UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

 

FORM 8-K

 

Current Report

Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported): July 7, 2021

 

ELECTRIC LAST MILE SOLUTIONS, INC.

(Exact name of registrant as specified in its charter)

 

Delaware   001-39457   84-2308711
(State or other jurisdiction
of incorporation) 		 

(Commission

File Number)

  (IRS Employer
Identification Number)

 

1055 W. Square Lake Road

Troy, Michigan

 
48098
(Address of principal executive offices)   (Zip Code)

 

(888) 825-9111

Registrant’s telephone number, including area code

 

N/A
(Former name or former address, if changed since last report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Securities registered pursuant to Section 12(b) of the Act:

 

 Title of each class

  Trading Symbol(s)   Name of each exchange on which registered
Common Stock, par value $0.0001 per share   ELMS   The Nasdaq Stock Market LLC
Redeemable warrants, each whole warrant exercisable for one share of common stock, each at an exercise price of $11.50 per share   ELMSW   The Nasdaq Stock Market LLC

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

 

        Emerging growth company ☒

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

 

 

 

 

Item 1.01. Entry into a Material Definitive Agreement.

 

Master Purchase Agreement

 

On July 7, 2021, Electric Last Mile, Inc., a Delaware corporation (“ELM”) and wholly owned subsidiary of Electric Last Mile Solutions, Inc., executed a Master Purchase Agreement (the “Master Purchase Agreement”) with Liuzhou Wuling Automobile Industry Co., Ltd. (“Wuling”) for the purchase by ELM of certain products, kits, parts, accessories, and other materials used in the manufacture of electric commercial vehicles (the “Goods”). Pursuant to the Master Purchase Agreement, Wuling granted ELM the exclusive right to market, distribute and sell certain of the Goods in North America and to manufacture, assemble, market, distribute and sell ELM’s products incorporating the Goods. The Master Purchase Agreement sets forth the general terms and conditions for the sale of the Goods to ELM. ELM’s individual purchases of Goods will be made pursuant to mutually agreeable, binding purchase orders, issued by ELM, setting forth the particular Goods and the quantities, prices and delivery dates of the Goods to be purchased. Such a purchase order will be deemed accepted by Wuling unless Wuling rejects the purchase order in writing within 48 hours of receipt. The initial purchase prices of the Goods have been set by mutual agreement between the parties, and the prices for any new categories of Goods, or for jointly developed Goods, will be mutually agreed upon between the parties prior to entering into the first individual purchase order for such Goods.

 

Pursuant to the Master Purchase Agreement, the parties have agreed that: (i) Wuling will retain its rights to its pre-existing intellectual property, and (ii) during the development process, for the parts jointly developed by both parties, the corresponding intellectual property rights will be shared by both parties; for parts independently developed by Wuling, the relevant intellectual property rights will be owned by Wuling; and for parts independently developed by ELM, the relevant intellectual property rights will be owned by ELM; however, if the development is carried out on the basis of the data, models and other information provided by Wuling, the intellectual property rights will be jointly owned by the parties. The parties further agreed that: (a) with respect to the intellectual property rights solely owned by one party, if the other party (or a third party) requests that such intellectual property rights be licensed, a separate written agreement shall be executed by the parties, and (b) with respect to the intellectual property rights jointly owned by both parties, neither party may transfer or license such intellectual property rights to a third party without written consent from the other party.

 

The Master Purchase Agreement is effective as of March 19, 2021, with an initial term of five years, which will automatically extend for additional one-year terms unless either party, at least 180 days prior to the end of the then in-effect term, gives written notice to the other party of its intent not to extend such term. In addition, the Master Purchase Agreement may be terminated by either party upon 180 days prior written notice or upon certain specified termination events.

 

Agreement for Engineering, Design and Development Services

 

On July 7, 2021, ELM executed an Agreement for Engineering, Design and Development Services (the “Services Agreement”), which is effective as of March 18, 2021, with Wuling. Pursuant to the Services Agreement, Wuling will serve as ELM’s non-exclusive supplier for certain engineering, design, development, and validation services (the “Services”) intended to support the manufacture of electric vehicles by ELM. Wuling will provide the Services to ELM pursuant to individual purchase orders and statements of works, which will set forth the specifications, deliverables, and fees related to such Services. To facilitate the provision of the Services under the Services Agreement, each party has agreed to set up a full-time team, consisting of at least four members from Wuling, including, but not limited to, experts in manufacturing engineering, program management, logistics and product engineering.

 

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Consistent with the terms of the Master Purchase Agreement, pursuant to the Services Agreement, the parties have agreed that: (i) Wuling will retain its rights to its pre-existing intellectual property, and (ii) during the development process, for the parts jointly developed by both parties, the corresponding intellectual property rights will be shared by both parties; for parts independently developed by Wuling, the relevant intellectual property rights will be owned by Wuling; and for parts independently developed by ELM, the relevant intellectual property rights will be owned by ELM; however, if the development is carried out on the basis of the data, models and other information provided by Wuling, the intellectual property rights will be jointly owned by the parties. The parties further agreed that: (a) with respect to the intellectual property rights solely owned by one party, if the other party (or a third party) requests that such intellectual property rights be licensed, a separate written agreement shall be executed by the parties, and (b) with respect to the intellectual property rights jointly owned by both parties, neither party may transfer or license such intellectual property rights to a third party without written consent from the other party.

 

The Services Agreement was executed in connection with the Master Purchase Agreement and is expected to continue in effect until the Master Purchase Agreement is terminated or expires.

 

Supplemental Agreement

 

On July 7, 2021, ELM executed a Supplemental Agreement with Wuling, which amends and supplements the Master Purchase Agreement and the Services Agreement (together, the “Original Agreements”). The Supplemental Agreement clarifies the engineering, design and development process as well as the roles and responsibilities of each party. Specifically, pursuant to the Supplemental Agreement, ELM is responsible for product liability claims in North America arising from Goods purchased from Wuling, and Wuling is responsible for product liability claims arising from the parts it produces for ELM to the extent Wuling contributed to the development and manufacturing of the part giving rise to the claim. Additionally, ELM is responsible for establishing the technical standards for parts produced pursuant to the Original Agreements for the U.S. market and for ensuring that all engineering development pursuant to the Original Agreements is in compliance with applicable U.S. laws and regulations.

