The main provisions of the framework agreement are as follows:

1. The parties will cooperate according to the “Feasibility Study of a Public Transportation Project of 100,000 Self-driving Rental EVs in Five Years in Hangzhou City” by the Development Research Center of the State Council of China, the China Society Of Automotive Engineers (SAE) and Zhejiang University.

   Guoxin Leasing indicates that it intends to purchase Kandi brand EVs for such project. The parties have not established definite terms including price, quantities and time for delivery and these will be established by separate purchase agreements.

2. The parties will begin work immediately. Guoxin Leasing will first purchase 200 EVs from Kandi Vehicles to launch the project, and the final terms and time for delivery have yet to be determined.

3. Kandi Vehicles will execute the production schedule based upon Guoxin’s order and the requirements of the Project’s development and will deliver the products in installments until the Project is completed.

4. At the beginning stage of the Project, Kandi Vehicles will have its technicians staying in Gouxin Leasing to provide timely technical support, repair and maintenance services.

This cooperative framework agreement is another significant step after Kandi Vehicles signed a Cooperative Letter of Intent with China Aviation Lithium Battery Co., Ltd. to promote 20,000 Pure Electric Vehicles in Hangzhou.