agreement

 

Of

 

Jiangxi Huiyi New Energy Co., Ltd.

 

by and between

 

Zhejiang Kandi Technologies Group, Co., Ltd.

 

And

 

Liao Zongjiang, Liao Chunsheng, Liao Caijin

 

 

 

 

     

     

    

 

Table of Contents

 

	Chapter I	Definition and Interpretation	2
	 	 	 
	Article 1	Definition and Interpretation	2
	 	 	 
	Chapter II	Transfer of Shares	3
	 	 	 
	Article 2	Transfer of Shares	3
	 	 	 
	Article 3	Calculation and Payment of Transfer Price and Share Delivery	3
	 	 	 
	Article 4	Prerequisite for Payment of Transfer Price	4
	 	 	 
	Article 5	Taxes and Expenses	4
	 	 	 
	Chapter III	Representation and Warranty by Both Parties	4
	 	 	 
	Article 6	Representation and Warranty Made by Both Parties	4
	 	 	 
	Chapter IV	Representation and Warranty Made by Transferors	5
	 	 	 
	Article 7	General Representation and Warranty Made by Transferors	5
	 	 	 
	Article 8	Special Representation and Warranty Made by Transferors	5
	 	 	 
	Chapter V	Representation and Warranty Made by Transferee	6
	 	 	 
	Article 9	Representation and Warranty Made by Transferee	6
	 	 	 
	Chapter VI	Employees	7
	 	 	 
	Article 10	Employees	7
	 	 	 
	Chapter VII	Confidentiality	7
	 	 	 
	Article 11	Confidentiality	7
	 	 	 
	Chapter VIII	Breach of Contract .	7
	 	 	 
	Article 12	Liability for Breach of Representation and Guaranty	7
	 	 	 
	Article 13	Liability for Breach of Contract	8

 

    i

     

    

 

	Chapter IX	Force Majeure	8
	 	 	 
	Article 14	Force Majeure	8
	 	 	 
	Chapter X	Settlement of Disputes	8
	 	 	 
	Article 15	Arbitration	8
	 	 	 
	Chapter XI	Applicable Laws	8
	 	 	 
	Article 16	Applicable Laws	8
	 	 	 
	Chapter XII	Miscellaneous	8
	 	 	 
	Article 17	Waiver	8
	 	 	 
	Article 18	Transfer	8
	 	 	 
	Article 19	Amendment	8
	 	 	 
	Article 20	Severabillity	9
	 	 	 
	Article 21	Languages	9
	 	 	 
	Article 22	Validity	9
	 	 	 
	Article 23	Notice	9
	 	 	 
	Article 24	Entire Agreement	9
	 	 	 
	Article 25	Special Agreement	9

 

    ii

     

    

 

This Share Transfer Agreement (hereinafter
referred to as this “Agreement”) is signed by and between the following parties in Jinhua City, Zhejiang Province, People’s
Republic of China on July 13, 2021.

 

Party A: Zhejiang Kandi Technologies Group, Co.,
Ltd. (hereinafter referred to as “the Transferee”)

 

Legal Representative: Hu Xiaoming

 

Party B: Liao Jiangzong, Liao Chunsheng, Liao
Caijin (hereinafter referred to as “the Transferors”)

 

Liao
Zongjiang’s ID Number: XXXXXX

 

Liao Chunsheng’s ID
Number: XXXXXX

 

Liao Caijin’s ID
Number: XXXXXX

 

The transferors and transferee are hereinafter
collectively referred to as the “parties” and individually as a “party”.

 

Whereas:

 

