Document:

Exhibit 10.18

 

 

 

 

 

 

Share Transfer Agreement

 

Of

 

Zhejiang An Kao Power Technology Co., Ltd.

 

by and between

 

Wang Xinhuo

 

And

 

Zhejiang Kandi Vehicles
Co., Ltd

 

 

 

 

 

 

 

 

     

     

    

 

Table of Contents

 

	Chapter I	Definition and Explanation	2
	 	 	 
	Article 1	Definition and Explanation	2
	 	 	 
	Chapter II	Transfer Share	3
	 	 	 
	Article 2	Transfer of Share	3
	 	 	 
	Article 3	Calculation and Payment of Transfer Price and Share Delivery	3
	 	 	 
	Article 4	Prerequisite to Payment of Transfer Price	5
	 	 	 
	Article 5	Taxes and Expenses	5
	 	 	 
	Chapter III	Representations and Warranties by Both Parties	5
	 	 	 
	Article 6	Representations and Warranties Made by Both Parties	5
	 	 	 
	Chapter IV	Representations and Warranties Made by Transferor	6
	 	 	 
	Article 7	General Presentations and Warranties Made by Transferor	6
	 	 	 
	Article 8	Special Presentations and Warranties Made by Transferor	7
	 	 	 
	Chapter V	Representations and Warranties Made by Transferee	9
	 	 	 
	Article 9	Representations and Warranties Made by Transferee	9
	 	 	 
	Chapter VI	Employees	9
	 	 	 
	Article 10	Employees	9
	 	 	 
	Chapter VII	Confidentiality	10
	 	 	 
	Article 11	Confidentiality	10
	 	 	 
	Chapter VIII	Default	11
	 	 	 
	Article 12	Liability for Breach of Presentations and Guaranties	11
	 	 	 
	Article 13	Liability for Breach of Agreement	11
	 	 	 
	Chapter IX	Force Majeure	12
	 	 	 
	Article 14	Force Majeure	12
	 	 	 
	Chapter X	Resolution of Disputes	12
	 	 	 
	Article 15	Arbitration	12

 

    i 

     

    

 

	Chapter XI	Applicable Laws	12
	 	 	 
	Article 16	Applicable Laws	12
	 	 	 
	Chapter XII	Miscellaneous	13
	 	 	 
	Article 17	Waiver	13
	 	 	 
	Article 18	Transfer	13
	 	 	 
	Article 19	Amendment	13
	 	 	 
	Article 20	Severabillity	13
	 	 	 
	Article 21	Languages	13
	 	 	 
	Article 22	Validity	13
	 	 	 
	Article 23	Notice	14
	 	 	 
	Article 24	Agreement as a Whole	14
	 	 	 
	Article 25	Special Agreement	14

 

    ii 

     

    

 

This Share Transfer Agreement (this “Agreement”)
is entered into on December 14, 2017 at Xihu District Hangzhou City Zhejiang Province, People’s Republic of China.

 

Party A: Zhejiang Kandi Vehicles Co., Ltd.
(hereinafter referred to as “The Transferee”)

 

Domicile Address: Jinhua City Industrial
Zone, Jinhua City, Zhejiang Province,

 

Legal Representative: Hu Xiaoming

 

Party B: Wang Xinhuo (hereinafter referred
to as “the Transferor”)

 

ID Number:

 

Domicile Address:

 

Following transferor and transferee shall
be individually referred to as “One Party” and collectively referred to as “Both Parties”.

 

Whereas:

 

(1) Jinhua An Kao Power Technology Co.,
Ltd. (hereinafter referred to as “Jinhua An Kao”) is a limited liability company established and validly existing under
the laws of the RPC. It owns a complete set of system technology for the replacement of batteries on pure electric vehicles (including
thermostatic smart charging cabinets, 50- 100-channel intelligent charging system, battery replacement tool cart, car washing machine,
22 invention patents that have been accepted or declared, more than 10 utility model and design patents, and plug-in soft-connection
PACK technology. 3 invention patents and 14 utility model patents);

 

(2)The transferor has 100% ownership interest
in Jinhua An Kao. The transferor may fully exercise all of its rights as a shareholder of Jinhua An Kao, and intends to transfer
to the Transferee all (100%) of its ownership interest in Jinhua An Kao pursuant to the conditions and terms under this agreement.

 

(3) Subject to conditions and terms of
this Agreement, the transferee is willing to acquire the transferor’s full (100%) of shares in Jinhua An Kao owned by the
transferor.