 

Pursuant to the Supplemental Agreement, within 14 working days after execution of the Supplemental Agreement, ELM will pay Wuling a retainer of RMB 26 million (or equivalent U.S. dollars) as advance payment for engineering development and support services. Further, pursuant to the Supplemental Agreement, ELM is obligated to continue to replenish such funds during the development process, within 14 working days after notice from Wuling, to ensure the retainer amount held by Wuling is not less than RMB 26 million (or equivalent U.S. dollars). If, at the end of the development process, a balance of the retainer remains, Wuling shall return such remaining balance to ELM within 14 working days after both parties determine that all development work has been accomplished and ELM confirms in writing.

 

The foregoing summaries of the Master Purchase Agreement, Services Agreement and Supplemental Agreement do not purport to be complete and are qualified in their entirety by reference to the agreements, copies of which are attached as Exhibits 10.1, 10.2 and 10.3 to this Current Report on Form 8-K and incorporated by reference herein.

 

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Item 9.01. Financial Statement and Exhibits.

 

(d) Exhibits. The following exhibits are filed herewith:

 

Exhibit No.   Document
10.1*   Master Purchase Agreement, effective as of March 19, 2021 and fully executed as of July 7, 2021, by and between Electric Last Mile, Inc. and Liuzhou Wuling Automobile Industry Co., Ltd.
10.2   Agreement for Engineering, Design & Development Services, effective as of March 18, 2021 and fully executed as of July 7, 2021, by and between Electric Last Mile, Inc. and Liuzhou Wuling Automobile Industry Co., Ltd.
10.3   Supplemental Agreement, fully executed as of July 7, 2021, by and between Electric Last Mile, Inc. and Liuzhou Wuling Automobile Industry Co., Ltd.

 

 

 

* Certain portions of this exhibit have been redacted pursuant to Item 601(b)(10)(iv) of Regulation S-K. The Company agrees to furnish supplementally an unredacted copy of the exhibit to the Securities and Exchange Commission upon request.

 

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SIGNATURE

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

Dated: July 12, 2021  
   
  ELECTRIC LAST MILE SOLUTIONS, INC.
     
  By: /s/ James Taylor
  Name:  James Taylor
  Title: Chief Executive Officer

 

 

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Exhibit 10.1

 

Certain information (as indicated by [***]) has been excluded from this Exhibit 10.1 pursuant to Item 601(b)(10)(iv) of Regulation S-K because such information is both (1) not material and (2) the type of information that the Registrant treats as private and confidential.

 

MASTER PURCHASE AGREEMENT

主供销合同

 

THIS MASTER PURCHASE AGREEMENT (the “Agreement”) is made as of March 19, 2021 (the “Effective Date”) by and between Electric Last Mile, Inc., a Delaware Corporation, with its principle place of business in Michigan, USA (“Buyer”), and Liuzhou Wuling Automobile Industry Co., Ltd., a China company located in Wuling Building, No. 18 Hexi Road, Liuzhou City, Guangxi , China (the “Supplier”). Buyer and Supplier may be referred to herein individually as a “Party” and collectively as the “Parties”.

 

本主供销合同（以下简称“合同”）由Electric Last Mile, Inc.，一家美国特拉华州的股份有限公司，其主要经营地在美国密西根州（简称“采购方”）和柳州五菱汽车工业有限公司，一家坐落于中国广西柳州市河西路18号五菱大厦的公司（以下简称“供货方”）于2021年3月19日签订（以下简称“生效日”）。采购方和供货方将被各自指代为“一方”或共同指代为“各方”。

 

WHEREAS, Supplier manufactures and/or sells electric vehicle parts, modules, design and engineering solutions (“Products”); and

 

鉴于，供货方生产和/或销售电动汽车零件、单元、设计和工程解决方案（简称“产品”）；且

 

WHEREAS, Buyer desires to purchase from Supplier, and Supplier desires to sell to Buyer, the Products on the terms and conditions set forth in this Agreement.

 

鉴于，采购方希望从供货方采购产品，且供货方希望销售给采购方产品，双方购销参照本合同的条款条件。

 

NOW, THEREFORE, and in consideration of the provisions of this Agreement, the Parties agree as follows:

 

因此，考虑到合同的条款，各方达成以下一致：

 

1.  Definitions. The following terms shall have their indicated meanings:

 

定义。以下条款对应的意思为：

 

1.1. “Affiliate” means an entity controlled by, or under common control with, a Party.

 

“关联方”的意思是由一方控制的单位，或一方与他方共同控制的单位。

 

1.2. “Buyer’s Facility” means Buyer’s assembly facility in the U.S.A., or other address as Buyer may designate by notice to Supplier pursuant to any Individual Contract

 

“采购方场所”的意思是采购方在美国的总装厂，或由采购方通知供货方依据单独的合同所指示的。

 

 

 

 

1.3. “Buyer’s Products” shall mean the Goods and services sold by Buyer which may incorporate the Products.

 

“采购方产品”的意思是集成到采购方商品和服务中的产品。

 

1.4. “Customer” means the distributor, initial end user, or any other organizational user or reseller of Buyer’s Products in the chain of distribution to the individual end user.

 

“客户”的意思是分销商，初始终端用户，或产品采购方通过分销链将产品传递到个人终端用户的其他机构用户或再销售商。

 

1.5. “Goods” means all products, kits, parts, accessories and other materials, including, without limitation, as listed on Exhibit A attached hereto (which may be amended by the Parties from time to time), which may be purchased by Buyer from Supplier under the terms of this Agreement and any Individual Contracts.

 

“商品”的意思是所有产品、零件、元件、附件和其他材料，包括但不限于在后附的《附件A》中所列（可由各方随时修订），可以由采购方从供货方在合同条款和任何独立合同的约定下采购。

 

1.6. “Individual Contract” means the contract between Buyer and Supplier arising from Supplier’s acceptance or performance of a Purchase Order, and it shall consist of this Agreement and the Purchase Order.

 

“独立合同”的意思是因供应商接受或履行采购订单而在采购方和供货方之间形成的合同，该合同应当包括本合同和采购订单。

 

1.7. “Territory” means North America and territory consent by both Parties in writing.

 

“区域”指北美以及双方书面同意的其他区域。

 

1.8. “Purchase Order” means the valid written purchase order (including Buyer’s general terms and conditions of purchase) issued by Buyer for Goods.

 

“采购订单”的意思是由采购方签发的采购货物的有效书面订单（包括采购方的通用采购条款条件）。

 

1.9. “Specifications” means drawings, written designs and/or other specifications which may be provided by Buyer to Supplier directly or by an Affiliate or representative of Buyer under this Agreement or in or with respect to any Individual Contract from time to time.

