Document:

Exhibit 10.28

 

ESCROW AGREEMENT

 

This ESCROW AGREEMENT
(“Escrow Agreement”) is made as of _______________30 April_____________ 2019 by and among Renren
Inc., (the “Seller”), CM Seven Star Acquisition Corporation,
a Cayman Islands exempted company (the “Purchaser”), and VISTRA CORPORATE SERVICES (HK) LIMITED, a Hong Kong
company with registered office address at 19/F, Lee Garden One, 33 Hysan Avenue, Causeway Bay, Hong Kong (“Escrow Agent”).

 

WHEREAS the Seller,
the Purchaser and Kaixin Auto Group, a Cayman Islands exempted company (“Kaixin”), are parties to a share exchange
agreement, dated as of November 2, 2018 (the “Share Exchange Agreement”), pursuant to which the parties thereof
will consummate a share exchange where Kaixin will become a wholly-owned subsidiary of the Purchaser (the “Transaction”);

 

WHEREAS, pursuant
to and subject to the terms and conditions of the Share Exchange Agreement, the Purchaser has agreed to issue 22,800,000 ordinary
shares in the Purchaser, being withheld from the closing payment of the Transaction (the “Escrow Shares”), to
the Escrow Agent to be held pursuant to the terms of the Share Exchange Agreement and this Escrow Agreement, which, subject to
the terms and conditions set forth in the Share Exchange Agreement, may be distributed to the Seller in whole or in part;

 

WHEREAS, in accordance
with the Share Exchange Agreement, Kaixin, the Seller and the Purchaser have agreed to establish a segregated escrow account (the
“Escrow Account”) under this Escrow Agreement for the purposes of holding any dividends or distributions paid
or otherwise accruing to the Escrow Shares during the time such Escrow Shares are held (“Accrued Dividends”);

 

WHEREAS, the Purchaser
will cause the Escrow Shares to be transferred in escrow to the Escrow Agent on terms and conditions more particularly described
herein on the date of this Escrow Agreement; and

 

WHEREAS, pursuant
to ARTICLE III of the Share Exchange Agreement, (i) the Escrow Shares and Accrued Dividends (if any) will be released and transferred
to the Seller as Earnout Payment (as defined in the Share Exchange Agreement) in the event that Kaixin and its subsidiaries meet
certain minimum performance requirements; and (ii) all remaining Escrow Shares and Accrued Dividends (if any) held in the Escrow
Account will be released and transferred to the Seller, less the amount of any Payment Offset (as defined in the Share Exchange
Agreement), after April 30, 2021, subject to the satisfaction of the terms and conditions of ARTICLES III and X of the Share Exchange
Agreement.

 

NOW, THEREFORE,
in consideration of the premises, the undersigned hereby agree as follows:

 

ARTICLE I

TERMS AND CONDITIONS

 

 1.1                        Appointment. The Purchaser and the Seller hereby appoint the Escrow Agent to act as an independent escrow agent in relation to the Escrow Shares and Accrued Dividends (if any) with effect from the date of this Escrow Agreement. The Escrow Agent shall provide services pursuant to this Escrow Agreement to the Purchaser and the Seller with reasonable skill and care.

 

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1.2                        Issue of Escrow Shares.  The
Purchaser shall issue the Escrow Shares to the Escrow Agent on the date of this Escrow Agreement. To effect this, the Purchaser
will cause to be entered in its register of members the Escrow Agent or an agent thereof (the “Nominee”) to
hold the Escrow Shares on its behalf as a nominee (provided that such agent shall be a company within the Escrow Agent’s group
of companies) as the registered holder of the Escrow Shares and thereafter will issue to the Escrow Agent a duly executed original
share certificate(s) in respect of the Escrow Shares in the name of the Escrow Agent or the Nominee. The Escrow Agent will issue
to Kaixin, the Seller and the Purchaser its written confirmation of receipt of the Escrow Shares. The Escrow Agent or the Nominee
will become the registered owner of the Escrow Shares upon being noted the same on the Purchaser’s register of members until such
time as is set out in, and in accordance with, the Share Exchange Agreement and this Escrow Agreement.