 

For this end, on the
principles of the equality and mutual benefits and through friendly negotiation, pursuant to the Contract Law of the PRC,
the Company Law of the PRC, Provisional Rules on Domestic Investment by Foreign –Invested Enterprises and other related laws
and regulations, the Parties agree as follows:

 

    	 	1	 

     

    

 

Chapter I Definitions
and Explanations

 

Article 1 Definitions and Explanations

 

1.1
The following terms have following meanings in this Agreement, unless the context indicates otherwise:

 

“Jinhua An Kao” refers to Jinhua
An Kao Power Technology Co., Ltd., a limited liability company established under the laws of the RPC with the registered capital
of RMB20,000,000, its registration number is 330701000092881. Jinhua An Kao is located at Plot G-01-03 and north side of Building
1 of Plot G-02-01, Jinhua City Industrial Zone, Jinhua City, Zhejiang Province.

  

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

 

“Claims” refers to all of litigation
claims, demand, responsibility for judgement, damages, fee and expense(including lawyer fee and litigation fee, among others) .

 

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

 

“Encumbrances” refers to mortgage,
transfer, lien, pledge, retention and establishment of acquisition right, equity guarantee, option, preemption right and other
limitations and conditions, including:

 

		(a)	any rights and power granted or reserved may have effect on share transfer; or

 

		(b)	any rights affecting the right or power to transfer share in the form of trust transfer, lien,
pledge and authorization and others.

 

		(c)	ensuring to discharge debts in the form of guarantee.

 

“Materially Adverse
Changes”: (1) Jinhua An Kao is under government’s investigation or penalty;(2) Jinhua An Kao gets into litigation,
arbitration or any other judicial procedures; (3) any changes that have materially adverse effects on financials, business, assets,
liabilities, operation and prospects of Jinhua An Kao.

 

“RMB” shall
mean the legal currency of China.

 

“RMB” refers
to legal currency in the PRC.

 

    	 	2	 

     

    

 

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

 

“Business Days”
shall mean the legal business days in China.

 

“Closing Date”
refers to the date on which Jinhua An Kao completed its alternation registration procedures with Industrial and Commercial Administration
Bureau and registered the Transferee as its sole shareholder, and total amount of the transfer price (including the Second Payment
of the transfer price) had been paid off.

 

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

 

1.3 Any reference to this Agreement shall
be interpreted to include any potential amended, changed or updated agreements.

 

Chapter II Transfer Share

 

Article 2 Transfer of Share

 

Subject to the conditions and terms of
this Agreement, the transferor hereby agrees to transfer and the transferee agree to acquire all (100%) of the transferor’s
the ownership interest in Jinhua An Kao and all its relevant rights and obligations, including but not limited to general shareholder’s
right and any right to receive dividend, receive or subscribe dividend stock or to newly issue additional stock, but excluding
any claim or encumbrance occurred prior to the date of Closing for any reason.

 

Article 3 Calculation and Payment of Transfer
Price and Delivery of Transferred Share

 

3.1 The transferor and the transferee,
through negotiation, agree that the transfer price shall be calculated at the ratio 1:1 of Jinhua An Kao’s net asset of RMB25,927,733.50
(audit report) (hereinafter referred to as “The Transfer Price”).

 

    	 	3	 

     

    

 

3.2 Payment of the Transfer Price:

 

(1) The transferor shall pay the transferee
50% of the transfer price, amounting to RMB12,963,866.75 (hereinafter referred to as “the First Payment of the Transfer Price”
) within 5 business days after the signing date.

 

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

 

The transferee shall pay the transferor
the surplus 50% of the transfer price (hereinafter referred to as “the Second Payment of the Transfer Price”), total
of RMB12,963,866.75, within 5 business days after above alternation registration and transfer procedures were fulfilled.

 

(3) The following designated bank account
by the transferor shall be deemed as beneficiary account that the transferor receives the transfer price.

 

Beneficiary: Wang Xinhuo

 

Name of Bank: Jinhua Branch, Bank of Hangzhou

 

Account Number:

 

3.3 The transferor shall hand over or urge
person concerned to hand over all the materials, document or information relating to Jinhua An Kao, within 5 business days after
the transferor received the first payment of the transfer price, including but not limited to Jinhua An Kao’s name stamp,
financial stamp, contract stamp, account details, financial certificates, books(including but not limited to changing An Kao’s
personal seal reserved at bank to be personal seal of the person specified by the transferee), endorsements, licenses, permits,
customer data, agreements, employee’s information, technology data, among others and take all the necessary measures to ensure
the transferee fully control all of An Kao’s assets and production and management activities.

 

    	 	4	 

     

    

 

Article 4 Prerequisite to Paying the Transfer
Price

 

The prerequisite to paying the transfer
Price is : There is not any materially adverse change happened to or undergone by Jinhua An Kao during the period from the execution
date to completion of the second payment made by the transferee.

