Document:

Exhibit 10.2

 

REGISTRATION RIGHTS AGREEMENT

 

This Registration Rights Agreement (the “Agreement”),
dated as of April ___, 2021 (the “Execution Date”), is entered into by and between Luduson G Inc., (the “Company”),
a corporation organized under the laws of Delaware, with its principal executive offices at 17/F, 80 Gloucester Road, Wanchai, Hong Kong,
and Strattner Alternative Credit Fund LP, (the “Investor”), a Delaware limited partnership, with its principal executive
offices at 30 Wall Street, 8th Floor, 10005, New York, NY.

 

RECITALS:

 

		A.	Pursuant to the Investment Agreement entered into by and between the Company and the Investor of this
even date (the “Investment Agreement”), the Company has agreed to issue and sell to the Investor an indeterminate number
of Common Shares of the Company, $0.0001 par value per share (the “Common Shares”), up to an aggregate purchase price
of Five Million Dollars ($5,000,000).

 

		B.	As an inducement to the Investor to execute and deliver the Investment Agreement, the Company has agreed
to provide certain registration rights under the Securities Act of 1933, as amended, and the rules and regulations thereunder (the “1933
Act”), and applicable state securities laws, with respect to the Common Shares issuable pursuant to the Investment Agreement.

 

AGREEMENT

 

NOW THEREFORE, in consideration
of the foregoing promises and the mutual covenants contained hereinafter and other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the Company and the Investor hereby agree as follows:

 

SECTION I

DEFINITIONS

 

As used in this Agreement, the following terms shall have the following
meanings:

 

“1933 Act” shall have the meaning set
forth in the recitals.

“1934 Act” means the Securities Exchange
Act of 1934, as amended, and the rules and regulations thereunder, or any similar successor statute.

“Agreement” shall have the meaning set
forth in the preamble.

“Claims” shall have the meaning set forth
in Section 6.1.

“Common Shares” shall have the meaning
set forth in the recitals.

“Company” shall have the meaning set forth
in the preamble.

“Execution Date” shall have the meaning
set forth in the preamble.

“Indemnified Damages” shall have the meaning
set forth in Section 6.1.

“Indemnified Party” shall have the meaning
set forth in Section 6.1.

“Indemnified Person” shall have the meaning
set forth in Section 6.1.

“Investment Agreement” shall have the
meaning set forth in the recitals.

“Investor” shall have the meaning set
forth in the preamble.

“Investor’s Delay” shall have the
meaning set forth in Section 3.5.

“New Registration Statement” shall have
the meaning set forth in Section 2.3.

 

 

 

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“Person” means a corporation, a limited
liability company, an association, a partnership, an organization, a business, an individual, a governmental or political subdivision
thereof or a governmental agency.

“Principal Market” shall mean Canadian
Securities Exchange, Nasdaq Capital Market, the NYSE Amex, the New York Stock Exchange, the Nasdaq Global Market, the Nasdaq Global Select
Market or the OTCQB, or whichever is the principal market on which the Common Shares of the Company are listed.

“Register,” “Registered,”
and “Registration” refer to the Registration effected by preparing and filing one (1) or more Registration Statements
in compliance with the 1933 Act and pursuant to Rule 415 under the 1933 Act or any successor rule providing for offering securities on
a continuous basis, and the declaration or ordering of effectiveness of such Registration Statement(s) by the SEC.

“Registration Period” shall have the meaning
set forth in Section 3.1.

“Registrable Securities” means (i) the
Common Shares issuable pursuant to the Investment Agreement, (ii) the Common Stock set forth on Exhibit A hereto, and (iii) any
shares of capital stock issuable with respect to such Common Shares, if any, as a result of any stock splits, stock dividends, or similar
transactions, which have not been (x) included in the Registration Statement that has been declared effective by the SEC, or (y) sold
under circumstances meeting all of the applicable conditions of Rule 144 (or any similar provision then in force) under the 1933 Act.

“Registration Default” shall have the
meaning set forth in Section 3.3.

“Registration Statement” means the registration
statement of the Company filed under the 1933 Act covering the Registrable Securities.

“Rule 144” means Rule 144 promulgated
under the 1933 Act or any successor rule of the SEC.

“SEC” shall mean the U.S. Securities and
Exchange Commission.

“Staff” shall have the meaning set forth
in Section 2.3.

“Violations” shall have the meaning set
forth in Section 6.1.

 

All capitalized terms used in this Agreement and
not otherwise defined herein shall have the same meaning ascribed to them as in the Investment Agreement.

 

SECTION II

REGISTRATION

 

2.1The Company shall use its best efforts to, within ninety
(90) days of the Execution Date file with the SEC a Registration Statement or Registration Statements (as is necessary) on Form S-3 or
S-1 (or, if such form is unavailable for such a registration, on such other form as is available for such registration), covering the
resale of up to $_____________of the Registrable Securities, which Registration Statement(s) shall state that, in accordance with
Rule 416 promulgated under the 1933 Act, such Registration Statement also covers such indeterminate number of additional Common Shares
as may become issuable upon stock splits, stock dividends or similar transactions. The Company shall initially register for resale____________shares
of Registrable Securities, except to the extent that the SEC may require such share amount to be reduced as a condition of effectiveness.

 

2.2The Company shall use commercially reasonable efforts
to have the Registration Statement(s) declared effective by the SEC within one hundred twenty (120) days but no more than one hundred
fifty (150) days after the Company has filed the Registration Statement(s), subject to any SEC comments or objections which may remain
unresolved on or after the 150th day that prevent the effectiveness of such Registration Statement, which shall not be a default
hereunder or under the Investment Agreement.

 

 

 

 

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2.3Notwithstanding the registration obligations set forth
in Section 2.1, if the staff of the SEC (the “Staff”) or the SEC informs the Company that all of the unregistered
Registrable Securities cannot, as a result of the application of Rule 415, be registered for resale as a secondary offering on a single
Registration Statement, the Company agrees to promptly (i) inform the Investor and use its commercially reasonable efforts to file amendments
to the Registration Statement as required by the SEC and/or (ii) withdraw the Registration Statement and file a new registration statement
(the “New Registration Statement”), in either case covering the maximum number of Registrable Securities permitted
to be registered by the SEC, on Form S-3 or S-1 to register for resale the Registrable Securities as a secondary offering. If the Company
amends the Registration Statement or files a New Registration Statement, as the case may be, under clauses (i) or (ii) above, the Company
shall use its commercially reasonable efforts to file with the SEC, as promptly as allowed by the Staff or SEC, one or more registration
statements on Form S-3 or S-1 to register for resale those Registrable Securities that were not registered for resale on the Registration
Statement, as amended, or the New Registration Statement. Additionally, the Company shall have the ability to file one or more New Registration
Statements, without penalty or default, to cover the Registrable Securities once the Shares under the initial Registration Statement
referenced in Section 2.1 have been sold.

 

2.4Notwithstanding anything to
the contrary herein, the Company shall not be obligated to file any Registration Statements with respect to Registrable Securities that
have not been issued pursuant to the Investment Agreement prior to the expiration or termination of the Investment Agreement.

 

SECTION III

RELATED OBLIGATIONS

 

At such time as the Company is obligated to prepare
and file the Registration Statement with the SEC pursuant to Section 2, the Company shall effect the registration of the Registrable
Securities in accordance with the intended method of disposition thereof and, with respect thereto, the Company shall have the following
obligations:

 

3.1Upon the effectiveness of such Registration Statement
relating to the Registrable Securities, the Company shall keep such Registration Statement effective until the earlier to occur of the
date on which (A) the Investor shall have sold all the Registrable Securities actually issued under the Investment Agreement; or (B)
the Investor has no right to acquire any additional Common Shares under the Investment Agreement; or (C) the Investor becomes eligible
sell the Registrable Securities without volume limitations under Rule 144 (the “Registration Period”). The Registration
Statement (including any amendments or supplements thereto and prospectuses contained therein) shall not contain any untrue statement
of a material fact or omit to state a material fact required to be stated therein, or necessary to make the statements therein, in light
of the circumstances in which they were made, not misleading. The Investor agrees to provide all information which it is required by
law to provide to the Company, including the intended method of disposition of the Registrable Securities, and the Company’s obligations
set forth in this Agreement shall be conditioned on the receipt of such information.

 

3.2The Company shall prepare and file with the SEC such
amendments (including post-effective amendments) and supplements to the Registration Statement and the prospectus used in connection
with such Registration Statement, which prospectus is to be filed pursuant to Rule 424 promulgated under the 1933 Act, as may be necessary
to keep such Registration Statement effective during the Registration Period, and, during such period, comply with the provisions of
the 1933 Act with respect to the disposition of all Registrable Securities of the Company covered by such Registration Statement. In
the event the number of Common Shares covered by the Registration Statement filed pursuant to this Agreement is at any time insufficient
to cover all of the Registrable Securities and subject to Section 2.4 hereof, the Company shall amend such Registration Statement, or
file a new Registration Statement (on the short form available therefor, if applicable), or both, so as to cover all of the Registrable
Securities, in each case, as soon as practicable, but in any event within thirty (30) calendar days after the necessity therefor arises
(based on the then Purchase Price of the Common Shares and other relevant factors on which the Company reasonably elects to rely), assuming
the Company has sufficient authorized shares at that time, and if it does not, within thirty (30) calendar days after such shares are
authorized. The Company shall use commercially reasonable efforts to cause such amendment and/or new Registration Statement to become
effective as soon as practicable following the filing thereof.