 

 1.2                        Held in Trust. The Escrow Agent declares that the Escrow Shares are held in trust for the Seller until released and transferred in accordance with the terms and conditions of the Share Exchange Agreement and this Escrow Agreement. The Escrow Agent further declares that any Accrued Dividends (if any) and any accruing interest on the Accrued Dividends (if any) that are paid into the Escrow Account are held in trust for the Seller until released and transferred in accordance with the terms and conditions of the Share Exchange Agreement and this Escrow Agreement.

 

 1.3                        Treatment of Escrow Shares.  Until released and transferred in accordance with the terms and conditions of the Share Exchange Agreement and this Escrow Agreement, the Escrow Shares cannot be sold, transferred, assigned, mortgaged otherwise dealt with in any way, except as provided for in this Escrow Agreement in accordance with the terms and conditions of the Share Exchange Agreement.

 

1.4                        Escrow
Account. The Escrow Agent has confirmed that it has opened/ will open the Escrow Account on the terms and subject to the conditions
of this Escrow Agreement. The Escrow Account details are/ will be the following:

 

Currency: USD

Name of Bank: Standard
Chartered Bank (Hong Kong)

Account Number: Escrow
Agent to confirm

IBAN: Escrow Agent
to confirm

Sort Code: Escrow
Agent to confirm

Account Holder:
Escrow Agent

 

1.5                        Accrued
Dividends. The Escrow Agent shall hold the Accrued Dividends as Escrow Agent on behalf of the Seller and accept deposits in,
make distributions from, and otherwise operate the Escrow Account only in accordance with the joint written instructions of the
Purchaser and the Seller. The Escrow Agent shall also collect any tax and other regulatory forms from the Seller and/or Purchaser
and the Seller and Purchaser agree to calculate the withholding tax payable (if any) by the Seller that may be deductible from
such Dividends. The Escrow Agent will rely on the Seller and the Purchaser as to the accuracy of this calculation and may use independent
tax and legal advice to confirm and file such form with any applicable authority and such costs and expenses will be paid by the
Seller and the Purchaser in accordance with Clause 2.2(C) hereof.

 

1.6                        Voting
of the Escrow Shares. All and any voting rights attached to the Escrow Shares shall at all times be exercised by the Seller
by giving written instructions to the Escrow Agent, until such Escrow Shares are released and transferred to the Seller.

 

1.7                        Authorized Signatories.
The Seller and the Purchaser have provided on Schedule A (as it may be amended from time to time) to this Escrow Agreement,
the names and specimen signatures of those persons who are authorized to issue notices and instructions to the Escrow Agent
and execute required documents (“Authorized Signatories”) under the Share Exchange Agreement and this
Escrow Agreement. The Seller and Purchaser can amend their respective Authorized Signatories by issuing an amended Schedule A
to the Escrow Agent in the manner described in Section 3.2. No instruction pursuant to this Escrow Agreement may be made
other than by duly authorized signatories from the Seller and the Purchaser. In no event shall the Seller or the Purchaser
issue or cause to be issued any instruction in contravention of the Share Exchange Agreement.

 

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 1.8                        Escrow Procedure and Release Instruction.  The Escrow Shares and Accrued Dividends (as applicable) shall be held, released and transferred in accordance with the Share Exchange Agreement and the following terms:

 

		A.	The Seller and Purchaser shall jointly provide release instructions signed by their respective
Authorized Signatory to the Escrow Agent in the form attached hereto as Schedule B, the “Notice”.

 

		B.	The Purchaser shall issue new share certificate(s) in the name of each recipient in respect of
the amount of Escrow Shares to be transferred to such recipient as specified in the Notice within two (2) business days after receipt
of the Notice. The old share certificate(s) in respect of the Escrow Shares so transferred shall be cancelled by the Purchaser
immediately upon issuance of the new share certificate(s).

 

		C.	Any Escrow Shares and Accrued Dividends (if any) that remain after deducting all Earnout Payments
made/ to be made to the Seller will be returned to the Purchaser the later of (i) five (5) business days after April 30, 2021 upon
the Escrow Agent’s receipt of a Notice jointly issued by the Seller and the Purchaser, or (ii) in the event of a dispute
between the Purchaser and Seller, fifty (50) business days after the engagement of an Independent Expert (as defined in the Share
Exchange Agreement), upon the Escrow’s Agent receipt of a Notice jointly issued by the Seller and the Purchaser.