 

Article 5 Taxes and Expenses

 

5.1 Both parties shall respectively bear
its own fee, charge and expense arising from negotiating, executing and fulfilling this Agreement and anticipated or relevant matters
relating to this Agreement.

 

5.2 Both parties shall be respectively
responsible for payment of legal taxes, imposed on each party in accordance with applicable laws, caused by executing and performing
this Agreement. There is not obligation on paying or withholding for each other.

 

Chapter III Representations and Warranties
of Both Parties

 

Article 6 Representations and Warranties
of Both Parties

 

6.1 The transferor and the transferee are
hereby confirm that this Agreement becomes binding on both parties upon the date of signing this Agreement.

 

6.2 The transferor
and the transferee state that all the representations and documents provided to the other party or its consultant (including but
not limited to its lawyer, auditor, appraiser, financial consultant, and others) prior to the signing date are still true, accurate,
complete and valid, if any discrepancy against this Agreement, this Agreement shall prevail.

 

    	 	5	 

     

    

 

6.3 The transferor
and the transferee agree that any agreement or document previously executed relating to the share transfer shall become invalid
automatically upon this Agreement comes into force.

 

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

 

6.5 The parties
to this agreement shall make joint efforts and cooperate to complete all the procedures related with the transfer, including but
not limited to industrial and commercial alternation registration, endorsement and others, any processing fee and application fee
arising from which shall be borne by Jinhua An Kao.

 

Chapter IV
Representations and Warranties of the Transferor

 

Article 7 General
Representations and Warranties of the Transferor

 

7.1 As of the
closing date, various representations and warranties made in this agreement and all the document and material submitted to the
transferee as agreed shall be true, accurate and complete.

 

7.2 There is
not and there will not be any lawsuit, arbitration, or any other proceedings against the transferor or Jinhua An Kao that may affect
execution and fulfillment of this Agreement.

 

7.3 The transferor
has full civil capacity of executing and fully fulfilling this Agreement. The transferor’s execution and full fulfillment
of this agreement shall not contradict any laws, regulations, rules, and authorization and approval by government body, or any
agreement binding on the transferor, and shall not result in failing to perform or fully perform or improperly perform above rules
and regulations.

 

    	 	6	 

     

    

 

7.4 The transferor
is legal owner of the transferred share and has all such authorization and rights enabling it to transfer the share to the transferee.

 

7.5 As of the
closing date, there is not any claim or encumbrance in any form (including but not limited to any form of option, acquisition right,
right of guarantee or any other forms of third party equity) against the share transfer .

 

Article 8
Representations and Warranties of the Transferor

 

8.1 Jinhua An
Kao is an enterprise as a legal person registered, established, validly existing and operating lawfully under the laws of the RPC.
Its registered capital has been fully paid without such conditions as fraudulent contribution, false investment or flight of funding.

 

8.2 Jinhua An
Kao has never been(has happened or probably will be happened) investigated, prosecuted, disputed, claimed or under other preceding,
and has not got administrative penalty. Moreover, the transferor had fully disclosed all the information to the transferee about
Jinhua An Kao prior to the signing date. Consequently, the transferor believes that government will not carry out any administrative
penalty against it due to any problem existed before the signing date, except for the problems that has been disclosed.

 

8.3 All the
taxes, expenses, charges and penalties that request to be paid to government by Jinhua An Kao have been fully paid off. As of the
signing date, there is no default on any tax, expense, charge and penalty, and any cost and /or expense arising from making up
product defects or rectifying wrongful acts requested by government.

 

8.4 Jinhua An
Kao has got all the necessary approvals, permits and consents to conduct its operation and business, and has completed all the
necessary registrations. It conducts its operation and business according to the business scope prescribed in its business license.

 

8.5 Production,
operation and business of Jinhua An Kao is fully subject to related laws and regulations. If Jinhua An Kao subject to administrative
penalty caused by any matter happened prior to the signing date, the transferor shall fully compensate the transferee for all the
loss suffered by Jinhua An Kao.

 

    	 	7	 

     

    

 

8.6 From the
signing date, the transferee has right to assign its financial person move into Jinhua An Kao; From the signing date till the closing
date, all of Jinhua An Kao’s expenses shall not be handled until got approval from the assigned financial person by the transferee.
On the date of closing when the financial delivery job between the transferor’s accountants and the transferee’s accountants
completed , the transferor’s accountant withdraw from Jinhua An Kao.

 

8.7 The transferor
shall be responsible for Jinhua An Kao’s normal operation and management and ensure its operation and business shall not
occur or suffer any materially adverse changes prior to the closing date.