 

“规格”的意思是图纸、书面设计和/或其他可能由采购方和供货方直接提供或由关联方或采购方代表在本合同约定或依照任何独立合同随时提供的工程设计。

 

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2.  Sale and Purchase of Goods.

 

商品的销售和采购

 

2.1. Purchase and Sale. Supplier shall manufacture, package, ship, and sell to Buyer, and Buyer shall purchase and take delivery from Supplier, the Goods in such quantities and at such times as are specified in any Individual Contracts, pursuant to the terms and conditions set forth in this Agreement.

 

采购和销售。供货方应当生产、包装、寄送和销售给采购方，且采购方应当遵照本合同列明的条款条件购买并从供货方按照独立合同商品数量取得交付。

 

2.2. Purchase Orders/Individual Contracts. If Buyer desires to enter into an Individual Contract with Supplier for the purchase of particular Goods, Buyer shall issue a Purchase Order to Supplier stating the terms of the proposed Individual Contract, and it is deemed accepted by supplier unless PO is rejected in writing within 48 hours.

 

采购订单/独立合同。如果采购方希望与供货方为采购特定商品订立独立合同，采购方应当签发一个写明提议独立合同条款的采购订单给供货方。如果供货方未能在48小时内以书面、邮件形式拒绝，将被视为此订单已被接受。

 

2.3. Exclusivity. Buyer shall have the exclusive right, to (a) in the Territory market, distribute and sell all Goods in the product segments set forth on Exhibit C attached hereto, and (b) manufacture, assemble, market, distribute and sell Buyer’s Products incorporating such Goods.

 

排他性。采购方应当拥有以下排他性权利：(a) 在区域内市场营销、分拨和销售《附件C》中产品栏列明的所有商品，和(b)生产、组装、市场营销、分拨和销售集成了以上产品的采购方的产品。

 

3.  Delivery; Title; Taxes. 交付；所有权；税收。

 

3.1. Delivery; Title. Supplier shall ship the Goods to such locations and in such quantity as Buyer shall specify in any Individual Contract. Unless otherwise specified in the applicable Individual Contract, all shipments shall be FOB China Port (“Delivery Facility”). All Goods sold by Supplier to Buyer hereunder shall be delivered to Buyer in accordance with the delivery schedule specified in the applicable Individual Contract.

 

交付；所有权。供货方应当依独立合同的规定寄送符合质量的商品到指定地点。除非在独立合同中另有说明，所有寄送商品应当依照FOB中国港口（简称“交付场所”）。下述所有由供货方向采购方销售的商品应当遵照在适当的独立合同中指定的交付日程表交付给采购方。

 

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3.2. Packaging. Supplier shall supply at its expense: (a) the boxes or other packaging for individual units; and (b) the shipping containers, boxes or other materials to be used to ship the Products.

 

包装。供货方应当自行承担如下开销：(a)单个产品的包装箱或其他包装；和(b)寄送的集装箱，箱子或其他用于寄送产品的材料。

 

3.3. Transportation, Shipping, Taxes, Duties and Other Charges. Unless otherwise agreed to in writing by the Parties, Seller and Buyer shall be responsible to freight and fees according to the respective obligations under INCOTERM FOB.

 

运输、寄送、税收、关税和其他收费。除非各方以书面方式同意，供货方和采购方各自负责国际贸易条款FOB项下的对应费用。

 

4.  Price; Payment Terms.

 

价格；支付条款。

 

4.1. Price. The initial purchase price of the Goods initially ordered (pursuant to orders placed prior to the date of this Agreement or under Individual Contract(s) under this Agreement) shall be as set forth in Exhibit D attached hereto or, with respect to new categories of Goods or jointly developed products, as determined by mutual agreement of Buyer and Supplier prior to entering into the first Individual Contract for such Goods or jointly developed products.

 

价格。初次采购初次订购商品（按照本合同签订之前已下订单或依本合同下的独立合同）价格应当在本合同所附《附件D》中列明。其后，商品采购价格应当在此合同附件《附件D》中列明，或按照新的商品目录或共同开发产品，这将由达成第一个为该等商品或共同开发产品的独立合同之前由双方同意确定。

 

4.2. Invoices, Terms of Payment. Invoices setting forth the quantity of Goods and the purchase price therefore shall be forwarded to Buyer at the time of shipment of the Goods hereunder. Payment terms shall be in accordance with policy of China Export Credit Insurance or Irrevocable Sight Letter of Credit, 20% shall be prepaid by T/T wire transfer, and the balance of 80% of each Purchase Order Payment shall be made to the Supplier address specified hereafter. (1) Payment term for the initial 1000 units is Net 30 days; for units after the 1000 initial units, the payment term shall be Net 90 days. Payment term date shall start from the date of issuance of the respective bill of lading or equivalent shipping documents. Payment shall be made to the address designated by Supplier in the applicable invoices.

 

发票、条款和付款。发票列明商品数量和购买价格并应当在本合同提及的寄送时间转发至采购方。供货方和采购方以中国出口信用保险或以即期不可撤销信用证为基础，付款条款应当为订单金额20%以TT方式支付预付金，80%余款按下列方式付清。（1）起始实际销量在1000台以内给予30天的账期；后续的大于1000台给予90天的账期。计算日期以提单日期为起算日期。付款应当付至在适用发票上指定的供货方地址。

 

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5.  Receipt and Inspection. 收货与检验。

 

5.1. Inspection. All Goods shall be received subject to Buyer’s inspection at Supplier’s facility or at a seaport in China, in accordance with an acceptance testing procedure to be agreed, in good faith, by the Parties, at Supplier’s facility or at a seaport in China within 7 business days after each delivery (the “Inspection Period”), and may be rejected by Buyer at any time prior to the expiration of the Inspection Period if any Goods are defective, damaged or otherwise non-conforming to the Specification, other terms of the Individual Contract, or the terms of Supplier’s warranties. Buyer’s inspection of, or failure to inspect, Goods pursuant to this Section shall not affect Supplier’s warranties hereunder or limit the availability of Buyer’s remedies or Supplier’s indemnities hereunder.