 

 1.9                        Termination.  This Escrow Agreement shall terminate upon the final, proper and complete release and transfer of all Escrow Shares and Accrued Dividends (if any) in accordance with the provisions of this Escrow Agreement.

 

ARTICLE II

PROVISIONS AS TO ESCROW AGENT

 

2.1                        Limitation
of Escrow Agent’s Capacity.

 

 A.          This Escrow Agreement expressly and exclusively sets forth the duties of Escrow Agent with respect to any and all matters pertinent hereto, and no implied duties or obligations shall be read into this Escrow Agreement against Escrow Agent. This Escrow Agreement constitutes the entire agreement between the Escrow Agent and the other parties hereto in connection with the subject matter of this escrow, and no other agreement entered into between the parties, or any of them, shall be considered as adopted or binding, in whole or in part, upon the Escrow Agent notwithstanding that any such other agreement may be referred to herein or deposited with Escrow Agent or the Escrow Agent may have knowledge thereof, and Escrow Agent’s rights and responsibilities shall be governed solely by this Escrow Agreement.

 

 B.          Escrow Agent acts hereunder as a depository only, and is not responsible or liable in any manner whatsoever for the sufficiency, correctness, genuineness or validity of the subject matter of this Escrow Agreement or any part thereof, or for the form of execution thereof, or for the identity or authority of any person executing or depositing such subject matter. Escrow Agent shall be under no duty to investigate or inquire as to the validity or accuracy of any document, agreement, joint written instruction or request furnished to it hereunder believed by it to be genuine and Escrow Agent may rely and act upon, and shall not be liable for acting or not acting upon, any such document, agreement, joint written instruction or request, except to the extent of Escrow Agent’s gross negligence or willful misconduct. Escrow Agent shall in no way be responsible for notifying, nor shall it be its duty to notify, any party hereto or any other party interested in this Escrow Agreement or any payment required or maturity occurring under this Escrow Agreement or under the terms of any instrument deposited herewith.

 

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 2.2                         Authority to Act.

 

 A.          Escrow Agent is hereby authorized and directed by the Seller and Purchaser to release, transfer and/or deliver the subject matter of this Escrow Agreement only in accordance with the provisions of Article I of this Escrow Agreement.

 

 B.          Escrow Agent shall be protected in acting upon any joint written instructions, notice, request, waiver, consent, certificate, receipt, authorization, power of attorney or other paper or document which Escrow Agent in good faith believes to be genuine and what it purports to be, including, but not limited to, items requesting or authorizing release or retainage of the subject matter of this Escrow Agreement and items amending the terms of this Escrow Agreement.

 

 C.          Escrow Agent may consult with legal counsel at the several, but not joint cost and expense of the Seller and the Purchaser (“Legal Fees”), which shall each bear such half of such Legal Fees (provided that such Legal Fees must be reasonably incurred by the Escrow Agent in connection with the performance of its obligations under this Agreement) in the event of any dispute or question as to the construction of any of the provisions hereof or its duties hereunder, and it shall incur no liability and shall be fully protected in acting in accordance with the advice of such counsel. The Escrow Agent shall obtain written consent from both the Seller and the Purchaser (not to be unreasonably withheld) prior to incurring Legal Fees. Subject to the prior sentence, the Escrow Agent may request the Seller and the Purchaser to pay for the Legal Fees in advance.

 

 D.          In the event of any disagreement between any of the parties to this Escrow Agreement, or between any of them and any other person, resulting in adverse claims or demands being made in connection with the matters covered by this Escrow Agreement, or in the event that Escrow Agent, in good faith, be in doubt as to what action it should take hereunder, Escrow Agent may, at its option, refuse to comply with any claims or demands on it, or refuse to take any other action hereunder, so long as such disagreement continues or such doubt exists, and in any such event, Escrow Agent shall not be or become liable in any way or to any person for its failure or refusal to act, and Escrow Agent shall be entitled to continue so to refrain from acting until (i) the rights of all interested parties shall have been fully and finally adjudicated by a court of competent jurisdiction, or (ii) all differences shall have been adjudged and all doubt resolved by agreement among all of the interested persons, and Escrow Agent shall have been notified thereof in writing signed by all such persons. Notwithstanding the foregoing, Escrow Agent may in its discretion obey the order, judgment, decree or levy of any court, and Escrow Agent is hereby authorized in its sole discretion, to comply with and obey any such orders, judgments, decrees or levies. The rights of Escrow Agent under this sub-paragraph are cumulative of all other rights which it may have by law or otherwise.