(1) Jiangxi Huiyi New Energy Co., Ltd. (hereinafter
referred to as “Jiangxi Huiyi”) is a limited liability company established and existing legally in accordance with the laws
of China, covering an area of 120 mu, with an intelligent production line of 18650 lithium batteries with a daily output of 250000 and
an annual capacity of 0.7gwh. Jiangxi Huiyi is a national science and technology-based small and medium-sized enterprise, and a national
high-tech enterprise; it has passed the certifications of System 9001, 180011, and 4001; it is also an import and export trade declaration
unit, an entry-exit inspection and quarantine inspection enterprise; the vice president unit of China Lithium Battery Industry Association;
member of China chemical and physical power industry association; vice president unit of China lithium batteries hundred-people assembly;
member of the special working group on safety standards for lithium ion batteries of the Ministry of industry and information technology;
observer of National Bicycle Standardization Committee; member of working group drafting electric scooter quality standard; member of
electric scooter branch of Beijing infringement and shoddy goods. It has won the most valuable investment award in China’s lithium
battery industry, the best new brand award in China’s lithium battery industry of the year, the “annual customer trust brand”
of Gaogong lithium battery website, district’s major investment award, district’s small and medium-sized enterprise growth
award and the district’s tax contribution award. In connection with core technology, the capacity of IFR18650-2000mAh and 18650
lithium iron phosphate battery is more than 2000mAh, much higher than 1400-1500mAh in the industry, and the cycle life is more than 2000
cycles, ranking the first in the world in 18650 system by precisely controlling the grain size and compaction density of cathode material.
IFR18650-2000mAh lithium iron phosphate battery won the second prize of Jiangxi excellent new product. The cycle life of the 3C power
18650-2000mah lithium iron phosphate battery is more than 2000 cycles, which is the world first in 18650 system. The cycle life of 18650-1500mAh
high power lithium iron phosphate battery is more than 500 cycles with the maximum discharge current is 15C. The cycle life of 18650-2000mAh
ternary lithium battery is more than 500 cycles with the maximum discharge current is 3C. The cycle life of 18650-2600mah ternary lithium
battery is more than 800 cycles with the maximum discharge current is 3C;

 

    	 	1	 

     

    

 

(2) The transferors have 100% ownership interest
in Jiangxi Huiyi, of which Liao Zongjiang holds 60%, Liao Chunsheng 21% and Liao Caijin 19%. The transferors can fully exercise all of
its rights as shareholders of Jiangxi Huiyi, and intend to transfer all (100%) equity of Jiangxi Huiyi to the transferee according to
the terms and conditions agreed in this Agreement;

 

(3) In order to extend industrial chain, making
the enterprise stronger and bigger, the transferee is willing to acquire all (100%) shares of Jiangxi Huiyi held by the transferors pursuant
to the conditions and terms under this Agreement.

 

For this end, based on the principle of equality
and mutual benefit, through friendly consultation, both parties agree to reach the following agreement in accordance with relevant laws
and regulations:

 

Chapter I Definitions and Interpretations

 

Article 1 Definitions and Interpretations

 

1.1 In this Agreement, unless the context otherwise
indicates, the following abbreviations shall have the following meanings:

 

“Jingxi Huiyi” refers to Jiangxi Huiyi
New Energy Co., Ltd., a limited liability company established under the laws of the RPC with the registered capital of RMB50 million yuan,
its social credit code is 91360504MA35LA4D0X, located at 919 Longteng Road, High-tech Development Zone, Xinyu City, Jiangxi Province.

 

“China” refers to the People’s
Republic of China. For the purpose of this Agreement, excluding the Hong Kong Special Administrative Region, the Macao Special Administrative
Region and Taiwan region.

 

“Claims” refers to all of claims,
demand, judgement liabilities, damages, costs and expenses (including attorney fee and litigation cost, among others) .

 

“Execution Date” refers the signing
date of this Agreement.

 

“Encumbrances” refers to mortgage,
transfer, lien, pledge, retention of title and establishment of acquisition right, security interests, options and preemptive rights,
as well as other restrictions and conditions, including:

 

		(a)	Any right and power granted or reserved to affect the share transfer; or

 

		(b)	Affecting the right or power to transfer share by trust transfer, lien, pledge authorization or other
forms; or

 

		(c)	Ensuring to perform the debts in the form of guarantee.

 

“Materially Adverse Change”:
(1) Jiangxi Huiyi is subject to government’s investigation or penalty;(2) Jiangxi Huiyi gets into litigation, arbitration or any
other judicial procedures; (3) any change that has significant adverse impact on financials, business, assets, liabilities, operation
or future prospects of Jiangxi Huiyi.

 

“RMB” refers to
legal currency of China.

 

“The Third Party”
refers to any natural person, legal person, other organization or entity other than the parties to this Agreement.

 

“Business Days”
refers to the legal working days in China.

 

    	 	2	 

     

    

 

“Closing Date” refers
to the date on which Jiangxi Huiyi completes its alteration registration procedures with Industrial and Commercial Administration Bureau,
changes and registers the transferee as its sole shareholder, and total amount of the transfer price (including the Second Payment of
the transfer price) had been paid off.

 

1.2 Captions inserted for various clauses in this
Agreement for easy convenience of reference only and shall not be deemed to be a part of this Agreement or to restrict its explanation
for the clause it refers to.