 

 

 

 

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3.3As promptly as practicable after becoming aware of
such event, the Company shall notify Investor in writing of the happening of any event as a result of which the prospectus included in
the Registration Statement, as then in effect, includes an untrue statement of a material fact or omission to state a material fact required
to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading
(“Registration Default”) and use all diligent efforts to promptly prepare a supplement or amendment to such Registration
Statement and take any other necessary steps to cure the Registration Default (which, if such Registration Statement is on Form F-3,
may consist of a document to be filed by the Company with the SEC pursuant to Section 13(a), 13(c), 14 or 15(d) of the 1934 Act and to
be incorporated by reference in the prospectus) to correct such untrue statement or omission, and make available copies of such supplement
or amendment to the Investor. During the Registration Period, the Company shall also promptly notify the Investor (i) when a prospectus
or any prospectus supplement or post-effective amendment has been filed, and when the Registration Statement or any post-effective amendment
has become effective; (ii) of any request by the SEC for amendments or supplements to the Registration Statement or related prospectus
or related information, (iii) of the Company’s reasonable determination that a post-effective amendment to the Registration Statement
would be appropriate, (iv) in the event the Registration Statement is No longer effective, or (v) if the Registration Statement is stale
as a result of the Company’s failure to timely file its financials or otherwise

 

3.4The Company shall use all commercially reasonable
efforts to prevent the issuance of any stop order or other suspension of effectiveness of the Registration Statement, or the suspension
of the qualification of any of the Registrable Securities for sale in any jurisdiction and, if such an order or suspension is issued,
to obtain the withdrawal of such order or suspension at the earliest possible moment and to notify the Investor holding Registrable Securities
being sold of the issuance of such order and the resolution thereof or its receipt of actual notice of the initiation or threat of any
proceeding concerning the effectiveness of the Registration Statement.

 

3.5The Company
shall permit the Investor and one (1) legal counsel, designated by the Investor, to review and comment upon the Registration Statement
and all amendments and supplements thereto at least one (1) calendar day prior to their filing with the SEC. However, any postponement
of a filing of a Registration Statement or any postponement of a request for acceleration or any postponement of the effective date or
effectiveness of a Registration Statement by written request of the Investor (collectively, the "Investor's Delay")
shall not act to trigger any penalty of any kind, or any cash amount due or any in-kind amount due the Investor from the Company under
any and all agreements of any nature or kind between the Company and the Investor. The event(s) of an Investor's Delay shall act to suspend
all obligations of any kind or nature of the Company under any and all agreements of any nature or kind between the Company and the Investor.

 

3.6The Company shall hold in confidence and not make
any disclosure of information concerning the Investor unless (i) disclosure of such information is necessary to comply with federal or
state securities laws, (ii) the disclosure of such information is necessary to avoid or correct a misstatement or omission in any Registration
Statement, (iii) the release of such information is ordered pursuant to a subpoena or other final, non-appealable order from a court
or governmental body of competent jurisdiction, (iv) such information is required to be submitted or disclosed in response to an SEC
comment or pursuant to the 1933 Act and/or the 1934 Act, and the rules and regulations applicable thereto or (v) such information has
been made generally available to the public other than by disclosure in violation of this Agreement or any other agreement. The Company
agrees that it shall, upon learning that disclosure of such information concerning the Investor is sought in or by a court or governmental
body of competent jurisdiction or through other means, give prompt written notice to the Investor and allow the Investor, at the Investor’s
expense, to undertake appropriate action to prevent disclosure of, or to obtain a protective order covering such information.

 

 

 

 

 

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3.7The Company shall use all commercially reasonable
efforts to maintain designation and quotation of all the Registrable Securities covered by any Registration Statement on the Principal
Market. If, despite the Company’s commercially reasonable efforts, the Company is unsuccessful in satisfying the preceding sentence,
it shall use commercially reasonable efforts to cause all the Registrable Securities covered by any Registration Statement to be listed
on each other national securities exchange and automated quotation system, if any, on which securities of the same class or series issued
by the Company are then listed, if any, if the listing of such Registrable Securities is then permitted under the rules of such exchange
or system. The Company shall pay all fees and expenses in connection with satisfying its obligation under this Section 3.7.

 

3.8If requested by the Investor, the Company shall (i)
as soon as reasonably practical incorporate in a prospectus supplement or post-effective amendment such information as the Investor reasonably
determines should be included therein relating to the sale and distribution of Registrable Securities, including, without limitation,
information with respect to the offering of the Registrable Securities to be sold in such offering; (ii) make all required filings of
such prospectus supplement or post-effective amendment as soon as reasonably possible after being notified of the matters to be incorporated
in such prospectus supplement or post-effective amendment; and (iii) supplement or make amendments to any Registration Statement if reasonably
requested by the Investor.

 

3.9The Company shall use all commercially reasonable
efforts to cause the Registrable Securities covered by the applicable Registration Statement to be registered with or approved by such
other governmental agencies or authorities as may be necessary to facilitate the disposition of such Registrable Securities.

 

3.10The Company shall otherwise use all commercially
reasonable efforts to comply with all applicable rules and regulations of the SEC in connection with any registration hereunder.

 

3.11The Company shall take all other reasonable actions
necessary to expedite and facilitate disposition by the Investor of Registrable Securities pursuant to the Registration Statement.

 

SECTION IV

OBLIGATIONS OF THE INVESTOR

 

4.1At least five (5) calendar days prior to the
first anticipated filing date of the Registration Statement, the Company shall notify the Investor in writing of the information the
Company requires from the Investor for the Registration Statement. It shall be a condition precedent to the obligations of the Company
to complete the registration pursuant to this Agreement with respect to the Registrable Securities and the Investor agrees to furnish
to the Company that information regarding itself, the Registrable Securities and the intended method of disposition of the Registrable
Securities as shall reasonably be required to effect the registration of such Registrable Securities and the Investor shall execute such
documents in connection with such registration as the Company may reasonably request. The Investor covenants and agrees that, in connection
with any sale of Registrable Securities by it pursuant to the Registration Statement, it shall comply with the “Plan of Distribution”
section of the then current prospectus relating to such Registration Statement.

 

4.2The Investor, by its acceptance of the
Registrable Securities, agrees to timely cooperate with the Company as reasonably requested by the Company in connection with the
preparation and filing of any Registration Statement hereunder, unless the Investor has notified the Company in writing of an
election to exclude all of the Investor’s Registrable Securities from such Registration Statement.

 

 

 

 

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4.3The Investor agrees that, upon receipt of written
notice from the Company of the happening of any event of the kind described in Section 3.4 or the first sentence of Section
3.3, the Investor will immediately discontinue disposition of Registrable Securities pursuant to any Registration Statement(s) covering
such Registrable Securities until the Investor’s receipt of the copies of the supplemented or amended prospectus contemplated by
Section 3.4 or the first sentence of Section 3.3.

 

SECTION V

EXPENSES OF REGISTRATION

 

All legal expenses of the Company incurred in connection
with registrations shall be paid by the Company.

 

SECTION VI

INDEMNIFICATION

 

In the event any Registrable Securities are included
in the Registration Statement under this Agreement:

 

6.1       To
the fullest extent permitted by law, the Company, under this Agreement, will, and hereby does, indemnify, hold harmless and defend the
Investor who holds Registrable Securities, the directors, officers, partners, employees, agents and representatives of, and each Person,
if any, who controls, the Investor within the meaning of the 1933 Act or the 1934 Act (each, an “Indemnified Person”),
against any losses, claims, damages, liabilities, judgments, fines, penalties, charges, costs, attorneys’ fees, amounts paid in
settlement or expenses, joint or several (collectively, “Claims”), incurred in investigating, preparing or defending
any action, claim, suit, inquiry, proceeding, investigation or appeal taken from the foregoing by or before any court or governmental,
administrative or other regulatory agency, body or the SEC, whether pending or threatened, whether or not an indemnified party is or
may be a party thereto (“Indemnified Damages”), to which any of them may become subject insofar as such Claims (or
actions or proceedings, whether commenced or threatened, in respect thereof) arise out of or are based upon: (i) any untrue statement
or alleged untrue statement of a material fact in the Registration Statement or any post-effective amendment thereto, or the omission
or alleged omission to state a material fact required to be stated therein or necessary to make the statements therein, in light of the
circumstances under which the statements therein were made, not misleading, (ii) any untrue statement or alleged untrue statement of
a material fact contained in the final prospectus (as amended or supplemented, if the Company files any amendment thereof or supplement
thereto with the SEC) or the omission or alleged omission to state therein any material fact necessary to make the statements made therein,
in light of the circumstances under which the statements therein were made, not misleading, or (iii) any violation or alleged violation
by the Company of the 1933 Act, the 1934 Act, any other law, including, without limitation, any state securities law, or any rule or
regulation thereunder relating to the offer or sale of the Registrable Securities pursuant to the Registration Statement (the matters
in the foregoing clauses (i) through (iii) being, collectively, “Violations”). Subject to the restrictions set forth
in Section 6.3 the Company shall reimburse the Investor and each such controlling person, promptly as such expenses are incurred
and are due and payable, for any reasonable legal fees or other reasonable expenses incurred by them in connection with investigating
or defending any such Claim. Notwithstanding anything to the contrary contained herein, the indemnification agreement contained in this
Section 6.1: (i) shall not apply to a Claim arising out of or based upon a Violation which is due to the inclusion in the Registration
Statement of the information furnished to the Company by any Indemnified Person expressly for use in connection with the preparation
of the Registration Statement or any such amendment thereof or supplement thereto; (ii) shall not be available to the extent such Claim
is based on (a) a failure of the Investor to deliver or to cause to be delivered the prospectus made available by the Company or (b)
the Indemnified Person’s use of an incorrect prospectus despite being promptly advised in advance by the Company in writing not
to use such incorrect prospectus; (iii) any claims based on the manner of sale of the Registrable Securities by the Investor or of the
Investor’s failure to register as a dealer under applicable securities laws; (iv) any omission of the Investor to notify the Company
of any material fact that should be stated in the Registration Statement or prospectus relating to the Investor or the manner of sale;
and (v) any amounts paid in settlement of any Claim if such settlement is effected without the prior written consent of the Company,
which consent shall not be unreasonably withheld. Such indemnity shall remain in full force and effect regardless of any investigation
made by or on behalf of the Indemnified Person and shall survive the resale of the Registrable Securities by the Investor pursuant to
the Registration Statement. Notwithstanding anything to the contrary herein, the Company shall only be liable under this Section 6.1
for that amount of a Claim or Indemnified Damages as does not exceed_____________.