 

 E.          In the event that any controversy should arise among the parties with respect to the Escrow Agreement, or should the Escrow Agent resign and the parties fail to select another Escrow Agent to act in its stead, the Escrow Agent shall have the right to institute a bill of interpleader in any court of competent jurisdiction to determine the rights of the parties, in each case as of 5 business days after the date of the first written notice given to the parties in respect of the controversy or 5 business days after the date of resignation of the Escrow Agent.

 

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2.3                         Compensation.
Escrow Agent shall be entitled to a set-up fee of US$10,000 and an additional fee of US$5,000 (per annum) as escrow responsibility
fees as well as expenses incurred in connection with the performance by the Escrow Agent of services under this Escrow Agreement
(including reasonable fees and expenses of Escrow Agent’s counsel) and the Seller and the Purchaser jointly and severally
agree to pay to the Escrow Agent such fees and reimburse Escrow Agent for reasonable costs and expenses. The Seller and the Purchaser
agree to cause to be paid to the Escrow Agent an advance fee of US$15,000 within 14 business days after the closing of the Transaction
in satisfaction of the set-up fee and the annual fee in respect of the first year of service.

 

2.4                         Indemnification.
Seller and the Purchaser hereby jointly and severally agree to indemnify and hold Escrow Agent, its affiliates and their officers,
employees, successors, assigns, attorneys and agents (each an “Indemnified Party”) harmless from all losses,
costs, claims, demands, expenses, damages, penalties and attorney’s fees suffered or incurred by any Indemnified Party or Escrow
Agent as a result of anything which it may do or refrain from doing in connection with this Escrow Agreement or any litigation
or cause of action arising from or in conjunction with this Escrow Agreement or involving the subject matter hereof, including,
without limitation, arising out of the negligence (other than gross negligence) of Escrow Agent; provided that the foregoing indemnification
shall not extend to fraud, dishonesty, the gross negligence or willful misconduct of Escrow Agent. Subject to the immediately preceding
proviso, this indemnity shall include, but not be limited to, all costs incurred in conjunction with any interpleader which the
Escrow Agent may enter into regarding this Escrow Agreement.

 

2.5                          Miscellaneous.

 

A.          Escrow
Agent shall make no disbursement, investment or other use of the Escrow Shares and Accrued Dividends (if any).

 

 B.          Escrow Agent may resign by giving not fewer than 60 days written notice to Kaixin, Seller and the Purchaser, whereupon the Seller and the Purchaser will immediately appoint a successor Escrow Agent. Until a successor Escrow Agent has been named and accepts its appointment or until another disposition of the subject matter of this Escrow Agreement has been agreed upon by all parties hereto, Escrow Agent shall not be discharged of all of its duties hereunder.

 

 C.          All representations, covenants, and indemnifications contained in this Article II shall survive the termination of this Escrow Agreement.

 

ARTICLE III

GENERAL PROVISIONS

 

3.1                           Discharge of Escrow
Agent.  Upon the release, transfer and/or delivery of all of the subject matter or monies pursuant to the terms
of this Escrow Agreement, the duties of the Escrow Agent shall terminate and the Escrow Agent shall be discharged from any
further obligation hereunder.