 

检验。所有商品应当以采购方在供货方场所或中国港口检验为收货条件，依据双方在诚信的基础上同意的接收检测程序，检验须在每次交付7个工作日内（以下简称“检验期”）在供货方场所或中国港口进行，且如果任何商品有缺陷，损坏或存在其他与规格、独立合同其他条款或供货商保障条款不符的问题，采购方可以在检验期期限内任何时间拒绝收货。采购方是否依照本节所述检验或不检验商品不应影响供货方对本合同的产品保障或限制采购方据此获得赔偿的能力，也不应限制供货方据此进行赔偿的责任。

 

5.2. Rejection. If Goods are rejected due to defect or damage, Supplier shall replace each unit of rejected Goods with a new unit of Goods, and ship such new units of Goods to Buyer by such method as is necessary to assure delivery by the time reasonably specified by Buyer, all at Supplier’s cost and expense.

 

拒绝。如果商品因为缺陷或损坏供货方应当用新商品替换每件被拒绝的商品，并将新商品以采购方指定的合理必要且能保证按时交付的运输方式寄送给采购方，所有成本和费用均由供货方承担。

 

6.  Specifications and Documentation. 规格和文档

 

6.1. Compliance with Specifications. The Goods shall be designed, manufactured and supplied in accordance with the Specifications, standards procedures and other terms and conditions as set forth in an Individual Contract and this Agreement. Supplier shall make no change in the Specifications unless such proposed changes are communicated to Buyer and Buyer agrees to such changes in writing.

 

遵照规格。商品应当遵照规格、标准程序和其他在独立合同和本合同中列明的条款条件设计、制造和供货。供货方除非与采购方沟通并得到采购方对变更的书面同意，否则不得对规格作出任何变更。

 

6.2. Approval and Provision of Drawings. At Buyer’s request, Supplier shall, for Goods defined in this Agreement, prepare and use mutually agreed reasonable drawings, bills of material, specifications and/or any other similar documents prepared in accordance with the Specifications, and shall furnish them to Buyer for approval by Buyer. At Buyer’s request, Supplier shall supply to Buyer manufacturing drawings and/or specifications of such drawings, specifications and/or other similar documents. See Section 9 of this Agreement regarding terms of Intellectual Property rights.

 

批准和提供图纸。在采购方的要求下，供货方应当以合同定义的商品，准备和使用双方认为合理的图纸、材料清单，规格和/或任何其他类似文件，且应当将这些文件交给采购方批准。其知识产权的规定见本协议第9条的规定。

 

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6.3. General Manufacturing Obligations. Supplier shall manufacture and supply the Goods in accordance with this Agreement and individual Purchase Orders, test and evaluate Goods in accordance with procedures mutually agreed between Buyer and Supplier, and deliver the Goods to Buyer, together with information and data regarding the results of such testing and evaluation by Supplier for Buyer’s evaluation and confirmation in accordance with the Specifications.

 

一般生产责任。供货方应当生产和供应与本合同及独立订单相符的商品，遵照采购方和供货方双方同意的程序测试和评估商品，并依照测试和评估的结果由供货方将商品连同信息和数据交付给采购方供其依据规格评估和确认。

 

6.4. Required Documentation. Supplier shall provide Buyer with all necessary documentation requested by Buyer, including, but not limited to specs, certifications, and shipping documents.

 

所需文件。供货方应当向采购方提供所有采购方要求的必要的文件，包括但不限于产品参数，认证文件及运输文件。

 

6.5. Program Management Teams. Supplier shall appoint and maintain, on Supplier’s expense, at least personnel of: a) Business personnel (marketing, legal, financial, etc.), b) Manufacturing engineering personnel, c) Product engineering personnel, d) Supply chain personnel, and e) After service personnel (collectively “Program Management Teams”). Such Program Management Teams shall be responsible for all communications between the parties and any approvals required hereunder. The Program Management Teams shall undertake work orders from the Parties, including all engineering releases and engineering change requests.

 

项目管理团队。 供货方应出资组建以下一个项目管理团队至少包括： a）商务（营销，法务，财务等），b) 制造工艺工程，c）产品工程，d）供应链， 和e) 售后等人员（ 统称为“项目管理团队”）。 项目管理团队应负责双方之间的所有沟通以及获取本协议要求的任何批准。 项目管理团队应承担来自双方的工作指令，包括所有工程信息和工程变更请求。

 

7.  Delay. 延误

 

7.1. Force Majeure. Neither Party to this Agreement shall be liable to the other Party for any loss, injury, delay, damages or other casualty suffered or incurred by such other Party due to strikes, lockouts, riots, storms, fires, earthquakes, floods, epidemics, explosions, acts of God, government action, war, hostilities, blockade, embargo, riot, insurrection, or any other similar cause or circumstance which is beyond the reasonable control of such Party. Any such failure or delay by either Party in the performance of any obligations under this Agreement due to one or more of the foregoing causes shall not be considered to be a breach of this Agreement. Any such failure or delay under this Section which lasts longer than 60 days shall be grounds for either Party to terminate this Agreement. No Party shall be liable for any breach of the terms and conditions of the Agreement, caused by wars, public hostilities, public disorders, acts of public enemies, fires, floods, acts of God, and prohibitions or restrictions by law and government regulations, except to the extent the Party fails to mitigate the effects of such causes. The existence of such excusable delay shall be determined by both parties. The limitation of liability shall not affect both parties’ right to terminate.

 

不可抗力。本协议的任何一方不应因为罢工、工厂封锁停工、暴乱、风暴、火灾、地震、水灾、传染病、爆炸、天灾、政府行为、战争、敌对行动、封锁、禁运、骚乱、暴动或其他类似超出该方合理控制范围之外的原因或情况而遭受的损失、伤害、延误、损毁或其他事故而对另一方承担任何责任。任何一方因一项或多项以上原因出现任何此类不履行或延误履行本合同项下的任何义务均不被视为违反本合同的约定。本节所述任何该等不履行或延迟履行如持续超过60日，则任何一方都可以依此终止本合同。任何一方均不对因战争、公共敌对行为、公共骚乱、公共地对事件、火灾、水灾、天灾、法律和政府法规禁止过限制的事项承担对本合同条款条件违约的责任，除非该方本能减小该等原因所造成的影响而未采取有效措施。须由双方决定该等可谅解的延迟原因是否存在。对责任的限制减轻不得影响双方的终止权。

 

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7.2. Notice of Force Majeure. If Supplier discovers any fact which leads it to believe that there may be a delay for any reason whatsoever (including an excusable delay), Supplier shall immediately advise Buyer of such fact and use its best efforts in taking all measures and precautions to reduce the effect of such delay upon Buyer and Customer.

