PHOENIX MOTOR INC.
EXHIBIT 10.4
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<TYPE>EX-10.4
<SEQUENCE>5
<FILENAME>tm241850d1_ex10-4.htm
<DESCRIPTION>EXHIBIT 10.4
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<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="text-align: right; margin: 0"><B>Exhibit 10.4</B></P>

<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="text-transform: uppercase"><B>PURCHASE
AGREEMENT</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">This Purchase Agreement (this
 &ldquo;<U>Agreement</U>&rdquo;), dated as of December&nbsp;29, 2023 (the &ldquo;<U>Effective Date</U>&rdquo;), is by and between <B>Ultimate
Automotive Engineering Inc</B>, a company incorporated under the laws of the California with its principal office at 14736 Valley Blvd,
Ste B9, La Puente, CA 91746 (the &ldquo;<U>Purchaser</U>&rdquo;), and <B>Phoenix Motor Inc.</B>, a company incorporated under the laws
of the Delaware with its principal office at 1500 Lakeview Loop, Anaheim, CA 92807 (the &ldquo;<U>Company</U>&rdquo;). Each of the Purchaser
and the Company is referred to herein each as a &ldquo;<U>Party</U>&rdquo;, and collectively as the &ldquo;<U>Parties</U>&rdquo;.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><U>W I T N E S S E T H</U>:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">WHEREAS, the Company and the Purchaser desire to
provide for the issuance, sale and purchase of certain number of shares of common stock of the Company, par value US$0.0004 per share
(the &ldquo;<U>Common Stock</U>&rdquo;), on the terms and conditions set forth in this Agreement; and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">WHEREAS, the Company and the Purchaser desire to
make certain representations, warranties, covenants and agreements in connection with the issuance, sale and purchase of certain Common
Stock and related transactions contemplated by this Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="text-align: left; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">NOW, THEREFORE, in consideration of the foregoing
and the mutual representations, warranties, covenants and agreements herein contained, and for other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, and intending to be legally bound, the Company and the Purchaser agree as
follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="text-transform: uppercase"><B>ARTICLE&nbsp;I</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="text-transform: uppercase"><B>PURCHASE
AND SALE</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in"><FONT STYLE="color: #010000"><B>Section&nbsp;1.1&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;</B></FONT><U>Issuance,
Sale and Purchase of Shares</U>. Subject to the terms and conditions of this Agreement, and in reliance upon the representations and warranties
set forth herein, the Company agrees to issue, sell and deliver to the Purchaser, free and clear of any pledge, mortgage, security interest,
encumbrance, lien, charge, assessment, claim or restriction of any kind or nature other than those imposed by federal and/or state securities
laws, the Certificate of Incorporation and Bylaws of the Company, and the Purchaser agrees to purchase from the Company, on the Closing
Date (as defined below), 256,666 shares of Common Stock (the &ldquo;<U>Purchase Shares</U>&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"><FONT STYLE="color: #010000"><B>Section&nbsp;1.2&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;</B></FONT><U>Purchase
Price</U>. The Purchaser shall pay an aggregate purchase price of US$317,906 (the &ldquo;<U>Purchase Price</U>&rdquo;) for the Purchase
Shares. The Purchase Price per share will be determined based on the average closing price over the previous 30 days preceding the Effective
Date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in"><FONT STYLE="color: #010000"><B>Section&nbsp;1.3&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;</B></FONT><U>Closing</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in; background-color: white; color: #010000">(a)&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;Upon
the terms and subject to the conditions of this Agreement, the closing (the &ldquo;<U>Closing</U>&rdquo;) of the purchase and sale of
the Purchase Shares shall take place at a place determined by the Company at 9:00 A.M.&nbsp;New York time on a date that is no later than
December&nbsp;31 , 2023 or at such other time or on such other date that is agreed upon in writing by the Company and the Purchaser (the
 &ldquo;<U>Closing Date</U>&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in; background-color: white; color: #010000">(b)&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;At
or before the Closing, the Purchaser shall offset the Purchase Price payable to the Company by using the accounts payable owned to the
Purchaser by EdisonFuture Motor Inc. in accordance with the terms of service agreement entered into between EdisonFuture Motor Inc. and
the Purchaser dated on December&nbsp;29, 2023. At the Closing, the Purchaser shall deliver a certificate of a duly authorized officer
of the Purchaser certifying as to the matters set forth in <U>Section&nbsp;1.4(b)</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white; color: #010000">(c)&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;After
the Closing and as soon as practicable the Company and deliver to the Purchaser the following items:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in"><FONT STYLE="color: #010000">(i)&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;</FONT>A
share <FONT STYLE="color: #010000">certificate</FONT> (x)&nbsp;representing the number of Purchase Shares and (y)&nbsp;evidencing the
Purchaser as the holder of the Purchase Shares with the rights of a holder of Common Stock under the Certificate of Incorporation and