 

1.3 Any reference to this Agreement shall be construed
as including the relevant agreement as may be amended, altered or renewed.

 

Chapter II Transfer of Shares

 

Article 2 Transfer of Share

 

According to the conditions and terms agreed in
this Agreement, the transferors hereby agree to transfer to the transferee and the transferee agrees to acquire all (100%) of the transferors’
ownership interest in Jiangxi Huiyi and all its related rights and obligations, including but not limited to general shareholder’s
right and all rights to receive dividends, to accept or subscribe dividend stock or to newly issue additional stock, however, it does
not include any claim or encumbrance arising from events occurring prior to the closing date.

 

Article 3 Calculation and Payment of Transfer
Price and Share Delivery

 

3.1 The transferors and the transferee, through
negotiation, agreed that the transfer price shall be calculated as 1:1 of registered capital of Jiangxi Huiyi, namely RMB50 million yuan
(SAY: Fifty Million Yuan Only, hereinafter referred to as “Transfer Price”).

 

3.2 Payment of the Transfer Price:

 

(1) The transferors shall pay the transferee 50%
of the Transfer Price, amounting to RMB25 million yuan ( SAY: Twenty-five Million Yuan Only, hereinafter referred to as “the first
transfer payment”), of which RMB15 million yuan to Liao Zongjiang, RMB5.25 million yuan to Liao Chunsheng and RMB4,75 million yuan
to Liao Caijin, within 5 business days after the signing date;

 

(2) The transferor shall assist the transferee
to complete relevant industrial and commercial alteration registration and other equity transfer procedures within 10 business days after
receiving the first transfer payment.

 

The transferee shall pay the transferors the remaining
50% of the Transfer Price (hereinafter referred to as “the second transfer payment”), totaling RMB25 million yuan (SAY: Twenty-five
Million Yuan Only), of which, RMB15 million yuan to Liao Zongjiang, RMB5.25 million yuan to Liao Chunsheng and RMB4.75 million yuan to
Liao Caijin within 15 business days after completing the above alteration registration and transfer procedures and settling the debts
between the transferors and Jiangxi Huiyi.

 

(3) The
transferors shall designate the following bank accounts according to the shareholding ratio as the collection account for accepting the
share Transfer Price from the transferee:

 

Beneficiary: Liao Zongjiang

Name of Bank: Shaanxi Province Nanzheng Branch,
Bank of China

Account
Number: XXXXXX

 

    	 	3	 

     

    

 

Beneficiary: Liao Chunsheng

Name of Bank: Hanzhong Tianhan Avenue Branch,
Bank of China

Account
Number: XXXXXX

Beneficiary: Liao Caijin

Name of Bank: Xinyu City High-tec Branch, Bank
of Communications

Account
Number: XXXXXX

 

3.3 Within 5 working days after the transferors
receive the first transfer payment, the transferors shall hand over or cause the relevant person to hand over all the materials, document
and information relating to or owned by Jiangxi Huiyi to the transferee or its designated representative, including but not limited to
the official seal, financial seal, contract seal, account information, financial voucher and account book (including but not limited to
the change of personal seal reserved by Jiangxi Huiyi in the bank to the personal seal of the person designated by the transferee), approval,
license, permit, customer information, agreement, employee information, technical information, etc. All necessary measures shall be taken
to ensure that the transferee can completely control all the assets and production and operation activities of Jiangxi Huiyi (the original
official seal, financial seal, contract seal and personal seal of Jiangxi Huiyi shall be destroyed face to face by both parties and the
new seal shall be adopted).

 

Article 4 Prerequisite for Payment of Transfer
Price

 

The prerequisite for the transferee to pay the
Transfer Price to the transferors is that Jiangxi Huiyi has not suffered or undertaken any material adverse change from the signing date
to the end of the second transfer payment.

 

Article 5 Taxes and Fees

 

5.1 Except as otherwise provided herein, both
parties shall respectively bear its own costs, charges and expenses arising from or related to the negotiating, signing and completion
of this Agreement and all matters anticipated or related to this Agreement.

 

5.2 Both parties shall bear the legal taxes and
fees arising from the signing and performance of this Agreement in accordance with the relevant laws, and there is no obligation of paying,
withholding between them.

 

Chapter III Representation and Warranty of Both
Parties

 

Article 6 Representation and Warranty of Both
Parties

 

6.1 The transferors and the transferee hereby
confirm that this Agreement shall become binding on both parties upon the date of signing this Agreement.