 

8.8 As of the
closing date, Jinhua An Kao had not invested on any company or any other enterprise as a legal person.

 

8.9 Prior to
the closing date, the transferor had fully disclosed all information about debts borne by Jinhua An Kao. As of the closing date,
such information is still true, accurate and complete.

 

8.10 Prior to
the closing date, Jinhua An Kao had paid off all the taxes subject to applicable laws of China.

 

8.11 As of the
closing date, all the production process and technology adopted and intellectual property(including but not limited to patent,
trademark and expertise and others) owned by Jinhua An Kao are full in conformity with related laws and regulations, standards
and industrial norms, there is no infringe on intellectual property of others.

 

8.12 The transferee
is entitled to demand the transferor to bear responsibility and compensate all the direct and indirect losses suffered by the transferee,
provided that the transferor violates any above representations or guaranties, or fails to fulfil any prerequisite in this agreement.

 

    	 	8	 

     

    

 

8.13 The transferor agrees to sign a Non-Compete
Agreement with the transferee; ensuring that key managerial and technical staff of the transferor agree to sign Non-Compete Agreement
with the transferee; the transferor may not directly or indirectly engage in any industry same or similar to the transferee’s
, or any industry competing with the transferee in any field, or hold share in above entity without prior consent of the transferee,
unless such business or share is held through the transferee.

 

Chapter V
Representations and Warranties of the Transferee

 

Article 9 Representations
and Warranties of the Transferee

 

9.1 The transferee
is an enterprise as a legal person registered and established and validly existing and operating lawfully under the laws of the
RPC.

 

9.2 To sign
this Agreement and fulfil its obligations under this Agreement shall not be in contradiction with or breach any laws, regulations,
rules, as well as authorization and approval by government body or any agreement binding on the transferee, and shall not result
in failure to perform or fully perform or improperly perform above rules and regulations.

 

9.3 There is
not any action, arbitration, or any other proceedings that may significantly affect the transferee to execute and fulfil this Agreement.

 

Chapter VI Employees

 

Article 10 Employees

 

All the existing employees of Jinhua An
Kao will be employed continuously by the transferee. In principle, the terms and welfare of the employment shall refer to existing
standards and shall be carried out according to applicable laws. Afterwards, Jinhua An Kao shall decide on number of employee and
labor system and others based on its operation purpose.

 

    	 	9	 

     

    

 

Chapter VII Confidentiality

 

Article 11 Confidentiality

 

One party to this agreement did or will
probably to disclose confidential on its business, financial conditions as well as its proprietary information(including materials
in written or verbal, hereinafter referred to as “Confidential Materials”) to the other party, receiving party that
received above Confidential Materials, unless otherwise agreed, shall:

 

11.1.1 Keep secret on the Confidential
Materials;

 

11.1.2 May not disclose any Confidential
Materials to any third party except for the Party B’s employee who needs to access to the Confidential Materials to perform
his or her work duties.

 

11.2 Article 11.1 is not applicable to
the following:

 

11.2.1 Before disclosing party disclosed
the information to receiving party, the receiving party had got the information from written record that keep in file and the written
record can testify such information.

 

11.2.2 Relevant data being known to the
public not due to receiving party’s default.

 

11.2.3 Receiving party never takes any
responsibility to kept secret for the data getting from the third party.

 

11.3 For a natural person or legal person
who ever constituted one party to this Agreement, even if he or she is no longer as a party to this agreement due to transfer of
his or her rights and obligations under this agreement, the Chapter VII in this Agreement is still binding on it.

 

    	 	10	 

     

    

 

Chapter VIII Default

 

Article 12 Liability of Breach of Representations
and Warranties

 

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

 

12.2 Explanation for each of representations
and warranties is separated.

 

12.3 In order to avoid ambiguity, the transferor
hereby unconditionally and irrevocably confirms that it shall be responsible for any breach of the representations and warranties.

 

Article 13 Liability of Breach

 

13.1 If one party make breach , the default
party shall be responsible for the default pursuant to this agreement and laws of China. If both parties make breach, the default
party shall be responsible for the other party’s loss and other liability. caused by default.

 

13.2 If the transferor violate any representation,
warranties or duty, which is not caused by the transferee’s intentional or gross negligence, the transferor shall compensate
the transferee RMB2,000,000.00 in addition to all the direct and indirect loss due to it.

 

    	 	11	 

     

    

 

Chapter IX Force Majeure

 

Article 14 Force Majeure

 

14.1 “Force Majeure” refers
to special events such as earthquake, typhoon, flood , fire, war, political turmoil and other “Force Majeure” events
acknowledged by laws of China.