the Bylaws of the Company, such rights being the same as the rights of other holders of Common Stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in"><FONT STYLE="color: #010000">(ii)&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;</FONT>A
copy of the book-entry statement evidencing the Purchaser as the holder of the Purchase Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in"><FONT STYLE="color: #010000"><B>Section&nbsp;1.4&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;</B></FONT><U>Closing
Conditions</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white; color: #010000">The obligations
of the Company to issue and sell the Purchase Shares as contemplated by this Agreement shall be subject to the satisfaction, on or before
the Closing, of each of the following conditions, provided that any of which may be waived in writing by the Company in its sole discretion:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white; color: #010000">(a)&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;All
corporate and other actions required to be taken by the Company in connection with the issuance and sale of the Purchase Shares shall
have been completed and all corporate and other actions required to be taken by the Purchaser in connection with the purchase of the Purchase
Shares shall have been completed.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white; color: #010000">(b)&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;The
representations and warranties of the Purchaser contained in <U>Section&nbsp;2.2</U> of this Agreement shall have been true and correct
on the date of this Agreement and shall be true and correct in all material respects as of the Closing; and the Purchaser shall have performed
and complied with in all material respects all, and not be in breach or default in any material respect under any, agreements, covenants,
conditions and obligations contained in this Agreement that are required to be performed or complied with on or before the Closing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white; color: #010000">(c)&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;No
governmental authority of competent jurisdiction shall have enacted, issued, promulgated, enforced or entered any law (whether temporary,
preliminary or permanent) that is in effect and restrains, enjoins, prevents, prohibits or otherwise makes illegal the consummation of,
or materially and adversely alter, the transactions contemplated by this Agreement or imposes any damages or penalties that are substantial
in relation to the Company; and no action, suit, proceeding or investigation shall have been instituted by or before any governmental
authority of competent jurisdiction or threatened that seeks to restrain, enjoin, prevent, prohibit or otherwise makes illegal the consummation
of, or materially and adversely alter, the transactions contemplated by this Agreement or impose any damages or penalties that are substantial
in relation to the Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="text-transform: uppercase"><B>ARTICLE&nbsp;II</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="text-transform: uppercase"><B>REPRESENTATIONS
AND WARRANTIES</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in"><FONT STYLE="color: #010000"><B>Section&nbsp;2.1&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;</B></FONT><U>Representations
and Warranties of the Company</U>. The Company hereby represents and warrants to the Purchaser, as of the date hereof and as of the Closing,
as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white; color: #010000">(a)&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;<U>Organization
and Authority</U>. Each of the Company and its subsidiaries is an entity duly incorporated or otherwise organized, validly existing and
in good standing under the laws of the jurisdiction of its incorporation, with the requisite power and authority to own and use its properties
and assets and to carry on its business in all material respects as is currently conducted. Neither the Company nor any of its subsidiaries
is in material violation or default of any of the provisions of its respective certificate or articles of incorporation, bylaws or other
organizational or charter documents. Each of the Company and its subsidiaries is duly qualified to conduct business and is in good standing
as a foreign corporation or other entity in each jurisdiction in which the nature of the business conducted or property owned by it makes
such qualification necessary and no proceeding has been instituted in any such jurisdiction revoking, limiting or curtailing or seeking
to revoke, limit or curtail such power and authority or qualification, except to the extent that the failure to be so qualified and in
good standing would not adversely affect the ability of the Company to carry out its obligations under, and to consummate the transactions
contemplated by, this Agreement or adversely affect the ability of the Company and its subsidiaries to conduct the business as is currently
conducted.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white; color: #010000">(b)&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;<U>Due
Issuance of the Purchase Shares</U>. The Purchase Shares of the Company have been duly authorized and, when issued and delivered to the
Purchaser and paid for by the Purchaser pursuant to this Agreement, will be validly issued, fully paid and non-assessable, and free of
any liens or encumbrances, except as required by applicable laws, and issued in compliance with all applicable federal, securities laws
and the Certificate of Incorporation and the Bylaws of the Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white; color: #010000">(c)&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;<U>Authority</U>.