 

不可抗力的通知。如果供货方发现任何事实导致其相信有可能会出现任何延迟原因（包括可谅解的延迟），供货方应当立即告知采购方该事实，并尽其最大努力采取一切措施和预防手段以减少该等延迟可能对采购方和客户造成的影响。

 

8.  Notification of Significant Events. Supplier shall notify Buyer of the occurrence of, or Supplier’s reasonable anticipation of the occurrence of, any of the following events: (a) transfer of business, merger, change of control, or other significant alterations in the operation of Supplier’s business; (b) changes to Supplier’s form of entity, jurisdiction under which it has been formed, name, chief executive or chief operating officers, manufacturing location, or other significant organizational changes; or (c) any event resulting in termination or giving a right to terminate this Agreement or Individual Contracts.

 

重大事件的通知。供货方应当通知采购方以下任何事件的发生或供货方合理预见以下任何时间将会发生：(a) 业务转让、合并、公司控制权变更，或供货方业务运营的其他重大改变；(b) 供货商的组织形式变更，其成立所在的司法管辖区、名称、首席执行官或首席运营官变更，制造地点或其他重要的机构变更；或(c)导致终止或有权终止本合同或独立合同的任何事件。

 

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9.  Intellectual Property Rights. 知识产权。

 

9.1. Ownership of Intellectual Property. The intellectual property rights (including but not limited to invention patents, utility models, and appearance designs, which relate to the completed vehicle unit) before the kick-off of this project still belong to the Supplier. During the development of this project, for the parts jointly developed by both Parties, the corresponding intellectual property rights shall be shared by both Parties; for parts independently developed by the Supplier, the relevant intellectual property rights shall be owned by the Supplier; for parts independently developed by the Purchaser, the relevant intellectual property rights shall be owned by the Purchaser; however, if the development is carried out on the basis of the data, models and other information provided by the Supplier, the intellectual property rights shall be jointly owned by the Parties; the two Parties shall subsequently signed a corresponding intellectual property agreement of joint ownership.

 

知识产权所有权。本项目执行前属于供货方所有的知识产权（包括但不限于与整车相关的发明专利、实用新型、外观设计等）仍归属于供货方。本项目执行过程中，针对双方共同开发的部件，相应知识产权由双方共有；由供货方单独开发的部件，相关知识产权由供货方所有；由采购方单独开发的部件，相关知识产权归采购方所有，但在供货方提供的数据、模型等信息的基础上进行开发的，知识产权归双方共有，双方后续签订对应知识产权共有协议。

 

9.2. License. Regarding the intellectual property rights solely owned by one Party, if the other Party (or a third party) request to be licensed, a separate written agreement shall be executed by the Parties; for the intellectual property rights jointly owned by both Parties, neither Party may transfer or license to a third party without written consent from the other Party.

 

授权。 针对一方单独享有的知识产权，如需授权许可对方（或第三方）使用的，另行签署书面协议进行确认；针对双方共有的知识产权，未经另一方书面同意，任一方不得擅自向第三方转让或许可第三方使用。

 

10.  Warranties. 保证。

 

10.1. Product Warranties. Supplier warrants that all Goods delivered hereunder: (a) shall be without defect; (b) shall comply with Specifications; (c) shall comply, and shall, with respect to such Goods, enable Buyer’s Products to comply, with related laws, orders, regulations or standards, which the Buyer requested to comply, applicable to the Goods delivered hereunder; (d) shall be manufactured with reference to the quality assurance standards set forth in this Agreement; (e) shall be merchantable and fit for particular purpose(s) required by Buyer and/or Customer; and (f) shall be free of claims or liens..

 

产品保证。供货方保证本合同项下的全部商品交付：(a) 应当无缺陷；(b) 应符合规格；(c) 应符合、也应使采购方能符合适用于商品交付的采购方要求的相关法律、命令、规章或标准；(d) 应参照本合同规定的质量保证标准制造；(e) 应适销且适合采购方和/或顾客要求的特定用途；且(f) 应当无索赔、留置权负担于商品之上。

 

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10.2. Remedies for Breach of Warranty. If Supplier breaches the warranty of the delivered Products, Buyer shall notify Supplier immediately for mitigation, and to take various reasonable technical and commercial measures within its capabilities to minimize the direct or indirect losses of the Buyer and its related parties. When a litigation occurs in the U.S. market, the Buyer will represent and cut the litigation risk off at the Buyer. The supplier does not directly participate in litigation but shall to assist the Buyer in resolving litigation disputes and provide corresponding evidence. Remedial measures include return, processing, repair, sorting, inspection, replacement of defective goods or monetary compensation.

 

违反保证条款的补救措施。供货方交付的商品若违反产品保证条款，采购方应尽快通知供货方协商补救措施，并在其能力范围内采取各种合理的技术和商业措施将采购方及其关联方的直接或间接损失降至最低。当美国市场发生法律诉讼争议时，由采购方出面解决，把诉讼风险截止于采购方。供货方不直接参与法律诉讼争议，但需协助采购方解决诉讼争议问题并提供相应的证据支持。补救措施包括退货、处理、维修、整理、检查，换缺陷商品或赔偿。

 

11.  Indemnification. Supplier will indemnify, defend, and hold Buyer harmless from direct losses caused by Supplier’s breach of warranties, and such losses shall be confirm by the Supplier of reasonableness. Including reimbursement of direct costs (including labor costs) incurred by the Buyer and/or Customer due to the Supplier’s breach of the warranties, and such costs shall be confirmed by the Supplier of reasonableness, but not limited to: (a) costs and expenses incurred due to return, processing, repair, finishing, inspection or replacement of any Goods that are subsequently defective or that failed to meet the Supplier’s warranties (Such as labor, materials, management fees, freight, tally fees, storage fees, etc. ); (b) costs and expenses incurred by the customer’s warranty claim; (c) the Buyer’s cost caused by the defect or non-conformity of the product; (d) damage or costs for personal injury or property damage caused by the product; (e) infringements on intellectual property rights, trade secrets and other third-party property rights of the Goods provided by Supplier; (f) casualties and direct property damage caused by Supplier’s failure to comply with the warranties, (g) any Product design defects; or (h) Supplier breaches warranties under this contract, or fails to comply with the standards or specifications stipulated in this agreement or related independent contracts. Provided that if a qualified inspection agency determines that such damage was caused by Buyer’s negligence or intentional mismanagement during the process of handling, warehousing, and distribution preparation, Supplier shall not be liable to Buyer. Provided that if the Buyer’s damage, which is determined by a qualified review agency, was caused by the Buyer’s negligence or deliberate mismanagement in the process of tallying, warehousing, distribution preparation, etc., the Supplier shall not be liable for the Buyer; The maximum damage claim shall be no more than the total amount of sales between the two parties between execution of this Agreement and the date damage occurred.