 

14.2 If one party’s obligation is
affected and the party’s binding period specified in this agreement is terminated and automatically extend when force majeure
happens , and the extension period is as long as termination period, then the affected party shall bear no responsibility for breach
of this Agreement.

 

14.3 The party claiming force majeure shall
promptly inform the other party in writing of such force majeure event, accompanying with the certification of the occurrence and
duration of the force majeure event issued by notary authority within 5 business days after the force majeure happened. The party
claiming force majeure shall do its best to remove adverse effects of the force majeure.

 

Chapter X Disputes Resolution

 

Article 15 Arbitration

 

Any dispute arising from or in connection
with this agreement shall be brought to China International Economic and Trade Arbitration Commission and arbitrated pursuant to
existing and effective arbitration rules of the Commission when applying for this arbitration. The arbitration award is final and
binding upon both parties.

 

Chapter XI Applicable Laws

 

Article 16 Applicable Laws

 

The conclusion, validity, explanation,
implementation of this Agreement shall be governed by the laws and regulations of the PRC. Any dispute arising from this Agreement
shall be adjudicated under the laws and regulations of PRC.

 

    	 	12	 

     

    

 

Chapter XII Miscellaneous

 

Article 17 Waiver

 

Any party to this Agreement fails to or
postpone exercising a right under this Agreement shall not be deemed as a waiver to this right; any separate or partial exercise
of a right does not exclude the possibility that this right could be exercised one more time in the future.

 

Article 18 Transfer

 

Unless otherwise specified, any party shall
not transfer its full or partial rights or obligations under this Agreement without the other party’s prior written consent.

 

Article 19 Amendments

 

19.1 This agreement is entered into for
the benefit of both parties and their respective recipient and transferee and binding on both parties.

 

19.2 This agreement shall not be amended
verbally, amendments to this Agreement could become effective only by a written instrument signed by both parties to make it effective.

 

Article 20 Severability

 

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

 

Article 21 Languages

 

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

 

Article 22 Validity

 

This Agreement takes effect on the date
of signing. This Agreement is written in quadruplicate in Chinese, with each party holding one. One original shall be submitted
to industry and commence administration department, the rest one shall be keep in file by Jinhua An Kao.

 

    	 	13	 

     

    

 

Article 23 Notice

 

Any notice and other correspondence concerning
this Agreement between the transferor and the transferee shall be made in writing delivered by express or fax in the form of letter.
Any notice and other correspondence delivered by express shall be acknowledged within 5 business days from it is delivered to courier
company. The effective date of the notice or correspondence delivered shall be the date of receipt of it. If by fax, the third
business day after delivery shall be deemed as date of receipt and fax acknowledgement shall be deemed as evidence.

 

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

 

Party A’s Correspondence address:
No.1 De Sheng Street Jinhua Industrial Zone Jinhua City Zhejiang Province

 

Telephone: 0579-82239856

 

Fax:

 

Receiver: Zhu Xiaoying

 

Party B’s Correspondence address:
Jing Tang Tou Dong Xiao Street Jindong District Jinhua City Zhejiang Province

 

Telephone: 13867974348

 

Fax:

 

Receiver: Wang Xinhuo

 

Article 24 Agreement as a Whole

 

This Agreement shall constitute a full
and complete content concerning all the transactions agreed by both parties, and shall replace all the previous discussions , negotiations
and agreements, by both parties, relating to transactions under this agreement.

 

Article 25 Special Agreement

 

This Agreement must be reported to the
board of directors of Zhejiang Kandi Vehicles Co., Ltd and the board of directors of Kandi Technology Group, Inc. for approval
before it may be carried out.

 

    	 	14	 

     

    

 

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

 

Party A: Zhejiang Kandi Vehicles Co., Ltd.

 

Stamp

 

Authorized representative’s signature
: _________________________

 

Party B: Wang Xinhuo

 

Signature: __________________________

 

 

15Exhibit 10.19

 

 

 

 

 

 

 

 

 

Supplementary
Agreement to Share Transfer Agreement Of

Zhejiang
An Kao Power Technology Co., Ltd.

 

by
and between

 

Wang
Xinhuo

 

And

 

Zhejiang
Kandi Vehicles Co., Ltd

 

 

 

 

 

 

     

     

    

 

This
Supplementary Agreement to Share Transfer Agreement (hereinafter referred to as this “Agreement”) is entered into
on December 14, 2017 at Xihu District Hangzhou City Zhejiang Province, People’s Republic of China, by and between:

 

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

 

Legal
Representative: Hu Xiaoming

 

Party
B: Wang Xinhuo (hereinafter referred to as “Transferor”)

 

ID
Number:

 

Following
transferor and transferee shall be individually referred to as “One Party” and collectively referred to as “Both
Parties”.