The Company has full power and authority to enter into, execute and deliver this Agreement and each agreement, certificate, document and
instrument to be executed and delivered by it pursuant to this Agreement and to perform its obligations hereunder. The execution and delivery
by it of this Agreement and the performance by it of its obligations hereunder have been duly authorized by all requisite actions on its
part.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in; background-color: white; color: #010000">(d)&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;<U>Noncontravention</U>.
This Agreement has been duly executed and delivered by the Company and constitutes its legal, valid and binding obligation, enforceable
against it in accordance with its terms, except (i)&nbsp;as limited by applicable bankruptcy, insolvency, reorganization, moratorium,
and other laws of general application affecting enforcement of creditors&rsquo; rights generally, and (ii)&nbsp;as limited by laws relating
to the availability of specific performance, injunctive relief, or other equitable remedies. Neither the execution and the delivery of
this Agreement, nor the consummation of the transactions contemplated hereby, will violate any constitution, statute, regulation, rule,
injunction, judgment, order, decree, ruling, charge, or other restriction of any government, governmental entity or court to which the
Company or any of its subsidiaries is subject. To the Company&rsquo;s best knowledge, neither the execution and delivery by the Company
of this Agreement, nor the consummation by the Company of any of the transactions contemplated hereby, nor compliance by the Company with
any of the terms and conditions hereof will contravene any existing agreement, federal, state, county or local law, rule&nbsp;or regulation
or any judgment, decree or order applicable to, or binding upon, it.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white; color: #010000">(e)&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;<U>Filings,
Consents and Approvals</U>. Assuming the accuracy of the representations and warranties of the Purchaser in <U>Section&nbsp;2.2(f)</U>,
neither the execution and delivery by the Company of this Agreement, nor the consummation by the Company of any of the transactions contemplated
hereby, nor the performance by the Company of this Agreement in accordance with its terms requires the filing, consent, approval, order
or authorization of, or registration with, or the giving notice to, any governmental or public body or authority, except such as have
been obtained, made, given or will be made promptly hereafter and any required filing or notification with the Securities and Exchange
Commission or Nasdaq.</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white"><FONT STYLE="color: #010000">(f)&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;</FONT><FONT STYLE="background-color: white"><U>No
General Solicitation</U>. Neither the Company nor any Person acting on behalf of the Company has offered or sold any of the Purchase Shares
by any form of general solicitation or general advertising. The Company has offered the Purchase Shares for sale only to the Purchaser
and certain other &ldquo;accredited investors&rdquo; within the meaning of Rule&nbsp;501 under the Securities Act.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in"><FONT STYLE="color: #010000"><B>Section&nbsp;2.2&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;</B></FONT><U>Representations
and Warranties of the Purchaser</U>. The Purchaser hereby represents and warrants to the Company as of the date hereof and as of the Closing
Date, as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white; color: #010000">(a)&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;<U>Due
Formation</U>. It is a company duly incorporated as an exempted company with limited liability, validly existing and in good standing
under the laws of the jurisdiction of its incorporation, with full power and authority to own and operate and to carry on its business
in the places and in the manner as currently conducted.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white; color: #010000">(b)&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;<U>Authority</U>.