 

3.2                          Notice.  Any payment,
notice, request for consent, report, or any other communication required or permitted in this Escrow Agreement shall be sent in
writing, addressed as specified below, and shall be deemed given: (a) if by hand or recognized courier service, by 4:00PM on a
business day, addressee’s day and time, on the date of delivery, and otherwise on the first business day after such delivery;
(b) if by fax or email, on the date that transmission is confirmed electronically, if by 4:00PM on a business day, addressee’s
day and time, and otherwise on the first business day after the date of such confirmation; or (c) five (5) days after mailing by
certified or registered mail, return receipt requested. Notices shall be addressed to the respective parties as follows:

 

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If to Escrow Agent:

 

Vistra Corporate Services
(HK) Limited

19/F, Lee Garden One

33 Hysan Avenue

Causeway Bay,
Hong Kong 

Email: Joe.Cheung@vistra.com 

Fax: (852) 2845-9198

Attn: Joe Cheung,
Managing Director

 

If to Kaixin:

 

5/F, North Wing 

18 Jiuxianqiao Middle
Road,

Chaoyang District,
Beijing 100016

People’s
Republic of China

Email: jintao.ren@renren-inc.com  

Attn: Thomas Jintao Ren

 

With a copy to:

 

Simpson Thacher & Bartlett

35/F ICBC Tower

3 Garden Road, Central,
Hong Kong

Email: clin@stblaw.com

Attn: Chris K.H. Lin

 

If to the Seller:

 

5/F, North Wing

18 Jiuxianqiao
Middle Road,

Chaoyang District,
Beijing 100016

People’s
Republic of China

Email: james.liu@renren-inc.com

Attn: James Jian
Liu

 

With a copy to:

 

Skadden, Arps, Slate, Meagher &
Flom

42/F, Edinburgh Tower, The Landmark

15 Queen’s Road Central,

Hong Kong

Email: julie.gao@skadden.com;
kenneth.chase@skadden.com

Attn: Z. Julie Gao and Kenneth
W. Chase

 

If to the Purchaser:

 

Suite 1306, 13/F. AIA Central

1 Connaught Road, Central,

Hong Kong

Attn: Sing Wang, Anthony Ho and Adrian
Cheung

 

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Any party may unilaterally
designate a different address by giving notice of each such change in the manner specified above to each other party. Notwithstanding
the foregoing, no notice to the Escrow Agent shall be deemed given to or received by the Escrow Agent unless actually delivered
to an officer of the Escrow Agent having responsibility under this Escrow Agreement. The Escrow Agent shall issue a written acknowledgment
of receipt to the notice sender within two (2) business days after receipt of such notice.

 

 3.4                            Governing Law and Inurement.  This Escrow Agreement shall be construed in accordance with and governed by the laws of the Hong Kong Special Administrative Region of the People’s Republic of China and the courts thereof shall have non-exclusive jurisdiction to adjudicate all claims, actions or other proceedings relating to this Escrow Agreement. It shall inure to and be binding upon the parties hereto and their respective successors, heirs and assigns.

 

 3.5                            Construction.  Words used in the singular number may include the plural and the plural may include the singular. The section headings appearing in this instrument have been inserted for convenience only and shall be given no substantive meaning or significance whatsoever in construing the terms and conditions of this Escrow Agreement.

 

 3.5                            Supremacy.  Notwithstanding anything to the contrary in this Escrow Agreement, in the event of any conflict or inconsistency between this Escrow Agreement and the Share Exchange Agreement, the Share Exchange Agreement shall prevail.

 

 3.6                            Amendment.  The terms of this Escrow Agreement may be altered, amended, modified or revoked only by an instrument in writing signed by the undersigned and Escrow Agent.

 

 3.7                            Force Majeure. Escrow Agent shall not be liable to the undersigned for any loss or damage arising out of any acts of God, strikes, equipment or transmission failure, war, terrorism, or any other act or circumstance beyond the reasonable control of Escrow Agent.

 

 3.8                            Written Agreement. This Escrow Agreement represents the final agreement between the parties, and may not be contradicted by evidence of prior, contemporaneous or subsequent oral agreements of the parties. There are no unwritten oral agreements between the parties.

 

 3.9                            No Partnership or Agency. None of the provisions of this Escrow Agreement shall be deemed to constitute or create any partnership or joint venture between the parties hereof and none of them shall have any authority to bind the other party in any way other than as expressly provided for herein.