 

 

 

 

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6.2In connection with any Registration Statement in
which Investor is participating, the Investor agrees to indemnify, hold harmless and defend, to the same extent and in the same manner
as is set forth in Section 6.1, the Company, each of its directors, each of its officers who signs the Registration Statement,
each Person, if any, who controls the Company within the meaning of the 1933 Act or the 1934 Act and the Company’s agents (collectively
and together with an Indemnified Person, an “Indemnified Party”), against any Claim or Indemnified Damages to which
any of them may become subject, under the 1933 Act, the 1934 Act or otherwise, insofar as such Claim or Indemnified Damages arise out
of or are based upon any Violation, in each case to the extent, and only to the extent, that such Violation is due to the inclusion in
the Registration Statement of the written information furnished to the Company by the Investor expressly for use in connection with such
Registration Statement; and, subject to Section 6.3, the Investor shall reimburse any legal or other expenses reasonably incurred
by them in connection with investigating or defending any such Claim; provided, however, that the indemnity agreement contained
in this Section 6.2 and the agreement with respect to contribution contained in Section 7 shall not apply to amounts paid
in settlement of any Claim if such settlement is effected without the prior written consent of the Investor, which consent shall not
be unreasonably withheld or delayed; provided, further, however, that the Investor shall only be liable under this Section 6.2
for that amount of a Claim or Indemnified Damages as does not exceed greater of the net proceeds to such Investor as a result of the
sale of Registrable Securities pursuant to such Registration Statement, and with respect to any portion of the Registrable Securities
that are unsold, the value of such unsold Registrable Securities. Such indemnity shall remain in full force and effect regardless of
any investigation made by or on behalf of such Indemnified Party and shall survive the resale of the Registrable Securities by the Investor
pursuant to the Registration Statement. Notwithstanding anything to the contrary contained herein, the indemnification agreement contained
in this Section 6.2 with respect to any preliminary prospectus shall not inure to the benefit of any Indemnified Party if the
untrue statement or omission of material fact contained in the preliminary prospectus were corrected on a timely basis in the prospectus,
as then amended or supplemented.

 

6.3Promptly
after receipt by an Indemnified Person or Indemnified Party under this Section 6 of notice of the commencement of any action or
proceeding (including any governmental action or proceeding) involving a Claim, such Indemnified Person or Indemnified Party shall, if
a Claim in respect thereof is to be made against any indemnifying party under this Section 6, deliver to the indemnifying party
a written notice of the commencement thereof, and the indemnifying party shall have the right to participate in, and, to the extent the
indemnifying party so desires, jointly with any other indemnifying party similarly noticed, to assume control of the defense thereof
with counsel mutually satisfactory to the indemnifying party and the Indemnified Person or the Indemnified Party, as the case may be;
provided, however, that an Indemnified Person or Indemnified Party shall have the right to retain its own counsel with the fees and expenses
to be paid by the indemnifying party, if, in the reasonable opinion of counsel retained by the Indemnified Person or Indemnified Party,
the representation by counsel of the Indemnified Person or Indemnified Party and the indemnifying party would be inappropriate due to
actual or potential differing interests between such Indemnified Person or Indemnified Party and any other party represented by such
counsel in such proceeding. The indemnifying party shall pay for only one (1) separate legal counsel for the Indemnified Persons or the
Indemnified Parties, as applicable, and such counsel shall be selected by the Investor, if the Investor is entitled to indemnification
hereunder, or the Company, if the Company is entitled to indemnification hereunder, as applicable. The Indemnified Party or Indemnified
Person shall cooperate fully with the indemnifying party in connection with any negotiation or defense of any such action or Claim by
the indemnifying party and shall furnish to the indemnifying party all information reasonably available to the Indemnified Party or Indemnified
Person which relates to such action or Claim. The indemnifying party shall keep the Indemnified Party or Indemnified Person fully apprised
at all times as to the status of the defense or any settlement negotiations with respect thereto. No indemnifying party shall be liable
for any settlement of any action, claim or proceeding affected without its written consent, provided, however, that the indemnifying
party shall not unreasonably withhold, delay or condition its consent. No indemnifying party shall, without the consent of the Indemnified
Party or Indemnified Person, consent to entry of any judgment or enter into any settlement or other compromise which does not include
as an unconditional term thereof the giving by the claimant or plaintiff to such Indemnified Party or Indemnified Person of a release
from all liability in respect to such Claim. Following indemnification as provided for hereunder, the indemnifying party shall be subrogated
to all rights of the Indemnified Party or Indemnified Person with respect to all third parties, firms or corporations relating to the
matter for which indemnification has been made. The failure to deliver written notice to the indemnifying party within a reasonable time
of the commencement of any such action shall not relieve such indemnifying party of any liability to the Indemnified Person or Indemnified
Party under this Section 6, except to the extent that the indemnifying party is prejudiced in its ability to defend such action.

 

 

 

 

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6.4 The
indemnity agreements contained herein shall be in addition to (i) any cause of action or similar right of the Indemnified Party or Indemnified
Person against the indemnifying party or others, and (ii) any liabilities the indemnifying party may be subject to pursuant to the law.

 

SECTION VII

CONTRIBUTION

 

7.1 To
the extent any indemnification by an indemnifying party is prohibited or limited by law, the indemnifying party agrees to make the maximum
contribution with respect to any amounts for which it would otherwise be liable under Section 6 to the fullest extent permitted
by law; provided, however, that: (i) No contribution shall be made under circumstances where the maker would not have been liable for
indemnification under the fault standards set forth in Section 6; (ii) No seller of Registrable Securities guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the 1933 Act) shall be entitled to contribution from any seller of Registrable
Securities who was not guilty of fraudulent misrepresentation; and (iii) contribution by any seller of Registrable Securities shall be
limited in amount to the net amount of proceeds received by such seller from the sale of such Registrable Securities, or, if Registrable
Securities are unsold, the value of such Registrable Securities.

 

SECTION VIII

REPORTS UNDER THE 1934
ACT

 

8.1 After
the Execution Date of the Registration Statement and with a view to making available to the Investor the benefits of Rule 144 that may
at any time permit the Investor to sell securities of the Company to the public without registration, provided that the Investor holds
any Registrable Securities that are eligible for resale under Rule 144, the Company agrees to:

 

		a.	make and keep public information available, as those terms are understood and defined in Rule 144;

		b.	file with the SEC in a timely manner all reports and other documents required of the Company under the
1933 Act and the 1934 Act so long as the Company remains subject to such requirements and the filing of such reports and other documents
is required for the applicable provisions of Rule 144; and

		c.	furnish to the Investor, promptly upon request, (i) a written statement by the Company that it has complied
with the reporting requirements of Rule 144, the 1933 Act and the 1934 Act, as applicable, and (ii) such other information as may be reasonably
requested to permit the Investor to sell such securities pursuant to Rule 144 without registration.

 

SECTION IX

MISCELLANEOUS

 

9.1 NOTICES.
Any notices or other communications required or permitted to be given under the terms of this Agreement must be in writing and will
be deemed to have been delivered (i) upon receipt, when delivered personally; (ii) upon receipt, when sent by electronic mail
(provided confirmation of transmission is mechanically or electronically generated and kept on file by the sending party); or (iii)
one (1) day after deposit with a nationally recognized overnight delivery service, in each case properly addressed to the party to
receive the same. The addresses and email addresses for such communications shall be:

 

	 	If to the Company:	 	17/F, 80 Gloucester Road
	 	 	 	Wanchai, Hong Kong
	 	 	 	ATTN: _____________________________
	 	 	 	 

 

 

 

 

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	 	If
to the Investor:	 	Strattner Alternative Credit Fund LP
	 	 	 	30 Wall Street, 8th Floor
	 	 	 	New York, NY 10005
	 	 	 	ATTN: Dr. Timo Bernd Strattner
	 	 	 	 
	 	With a copy	 	Kirton McConkie, P.C.
	 	(which shall not	 	50 East South Temple Street, Suite 400
	 	constitute notice) to:	 	Salt Lake City, UT 84111
	 	 	 	ATTN: C. Parkinson Lloyd, Esq.
	 	 	 	plloyd@kmclaw.com

 

Each party shall provide five (5) business days prior written notice
to the other party of any change in address or email address.

 

9.2 NO
WAIVERS. Failure of any party to exercise any right or remedy under this Agreement or otherwise, or delay by a party in exercising
such right or remedy, shall not operate as a waiver thereof.

 

9.3 NO
ASSIGNMENTS. The rights and obligations under this Agreement shall not be assignable.

 

9.4 ENTIRE
AGREEMENT/AMENDMENT. This Agreement and the Registered Offering Transaction Documents constitute the entire agreement among the parties
hereto with respect to the subject matter hereof and thereof. There are No restrictions, promises, warranties or undertakings, other than
those set forth or referred to herein and therein. This Agreement and the Registered Offering Transaction Documents supersede all prior
agreements and understandings among the parties hereto with respect to the subject matter hereof and thereof. The provisions of this Agreement
may be amended only with the written consent of the Company and Investor.

 

9.5 HEADINGS.
The headings in this Agreement are for convenience of reference only and shall not limit or otherwise affect the meaning hereof.
Whenever required by the context of this Agreement, the singular shall include the plural and masculine shall include the feminine.
This Agreement shall not be construed as if it had been prepared by one of the parties, but rather as if all the parties had
prepared the same.

 

9.6 COUNTERPARTS.
This Agreement may be executed in any number of counterparts and by the different signatories hereto on separate counterparts, each
of which, when so executed, shall be deemed an original, but all such counterparts shall constitute but one and the same instrument.
This Agreement may be executed by facsimile transmission, PDF, electronic signature or other similar electronic means with the same
force and effect as if such signature page were an original thereof.

 

9.7 FURTHER
ASSURANCES. Each party shall do and perform, or cause to be done and performed, all such further acts and things, and shall
execute and deliver all such other agreements, certificates, instruments and documents, as the other party may reasonably request in
order to carry out the intent and accomplish the purposes of this Agreement and the consummation of the transactions contemplated
hereby.

 

9.8 SEVERABILITY.
In case any provision of this Agreement is held by a court of competent jurisdiction to be excessive in scope or otherwise invalid
or unenforceable, such provision shall be adjusted rather than voided, if possible, so that it is enforceable to the maximum extent
possible, and the validity and enforceability of the remaining provisions of this Agreement will not in any way be affected or
impaired thereby.