It has full power and authority to enter into, execute and deliver this Agreement and each agreement, certificate, document and instrument
to be executed and delivered by it pursuant to this Agreement and to perform its obligations hereunder. The execution and delivery by
it of this Agreement and the performance by it of its obligations hereunder have been duly authorized by all requisite actions on its
part.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white; color: #010000">(c)&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;<U>Valid
Agreement</U>. This Agreement has been duly executed and delivered by it and constitutes its legal, valid and binding obligation, enforceable
against it in accordance with its terms, except (i)&nbsp;as limited by applicable bankruptcy, insolvency, reorganization, moratorium,
and other laws of general application affecting enforcement of creditors&rsquo; rights generally, and (ii)&nbsp;as limited by laws relating
to the availability of specific performance, injunctive relief, or other equitable remedies.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white; color: #010000">(d)&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;<U>Consents</U>.
Neither the execution and delivery by it of this Agreement nor the consummation by it of any of the transactions contemplated hereby nor
the performance by it of this Agreement in accordance with its terms requires the consent, approval, order or authorization of, or registration
with, or the giving of notice to, any governmental or public body or authority or any third party, except as have been obtained, made
or given.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white; color: #010000">(e)&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;<U>No
Conflict</U>. Neither the execution and delivery by it of this Agreement, nor the consummation by it of any of the transactions contemplated
hereby, nor compliance by it with any of the terms and conditions hereof will contravene any existing agreement, federal, state, county
or local law, rule&nbsp;or regulation or any judgment, decree or order applicable to, or binding upon, it.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in; background-color: white"><FONT STYLE="color: #010000">(f)&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;<U>No
<FONT STYLE="background-color: white">General Solicitation.</FONT></U><FONT STYLE="background-color: white"> Such Purchaser is not purchasing
the Purchase Shares because of any general solicitation or general advertisement, </FONT></FONT><FONT STYLE="background-color: white">including,
without limitation, (i)&nbsp;any advertisement, articles, notice or other communication published in any newspaper, magazine or similar
media or broadcast over television or radio, and (ii)&nbsp;any seminar or meeting whose attendees have been invited by any general solicitation
or general advertising.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white; color: #010000">(g)&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;<U>Status
and Investment Intent</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="text-align: left; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in"><FONT STYLE="color: #010000">(i)&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;</FONT><U>Experience</U>.
It has sufficient knowledge and experience in financial and business matters so as to be capable of evaluating the merits and risks of
its investment in the Purchase Shares. It is capable of bearing the economic risks of such investment, including a complete loss of its
investment.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in"><FONT STYLE="color: #010000">(ii)&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;</FONT><U>Purchase
Entirely for Own Account</U>. It is acquiring the Purchase Shares for its own account for investment purposes only and not with the view
to, or with any intention of, resale, distribution or other disposition thereof. It does not have any direct or indirect arrangement,
or understanding with any other persons to distribute, or regarding the distribution of the Purchase Shares in violation of the United
States Securities Act of 1933, as amended (the &ldquo;<U>Securities Act</U>&rdquo;) or other applicable laws.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in"><FONT STYLE="color: #010000">(iii)&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;</FONT><U>Investor
Accredited Status</U>. It is an &ldquo;Accredited Investor&rdquo;, as that term is defined in Rule&nbsp;501(a)&nbsp;of Regulation D of
the Securities Act. Purchaser is not an entity formed for the specific purpose of acquiring the Purchase Shares, unless such newly formed
entity is an entity in which all of the equity owners are &ldquo;accredited investors&rdquo; (within the meaning of Rule&nbsp;501(a)&nbsp;under
the Securities Act).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in"><FONT STYLE="color: #010000">(iv)&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;</FONT><U>Distribution
Compliance Period</U>. Purchaser understands that the Purchase Shares are being offered in a transaction not involving any public offering
within the meaning of the Securities Act and that the Purchase Shares have not been registered under the Securities Act or any other securities
laws of the United States or any other jurisdiction. It understands that its investment in the Shares involves a high degree of risk and
that it may lose its entire investment. It can bear the economic risk of the investment for an indefinite period of time. It acknowledges
that the Shares may not be sold, hypothecated or otherwise disposed of unless registered under the Securities Act and applicable state
securities laws or an exemption from registration is available. Any resale of any of the Shares may be made only pursuant to (i)&nbsp;a
registration statement under the Securities Act which has been declared effective by the Securities and Exchange Commission and is effective