 

3.10                          No Third Party
Beneficiaries. Nothing expressed or referred to in this Escrow Agreement is intended or will be construed to give any
person other than the parties hereto and their respective successors and assigns any legal or equitable right, remedy or
claim under or with respect to this Escrow Agreement, or any provision hereof, it being the intention of the parties hereto
that this Escrow Agreement and all of its provisions and conditions are for the sole and exclusive benefit of the parties to
this Escrow Agreement and their respective successors and assigns. A person, including but not limited to any Investors, who
is not a party to this Escrow Agreement shall not have any rights under the Contracts (Rights of Third Parties) Ordinance
(Cap 623) to enforce any term of this Escrow Agreement.

 

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3.11                         Counterparts.
This Escrow Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which together
shall be deemed to be one and the same agreement. This Escrow Agreement may be executed and delivered by facsimile, PDF, electronic
signatures or other means of electronic transmission and such execution and delivery shall be deemed to have the same legal effect
as delivery of an original signed copy of this Escrow Agreement and deemed to be valid and enforceable against the parties hereof.

  

	 	The Seller:
	 	 	 
	 	By:	 	 
	 	Name:	 
	 	Title:	 
	 	 	 
	 	The Purchaser:
	 	 	 
	 	By:	 	 
	 	Name:	 
	 	Title:	 

   

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The Escrow Agent, hereby accepts its appointment
as Escrow Agent as described in the foregoing Escrow Agreement, subject to the terms and conditions set forth therein.

 

	 	The Escrow Agent:
	 	 	 
	 	By:	 	 
	 	Name:	 
	 	Title:	 

 

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SCHEDULE A

 

AUTHORIZED SIGNATORIES

 

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SCHEDULE B

 

NOTICE

 

Pursuant to that certain
Escrow Agreement dated and effective as of ____________ made between the Seller, the Purchaser and the Escrow Agent:

 

The undersigned Purchaser and Seller hereby
jointly request the release and transfer of the Escrow Shares and the Accrued Dividends (if applicable) in the amount and manner
described below.

 

	Please release and transfer to the below Recipient:		
	 	 	 

 

 

	Amount of Escrow Shares to release and transfer:		
	 	 	 

 

	Amount of dividends to release and transfer:		
	 	(if
any)	 

 

IN WITNESS WHEREOF: the parties hereto
have executed this Notice in multiple counterparts, each of which is and shall be considered an original for all intents and purposes,
effective as of the date first written above.

 

	PURCHASER:	 	SELLER:
	Authorized Signatory	 	Authorized Signatory
	 	 	 	 	 
	By:	 	 	By:	 
	 	 	 	 	 
	Name:	 	 	Name:	 
	 	 	 	 	 
	Title:	 	 	Title:	 
	 	 	 	 	 
	Date:	 	 	Date:	 

 

    - 11 -Exhibit 10.29

 

KAIXIN AUTO GROUP

 

2018 Equity Incentive
Plan

 

The Kaixin
Auto Group 2018 Equity Incentive Plan (the “Plan”) was adopted by the Sole Director of Kaixin Auto Group, an
exempted company with limited liability incorporated in Cayman Islands (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 of the Company and its Subsidiaries; (b) motivating performance of the Employees, Consultants, and Outside Directors
of the Company and its Subsidiaries by means of long-term performance related incentives; (c) encouraging and providing Employees,
Consultants, and Outside Directors of the Company and its Subsidiaries 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 term shall have the meanings indicated:

 

“Award”
means the grant of any Incentive Share Option, Nonqualified Share Option, or Restricted Shares 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.

 

    1

    

    

 

“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 clause (iii) or (iv) shall not constitute a Change in 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 Share Options granted under this Plan.

 

“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 this Plan or, in
the case no such committee is appointed, the Board.

 

“Company”
means Kaixin Auto Group, an exempted company with limited liability incorporated in Cayman Islands (the “Company”)
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, 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 this Plan or Board members who (x) at the date of this Plan were directors
or (y) become directors after the date of this 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 this 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 of the Company.

 

“Equity
Securities” means the Ordinary Shares, the Preferred Shares, 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.

 

    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.

 

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

 

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

 

“Participant”
shall mean an Employee, Consultant, or Outside Director of the Company or a Subsidiary to whom an Award is granted under this Plan.