 

赔偿。供货方应当补偿因为供货方违反产品保证条款造成采购方直接损失，该损失需经供货方确认合理性的。包括偿还因为供货方违反保证并经供货方确认合理性后的造成采购方和/或客户损失或由采购方和/或顾客发生的直接成本（包括人工费用），但不限于：(a) 因退货、处理、维修、整理、检查或替换任何后来产生缺陷的或不能达到供货商保证条款的商品而发生的成本（如劳动力、材料、管理费用、运费、理货费、仓储费等）；(b) 客户保修索赔所发生的成本；(c) 因商品缺陷或不符而造成的采购方的成本； (d) 因商品直接或造成的人身伤害或财产损失的索赔所产生的损害或成本；(e) 供货方提供的商品侵犯了知识产权、商业秘密和其他第三方财产权；(f) 供货方因未能遵守产品保证而导致的人员伤亡及直接财产损害，(g) 任何产品设计的缺陷；或(h) 供货方违反本合同项下的保证或未能遵守本协议或相关的独立合同所规定标准或规格。但前提是，采购方的损害由合格的审理机构认定是因采购方在理货、仓储、分销准备等过程中的过失或故意管理不善造成，则该供货方不应为采购方承担责任；补偿的上限为双方从合同签订之日起到赔偿发生之日所发生的销售总额。

 

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12.  Confidentiality. 保密。

 

Supplier and Buyer promise to each other that all documents and materials (including trade secrets, company plans, operational activities, financial information, technical information, etc.) that belong to the other party and learned during the process of discussing, signing, and implementing this contract and cannot be obtained from public sources, shall be kept confidential. Without consent of the original provider of the materials and documents, the other party shall not disclose all or part of the trade secret to any third party. Exceptions apply only by laws and regulations or agreed by both parties. None of the information provided by Customers shall be used to engage in any activities related to guarantee or harmful to the interests of Customers.

 

The confidentiality obligation between the Parties shall be active from the effective date of this Agreement and shall be surviving five years from the date of the expiration of this Agreement. This confidentiality obligation will not be released due to the suspension, termination, or cancellation of this Agreement.

 

If either Party fails to comply and breaches with the confidentiality clause and causes a leak of confidential information, the other Party is entitled to damages and relief in accordance with the relevant laws; the breaching Party shall be liable for breach of this Agreement.

 

保密信息。供货方和采购方保证对在讨论、签订、执行本合同过程中所获悉的属于对方的且无法自公开渠道获得的文件及资料（包括商业秘密、公司计划、运营活动、财务信息、技术信息、经营信息及其它商业或企业秘密）予以保密。未经该资料和文件的原提供方同意，另一方不得向任何第三方泄露该商业秘密的全部或部分内容。但法律、法规另有规定或双方另有约定的除外。不得利用客户提供的信息从事任何与担保业务或有损于客户利益的活动。

 

供货方和采购方之间的保密义务自本合同生效之日起形成，直至本协议履行完毕之日起五年内有效。不因本合同的中止、终止、解除而解除。

 

供货方和采购方任何一方如未能遵守该保密条款，有违反保密规定行为而造成泄密的，双方均可依据有关规定追究对方的责任；违反本合同的约定，由违约方承担责任。

 

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13.  Term. This Agreement shall be effective commencing on the Effective Date and shall continue in effect for five (5) Years; provided, however, that this Agreement shall be automatically extended for additional one-year terms unless a Party gives written notice to the other Party of intention not to extend, not later than 180 days prior to the expiration of the initial term or any extended term of this Agreement.

 

有效期。本合同应当自生效日起生效且持续有效5 年；前提是除非一方最迟在本合同初次到期日前第180日以书面告知另一方不再续约的愿望，本合同将自动延期一年。

 

14.  Termination.终止。

 

14.1. Convenience. Either Party may terminate upon 180 days prior written notice of termination to Supplier, subject to any remaining obligations under any Individual Contract or invoice.

 

任意终止条款。双方可以选择在在终止前180天向供货方发出书面终止通知，列明任何独立合同或发票的任何剩余的义务。

 

14.2. Breach. Buyer or Supplier, as applicable, may terminate this Agreement and/or any Individual Contract immediately upon written notice of termination to the other upon the occurrence of any of the following events:

 

违约责任。发生以下任何事件时，如适用，采购方或供货方，可立即书面通知对方终止本合同和/或任何独立合同：

 

(a)       Breach of any term of this Agreement or an Individual Contract; provided that if the breach is for nonpayment, non-delivery, the terminating Party shall give the defaulting Party 30 days’ prior written notice of such breach and termination shall occur only if the defaulting Party has not cured such breach within such 30 day period. Breach of an Individual Contract is not grounds for terminating a different Individual Contract or this Agreement.

 

违反本合同的任何条款或独立合同；但前提是，如果违约是因为未付款、未供货，终止方应给予违约方30天的事先书面通知，而终止仅在违约方未在30天期间内修正该违约行为。违反的独立合同不是终止另外一个独立合同或本合同的理由。

 

(b)       Cancellation or suspension of business of the other Party by competent authorities legally.

 

合法的取消或暂时吊销另一方的经营资格。

 

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(c)       The other Party becomes insolvent or makes a general assignment for the benefit of creditors, or a petition in bankruptcy shall be filed by or against the other Party, or any proceeding shall be instituted by or against the other Party for any relief under any bankruptcy or insolvency laws or any laws relating to the relief of debtors, readjustment of indebtedness, reorganization, compositions or extensions or a receiver shall be appointed of the other Party’s property or assets, which shall remain undischarged or uncured for 30 days.

 

另一方无力偿债或向债权人全面转让利益，或一方自己提出破产或对另一方的破产提出呈请，或应由另一方或针对另一方提起关于破产的任何救济的诉讼或无力偿债法律或应收账款，调整债务，重组，组成或扩展或接收的救灾有关的任何法律，应委任另一方的财产或资产，在此情形下应为30天仍未能清偿或未能纠正。

 

(d)       Action taken by the other Party to dissolve and/or liquidate, to merge or consolidate with another corporation resulting in a change of control of such other Party, or to sell or lease a substantial part of its assets to a third Party.