 

6.2 When signing this Agreement, the transferors
and the transferee declare that all statements and materials provided to the other party or its consultants (including but not limited
to lawyers, auditors, appraisers, financial consultants, and others.) before the signing date are still true, accurate, complete and valid.

 

    	 	4	 

     

    

 

6.3 The transferors and the transferee agree that
any agreement or other document related to the share transfer signed between the two parties before the conclusion of this Agreement shall
have the same effect as this Agreement. In the event of any conflict between this Agreement and any agreement or other document relating
to this share transfer signed between the parties prior to the conclusion of this Agreement, this Agreement shall prevail.

 

6.4 All the rights
and obligations previously entitled to and burdened by the transferors shall be entitled to or burdened by the transferee after the closing
date.

 

6.5 Both parties shall
make joint efforts and cooperate with each other to complete all procedures related with the transfer, including but not limited to related
change registration, endorsement and other work. The resulting handling fees and application fees shall be borne by Jiangxi Huiyi.

 

Chapter IV Representation
and Warranty of the Transferors

 

Article 7 General Representation
and Warranty of the Transferors

 

7.1 As of the closing
date, various representation and warranty made by the transferors in this Agreement and all the document and material submitted to the
transferee as agreed herein shall be true, accurate and complete.

 

7.2 There is no litigation,
arbitration, other judicial or administrative proceedings against the transferors or Jiangxi Huiyi that are in progress or will be in
progress and will affect the signing or performance of this Agreement.

 

7.3 The transferors
have full civil capacity to sign this Agreement and perform all its obligations. The signing of this Agreement and the performance of
all obligations by the transferors will not conflict with or violate any laws, regulations, regulations, authorization or approval of
government agencies, or the agreements binding on the transferors, nor will it constitute non performance, incomplete performance or inability
to perform the above provisions.

 

7.4 The transferors
are the legal owners of the transferred shares and have all such authorization and rights enabling it to transfer the share to the transferee.

 

7.5 As of the closing
date, there is no claim or encumbrance of any kind (including but not limited to any form of option, acquisition right, security right
or any other forms of third-party interest) against the share transfer.

 

Article 8 Representation
and Warranty of the Transferors

 

8.1 Jiangxi Huiyi is
an enterprise legal person registered and established in accordance with the laws of China, which legally exists and operates in accordance
with the laws of China. The registered capital of Jiangxi Huiyi has been paid in full, and there is no fraudulent investment, false investment
or withdrawal of investment.

 

8.2 Jiangxi Huiyi has
never been subject to any investigation, litigation, dispute, claim or other procedures (which have occurred or may occur), nor has it
received any administrative punishment. In addition, prior to the signing date, the transferors have fully disclosed all information of
Jiangxi Huiyi to the transferee.

 

8.3 All the taxes, expenses, charges and fines
that request to be paid to government by Jiangxi Huiyi have been fully paid off. As of the signing date, Jiangxi Huiyi has not defaulted
on any tax, expense, charge or fine, and has not defaulted on any cost or expense required by government departments to make up for product
defects or correct misconduct.

 

8.4 Jiangxi Huiyi has obtained all the necessary
approvals, licenses and consents for production and operation, and has completed all the necessary registration and filling and has carried
out production and operation in accordance with the business scope of its business license.

 

    	 	5	 

     

    

 

8.5 The production,
operation and business of Jiangxi Huiyi are fully subject to related laws and regulations. If Jiangxi Huiyi is subject to any administrative
penalty due to any matter happened prior to the signing date, the transferors shall fully compensate the transferee for all the losses
incurred by Jiangxi Huiyi.

 

8.6 From the signing date, the transferee has
right to assign its financial personnel to Jiangxi Huiyi; From the signing date till the closing date, all financial expenses of Jiangxi
Huiyi can only be carried out with the consent of the financial personnel dispatched by the transferors. On the closing date, the financial
personnel of the transferors and the transferee carry out financial delivery.

 

8.7 Before the closing
date, the transferors shall be responsible for the normal operation and management of Jiangxi Huiyi and guarantee that its operation and
business will not produce or suffer any material adverse changes.

 

8.8 As of the closing
date, Jiangxi Yihui has not made any investment in any company or any other enterprise legal person.

 

8.9 Before the signing
date, the transferors have fully disclosed all information about debts undertaken by Jiangxi Huiyi. As of the closing date, such information
is still true, accurate and complete.