 

 

 

 

    	 	9	 

     

    

 

9.9 LAW
GOVERNING THIS AGREEMENT. This Agreement shall be governed by, and construed and interpreted in accordance with the laws of the State
of New York without giving effect to any conflict of laws rule or principle that might require the application of the laws of another
jurisdiction. Any dispute, claim, suit, action or other legal proceeding arising out of the transactions contemplated by this Agreement
or the rights and obligations of each of the parties shall be brought only in a competent court in the State and City of New York or
in the federal courts of the United States of America located in the Southern District of New York. The parties to this Agreement hereby
irrevocably waive (i) any right to a jury trial and (ii) any objection to jurisdiction and venue of any action instituted hereunder and
shall not assert any defense based on lack of jurisdiction or venue or based upon forum non conveniens. The parties executing
this Agreement and other agreements referred to herein or delivered in connection herewith agree to submit to the in personam jurisdiction
of such courts. In the event that any provision of this Agreement or any other agreement delivered in connection herewith is invalid
or unenforceable under any applicable statute or rule of law, then such provision shall be deemed inoperative to the extent that it may
conflict therewith and shall be deemed modified to conform with such statute or rule of law. Any such provision which may prove invalid
or unenforceable under any law shall not affect the validity or enforceability of any other provision of any agreement. Each party hereby
irrevocably waives personal service of process and consents to process being served in any suit, action or proceeding in connection with
this Agreement or any other Transaction Documents by mailing a copy thereof via registered or certified mail or overnight delivery (with
evidence of delivery) to such party at the address in effect for notices to it under this Agreement and agrees that such service shall
constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any
right to serve process in any other manner permitted by law.

 

9.10 NO
THIRD PARTY BENEFICIARIES. This Agreement is intended for the benefit of the parties hereto and is not for the benefit of, nor
may any provision hereof be enforced by, any other person.

 

[Signature page follows.]

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	10	 

     

    

 

Your signature on this Signature Page evidences your agreement
to be bound by the terms and conditions of the Registration Rights Agreement as of the date first written above. The undersigned signatory
hereby certifies that he has read and understands the Registration Rights Agreement, and the representations made by the undersigned in
this Registration Rights Agreement are true and accurate, and agrees to be bound by its terms.

 

 

	 	STRATTNER ALTERNATIVE CREDIT FUND LP
	 	 
	 	By:	/s/ Timo Bernd Strattner
	 	Name:	Timo Bernd Strattner
	 	Title:	 
	 	 	 	 
	 	 	 	 
	 	LUDUSON G INC.
	 	 	 	 
	 	By:	/s/ Ka Leung WONG
	 	Name:	Ka Leung WONG
	 	Title:	CEO

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	11Exhibit 10.2

 

KAIXIN AUTO HOLDINGS

2020 EQUITY INCENTIVE PLAN

 

The Kaixin Auto Holdings 2020
Equity Incentive Plan (the “Plan”) was adopted by the Board of Kaixin Auto Holdings, an exempted company with
limited liability incorporated in the Cayman Islands (together with its successors and assigns, the “Company”)
under the applicable laws and regulations of that jurisdiction.

 

Article
1

PURPOSE

 

The purpose of the Plan is
to foster and promote the long-term financial success of the Company and its Subsidiaries and materially increase the value of the Company
and its Subsidiaries by (a) encouraging the long-term commitment of the Employees, Consultants, and Outside Directors; (b) motivating
performance of the Employees, Consultants, and Outside Directors by means of long-term performance related incentives; (c) encouraging
and providing Employees, Consultants, and Outside Directors with an opportunity to obtain an ownership interest in the Company; (d) attracting
and retaining outstanding Employees, Consultants, and Outside Directors by providing incentive compensation opportunities; and (e) enabling
participation by Employees, Consultants, and Outside Directors in the long-term growth and financial success of the Company and its Subsidiaries.

 

Article
2

DEFINITIONS

 

For the purpose of the Plan,
unless the context requires otherwise, the following terms shall have the meanings indicated:

 

“Award”
means the grant of any Incentive Share Option, Nonqualified Share Option, Restricted Shares or Restricted Share Units whether granted
singly or in combination (each individually referred to herein as an “Incentive”).

 

“Award Agreement”
means a written agreement between a Participant and the Company which sets out the terms of the grant of an Award.

 

“Award Period”
means the period set forth in the Award Agreement with respect to a Share Option during which the Share Option may be exercised, which
shall commence on the Date of Grant and expire at the time set forth in the Award Agreement.

 

“Board”
means the board of directors of the Company at a time when there are at least two (2) directors serving at the same time or the Sole Director
at a time when there is only one (1) director serving.

 

“Change of
Control” means any of the following: (i) Continuing Directors cease to constitute at least fifty percent (50%) of the
members of the Board; (ii) the shareholders of the Company approve any plan or proposal for the liquidation or dissolution of the
Company; (iii) any consolidation, merger or share exchange of the Company in which the Company is not the continuing or surviving
corporation or pursuant to which the Company’s Ordinary Shares would be converted into cash, securities or other property; or
(iv) any sale, lease, exchange or other transfer (excluding transfer by way of pledge or hypothecation) in one transaction or a
series of related transactions, of all or substantially all of the assets of the Company; provided, however, that a
transaction described in clauses (iii) or (iv) shall not constitute a Change of Control hereunder if after such transaction (I)
Continuing Directors constitute at least fifty percent (50%) of the members of the board of directors of the continuing, surviving
or acquiring entity, as the case may be or, if such entity has a parent entity directly or indirectly holding at least a majority of
the voting power of the voting securities of the continuing, surviving or acquiring entity, Continuing Directors constitute at least
fifty percent (50%) of the members of the board of directors of the entity that is the ultimate parent of the continuing, surviving
or acquiring entity, and (II) the continuing, surviving or acquiring entity (or the ultimate parent of such continuing, surviving or
acquiring entity) assumes all outstanding Awards granted under the Plan.

 

    1

     

    

 

“Code”
means the United States Internal Revenue Code of 1986, as amended.

 

“Committee”
means the committee appointed or designated by the Board to administer the Plan in accordance with Article 3 of the Plan or, in the case
no such committee is appointed, the Board.

 

“Company”
means Kaixin Auto Holdings, an exempted company with limited liability incorporated in the Cayman Islands under the applicable laws and
regulations of that jurisdiction, and any successor entity.

 

“Consultant”
means any person performing advisory or consulting services for the Company or a Subsidiary or parent of the Company, with or without
compensation, to whom the Company chooses to grant an Award in accordance with the Plan; provided, that bona fide
services must be rendered by such person and such services shall not be rendered in connection with the offer or sale of securities in
a capital raising transaction.

 

“Continuing Director(s)”
means the Sole Director at the date of the Plan or Board members who (x) at the date of the Plan were directors or (y) become directors
after the date of the Plan and whose election or nomination for election by the Company’s shareholders was approved by a vote of
a majority of the directors then in office who were directors at the date of the Plan or whose election or nomination for election was
previously so approved.

 

“Corporation”
means any entity that (i) is defined as a corporation under Code Section 7701 and (ii) is the Company or is in an unbroken chain of corporations
(other than the Company) beginning with the Company, if each of the corporations other than the last corporation in the unbroken chain
owns shares possessing a majority of the total combined voting power of all classes of shares in one of the other corporations in the
chain. For purposes of clause (ii) hereof, an entity shall be treated as a Corporation if it satisfies the definition of a corporation
under Section 7701 of the Code.

 

“Date of Grant”
means the effective date on which an Award is made to a Participant as set forth in the applicable Award Agreement.

 

“Employee”
means common law employee (as defined in accordance with the Regulations and Revenue Rulings then applicable under Section 3401(c) of
the Code) of the Company or any Subsidiary or parent of the Company.

 

“Equity Securities”
means the Ordinary Shares, the preferred shares of the Company, any securities having voting rights in the election of the Board not contingent
upon default, any securities evidencing an ownership interest in the Company, any securities convertible into or exercisable for any shares
of the foregoing, and any agreement or commitment to issue any of the foregoing.

 

“Exchange Act”
means the U.S. Securities Exchange Act of 1934.

 

    2

     

    

 

“Fair Market
Value” means, as of a particular date, (a) if the Ordinary Shares are listed on a national securities exchange, the
closing sales price per Ordinary Share on the consolidated transaction reporting system for the principal securities exchange for
the Ordinary Shares on that date, or, if there shall have been no such sale so reported on that date, on the last preceding date on
which such a sale was so reported, (b) if the Ordinary Shares are not so listed or quoted, such amount as may be determined by the
Committee (acting on the advice of an Independent Third Party, should the Board elect in its sole discretion to utilize an
Independent Third Party for this purpose), in good faith, to be the fair market value per share of Ordinary Shares.

 

“Immediate Family”
shall have the meaning as such term is defined in Rule 16a-1(e) promulgated under the Exchange Act.

 

“Incentive Share
Option” means an incentive stock option within the meaning of Section 422 of the Code, granted pursuant to the Plan.

 

“Independent Third
Party” means an individual or entity independent of the Company having experience in providing investment banking or similar
appraisal or valuation services and with expertise generally in the valuation of securities or other property for purposes of the Plan.
The Board may utilize one or more Independent Third Parties.

 

“Nonpublicly Traded”
means not listed on a national securities exchange.

 

“Nonqualified
Share Option” means a stock option granted pursuant to the Plan which does not satisfy the requirements of Section 422 of
the Code.

 

“Option Price”
means the price which must be paid by a Participant upon exercise of a Share Option to purchase one Ordinary Share.

 

“Ordinary Share”
means the ordinary shares which the Company is currently authorized to issue or may in the future be authorized to issue, or any securities
into which or for which the ordinary shares of the Company may be converted or exchanged, as the case may be, pursuant to the terms of
the Plan.

 

“Outside Director”
means a director of the Company or any Subsidiary of the Company who is not an Employee.

 

“Participant”
means an Employee, Consultant, or Outside Director to whom an Award is granted under the Plan.

 

“Plan”
means this Kaixin Auto Holdings 2020 Equity Incentive Plan, as amended from time to time.

 

“PRC”
means the People’s Republic of China and, for the purposes of the Plan only, excludes the Special Administrative Region of Hong
Kong, the Special Administrative Region of Macau, and Taiwan area.

 

“Restricted Share”
means an Ordinary Share issued or transferred to a Participant pursuant to Section 6.5 of the Plan which is subject to restrictions or
limitations set forth in the Plan and in the related Award Agreement.

 

“Restricted Share
Unit” means the unfunded and unsecured right granted to a Participant pursuant to Section 6.6 of the Plan to receive an
Ordinary Share (or equivalent) at a future date.

 

    3

     

    

 

“Retirement”
means any Termination of Service solely due to retirement upon or after attainment of age sixty-five (65), or permitted early retirement
as determined by the Committee.