 

Whereas:

 

		(1)	The
                                         transferor hold full or 100% ownership interest in Jinhua An Kao Power Technology (hereinafter
                                         referred to as “Jinhua An Kao”) and is entitled to fully exercise all of
                                         its rights as a shareholder;

 

		(2)	Kandi
                                         Technologies Group, Inc (hereinafter referred to as “ KNDI”) , a company
                                         listed in the U.S. on Nasdaq Stock Market, indirectly owns 100% ownership interest in
                                         Zhejiang Kandi Vehicles Co., Ltd;

 

		(3)	A
                                         Share Transfer Agreement of Zhejiang An Kao Power Technology Co., Ltd. between Zhejiang
                                         Kandi Vehicles Co., Ltd. And Wang Xinhuo (hereinafter referred to as the “Share
                                         Transfer Agreement”) is entered into on December 12, 2017 at Xihua District Hangzhou
                                         City Zhejiang Province, People’s Republic of China;

 

    	 	1	 

     

    

 

In
order to ensure Jinhua An Kao to meet the transferee’s net profit anticipation for the next three years, both parties made
following supplementary terms to the Share Transfer Agreement:

 

		1.	Both
                                         parties shall make joint efforts to ensure that Jinhua An Kao realizes its net profit
                                         no less than RMB30,000,000 from January 1, 2018 to December 31, 2018, no less than RMB40,000,000
                                         from January 1, 2019 to December 31, 2019, and no less than RMB50,000,000 from January
                                         1, 2020 to December 31, 2020; Each net profit under this Agreement shall be calculated
                                         based on the “Net Income” defined in the US GAAP and confirmed by the third
                                         party auditor designated by the transferee.

 

		2.	According
                                         to the Property Appraisal Report ( Jin Chen Ping Zi (2017) No.48) on Jinhua An Kao’s
                                         existing asset, future performance and valuation issued by Jinhua Jinchen Property Assessment
                                         Co., Ltd., Article 3.1 under the Share Transfer Agreement is added and changed as: the
                                         transferor and the transferee reach consensus through consultations that KNDI shall issue
                                         restricted stock equals to the value of RMB0.28 billion (hereinafter referred to as “stock
                                         consideration”, defined as below) and deliver the stock to the person designated
                                         by the transferor ( collectively referred to as “receiving party of the stock,
                                         one party is referred to as “each receiving party of the stock”), in addition
                                         to the RMB25.93million of payment to the transferor by the transferee. In connection
                                         with the stock number and amount delivered to each receiving party please see attached
                                         Exhibit I - this Supplementary Agreement.

 

Total
number of the stock issuable to the transferor is 5,919,674 shares (hereinafter referred to as “total number of stock”
or “Shares”), Calculation reads:5,919,674 shares =RMB0.28 billion ÷ exchange rate of 6.62÷$7.145 (KNDI’s
closing price at average over 10 trading days prior to date of signing the Share Transfer Agreement.)

 

On
the date of signing the Share Transfer Agreement, the transferee shall take the total number as consideration and be ready to
pay it to the transferor. But above consideration shall subject to joint supervision from KNDI and the transferee, and delivered
the share to the transferor in following manners:

 

(1)
50% of the total KNDI stock shall be delivered to the transferor on the closing date prescribed in the Share Transfer Agreement;

 

    	 	2	 

     

    

 

(2)
The remaining 50% of the KNDI stock (hereinafter referred to as “Stock Under Supervision”)shall be delivered in turn
to the transferor according to following manners:

 

Condition
1 : The transferor has right to receive total 12.5% of the KNDI stock, provided that Jinhua An Kao realize net profit of RMB30,000,000
or more during January 1, 2018 to December 31, 2018, and such profit is audited and Jinhua An Kao gets annual financial report
that issued subject to US GAAP. If Jinhua An Kao’s net profit fails to meet RMB30,000,000 in that year, the transferor has
right to get the stock under supervision and make following adjustment as the case may be:

 

A.
If the gap between that year’s net profit and RMB30,000,000 is less than or equivalent to 20% of net profit in that year,
the transferee or KNDI has right to directly deduct 5% of the KNDI stock from the stock under supervision, the transferor is entitled
to get 7.5% of the KNDI stock;

 

B.
If the gap between that year’s net profit and RMB30,000,000 is more than 20% and less than 40% of net profit in that year,
the transferee or KNDI has right to directly deduct 10% of the KNDI stock from the stock under supervision, the transferor is
entitled to get 2.5% of the KNDI stock;

 

C.
If the gap between that year’s net profit and RMB30,000,000 is more than 40% and equivalent to 40% of net profit in that
year, the transferee or KNDI has right to directly deduct 12.5% of the KNDI stock from the stock under supervision, the transferor
has no right to get any stock under supervision in that year.