 

8.10 Prior to the
closing date, Jiangxi Huiyi has paid off all the taxes required by applicable laws of China.

 

8.11 As of the closing
date, all the production processes and technologies adopted by Jiangxi Huiyi, and its intellectual property (including but not limited
to patents, trademarks, know-how and others) are full in conformity with related laws and regulations, standards and industrial norms,
there is no infringe of other people’s intellectual property.

 

8.12 The transferee
is entitled to demand the transferors to bear responsibility and compensate the transferee for all the direct and indirect losses suffered,
provided that the transferors violate any above representation or guaranty or fail to fulfil any prerequisite in this agreement.

 

8.13 The transferors agree to sign a Non-compete
Agreement with the transferee, and ensure that key management and technical personnel of the transferors agree to sign the Non-compete
Agreement with the transferee; It is stipulated that without the prior written consent of the transferee, it shall not directly or indirectly
operate in the same or similar industries as the transferee and its customers or suppliers, or in other industries competitive with the
transferee in any way, or hold any equity interest in the above entities, unless such operation or holding equity interest is through
the transferee.

 

Chapter V Representation
and Warranty of the Transferee

 

Article 9 Representation
and Warranty of the Transferee

 

9.1 The transferee
is an enterprise legal person registered and established in accordance with the laws of China, which legally exists and operates in accordance
with the laws of China.

 

9.2 The signing of
this Agreement and the performance of all obligations by the transferee will not conflict with or violate any laws, regulations, rules,
authorization or approval of government agencies, or any agreement to which the transferee is a party or is bound, nor will it constitute
non performance or incomplete performance or inability to perform the above provisions.

 

9.3 There is no any
litigation, arbitration, or other judicial or administrative procedures that seriously affect the signing or performance of this agreement
by the transferee.

 

    	 	6	 

     

    

 

Chapter VI Employees

 

Article 10 Employees

 

All the existing employees
of Jiangxi Huiyi will continue to be employed by the transferee when the share transfer is completed. In principle, the employment conditions
and treatment shall refer to the existing standards and be implemented in accordance with relevant laws and regulations. After that, Jiangxi
Huiyi will determine the number of workers and employment system according to its business needs.

 

Chapter VII Confidentiality

 

Article 11 Confidentiality

 

11.1 One party has disclosed or may disclose to
the other party confidential and proprietary information (including written and non-written information, hereinafter referred to as “confidential
information”) concerning its own business, financial status and other undisclosed matters. Unless otherwise agreed, the receiving
party shall:

 

11.1.1 Keep secret on the confidential information;

 

11.1.2 The confidential information shall not
be disclosed to any third party except for Party B’s employee who need to know the confidential information for performing their
duties.

 

11.2 Article 11.1 is not applicable to the following
information:

 

11.2.1 Prior to the disclosure to the receiving
party, the receiving party has obtained such information from the existing written records and the written records can prove such information;

 

11.2.2 Information that is not known to the public
as a result of the recipient’s breach of this Agreement;

 

11.2.3 Information obtained by the receiving party
from a third party who has no obligation of confidentiality.

 

11.3 The provisions of Chapter VII of this Agreement
shall be legally binding on any natural or legal person who has been a party to this agreement, even if he ceases to be a party to this
agreement due to the transfer of his rights and obligations under this Agreement.

 

Chapter VIII Breach of Contract

 

Article 12 Liability for Breach
of Representation and Warranty

 

12.1 If there is any mistake or omission in one
party’s representation and warranty and that may materially affect the other party’s signing this agreement, or representation
or warranty, in any aspect, are misleading or untrue, then the other party has right to demand the defaulting party full amount of compensation
for any loss(including but not limited to lawyer’s fee, litigation fee and arbitration fee) caused by its mistake, omission, misleading
and false representation or warranty or by its breach of its representation and warranty.

 

12.2 Each representation and warranty in this
agreement shall be interpreted independently.

 

12.3 .For the avoidance of any ambiguity, the
transferors hereby unconditionally and irrevocably confirm that it will be liable for any breach of representation or warranty

 

    	 	7	 

     

    

 

Article 13 Liability for Breach of Contract

 

13.1 If one party has any breach of contract,
the breaching party shall be liable to the other party for the breach according to this agreement and laws of China. If both parties breach
the contract, the breaching party shall bear the losses and other liabilities caused by their respective breach to the other party.

 

13.2 If the transferors violate any of the representations,
guarantees or obligations in this Agreement not due to the intentional or gross negligence of the transferee, the transferors shall compensate
the transferee for all direct and indirect losses suffered by the transferee, and shall also compensate the transferee for RMB 5 million.