 

“Share Option”
means a Nonqualified Share Option or an Incentive Share Option.

 

“Sole Director”
means the director of the Company when there is only one (1) director serving at any given time.

 

“Subsidiary”
means (i) any Corporation, (ii) any limited partnership, if the Company or any Corporation owns a majority of the general partnership
interest and a majority of the limited partnership interests entitled to vote on the removal and replacement of the general partner, and
(iii) any partnership, company or limited liability company, if the partners or members thereof are composed only of the Company, any
Corporation or any limited partnership listed in clause (ii). “Subsidiaries” means more than one of any such
Corporations, limited partnerships, partnerships, companies or limited liability companies.

 

“Termination of
Service” occurs when a Participant who is an Employee or a Consultant ceases to serve as an Employee or Consultant, for
any reason; or, when a Participant who is an Outside Director ceases to serve as a director of the Company and its Subsidiaries, for any
reason.

 

“Total and Permanent
Disability” means a Participant is qualified for long-term disability benefits under the Company’s or its Subsidiary’s
disability plan or insurance policy; or, if no such plan or policy is then in existence or if the Participant is not eligible to participate
in such plan or policy, that the Participant, because of ill health, physical or mental disability or any other reason beyond his or her
control, is unable to perform his or her duties of employment for a period of six (6) continuous months, as determined in good faith by
the Committee; provided, that, with respect to any Incentive Share Option, Total and Permanent Disability shall have the meaning
given it under the rules governing incentive stock options under the Code.

 

Article
3

ADMINISTRATION

 

Subject to the terms of this
Article 3, the Plan shall be administered by the Sole Director or the Board as the case may be, or by such committee of the Board as is
designated by resolution of the Board to administer the Plan (the “Committee”).

 

The Committee shall consist
of not fewer than two (2) persons. Any member of the Committee may be removed at any time, with or without cause, by resolution of the
Board. Any vacancy occurring in the membership of the Committee may be filled by appointment by the Board. At any time there is no Committee
to administer the Plan, any references in the Plan to the Committee shall be deemed to refer to the Sole Director or the Board as the
case may be at that time.

 

The Committee shall select
one of its members to act as its Chairman. A majority of the Committee shall constitute a quorum, and the act of a majority of the members
of the Committee present at a meeting at which a quorum is present shall be the act of the Committee.

 

The Committee shall
determine and designate from time to time the eligible persons to whom Awards will be granted and shall set forth in each related
Award Agreement, where applicable, the Award Period, the Date of Grant, and such other terms, provisions, limitations, and
performance requirements, as are approved by the Committee, but not inconsistent with the Plan. The Committee shall determine
whether an Award shall include one type of Incentive or two or more Incentives granted in combination. All decisions with respect to
any Award, and the terms and conditions thereof, to be granted under the Plan to any member of the Committee shall be made solely
and exclusively by the other members of the Committee, or if such member is the only member of the Committee, by the Board.

 

    4

     

    

 

The Committee, in its discretion
and to the fullest extent permitted by law, shall (i) interpret the Plan, (ii) prescribe, amend, and rescind any rules and regulations
necessary or appropriate for the administration of the Plan, (iii) establish performance goals for an Award and certify the extent of
their achievement, (iv) make such other determinations or certifications and take such other action as it deems necessary or advisable
in the administration of the Plan and (v) implement any procedures or steps or additional or different requirements as may be necessary
to comply with any relevant laws of the PRC that may be applicable to the Plan, any Award pursuant to the Plan or any related documents,
including but not limited to foreign exchange laws, tax laws and securities laws of the PRC. Any interpretation, determination, or other
action made or taken by the Committee shall be final, binding, and conclusive on all interested parties.

 

The Committee may delegate
to officers of the Company, pursuant to a written delegation, the authority to perform specified functions under the Plan. Any actions
taken by any officers of the Company pursuant to such written delegation of authority shall be deemed to have been taken by the Committee.

 

Article
4

ELIGIBILITY

 

Any Employee (including an
Employee who is also a director or an officer), Outside Director, or Consultant whose judgment, initiative, and efforts contributed or
may be expected to contribute to the successful performance of the Company is eligible to participate in the Plan; provided, that
only Employees of a Corporation shall be eligible to receive Incentive Share Options.

 

The Committee, upon its own
action, may grant, but shall not be required to grant, an Award to any Employee, Outside Director, or Consultant. Awards may be granted
by the Committee at any time and from time to time to new Participants, or to then Participants, or to a greater or lesser number of Participants,
and may include or exclude previous Participants, as the Committee shall determine.

 

Except as required by the
Plan, Awards granted at different times need not contain similar provisions. The Committee’s determinations under the Plan (including
without limitation determinations of which Employees, Outside Directors, or Consultants, if any, are to receive Awards, the form, amount
and timing of such Awards, the terms and provisions of such Awards and the agreements evidencing same) need not be uniform and may be
made by it selectively among Participants who receive, or are eligible to receive, Awards under the Plan.

 

Article
5

SHARES SUBJECT TO PLAN

 

5.1         
Number Available for Awards. Subject to adjustment as provided in Articles 11 and 12 hereof, the maximum
number of Ordinary Shares that may be delivered pursuant to Awards granted under the Plan is 5,000,000.
As required under U.S. Treasury Regulation Section 1.422-2(b)(3)(i), in no event will the number of Ordinary Shares that may be delivered
pursuant to Incentive Share Options granted under the Plan exceed 5,000,000.

 

Shares to be issued may be
made available from authorized but unissued Ordinary Shares, Ordinary Shares held by the Company in its treasury, or Ordinary Shares purchased
by the Company on the open market or otherwise. During the term of the Plan, the Company will at all times reserve and keep available
the number of Ordinary Shares that shall be sufficient to satisfy the requirements of the Plan.

 

    5

     

    

 

5.2        
 Reuse of Shares. Subject to Section 5.2(c) of the Plan, if, and to the extent:

 

(a)               
A Share Option or a Restricted Share Unit shall expire or terminate for any reason without having been exercised or
settled in full, or in the event that a Share Option or a Restricted Share Unit is exercised or settled in a manner such that some or
all of the Ordinary Shares relating to the Share Option or the Restricted Share Unit are not issued to the Participant (or beneficiary)
(including as the result of the use of shares for withholding taxes), the Ordinary Shares subject thereto which have not become issued
and outstanding shall (unless the Plan shall have sooner terminated) become available for issuance under the Plan; in addition, with respect
to any share- for-share exercise or cashless exercise pursuant to Section 8.3 of the Plan or otherwise, only the “net” shares
issued shall be deemed to have become issued and outstanding for purposes of the Plan as a result thereof.

 

(b)               
If Restricted Shares under the Plan are repurchased for any reason, such Restricted Shares shall (unless the Plan shall
have sooner terminated) become available for issuance under the Plan; provided, however, that if any dividends paid with respect
to Restricted Shares were paid to the Participant prior to the repurchase thereof, such shares shall not be reused for grants or awards.

 

(c)                
In no event shall the number of Ordinary Shares subject to Incentive Share Options exceed, in the aggregate, twenty
percent (20%) of the authorized Ordinary Shares plus shares subject to Incentive Share Options which are surrendered to the Company or
terminated, or expire unexercised.

 

Article
6

GRANT OF AWARDS

 

6.1         
In General. The Company shall execute an Award Agreement with a Participant after the Committee approves
the issuance of an Award. Any Award granted pursuant to the Plan must be granted within ten (10) years after the date of adoption of the
Plan. The grant of an Award to a Participant shall not be deemed either to entitle the Participant to, or to disqualify the Participant
from, receipt of any other Award under the Plan.

 

6.2        
Share Options. The grant of an Award of Share Options shall be authorized by the Committee and shall be
evidenced by an Award Agreement setting forth: (i) the Incentive or Incentives being granted, (ii) the total number of Ordinary Shares
subject to the Incentive(s), (iii) the Option Price, (iv) the Award Period, (v) the Date of Grant, and (vi) such other terms, provisions,
limitations, and performance objectives, as are approved by the Committee, but not inconsistent with the Plan.

 

6.3         
Option Price. The Option Price for any Ordinary Shares which may be purchased under a Nonqualified Share
Option for any Ordinary Shares may be less than, equal to, or greater than the Fair Market Value of the share on the Date of Grant.

 

The Option Price for any Ordinary
Shares which may be purchased under an Incentive Share Option must be at least equal to the Fair Market Value of the share on the Date
of Grant. If an Incentive Share Option is granted to an Employee who owns or is deemed to own (by reason of the attribution rules of Section
424(d) of the Code) more than ten percent (10%) of the combined voting power of all classes of shares of the Company (or any parent or
Subsidiary of the Company), the Option Price shall be at least one hundred ten percent (110%) of the Fair Market Value of the Ordinary
Shares on the Date of Grant.

 

Notwithstanding the foregoing,
the Option Price for any Ordinary Shares which may be purchased under any Share Option shall not be less than the par value of the Ordinary
Shares.

 

    6

     

    

 

6.4       
 Maximum Incentive Share Option Grants. The Committee may not grant Incentive Share Options under the
Plan to any Employee which would permit the aggregate Fair Market Value (determined on the Date of Grant) of the Ordinary Shares with
respect to which Incentive Share Options (under this and any other plan of the Company and its Subsidiaries) that are exercisable for
the first time by such Employee during any calendar year to exceed one hundred thousand United States dollars (US$100,000). To the extent
any Share Option granted under the Plan which is designated as an Incentive Share Option exceeds this limit or otherwise fails to qualify
as an Incentive Share Option, such Share Option (or any such portion thereof) shall be a Nonqualified Share Option. In such case, the
Committee shall designate which shares will be treated as Incentive Share Option shares by causing the issuance of a separate share certificate
and identifying such shares as Incentive Share Option shares on the Company’s share transfer records.

 

6.5         
Restricted Shares. If Restricted Shares are granted to or received by a Participant under an Award (including
a Share Option), the Committee shall set forth in the related Award Agreement: (i) the number of Ordinary Shares awarded, (ii) the price,
if any, to be paid by the Participant for such Restricted Shares, (iii) the time or times within which such Award may be subject to repurchase,
(iv) specified performance goals of the Company, a Subsidiary of the Company, any division thereof or any group of Employees, or other
criteria, which the Committee determines must be met in order to remove any restrictions (including vesting) on such Award, and (v) all
other terms, limitations, restrictions, and conditions of the Restricted Shares, which shall be consistent with the Plan. The provisions
of Restricted Shares need not be the same with respect to each Participant. If the Committee establishes a purchase price for an Award
of Restricted Shares, the Participant must accept such Award within a period of thirty (30) days (or such shorter period as the Committee
may specify) after the Date of Grant by executing the applicable Award Agreement and paying such purchase price.