at the time of such sale, or (ii)&nbsp;a specific exemption from the registration requirements of the Securities Act. In claiming any
such exemption, it will, prior to any sale or distribution of any Shares securities advise the Company, and, if requested, provide the
Company with a favorable written opinion of counsel, in form and substance satisfactory to the Company's counsel, as to the applicability
of such exemption to the proposed sale or distribution.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in"><FONT STYLE="color: #010000">(v)&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;</FONT><U>Restrictive
Legend</U>. It understands that the certificate evidencing the Purchase Shares will bear a legend or other restriction substantially to
the following effect:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&ldquo;THE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE &ldquo;SECURITIES ACT&rdquo;). NO SALE, PLEDGE, HYPOTHECATION, TRANSFER OR OTHER DISPOSITION OF
THESE SECURITIES MAY&nbsp;BE MADE UNLESS EITHER (A)&nbsp;PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR (B)&nbsp;PURSUANT
TO AN AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT,&nbsp;IN EITHER CASE UPON THE RECEIPT OF AN OPINION
OF U.S. COUNSEL.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in"><FONT STYLE="color: #010000">(vi)&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;</FONT><U>Direct
Contact; No Broker</U>. The contact between the Company and the Purchaser was made directly through an existing relationship. No broker,
investment banker or other person is entitled to any broker&rsquo;s, finder&rsquo;s or other similar fee or commission in connection with
the execution and delivery of this Agreement or the consummation of any of the transactions contemplated by this Agreement based upon
arrangements made by or on behalf of the Purchaser.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in; background-color: white; color: #010000">(h)&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;<U>Financing</U>.
It has sufficient funds available to it to purchase all of the Purchase Shares pursuant to this Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in; background-color: white; color: #010000">(i)&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;<U>Not
an Affiliate</U>. The Purchaser is not an officer, director or &ldquo;affiliate&rdquo; (as that term is defined in Rule&nbsp;415 of the
Securities Act) of the Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="text-transform: uppercase"><B>ARTICLE&nbsp;III</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="text-transform: uppercase"><B>MISCELLANEOUS</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in"><FONT STYLE="color: #010000"><B>Section&nbsp;3.1&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;</B></FONT><U>Lockup</U>.
Without the prior written consent of the Company, the Purchaser shall not sell, give, assign, hypothecate, pledge, encumber, grant a security
interest in or otherwise dispose of, or suffer to exist (whether by operation of law or otherwise) any encumbrance on, any of the Purchase
Shares, or any right, title or interest therein or thereto, prior to the date that is 180 days after the Closing Date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in"><FONT STYLE="color: #010000"><B>Section&nbsp;3.2&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;</B></FONT><U>Survival
of the Representations and Warranties</U>. All representations and warranties made by any Party shall survive for two years and shall
terminate and be without further force or effect on the second anniversary of the Closing Date. Notwithstanding the foregoing, any claims
asserted in good faith with reasonable specificity (to the extent known at such time) and in writing by notice from the non-breaching
Party prior to the expiration date of the applicable survival period shall not thereafter be barred by the expiration of the relevant
representations or warranty and such claims shall survive until finally resolved.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in"><FONT STYLE="color: #010000"><B>Section&nbsp;3.3&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;</B></FONT><U>Termination</U>.
This Agreement may be terminated, and the transactions contemplated hereby may be abandoned at any time prior to Closing, (i)&nbsp;by
mutual agreement of the Parties, (ii)&nbsp;by the Purchaser in the event that the Closing has not occurred by the date that is 90 days
from the date of this Agreement. Nothing in this <U>Section&nbsp;3.3</U> shall be deemed to release any Party from any liability for any
breach of this Agreement prior to the effective date of such termination.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in"><FONT STYLE="color: #010000"><B>Section&nbsp;3.4&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;</B></FONT><U>Governing
Law</U>. This Agreement shall be governed and interpreted in accordance with the laws of the State of New York without giving effect to
the conflicts of law principles thereof.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in"><FONT STYLE="color: #010000"><B>Section&nbsp;3.5&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;</B></FONT><U>Dispute
Resolution</U>. Any dispute, controversy or claim (each, a &ldquo;<U>Dispute</U>&rdquo;) arising out of or relating to this Agreement,
or the interpretation, performance breach, termination, validity or invalidity thereof, shall be referred to arbitration upon the demand
of any Party to the dispute with notice (the &ldquo;<U>Arbitration Notice</U>&rdquo;) to the other Party.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in"><FONT STYLE="font-size: 10pt">(a)</FONT>&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;The
Dispute shall be settled in Sacramenta, California in a proceeding conducted in English by one (1)&nbsp;arbitrator from the American Arbitration
Association (AAA) in accordance with the AAA rules&nbsp;in force when the Arbitration Notice is submitted in accordance with the AAA rules.