 

Condition
II.: The transferor has right to receive total 16.67% of the KNDI stock, provided that Jinhua An Kao realize net profit of RMB40,000,000
or more during January 1, 2019 to December 31, 2019, and such profit is audited and Jinhua An Kao gets annual financial report
that issued subject to US GAAP. If Jinhua An Kao’s net profit fails to meet RMB40,000,000 in that year, the transferor has
right to get the stock under supervision and make following adjustment as the case may be.

 

    	 	3	 

     

    

 

A.
If the gap between that year’s net profit and RMB40,000,000 is less than 20% or equivalent to 20% of net profit in that
year, the transferee or KNDI has right to directly deduct 5% of the KNDI stock from the stock under supervision, the transferor
is entitled to get 11.67% of the KNDI stock;

 

B.
If the gap between that year’s net profit and RMB40,000,000 is more than 20% and less than 40% of net profit in that year,
the transferee or KNDI has right to directly deduct 10% of the KNDI stock from the stock under supervision, the transferor is
entitled to get 6.67% of the KNDI stock;

 

C.
If the gap between that year’s net profit and RMB40,000,000 is more than 40% and equivalent to 40% of net profit in that
year, the transferee or KNDI has right to directly deduct 16.67% of the KNDI stock from the stock under supervision, the transferor
has no right to get any stock under supervision in that year.

 

Condition
III: The transferor has right to receive total 20.83% of the KNDI stock, provided that Jinhua An Kao realize net profit of RMB50,000,000
or more during January 1, 2020 to December 31, 2020, and such profit is audited and Jinhua An Kao gets annual financial report
issued subject to US GAAP. If Jinhua An Kao’s net profit fails to meet RMB50,000,000 in that year, the transferor has right
to get the stock under supervision and make following adjustment as the case may be.

 

A.
If the gap between that year’s net profit and RMB50,000,000 is less than 20% or equivalent to 20% of net profit in that
year, the transferee or KNDI has right to directly deduct 6% of the KNDI stock from the stock under supervision, the transferor
is entitled to get 14.83% of the KNDI stock;

 

B.
If the gap between that year’s net profit and RMB50,000,000 is more than 20% and less than 40% of net profit in that year,
the transferee or KNDI has right to directly deduct 12% of the KNDI stock from the stock under supervision, the transferor is
entitled to get 8.83% of the KNDI stock;

 

C.
If the gap between that year’s net profit and RMB50,000,000 is more than 40% and equivalent to 40% of net profit in that
year, the transferee or KNDI has right to directly deduct 20.83% of the KNDI stock from the stock under supervision, the transferor
has no right to get any stock under supervision in that year.

 

(3)
KNDI shall reserve the voting right of such stock until the transferor earns the Shares by satisfying the related terms and conditions
under the Share Transfer Agreement and its Supplementary Agreement.

 

	3.	Representations and Warranties of the Transferors

 

The
transferor, represents, warrants and covenants that:

 

a)       Authority.
Such transferor has full power and authority to enter into and to perform this Agreement and the Share Transfer Agreement in accordance
with their terms and to consummate the transactions contemplated hereby and thereby. This Agreement and the Share Transfer Agreement
have been duly executed and delivered by such transferor and constitute valid and binding obligations of such transferor enforceable
in accordance with their respective terms, except (i) as limited by applicable bankruptcy, insolvency, reorganization, moratorium
and other laws of general application affecting enforcement of creditors’ rights generally, and (ii) as limited by general
principles of equity that restrict the availability of equitable remedies.

 

b)       Experience.
Such transferor has such knowledge and experience in financial and business matter that it is capable of evaluating the merits
and risks of the investment. Such transferor acknowledges that he can bear the economic risk of his investment. Such transferor
believes he has received all the information he considers necessary or appropriate for deciding whether to purchase the Shares.
Such transferor further represents that he has had an opportunity to ask questions and receive answers from KNDI regarding the
terms and conditions of the offering of the Shares and the business, assets and financial condition of KNDI.

 

c)       Purchase
Entirely for Own Account. This Agreement is made with such transferor in reliance upon such transferor’s representation
to KNDI, which by such transferor’s execution of this Agreement such transferor hereby confirms, that the Shares to be received
by such transferor will be acquired for investment for such transferor’s own account, not as a nominee or agent, and not
with a view to the resale or distribution of any part thereof, and that such transferor has no present intention of selling, granting
any participation in or otherwise distributing the same. By executing this Agreement, such transferor further represents that
such transferor does not have any contract, undertaking, agreement or arrangement with any person to sell, transfer or grant participations
to such person or to any third person, with respect to any of the Shares.