 

(a)          
Legend on Shares. Each Participant who is awarded or receives Restricted Shares shall be issued a share certificate
or certificates in respect of such Ordinary Shares. Such certificate(s) shall be registered in the name of the Participant, and shall
bear an appropriate legend referring to the terms, conditions, and restrictions applicable to such Restricted Shares, substantially as
provided in Section 15.12 of the Plan.

 

The Committee may require
that the share certificates evidencing Restricted Shares be held in custody by the Company until the restrictions thereon shall have lapsed.

 

(b)          
Restrictions and Conditions. Restricted Shares shall be subject to the following restrictions and conditions:

 

(i)                 
Subject to the other provisions of the Plan and the terms of the particular Award Agreements, during such period as
may be determined by the Committee commencing on the Date of Grant or the date of exercise of an Award (the “Restriction Period”),
the Participant shall not be permitted to sell, transfer, pledge or assign Restricted Shares. Except for these limitations, the Committee
may in its sole discretion, remove any or all of the restrictions on such Restricted Shares whenever it may determine that, by reason
of changes in applicable laws or other changes in circumstances arising after the date of the Award, such action is appropriate.

 

    7

     

    

 

(ii)                Except
as provided in Section 6.5(b)(i) or in the applicable Award Agreement, the Participant shall have, with respect to his or her
Restricted Shares, all of the rights of a shareholder of the Company, including the right to vote the shares and the right to
receive any dividends thereon; provided, that, any dividends payable with respect to unvested Restricted Shares shall be held by the
Company and shall only be paid to Participant if and when the Restriction Period lapses with respect to the Restricted Share to
which such dividend relates. Certificates for Ordinary Shares free of restriction under the Plan and which have not been repurchased
under the provisions of the Plan and the applicable Award Agreement shall be delivered to the Participant promptly after, and only
after, the Restriction Period shall expire in respect of such Ordinary Shares. Certificates for the Ordinary Shares repurchased
under the provisions of the Plan and the applicable Award Agreement shall be promptly returned to the Company by the Participant.
Each Award Agreement shall require that (x) each Participant, by his or her acceptance of Restricted Shares, shall irrevocably grant
to the Company a power of attorney to consent to the repurchase of any unvested shares to the Company and agrees to execute any
documents requested by the Company in connection with such repurchase, and (y) such provisions regarding returns and transfers of
share certificates with respect to repurchased Ordinary Shares shall be specifically performable by the Company in a court of equity
or law.

 

(iii)             
The Restriction Period of Restricted Shares shall commence on the Date of Grant or the date of exercise of an Award,
as specified in the Award Agreement, and, subject to Article 12 of the Plan, unless otherwise established by the Committee in the Award
Agreement setting forth the terms of the Restricted Shares, shall expire upon satisfaction of the conditions set forth in the Award Agreement;
such conditions may provide for vesting based on (i) length of continuous service, (ii) achievement of specific business objectives, (iii)
increases in specified indices, (iv) attainment of specified growth rates, or (v) other comparable measurements of Company performance,
as may be determined by the Committee in its sole discretion.

 

(iv)              
Except as otherwise provided in the particular Award Agreement, upon Termination of Service for any reason during the
Restriction Period, all unvested Restricted Shares shall be repurchased by the Company from the Participant. If the Participant has paid
any monetary consideration to the Company for such repurchased Restricted Shares, the Company shall pay to Participant, as soon as practicable
after the event causing repurchase, in cash, an amount equal to the lesser of the total monetary consideration paid by the Participant
for such repurchased shares or the aggregate Fair Market Value of such repurchased shares as of the date of Termination of Service, and,
if the Participant did not pay any monetary consideration to the Company for such repurchased Restricted Shares, such repurchased Restricted
Shares shall be surrendered to the Company for no consideration. Upon any repurchase or surrender, all rights of the Participant with
respect to the repurchased or surrendered Restricted Shares shall cease and terminate, without any further obligation on the part of the
Company. The Participant, by the Participant’s acceptance of Restricted Shares, shall irrevocably grant to the Company a power of
attorney to consent to the repurchase or surrender of any unvested Restricted Shares to the Company and agrees to execute any documents
requested by the Company in connection with such repurchase. Provisions regarding returns and transfers of share certificates with respect
to repurchased Ordinary Shares shall be specifically performable by the Company in a court of equity or law.

 

6.6         
Restricted Share Units. The Committee, at any time and from time to time, may grant Restricted Share Units
to Participants as the Committee, in its sole discretion, shall determine. The Committee, in its sole discretion, shall determine the
number of Restricted Share Units to be granted to each Participant.

 

(a)          
Restricted Share Units Award Agreement. Each Award of Restricted Share Units shall be evidenced by an Award Agreement
that shall specify any vesting conditions, the number of Restricted Share Units granted, and such other terms and conditions as the Committee,
in its sole discretion, shall determine.

 

(b)          
Performance Objectives and Other Terms. The Committee, in its discretion, may set performance objectives or other
vesting criteria which, depending on the extent to which they are met, will determine the number or value of Restricted Share Units that
will be paid out to the Participants.

 

    8

     

    

 

(c)               
Form and Timing of Payment of Restricted Share Units. At the time of grant, the Committee shall specify the
date or dates on which the Restricted Share Units shall become fully vested. Upon vesting, the Committee, in its sole discretion, may
pay Restricted Share Units in the form of cash, in Ordinary Shares or in a combination thereof.

 

(d)               
Surrender/Repurchase. Except as otherwise determined by the Committee at the time of the grant of the Award or
thereafter, upon Termination of Service during the applicable Restriction Period, Restricted Share Units that are at that time unvested
shall be surrendered to the Company or repurchased in accordance with the Award Agreement; provided, however, the Committee may
(i) provide in any Restricted Share Unit Award Agreement that restrictions or surrender and repurchase conditions relating to Restricted
Share Units will be waived in whole or in part in the event of terminations resulting from specified causes, and (ii) in other cases waive
in whole or in part restrictions or surrender and repurchase conditions relating to Restricted Share Units.

 

6.7         
Maximum Individual Grants. No Participant may receive during any fiscal year of the Company Awards covering
an aggregate of more than one percent (1%) of the authorized Ordinary Shares.

 

Article
7

AWARD PERIOD; VESTING

 

7.1         
Award Period.

 

(a)               
Subject to the other provisions of the Plan, the Committee shall specify in the Award Agreement the Award Period for
a Share Option. No Share Option granted under the Plan may be exercised at any time after the end of its Award Period. The Award Period
for any Share Option shall be no more than ten (10) years from the Date of Grant of the Share Option. However, if an Employee owns or
is deemed to own (by reason of the attribution rules of Section 424(d) of the Code) more than ten percent (10%) of the combined voting
power of all classes of shares of the Company (or any parent or Subsidiary of the Company) and an Incentive Share Option is granted to
such Employee, the Award Period of such Incentive Share Option (to the extent required by the Code at the time of grant) shall be no more
than five (5) years from the Date of Grant.

 

(b)               
In the event of Termination of Service of a Participant, the Award Period for a Share Option shall be reduced or terminated
in accordance with the Award Agreement.

 

7.2         
Vesting. The Committee, in its sole discretion, may determine that an Incentive will be immediately vested
in whole or in part, or that all or any portion may not be vested until a date, or dates, subsequent to its Date of Grant, or until the
occurrence of one or more specified events, subject in any case to the terms of the Plan. If the Committee imposes conditions upon vesting,
then, subsequent to the Date of Grant, the Committee may, in its sole discretion, accelerate the date on which all or any portion of the
Incentive may be vested.

 

Article
8

EXERCISE OF INCENTIVE

 

8.1          In
General. The Committee, in its sole discretion, may determine that a Share Option will be immediately exercisable, in
whole or in part, or that all or any portion may not be exercised until a date, or dates, subsequent to its Date of Grant, or until
the occurrence of one or more specified events, subject in any case to the terms of the Plan. If a Share Option is exercisable prior
to the time it is vested, the Ordinary Shares obtained on the exercise of the Share Option shall be Restricted Shares which is
subject to the applicable provisions of the Plan and the Award Agreement. If the Committee imposes conditions upon exercise, then
subsequent to the Date of Grant, the Committee may, in its sole discretion, accelerate the date on which all or any portion of the
Share Option may be exercised. No Share Option may be exercised for a fractional Ordinary Share. The granting of a Share Option
shall impose no obligation upon the Participant to exercise that Share Option.

 

    9

     

    

 

8.2         
Securities Law and Exchange Restrictions. In no event may an Incentive be exercised or Ordinary Shares
be issued pursuant to an Award if a necessary listing or quotation of the Ordinary Shares on a stock exchange or inter-dealer quotation
system or any registration under state or federal securities laws required under the circumstances has not been accomplished.

 

8.3         
Exercise of Share Option.

 

(a)               
Notice and Payment. Subject to such administrative regulations as the Committee may from time to time adopt,
a Share Option may be exercised by the delivery of written notice to the Committee setting forth the number of Ordinary Shares with respect
to which the Share Option is to be exercised and the date of exercise thereof (the “Exercise Date”), which shall
be at least three (3) days after giving such notice unless an earlier time shall have been mutually agreed upon.

 

On the Exercise Date, the
Participant shall deliver to the Company consideration with a value equal to the total Option Price of the shares to be purchased, payable
in any one of the following methods: (a) cash, check, bank draft, or money order payable to the order of the Company, (b) the surrender
of Ordinary Shares (including Restricted Shares) owned by the Participant on the Exercise Date, valued at their Fair Market Value on the
Exercise Date, and which the Participant has not acquired from the Company within six (6) months prior to the Exercise Date, (c) if the
Ordinary Shares are no longer Nonpublicly Traded, by delivery (including by FAX) to the Company or its designated agent of an executed
irrevocable option exercise form together with irrevocable instructions from the Participant to a broker or dealer, reasonably acceptable
to the Company, to sell certain of the Ordinary Shares purchased upon exercise of the Share Option or to pledge such shares as collateral
for a loan and promptly deliver to the Company the amount of sale or loan proceeds necessary to pay such purchase price, and/or (d) in
any other form of valid consideration that is acceptable to the Committee in its sole discretion.