 

Chapter IX Force Majeure

 

Article 14 Force Majeure

 

14.1 “Force Majeure” refers to special
events such as earthquake, typhoon, flood, fire, war, political turmoil and other events recognized as “force majeure” by
Chinese law.

 

14.2 When the force majeure occurs, the obligations
of the party affected by the event and any period of the party bound by this agreement will be suspended during the occurrence of the
force majeure and automatically postponed. The extended period is the same as the suspension period, and the party does not need to bear
the liability for breach of contract as agreed in this Agreement.

 

14.3 The party claiming the force majeure shall
immediately notify the other party in writing and provide the evidence of the occurrence and existence of the force majeure issued by
the notary authority within five (5) business days thereafter. The party claiming force majeure shall try its best to eliminate the adverse
effects of the force majeure.

 

Chapter X Disputes Resolution

 

Article 15 Arbitration

 

Any dispute arising from or in connection with
this agreement shall be settled through friendly negotiation. If negotiation fails, it shall be decided by the people’s court of
the place where this Agreement is signed.

 

Chapter XI Applicable Laws

 

Article 16 Applicable Laws

 

The conclusion, validity, explanation, implementation
of this Agreement shall be governed by the laws and regulations of the PRC. Any disputes arising from this Agreement shall be determined
in accordance with the laws of China.

 

Chapter XII Miscellaneous

 

Article 17 Waiver

 

Failure to exercise or delay in exercising a right
under this Agreement by either party shall not be deemed as a waiver of such right; any single or partial exercise of a right does not
exclude the re-exercise of that right in the future.

 

Article 18 Transfer

 

Unless otherwise specified, neither party may
not transfer in whole or in part any of its rights or obligations under this Agreement without prior written consent of the other party.

 

Article 19 Amendment

 

19.1 This agreement is entered into for the benefit
of both parties and their respective successors and assigns, and shall be legally binding on them.

 

    	 	8	 

     

    

 

19.2 This agreement shall not be amended verbally.
Only with the written agreement signed by both parties can this Agreement be amended.

 

Article 20 Severability

 

Should any provisions of this
Agreement be invalid, the validity of the remaining provisions of this Agreement shall not be affected.

 

Article 21 Languages

 

This Agreement is made in English and Chinese,
Chinese version shall prevail in the event of discrepancy between English and Chinese.

 

Article 22 Validity

 

This Agreement shall come into force as of the
date of signing. The Chinese original of this Agreement shall be made in sextuplicate. Each transferor shall hold one original, the transferee
shall hold one original, and one original shall be sent to the relevant management department, the remaining one shall be kept on file
by Jiangxi Huiyi.

 

Article 23 Notice

 

23.1 Unless otherwise specified, any notice or
communication given by one party to the other party under this Agreement shall be written in Chinese and sent by express delivery service
or fax in the form of letter. The notice or communication submitted by express service shall be confirmed within 5 business days after
it is submitted to the express services. The effective date of a notice or communication given under this Agreement shall be the date
of receipt. If it is sent by fax, the fifth business day after sending shall be regarded as the date of receiving, but there shall be
a fax receipt confirmation as evidence.

 

23.2 Any notice and communication shall be delivered
to the following address:

 

Correspondence address
of Party A : No.468 Xinji Road, Qiubin Neighborhood, Wucheng District, Jinhua City, Zhejiang Province

 

Zhejiang Kandi Technologies
Group, Co., Ltd.

 

Tel: 0579-82239856

 

Attention:

 

Correspondence address of Party B: No. 919, Longtan
Road, High-Tech Zone, Xinyu City, Jiangxi Province.

 

Tel: 17307902188

 

Attention:

 

Article 24 Entire Agreement

 

This Agreement constitutes the entire agreement
of both parties on the transaction agreed in this Agreement, and replaces all previous discussions, negotiations and agreements of both
parties on the transaction under this agreement, with the same effect.

 

Article 25 Special Agreement

 

This Agreement shall be executed after being approved
by the board of directors of Zhejiang Kandi Technologies Group Co., Ltd. and the board of directors of Kandi Technologies Group, Inc.

 

(no text below)

 

    	 	9	 

     

    

 

 

IN WITNESS HEREOF, Party A and Party B
have executed this Agreement as of the date first above written.

 

Party A: Zhejiang Kandi Technologies Group, Co.,
Ltd.

 

Seal:

 

Authorized representative’s signature :
_________________________

 

Party B:

 

Signature: __________________________

 

 

 

10

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