Each party will bear its own costs, and this clause does not prevent seeking provisional remedies from a court. Claims must be filed within
one year. This dispute resolution clause survives the termination of the Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in"><FONT STYLE="font-size: 10pt">(b)</FONT>&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;Each
party to the arbitration shall cooperate with each other party to the arbitration in making full disclosure of and providing complete
access to all information and documents reasonably requested by such other party in connection with such arbitral proceedings, subject
only to any confidentiality obligations binding on such party.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in"><FONT STYLE="font-size: 10pt">(c)</FONT>&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;The
award of the arbitral tribunal shall be final and binding upon the parties thereto, and the prevailing party may apply to a court of competent
jurisdiction for enforcement of such award.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in"><FONT STYLE="font-size: 10pt">(d)</FONT>&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;During
the course of the arbitral tribunal's adjudication of the Dispute, this Agreement shall continue to be performed except with respect to
the part in dispute and under adjudication.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in"><FONT STYLE="color: #010000"><B>Section&nbsp;3.6&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;</B></FONT><U>Amendment</U>.
This Agreement shall not be amended, changed or modified, except by another agreement in writing executed by the Parties hereto.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in"><FONT STYLE="color: #010000"><B>Section&nbsp;3.7&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;</B></FONT><U>Binding
Effect</U>. This Agreement shall inure to the benefit of, and be binding upon, each of the Parties and their respective heirs, successors
and permitted assigns.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="text-align: left; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in"><FONT STYLE="color: #010000"><B>Section&nbsp;3.8&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;</B></FONT><U>Assignment</U>.
Neither this Agreement nor any of the rights, duties or obligations hereunder may be assigned by the Company or the Purchaser without
the express written consent of the other Party. Any purported assignment in violation of the foregoing sentence shall be null and void.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in"><FONT STYLE="color: #010000"><B>Section&nbsp;3.9&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;</B></FONT><U>Notices</U>.
All notices, requests, demands, and other communications under this Agreement shall be in writing and shall be deemed to have been duly
given on the date of actual delivery if delivered personally to the Parties to whom notice is to be given, on the date sent if sent by
telecopier, tested telex or prepaid telegram, on the next business day following delivery if sent by courier or on the day of attempted
delivery by postal service if mailed by registered or certified mail, return receipt requested, postage paid, and properly addressed as
follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
<TD>If to the Purchaser, at:<BR> Ye Tian<BR> tianyeca@gmail.com<BR> 14736 Valley Blvd, Ste B9, La Puente, CA 91746<BR> Ultimate Automotive Engineering Inc. &nbsp;</TD>
</TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
<TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
<TD>If to the Company, at:<BR> Xiaofeng Peng<BR> CEO<BR> <U>Denton.peng@spigroups.com</U><BR> 1500 Lakeview Loop, Anaheim, CA &nbsp;</TD>
</TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="text-align: left; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Any Party may change its address for purposes of
this <U>Section&nbsp;3.9</U> by giving the other Party a written notice of the new address in the manner set forth above.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in"><FONT STYLE="color: #010000"><B>Section&nbsp;3.10&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;</B></FONT><U>Entire
Agreement</U>. This Agreement constitutes the entire understanding and agreement between the Parties hereto with respect to the matters
covered hereby, and all prior agreements and understandings, oral or in writing, if any, between the Parties with respect to the matters
covered hereby are merged and superseded by this Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in"><FONT STYLE="color: #010000"><B>Section&nbsp;3.11&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;</B></FONT><U>Severability</U>.