 

In the event that Restricted
Shares are tendered as consideration for the exercise of a Share Option, a number of Ordinary Shares issued upon the exercise of the Share
Option equal to the value of Restricted Shares used as consideration therefor shall be subject to the same restrictions and provisions
as the Restricted Shares so tendered.

 

The Committee may take all
actions necessary to alter the method of exercise of the Share Option and the exchange and transmittal of proceeds with respect to Participants
who are residents in the PRC in order to comply with applicable PRC foreign exchange and tax regulations and any other applicable PRC
laws and regulations.

 

(b)               
Issuance of Certificate. Except as otherwise provided in Section 6.5 hereof (with respect to Restricted Shares)
or in the applicable Award Agreement, upon payment of all amounts due from the Participant, the Company shall cause certificates for the
Ordinary Shares then being purchased to be delivered as directed by the Participant (or the person exercising the Participant’s
Share Option in the event of his death) at its principal business office promptly after the Exercise Date; provided, that if the
Participant has exercised an Incentive Share Option, the Company may at its option retain physical possession of the certificate evidencing
the shares acquired upon exercise until the expiration of the holding periods described in Section 422(a)(1) of the Code.

 

    10

     

    

 

The obligation of the Company
to deliver Ordinary Shares shall, however, be subject to the condition that, if at any time the Committee shall determine in its discretion
that the listing, registration, or qualification of the Share Option or the Ordinary Shares upon any securities exchange or inter-dealer
quotation system or under any state or federal law, or the consent or approval of any governmental regulatory body, is necessary as a
condition of, or in connection with, the Share Option or the issuance or purchase of Ordinary Shares thereunder, the Share Option may
not be exercised in whole or in part unless such listing, registration, qualification, consent, or approval shall have been effected or
obtained free of any conditions not reasonably acceptable to the Committee.

 

(c)                
Failure to Pay. If the Participant fails to pay for any of the Ordinary Shares specified in the written notice
to the Committee specified in Section 8.3(a) of the Plan or fails to accept delivery thereof, the Participant’s Share Option and
right to purchase such Ordinary Shares shall be surrendered to the Company.

 

8.4         
Disqualifying Disposition of Incentive Share Option. If Ordinary Shares acquired upon exercise of an Incentive
Share Option are disposed of by a Participant prior to the expiration of either two (2) years from the Date of Grant of such Share Option
or one (1) year from the transfer of Ordinary Shares to the Participant pursuant to the exercise of such Share Option, or in any other
disqualifying disposition within the meaning of Section 422 of the Code, such Participant shall notify the Company in writing of the date
and terms of such disposition. A disqualifying disposition by a Participant shall not affect the status of any other Share Option granted
under the Plan as an incentive stock option within the meaning of Section 422 of the Code.

 

Article
9

AMENDMENT OR DISCONTINUANCE

 

Subject to the limitations
set forth in this Article 9, the Board may at any time and from time to time, without the consent of the Participants, alter, amend, revise,
suspend, or discontinue the Plan in whole or in part; provided, however, that no amendment which requires shareholder approval
in order for the Plan and Incentives awarded under the Plan to continue to comply with Sections 421 and 422 of the Code, including any
successors to such Sections, shall be effective unless such amendment shall be approved by the requisite vote of the shareholders of the
Company entitled to vote thereon. Any such amendment shall, to the extent deemed necessary or advisable by the Committee, be applicable
to any outstanding Incentives theretofore granted under the Plan, notwithstanding any contrary provisions contained in any Award Agreement.
In the event of any such amendment to the Plan, the holder of any Incentive outstanding under the Plan shall, upon request of the Committee
and as a condition to the exercisability thereof, execute a conforming amendment in the form prescribed by the Committee to any Award
Agreement relating thereto. Notwithstanding anything contained in the Plan to the contrary, unless required by law, no action contemplated
or permitted by this Article 9 shall adversely affect any rights of Participants or obligations of the Company to Participants with respect
to any Incentive theretofore granted under the Plan without the consent of the affected Participant.

 

Article
10

TERM

 

The Plan shall be effective
from the date that the Plan is approved by the Board. Unless sooner terminated by action of the Board, the Plan will terminate on November
16, 2030, but Incentives granted before that date will continue to be effective in accordance with their terms and conditions.

 

    11

     

    

 

Article
11

CAPITAL ADJUSTMENTS

 

In the event that the Committee
shall determine that any dividend or other distribution (whether in the form of cash, Ordinary Shares, other securities, or other property),
recapitalization, stock split, reverse stock split, rights offering, reorganization, merger, consolidation, split-up, spin-off, split-off,
combination, subdivision, repurchase, or exchange of Ordinary Shares or other securities of the Company, issuance of warrants or other
rights to purchase Ordinary Shares or other securities of the Company, or other similar corporate transaction or event (including a Change
of Control) affects the Ordinary Shares such that an adjustment is determined by the Committee to be appropriate to prevent the dilution
or enlargement of the benefits or potential benefits intended to be made available under the Plan, then the Committee shall, in such manner
as it may deem equitable, adjust any or all of the (i) the number of shares and type of Ordinary Shares (or the securities or property)
which thereafter may be made the subject of Awards,(ii) the number of shares and type of Ordinary Shares (or other securities or property)
subject to outstanding Awards,(iii) the number of shares and type of Ordinary Shares (or other securities or property) specified as the
annual per-participant limitation under Section 6.6 of the Plan, (iv) the number of shares and type of Ordinary Shares (or other securities
or property) specified as the annual per-participant limitation under Section 6.6 of the Plan, (v) the Option Price of each outstanding
Award, and (vi) the amount, if any, the Company pays for Ordinary Shares surrendered to the Company in accordance with Section 6.5; provided,
however, that the number of Ordinary Shares (or other securities or property) subject to any Award shall always be a whole number.
In lieu of the foregoing, if deemed appropriate, the Committee may make provision for a cash payment to the holder of an outstanding Award.

 

Notwithstanding the foregoing,
no such adjustment or cash payment shall be made or authorized to the extent that such adjustment or cash payment would cause the Plan
or any Share Option to violate Section 422 of the Code. Such adjustments shall be made in accordance with the rules of any securities
exchange, stock market, or stock quotation system to which the Company is subject.

 

Upon the occurrence of any
such adjustment or cash payment, the Company shall provide notice to each affected Participant of its computation of such adjustment or
cash payment which shall be conclusive and shall be binding upon each such Participant.

 

Article
12

RECAPITALIZATION, MERGER AND CONSOLIDATION

 

12.1            
No Effect on Company’s Authority. The existence of the Plan and Incentives granted hereunder shall
not affect in any way the right or power of the Company or its shareholders to make or authorize any or all adjustments, recapitalizations,
reorganizations, or other changes in the Company’s capital structure and its business, or any merger or consolidation of the Company,
or any issuance of bonds, debentures, preferred or preference shares ranking prior to or otherwise affecting the Ordinary Shares or the
rights thereof (or any rights, options, or warrants to purchase the same), or the dissolution or liquidation of the Company, or any sale
or transfer of all or any part of its assets or business, or any other corporate act or proceeding (including a Change of Control), whether
of a similar character or otherwise.

 

12.2            
Conversion of Incentives Where Company Survives. Subject to any required action by the shareholders, if
the Company shall be the surviving or resulting corporation (or company) in any merger, consolidation, or share exchange that leads to
Change of Control, any Incentives granted under the Plan shall be deemed vested immediately, and shall pertain to and apply to the securities
or rights (including cash, property, or assets) to which a holder of the number of Ordinary Shares subject to the Incentives would have
been entitled.

 

    12

     

    

 

12.3            
 Exchange or Cancellation of Incentives Where Company Does Not Survive. In the event of any merger, consolidation,
share exchange, or Change of Control pursuant to which the Company is not the surviving or resulting corporation (or company), any Incentives
granted under the Plan shall be deemed vested immediately, and there shall be substituted for each Ordinary Share subject to the unexercised
portions of outstanding Share Options, that number of shares of each class of shares or other securities or that amount of cash, property,
or assets of the surviving, resulting or consolidated corporation (or company) which were distributed or distributable to the shareholders
of the Company in respect to each Ordinary Share held by them, such outstanding Share Options to be thereafter exercisable for such shares,
securities, cash, or property in accordance with their terms.

 

Notwithstanding the foregoing,
however, all Share Options may be canceled by the Company as of the effective date of any such reorganization, merger, consolidation,
share exchange, or Change of Control, or any dissolution or liquidation of the Company, by giving notice to each holder (or such holder’s
personal representative) thereof of its intention to do so and by permitting the purchase during the thirty (30) day period preceding
such effective date of all of the Ordinary Shares (whether or not vested) subject to such outstanding Share Options.

 

Article
13

LIQUIDATION OR DISSOLUTION

 

Subject to Section 12.3 hereof,
in case the Company shall, at any time while any Incentive under the Plan shall be in force and remain unexpired, (i) sell all or substantially
all of its property, or (ii) dissolve, liquidate, or wind up its affairs, then each Participant shall be entitled to receive, in lieu
of each Ordinary Share such Participant would have been entitled to receive under the Incentive, the same kind and amount of any securities
or assets as may be issuable, distributable, or payable upon any such sale, dissolution, liquidation, or winding up with respect to each
Ordinary Share.

 

If the Company shall, at any
time prior to the expiration of any Incentive, make any partial distribution of its assets, in the nature of a partial liquidation, whether
payable in cash or in kind (but excluding the distribution of a cash dividend payable out of earned surplus and designated as such) then
in such event the Option Prices then in effect with respect to each Share Option shall be reduced, on the payment date of such distribution,
in proportion to the percentage reduction in the tangible book value of the Ordinary Shares (determined in accordance with generally accepted
accounting principles) resulting by reason of such distribution.