 

另一方采取的行动解散和/或清算，与另一公司兼并或合并导致该另一方的控制权改变，或者向第三方出售或出租其资产的相当一部分。

 

15.  Governing Law. This Agreement shall be governed by and construed under the laws of CHINA without regard to its conflicts of laws principles that would require the application of the laws of any other jurisdiction. “The Convention on the International Sale of Goods ”shall not apply. Except as otherwise provided in this Agreement, any claims and disputes arising under or relating to this Agreement are to be settled by binding arbitration at Hong Kong International Arbitration Center (HKIAC). The arbitration shall be conducted on a confidential basis pursuant to the HKIAC Rules. Any decision or award as a result of any such arbitration proceeding shall be in writing and shall provide an explanation for all conclusions of law and fact and shall include the assessment of costs, expenses, and reasonable attorneys’ fees. Any such arbitration shall be conducted by an arbitrator experienced in international supply chain dispute and shall include a written record of the arbitration hearing. An award of such arbitration is final, non-appealable, and may be confirmed in a court of competent jurisdiction.

 

参照法律。本协议应受中国法律法规的约束，并应根据中国法律进行解释，不考虑法律冲突原则要求的其他司法管辖区的法律。《国际货物销售公约》不适用。除非本协议另有规定，否则任何与本协议相关或与之相关的纠纷均应在香港国际仲裁中心进行具有约束力的仲裁。仲裁将根据HKIAC规则在保密的基础上进行。做出的任何决定或裁定均应采用书面形式，应为所有法律和事实提供解释，并应包括对成本、费用和合理的律师费的评估。任何此类仲裁均应由具有国际供应链争议经验的仲裁员进行，并应包括仲裁听证的书面记录。该仲裁的裁决是终局裁决，不能上诉，并可以取得辖区法院的确认。（

 

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16.  Notices. All notices and other communications required or permitted by this Agreement shall be in writing and will be effective, and any applicable time period shall commence, when (a) delivered to the following address by hand or by a nationally recognized overnight courier service (costs prepaid) addressed to the following address or (b) transmitted electronically to the following facsimile numbers or e-mail addresses, in each case marked to the attention of the Person (by name or title) designated below (or to such other address, facsimile number, e-mail address, or Person as a Party may designate by notice to the other Parties):

 

通知。所有通知和其他本合同要求或允许的沟通应当以书面方式进行且应为有效的，且任何使用的时间段应当起始于(a)人工或以国家认可的隔夜快递服务（预付费）送达至以下地址或(b)电子传送至以下传真号码或电子邮件地址，在这几种情况下按照以下指定（或一方可以通知另一方发送到指定的地址、传真、电子邮件或个人）注明收件人（姓名和头衔）。

 

If to Buyer, to:

如发送给采购方，发至：

 

[ELM]

Attention: General Counsel’s Office

1055 West Square Lake, Troy, MI 48098, U. S.A

 

with a copy (which shall not constitute notice) to:

发送副本（并不构成通知）至：

 

Butzel Long
Attention: Quan Yang, Esq.
150 West Jefferson, Suite 100
Detroit, MI 48226
E-mail address: yang@butzel.com

If to Supplier, to:
如发送给供货方，发至：

 

[柳州五菱汽车工业有限公司 Liuzhou Wuling Automobile Industry Co., Ltd]

Attention: Mr. Anson Ma 马安森 先生

[Address]:广西柳州市河西路18号五菱大厦

Wuling Building, No. 18 Hexi Road, Liuzhou City, Guangxi, China

E-mail address: maansen@wuling.com.cn

 

with a copy (which shall not constitute notice) to:

发送副本（并不构成通知）至：

Attention: Blues Pi 皮志坚

[Address]: Room 2#-203, Lane 199, Mincheng Road, Shanghai, 201199

E-mail address: blues_pi@163.com

 

17.  Entire Agreement. This Agreement with exhibits hereto (if any) and other documents specifically adopted herein by reference (which hereby form a part of this Agreement), and any Individual Contracts entered into, constitute the entire agreement among the Parties and supersede all other prior oral or written agreements, understandings, representations and warranties and courses of conduct and dealing between the Parties on the subject matter hereof.

 

完整合同。本合同、后附附件（如果有附加）和其他文件特别于此采用供参考（构成此合同的一部分），且任何已达成的独立合同构成各方之间的完整合同并取代各方之间之前就此问题达成的所有口头或书面合同、谅解、表述和保证以及一系列的行为和处理。

 

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18.  Amendment. This Agreement may be amended or modified only by a writing executed by all of the Parties.

 

修订。本合同仅可以通过所有各方书面签署后作出变更或修订。

 

19.  Counterparts. This Agreement may be executed in one or more counterparts, each of which will be deemed to be an original of this Agreement and all of which, when taken together, will be deemed to constitute one and the same agreement.

 

副本。本合同应当签署一个或多个副本，每一份都被视为本合同的原件，且所有副本共同被视为相同的同一合同。

 

20.  Languages. This Agreement is written in both English and Simplified Chinese, and both language shall be interpreted consistently. In the event there is any conflict or inconsistency between the two languages, English shall have higher priority, with due respect to the interpretation of Chinese language.

 

语言。本合同以英文和简体中文书写。两种语言具同等效力，如两种文字存在冲突或不一致时英语在尊重中文含义的前提下将具有优先解释。

 

[Remainder of Page Intentionally Left Blank]

 

14

 

 

IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed by their duly authorized representatives as of the date first above written.

 

兹鉴证，各方已经由其授权代表于开头所示日期签署此合同。

 

BUYER 采购方:   SUPPLIER 供货方:
     
[Electric Last Mile, Inc.]   [Liuzhou Wuling Automobile Industry Co., Ltd]
    柳州五菱汽车工业有限公司
     
By: /s/ James Taylor   By: /s/ Yong Rong Liu
Name:     Name:  
Title: CEO   Title:  

 

[SIGNATURE PAGE TO MASTER SUPPLY AGREEMENT]

 

 

 

 

EXHIBIT A

附件 A

 

Goods

商品

 

[List]

 

 

 

G100 (EV50)

 

Lenth mm 4490
Width mm 1610
Height mm 1900
Wheelbase mm 3050
Cargo Size mm 2622*1457*1340
Gross Weight kg 2510
Curb Weight kg 1430
Battery Capacity (kWh) 41.86
Peak Power( kW) 60
Motor cooling Water cooling
Front Suspension McPherson
Rear Suspension Leaf
Steering power
ABS standard
Parking Sensor Radar

 

[EXHIBIT A TO MASTER SUPPLY AGREEMENT]

 