 

“Permitted
Transferee” means a Shareholder who acquires shares through one or more of the following transfers: (a) any transfer
of Equity Securities by a Shareholder to such Shareholders’ Relative or to a trust for their benefit, provided that all of the beneficial interests in such trust are owned or controlled by such Shareholder; (b) any transfer of Equity
Securities by a Shareholder to its Affiliate.

 

“Plan”
means this Kaixin Auto Group 2018 Equity Incentive Plan, as amended from time to time.

 

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

 

“Relative”
of a natural person means any spouse of such person and any parent, child, grandparent, grandchild, sibling, uncle,
aunt, nephew, niece or great-grandparent of such person or such spouse.

 

    3

    

    

 

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

 

“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 director serving at any given time.

 

“Subsidiary”
means (i) any Corporation (as defined herein), (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 or limited liability company, if the partners or members thereof are composed
only of the Company, any Corporation or any limited partnership listed in item (ii) above. “Subsidiaries” means more
than one of any such Corporations, limited partnerships, partnerships or limited liability companies.

 

“Termination
of Service” occurs when a Participant who is an Employee or a Consultant of the Company or any Subsidiary shall cease to
serve as an Employee or Consultant of the Company and its Subsidiaries, for any reason; or, when a Participant who is an Outside
Director of the Company or a Subsidiary shall cease 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 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 this Plan to the Committee shall be deemed to refer
to the Sole Director or the Board as the case may be at that time.

 

    4

    

    

 

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.

 

The Committee,
in its discretion, 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 this Plan, any Award pursuant to this Plan or any related documents, including
but not limited to foreign exchange laws, tax laws and securities law 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 of the Company 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 of
the Company or any Subsidiary. 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
this 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.

 

    5

    

    

 

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 this Plan is 40,000,000. 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 this Plan exceed 40,000,000.

 

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 this 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 this
Plan.

 

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

 

(a) A Share Option
shall expire or terminate for any reason without having been exercised in full, or in the event that a Share Option is exercised
or settled in a manner such that some or all of the Ordinary Shares relating to the Share Option 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 this 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 forfeited 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 this Plan must be granted within ten (10) years after the date of adoption of this Plan. The Plan shall be
submitted to the Company’s shareholders for approval; however, the Committee may grant Awards under the Plan prior to the
time of shareholder approval. Any such Award granted prior to such shareholder approval shall be made subject to such shareholder
approval. 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 lncentive(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

    

    

 

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), the Option Price shall be at least 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.

 

6.4 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) are exercisable for the first time by such Employee
during any calendar year to exceed $100,000. To the extent any Share Option granted under this 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, any division thereof or any group of Employees of the Company,
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 this 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 15.11 of the Plan.

 

    7

    

    

 

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 this 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.

 

(ii) Except
as provided in sub-paragraph (i) above 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. Certificates for Ordinary Shares free of restriction under this Plan shall be delivered to the
Participant promptly after, and only after, the Restriction Period shall expire without repurchase 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 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,
the non-vested Restricted Shares shall be repurchased by the Company from the Participant. In the event a Participant has paid
any consideration to the Company for such repurchased Restricted Shares, the Committee shall specify in the Award Agreement that
either (i) the Company shall be obligated to, or (ii) the Company may, in its sole discretion, elect to pay to the Participant,
as soon as practicable after the event causing repurchase, in cash an amount equal to the lesser of the total consideration paid
by the Participant for such repurchased shares or the. Fair Market Value of such repurchased shares as of the date of Termination
of Service, as the Committee in its sole discretion shall select. Upon any repurchase, all rights of a Participant with respect
to the repurchased Restricted Shares shall cease and terminate, without any further obligation on the part of the Company.

 

6.6 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.

 

    8

    

    

 

ARTICLE 7

AWARD PERIOD;
VESTING

 

7.1 Award Period.

 

(a) Subject
to the other provisions of this 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) 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.

 

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.

 

    9

    

    

 

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.

 

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.

 

    10

    

    

 

(c) Failure to Pay.
If the Participant fails to pay for any of the Ordinary Shares specified in such notice or fails to accept delivery thereof, the
Participant’s Share Option and right to purchase such Ordinary Shares may be forfeited by 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
162(m), 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 this 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 this Plan is approved by the Board. Unless sooner terminated by action of the Board, the
Plan will terminate on February 1, 2028, but Incentives granted before that date will continue to be effective in accordance with
their terms and conditions.