 

d)       Accredited
Investor. Such transferor is an “accredited Investor” within the meaning of Rule 501(a) under the Securities Act.

 

    	 	4	 

     

    

 

e)       Restricted
Securities. Such transferor understands that the securities he is purchasing are characterized as “restricted securities”
under the federal securities laws inasmuch as they are being acquired from KNDI in a transaction not involving a public offering
and that under such laws and applicable regulations such Shares may be resold without registration under the Securities Act only
in certain limited circumstances. In the absence of an effective registration statement covering the Shares or an available exemption
from registration under the Securities Act, the Securities must be held indefinitely. In this connection, such transferor represents
that it is familiar with Rule 144 under the Securities Act, as presently in effect, and understands the resale limitations imposed
thereby and by the Securities Act.

 

f)       Legends.
It is understood that the certificates evidencing the Shares may bear the following legend until such time, if any, as (A) the
Shares are sold in compliance with Rule 144 under the Securities Act (or a comparable successor provisions) or pursuant to an
effective registration statement under the Securities Act or (B) KNDI receives an opinion of counsel reasonably acceptable to
it to the effect that such legend may be removed:

 

“THESE
SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED. THEY MAY NOT BE SOLD, OFFERED FOR SALE,
PLEDGED, HYPOTHECATED OR OTHERWISE TRANSFERRED EXCEPT (A) PURSUANT TO AN EXEMPTION PROVIDED BY RULE 144 THEREUNDER
(IF AVAILABLE) AND (B) IN ACCORDANCE WITH ALL APPLICABLE SECURITIES LAWS OF THE STATES OF THE UNITED STATES.”

 

Such
transferor also understood that such certificates may bear any legend required by the securities laws of any state or other governmental
or regulatory agency having authority over the issuance of the Shares.

 

	4.	This Supplementary Agreement constitutes an effective
supplement to the Share Transfer Agreement and of the same legal force as the Stock Transfer Agreement. The Share Transfer Agreement
and its Supplementary Agreement are binding on both parties to this Supplementary Agreement. The provisions in this Supplementary
Agreement shall prevail in the event of any discrepancy between provisions in this Supplementary Agreement and that in the Share
Transfer Agreement. May not do any supplement or amendment, in any forms, to the Share Transfer Agreement and/or this Supplementary
Agreement without consent from both parties to this Supplement Agreement.

 

    	 	5	 

     

    

 

	5.	Both parties have duty to keep this Supplementary Agreement
confidential, any party has no right to disclose or confirm content of this Supplementary Agreement to any third party. But such
disclosure shall not be limited by this clause if it need to be disclosed subject to U.S. Securities and Exchange Commission.

 

	6.	This Supplementary Agreement takes effect on its execution
date. The conclusion, validity, explanation, implementation and resolution of dispute of this Supplementary Agreement shall be
governed by the laws and regulations of the PRC. Should any provisions of this Supplementary Agreement be invalid, the validity
of the remaining provisions of this Supplementary Agreement shall not be affected.

 

	7.	Any dispute arising from or in connection with this
agreement shall be brought to China International Economic and Trade Arbitration Commission and arbitrated pursuant to existing
and effective arbitration rules of the Commission when applying for this arbitration. The arbitration award is final and binding
upon both parties.

 

	8.	This Supplementary Agreement is made in Chinese in quadruplicate,
with each party holding two originals.

 

	9.	This Supplementary Agreement must be reported to the
board of directors of Zhejiang Kandi Vehicles Co., Ltd and the board of directors of Kandi Technology Group, Inc. for approval
before it may be carried out.

 

    	 	6	 

     

    

 

IN
WITNESS HEREOF, the transferee and the transferor have executed this Supplementary Agreement as of the date first above written.

 

The
Transferee: Zhejiang Kandi Vehicles Co., Ltd.

 

Stamp:

 

Authorized
representative’s signature: _________________________

 

The
transferor: Wang Xinhuo

 

Signature:
__________________________

 

Kandi
Technologies Group, Inc. hereby acknowledges this Supplementary Agreement and pledges to perform its obligations under this Agreement.

 

Stamp:

 

Signature
of President or CEO: ___________________________

 

    	 	7	 

     

    

 

Exhibit
I

 

The
Amount of the Stock Issued to Each Receiving Party:

 

	Name of Receiving Party of the Stock	 	Total Value of the Stock	 	Total Amount of the Stock
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 

 

The
transferor and its designated receiving party of the stock are entitled to get certificates representing total value and amount
of the stock described as above chart and have right to handle such stock.

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