 

Article
14

INCENTIVES IN SUBSTITUTION FOR INCENTIVES GRANTED BY OTHER ENTITIES

 

Incentives may be granted
under the Plan from time to time in substitution for similar instruments held by employees or directors of a corporation, partnership,
company, or limited liability company who become or are about to become Employees or Outside Directors as a result of a merger or consolidation
of the employing corporation (or company) with the Company, the acquisition by the Company of equity of the employing entity, or any other
similar transaction (including a Change of Control) pursuant to which the Company becomes the successor employer. The terms and conditions
of the substitute Incentives so granted may vary from the terms and conditions set forth in the Plan to such extent as the Committee at
the time of grant may deem appropriate to conform, in whole or in part, to the provisions of the Incentives in substitution for which
they are granted.

 

    13

     

    

 

Article
15

MISCELLANEOUS PROVISIONS

 

15.1            
Investment Intent. The Company may require that there be presented to and filed with it by any Participant
under the Plan, such evidence as it may deem necessary to establish that the Incentives granted or the Ordinary Shares to be purchased
or transferred are being acquired for investment and not with a view to their distribution.

 

15.2            
Nonpublicly Traded Ordinary Shares. In the event a Participant receives, as Restricted Shares or pursuant
to the exercise of a Share Option, Ordinary Shares that are Nonpublicly Traded (as defined herein), without prejudice to Section 6.5(b)(i)
of the Plan, the Committee may impose restrictions and conditions on the transfer or other disposition of those shares. The restrictions
and conditions may be reflected in the Award Agreement or in a separate shareholders’ agreement.

 

15.3            
No Right to Continued Employment. Neither the Plan nor any Incentive granted under the Plan shall confer
upon any Participant any right with respect to continuance of employment by the Company or any Subsidiary of the Company.

 

15.4            
Indemnification of Board and Committee. No member of the Board or the Committee, nor any officer or Employee
of the Company acting on behalf of the Board or the Committee, shall be personally liable for any action, determination, or interpretation
taken or made in good faith with respect to the Plan, and all members of the Board and the Committee, each officer of the Company, and
each Employee acting on behalf of the Board or the Committee shall, to the extent permitted by law, be fully indemnified and protected
by the Company in respect of any such action, determination, or interpretation.

 

15.5            
Effect of the Plan. Neither the adoption of the Plan nor any action of the Board or the Committee shall
be deemed to give any person any right to be granted an Award or any other rights except as may be evidenced by an Award Agreement, or
any amendment thereto, duly authorized by the Committee and executed on behalf of the Company, and then only to the extent and upon the
terms and conditions expressly set forth therein.

 

15.6            
Governing Law. The Plan shall be governed by and construed in accordance with laws of the Cayman Islands,
without giving effect to conflicts of law principles.

 

15.7            
Compliance with Other Laws and Regulations. Notwithstanding anything contained herein to the contrary,
the Company shall not be required to sell or issue Ordinary Shares under any Incentive if the issuance thereof would constitute a violation
by the Participant or the Company of any provisions of any law or regulation of any governmental authority or any national securities
exchange or inter-dealer quotation system or other forum in which Ordinary Shares are quoted or traded; and, as a condition of any sale
or issuance of Ordinary Shares under an Incentive, the Committee may require such agreements or undertakings, if any, as the Committee
may deem necessary or advisable to assure compliance with any such law or regulation. The Plan, the grant and exercise of Incentives hereunder,
and the obligation of the Company to sell and deliver Ordinary Shares, shall be subject to all applicable federal and state laws, rules
and regulations and to such approvals by any government or regulatory agency as may be required.

 

    14

     

    

 

15.8      Lock-up
Agreement. The Company may require that an Award Agreement include a provision requiring a Participant to agree that in
connection with an underwritten public offering of Ordinary Shares, upon the request of the Company or the principal underwriter
managing such public offering, no Ordinary Shares received by the Participant under such Award Agreement may be sold, offered for
sale or otherwise disposed of without the prior written consent of the Company or such underwriter, as the case may be, for one
hundred eighty (180) days after the effectiveness of the registration statement filed in connection with such offering, or such
longer period of time as the Board may determine, if all of the Company’s directors and officers agree to be similarly bound.
The obligations under this Section 15.8 shall remain effective for all underwritten public offerings with respect to which the
Company has filed a registration statement on or before the date five (5) years after the closing of the Company’s initial
public offering, provided, however, that this Section 15.8 shall cease to apply to any such Ordinary Shares sold to the
public pursuant to an effective registration statement or an exemption from the registration requirements of the United States
Securities Act of 1933 in a transaction that complied with the terms of the applicable Award Agreement.

 

15.9      
Tax Requirements. The Company shall have the right to deduct from all amounts hereunder paid in cash or
other form, any federal, state, or local taxes required by law (including taxes in the PRC where applicable) to be withheld with respect
to such payments. The Participant receiving Ordinary Shares issued under the Plan shall be required to pay the Company the amount of any
taxes which the Company is required to withhold with respect to such Ordinary Shares (including the sale of Ordinary Shares as may be
required to comply with foreign exchange rules in the PRC for Participants resident in the PRC).

 

Notwithstanding the foregoing,
in the event of an assignment of a Nonqualified Share Option pursuant to Section 15.10, the Participant who assigns the Nonqualified Share
Option shall remain subject to withholding taxes upon exercise of the Nonqualified Share Option by the transferee to the extent required
by the Code or the rules and regulations promulgated thereunder.

 

Such payments shall be required
to be made prior to the delivery of any certificate representing such Ordinary Shares. Such payment may be made (i) by the delivery of
cash to the Company in an amount that equals or exceeds (to avoid the issuance of fractional shares under (iii) below) the required tax
withholding obligation of the Company; (ii) the actual delivery by the exercising Participant to the Company of Ordinary Shares that the
Participant has not acquired from the Company within six (6) months prior to the date of exercise, which shares so delivered have an aggregate
Fair Market Value that equals or exceeds (to avoid the issuance of fractional shares under (iii) below) the required tax withholding payment;
(iii) the Company’s withholding of a number of shares to be delivered upon the exercise of the Share Option, which shares so withheld
have an aggregate Fair Market Value that equals (but does not exceed) the required tax withholding payment; or (iv) any combination of
(i), (ii), or (iii).

 

15.10    
No Transferability; Limited Exception to Transfer Restrictions.

 

(a)          
Limits on Transfer. Unless otherwise expressly provided in (or pursuant to) this Section 15.10, by applicable
law and by the Award Agreement, as the same may be amended:

 

(i)          
all Awards are nontransferable and will not be subject in any manner to sale, transfer, anticipation, alienation, assignment,
pledge, encumbrance or charge;

 

(ii)               
Awards will be exercised only by the Participant; and

 

(iii)             
amounts payable or shares issuable pursuant to an Award will be delivered only to (or for the account of), and, in the
case of Ordinary Shares, registered in the name of, the Participant.

 

In addition, the Ordinary
Shares shall be subject to the restrictions set forth in the applicable Award Agreement.

 

    15

     

    

 

(b)         
 Exceptions to Limits on Transfer. The exercise and transfer restrictions in Section 15.10(a) will not apply
to:

 

(i)                 
transfers to the Company or a Subsidiary of the Company;

 

(ii)               
the designation of a beneficiary to receive benefits if the Participant dies or, if the Participant has died, transfers
to or exercises by the Participant’s beneficiary, or, in the absence of a validly designated beneficiary, transfers by will or the
laws of descent and distribution; or

 

(iii)         
if the Participant has suffered a disability, permitted transfers or exercises on behalf of the Participant by the Participant’s
duly authorized legal representative; or

 

(iv)             
subject to the prior approval of the Committee or an executive officer or director of the Company authorized by the
Committee, transfer, by gift or other means, to one or more natural persons who are the Participant’s Immediate Family or entities
owned and controlled by the Participant and/or the Participant’s Immediate Family, including but not limited to trusts or other
entities whose beneficiaries or beneficial owners are the Participant and/or the Participant’s Immediate Family, or to such other
persons or entities as may be expressly approved by the Committee, pursuant to such conditions and procedures as the Committee may establish.
Any permitted transfer shall be subject to the condition that the Committee receives evidence satisfactory to it that the transfer is
being made for estate and/or tax planning purposes and on a basis consistent with the Company’s lawful issue of securities.

 

Notwithstanding anything else
in this Section 15.10(b) to the contrary, but subject to compliance with all applicable laws, Incentive Share Options, Restricted Shares
and Restricted Share Units will be subject to any and all transfer restrictions under the Code applicable to such Awards or necessary
to maintain the intended tax consequences of such Awards.

 

15.11    
Use of Proceeds. Proceeds from the sale of Ordinary Shares pursuant to Incentives granted under the Plan
shall constitute general funds of the Company.

 

15.12    
Legend. Each certificate representing Restricted Shares issued to a Participant shall bear the following
legend, or a similar legend deemed by the Company to constitute an appropriate notice of the provisions hereof (any such certificate not
having such legend shall be surrendered upon demand by the Company and so endorsed):

 

On the face of the certificate:

 

“Transfer of these
shares is restricted in accordance with conditions printed on the reverse of this certificate.”

 

On the reverse:

 

“The shares evidenced
by this certificate are subject to and transferrable only in accordance with that certain Kaixin Auto Holdings 2020 Equity Incentive Plan,
a copy of which is on file at the principal office of the Company. No transfer or pledge of the shares evidenced hereby may be made except
in accordance with and subject to the provisions of said Plan. By acceptance of this certificate, any holder, transferee or pledgee hereof
agrees to be bound by all of the provisions of said Plan.”

 

    16

     

    

 

The following legend shall
be inserted on a certificate evidencing Ordinary Shares issued under the Plan if the shares were not issued in a transaction registered
under the applicable federal and state securities laws:

 

“Shares represented
by this certificate have been acquired by the holder for investment and not for resale, transfer or distribution, have been issued pursuant
to exemptions from the registration requirements of applicable state and federal securities laws, and may not be offered for sale, sold
or transferred other than pursuant to effective registration under such laws, or in transactions otherwise in compliance with such laws,
and upon evidence satisfactory to the Company of compliance with such laws, as to which the Company may rely upon an opinion of counsel
satisfactory to the Company.”

 

A copy of the Plan shall be kept on file in the
principal office of the Company.

 

***************

 

WHEREOF, the Company has caused
this instrument to be executed as of November 16, 2020 by a director.

 

	 	Kaixin
    Auto Holdings
	 	 
	 	By:	/s/
    James Liu
	 	Name:
     James Liu
	 	Director

 

    17

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