 

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 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 (v) the amount,
if any, the Company pays for forfeited Ordinary Shares 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.

 

    11

    

    

 

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 this 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, 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 in any merger, consolidation or share exchange, any Incentive granted hereunder 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 Incentive would have been entitled.

 

12.3 Exchange
or Cancellation of Incentives Where Company Does Not Survive. In the event of any merger, consolidation or share exchange
pursuant to which the Company is not the surviving or resulting corporation, 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 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.

 

    12

    

    

 

Notwithstanding
the foregoing, however, all Share Options may be canceled by the Company as of the effective date of any such reorganization, merger,
consolidation, or share exchange, or any dissolution or liquidation of the Company, by giving notice to each holder thereof or
his personal representative of its intention to do so and by permitting the purchase during the thirty (30) day period next 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 this 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 of the Company which 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 of the Company.

 

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
Company’s 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, or limited liability company who become or are about to become Employees or Outside Directors of the Company or any
Subsidiary as a result of a merger or consolidation of the employing corporation with the Company, the acquisition by the Company
of equity of the employing entity, or any other similar transaction 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 this 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.

 

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.

 

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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), 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.

 

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 of the Company 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 this 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
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.

 

15.7 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
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 15.7 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 15.7 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 Securities Act in a
transaction that complied with the terms of the applicable Award Agreement.

 

    14

    

    

 

15.8 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 15.9, 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 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).

 

15.9 Share Option
Assignability. Incentive Share Options may not be transferred, assigned, pledged, hypothecated or otherwise conveyed
or encumbered other than by will or the laws of descent and distribution and may be exercised during the lifetime of the
Participant only by the Participant or the Participant’s legally authorized representative, and each Award Agreement in
respect of an Incentive Share Option shall so provide. The designation by a Participant of a beneficiary will not constitute
a transfer of the Share Option. The Committee may waive or modify any limitation contained in the preceding sentences of this
Section 15.9 that is not required for compliance with Section 422 of the Code.

 

Except as otherwise provided herein, Nonqualified
Share Options may not be transferred, assigned, pledged, hypothecated or otherwise conveyed or encumbered other than by will or
the laws of descent and distribution. The Committee may, in its discretion, authorize all or a portion of a Nonqualified Share
Option granted to a Participant to be on terms which permit transfer by such Participant to (i) the spouse, children or grandchildren
of the Participant (“Immediate Family Members”) and (ii) a trust or trusts for the exclusive benefit
of such Immediate Family Members, provided that (x) there shall be no consideration for any such transfer, (y) the
Award Agreement pursuant to which such Nonqualified Share Option is granted must be approved by the Committee and must expressly
provide for transferability in a manner consistent with this Section, and (z) subsequent transfers of transferred Nonqualified
Share Options shall be prohibited except those by will or the laws of descent and distribution.

 

    15

    

    

 

Following
any transfer, any such Nonqualified Share Option shall continue to be subject to the same terms and conditions as were applicable
immediately prior to transfer, provided that for purposes of Articles 8, 9, 11, 13 and 15 hereof the term “Participant”
shall be deemed to include the transferee. The events of Termination of Service shall continue to be applied with respect
to the original Participant, following which the Nonqualified Share Options shall be exercisable by the transferee only to the
extent and for the periods specified in the Award Agreement. The Committee and the Company shall have no obligation to inform
any transferee of a Nonqualified Share Option of any expiration, termination, lapse or acceleration of such Share Option. The
Company shall have no obligation to register with any federal or state securities commission or agency any Ordinary Shares issuable
or issued under a Nonqualified Share Option that has been transferred by a Participant under this Section 15.9.

 

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

 

15.11 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 Group 2018 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.”

 

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

 

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

 

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IN WITNESS WHEREOF,
the Company has caused this instrument to be executed as of January 31,
2018 by its Sole Director.

 

	 	Kaixin Auto Group
	 	 	 
	 	By:	/s/
    Joseph Chen
	 	 	Joseph Chen
	 	 	Sole Director

 

    17

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