If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction to be invalid, illegal,
void or unenforceable, the remainder of the terms, provisions, covenants and restrictions set forth herein shall remain in full force
and effect and shall in no way be affected, impaired or invalidated, and the Parties hereto shall use their commercially reasonable efforts
to find and employ an alternative means to achieve the same or substantially the same result as that contemplated by such term, provision,
covenant or restriction. It is hereby stipulated and declared to be the intention of the parties that they would have executed the remaining
terms, provisions, covenants and restrictions without including any of such that may be hereafter declared invalid, illegal, void or unenforceable.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in"><FONT STYLE="color: #010000"><B>Section&nbsp;3.12&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;</B></FONT><U>Fees
and Expenses</U>. Except as otherwise provided in this Agreement, each Party will be responsible for all of its own expenses incurred
in connection with the negotiation, preparation and execution of this Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in"><FONT STYLE="color: #010000"><B>Section&nbsp;3.13&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;</B></FONT><U>Public
Announcements</U>. The Purchaser shall not make, or cause to be made, any press release or public announcement in respect of this Agreement
or the transactions contemplated by this Agreement or otherwise communicate with any news media without the prior written consent of the
Company unless otherwise required by securities laws or other applicable law.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in"><FONT STYLE="color: #010000"><B>Section&nbsp;3.14&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;</B></FONT><U>Specific
Performance</U>. The Parties agree that irreparable damage would occur in the event any provision of this Agreement is not performed in
accordance with the terms hereof. Accordingly, each Party shall be entitled to specific performance of the terms hereof, in addition to
any other remedy at law or equity.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in"><FONT STYLE="color: #010000"><B>Section&nbsp;3.15&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;</B></FONT><U>Language</U>.
This Agreement is drafted in English and Chinese. The English version shall govern if conflicts.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in"><FONT STYLE="color: #010000"><B>Section&nbsp;3.16&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;</B></FONT><U>Headings</U>.
The headings of the various articles and sections of this Agreement are inserted merely for the purpose of convenience and do not expressly
or by implication limit, define or extend the specific terms of the section so designated.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in"><FONT STYLE="color: #010000"><B>Section&nbsp;3.17&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;&#8239;</B></FONT><U>Execution
in Counterparts</U>. For the convenience of the Parties and to facilitate execution, this Agreement may be executed in one or more counterparts,
each of which shall be deemed to be an original, but all of which together shall constitute one and the same instrument.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>SIGNATURE PAGE FOLLOWS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">IN WITNESS WHEREOF, the Parties have caused this
Agreement to be executed as of the day and year first above written.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; text-align: justify"><B>Phoenix Motor Inc.</B></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; text-align: justify">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 50%">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: justify; width: 3%">By:</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: justify; width: 47%">/s/ Xiaofeng Peng</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: justify"></TD>
    <TD STYLE="font-size: 10pt; text-align: justify">Name:&#8239;&#8239;&#8239;&#8239;Xiaofeng Peng</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: justify">Title:&#8239;&#8239;&#8239;&#8239;Chief Executive Officer</TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
<TD COLSPAN="2">Purchaser: &nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
<TD COLSPAN="2">&nbsp;</TD></TR>
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    <TD>&nbsp;</TD>
<TD COLSPAN="2"><B>Ultimate Automotive Engineering Inc.</B></TD></TR>
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    <TD>&nbsp;</TD>
<TD COLSPAN="2" STYLE="font-size: 10pt; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 50%">&nbsp;</TD>
<TD STYLE="font-size: 10pt; text-align: justify; width: 3%">By:</TD>
<TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: justify; width: 47%">/s/ Ye Tian</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
<TD STYLE="font-size: 10pt; text-align: justify">&nbsp;</TD>
<TD STYLE="font-size: 10pt; text-align: justify">Name: Ye Tian</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
<TD STYLE="font-size: 10pt; text-align: justify">&nbsp;</TD>
<TD STYLE="font-size: 10pt; text-align: justify">Title: President</TD></TR>
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