 

 

 

EXHIBIT A

附件 A

 

 

 

G100 （EV50 Refrigorateor）

 

Lenth mm 4490
Width mm 1610
Height mm 2050
Wheelbase mm 3050
Cargo Size mm 2170*1280*1060
Gross Weight kg 2900
Curb Weight kg 1670
Battery Capacity (kWh) 41.86 CATL
Peak Power( kW) 60
Motor cooling Water cooling
Front Suspension McPherson
Rear Suspension Leaf
Steering Power
ABS Standard
Parking Sensor radar

 

[EXHIBIT A TO MASTER SUPPLY AGREEMENT]

 

 

 

 

EXHIBIT B

附件 B

 

N/A

 

[EXHIBIT B TO MASTER SUPPLY AGREEMENT]

 

 

 

 

EXHIBIT C

附件 C

 

Exclusive Product Segments

独家产品部分

 

[See Exhibit A]

 

[EXHIBIT C TO MASTER SUPPLY AGREEMENT]

 

 

 

 

EXHIBIT D

附件 D

 

Price List

价格表

 

INITIAL PRICING:参考价格：

 

Initial Goods   Quantity数量   Initial Price Per Unit (U.S. $)

EV50 整车 Vehicle Assembly Unit (“VAU”)

  10000   [***]
EV50 VAU excluding battery pack 整车除电池包   10000   [***]
Rear Axle Assembly including motor and inverter 后桥总成含Motor 电机和inverter（100KW）   10000   [***]

 

Initial Goods   Quantity数量   Initial Price Per Unit (U.S. $)

EV50 VAU 整车

  30000   [***]
EV50 VAU excluding battery pack 整车除电池包   30000   [***]
Rear Axle Assembly including motor and inverter 后桥总成含Motor 电机和inverter（100KW）   30000   [***]

 

Initial Goods   Quantity数量   Initial Price Per Unit (U.S. $)

EV50 VAU 整车

  >60000   [***]
EV50 VAU excluding battery pack 整车除电池包   >60000   [***]
Rear Axle Assembly including motor and inverter 后桥总成含Motor 电机和inverter（100KW）   >60000   [***]

 

Remarks 备注： 1. The above price is calculated according to the 1 USD = 6.5 RMB, The price changes according to the fluctuation of foreign exchange rate.

以上价格按美元汇率6.5核算，价格根据外汇牌价波动而适当变动。

2. The above prices will be adjusted according to the price fluctuation in China in the future.

以上价格根据未来中国物价波动情况，双方协商后调整。

 

Initial Goods   Quantity   Initial Price Per Unit (U.S. $)

Parts and components for EV50 VAU 整车台套散件

  30000   [***]
Parts and components for EV50 VAU 整车台套散件除电池包   30000   [***]
Rear Axle Assembly including motor and inverter 后桥总成含Motor 电机和inverter (100KW)   30000   [***]

 

 

 

 

 

 

Exhibit 10.2

 

ELECTRIC LAST MILE, INC.

AGREEMENT FOR ENGINEERING, DESIGN & DEVELOPMENT SERVICES

工程设计开发服务协议

 

This Agreement for Engineering, Design, and Development Services (“Agreement”) is made effective as of _March 18_, 2021 by and between [Electric Last Mile, Inc], a Delaware Corporation, with its principle place of business in Michigan, USA (“Buyer”), and [Liuzhou Wuling Automobile Industry Co., Ltd], a China company located in [Wuling Building, No. 18 Hexi Road, Liuzhou City,, China] (the “Seller”). Buyer and Seller may be referred to herein individually as a “Party” and collectively as the “Parties”.

 

本工程设计和开发服务协议（以下称“协议”）由特拉华州公司[Electric Last Mile，Inc]，其主要营业地点位于美国密西根州，（以下简称“ 采购方”）和位于[广西柳州市河西路18号五菱大厦,]的中国公司[柳州五菱汽车工业有限公司]（“供货方”）于2021年_3_月_18_日签订生效。采购方和供货方在本文中可能分别称为“当事方”，也统称为“当事各方”。

 

RECITALS 背景

 

A. Buyer is an American automobile company that is developing, manufacturing, marketing and selling electric vehicles that will meet all current and proposed FMVSS requirements (“Vehicle”). Buyer’s product development plan relies upon leveraging the expertise and know-how of leading suppliers within each module of the Vehicle.

 

采购方是一家美国汽车公司，正在开发、制造、营销和销售将满足所有当前和未来的FMVSS要求的电动汽车（“车辆”）。 采购方的产品开发计划取决于在车辆的每个模块中利用领先供应商的专业知识和专有技术。

 

B. Seller owns certain matured commercial EV platforms and is capable of organizing EV mass production and related components supply and has strong engineering capabilities.

 

供货方拥有成熟的电动汽车平台，并拥有组织电动汽车大规模生产和相应的零部件供货以及很强的工程能力。

 

C. Subject to the terms of this Agreement, Buyer has selected Seller as its non-exclusive supplier for the engineering, design, development, and validation of the Model Class I_ of the Vehicle (the “Designated Module”). This appointment carries with it the understanding that Supplier will have end-to-end responsibility for the overall design, engineering and production of the Vehicle (“Project”) consistent with the core principle that Supplier is an expert in its field and has superior knowledge on which the Buyer may rely (“Core Principle”).

 

在遵守本协议条款的前提下，采购方已选择供货方作为其车辆分类_1_型（“指定模块”）的工程，设计，开发和验证的非独家供应商。 此项任命带有以下理解：供应商将对车辆（“项目”）的整体设计，工程和生产负有端到端的责任，这与供应商是其领域的专家并具有丰富知识的核心原则相一致，这是采购方可能依赖的（“核心原则”）。

 

 

 

NOW, THEREFORE, the Parties agree as follows:

 

因此，双方达成如下协议：

 

AGREEMENT

 

1. Services and Compensation 服务与补偿

 

1.1 Seller agrees to provide services (“Services”) to Buyer in accordance with the terms of the Purchase Order and the Statement of Work or statement of requirements provided by Buyer. The Statement of Work contains a detailed description of Services that Seller will perform, the work product and other materials that Seller will deliver to Buyer (the “Deliverables”), and the time when the Deliverables will be provided.

 

供货方同意根据采购订单的条款和采购方提供的工作说明或要求向采购方提供服务（以下简称“服务”）。 工作说明详细描述了供货方将执行的服务，供货方将交付给采购方的工作成果和其他材料（“可交付成果”）以及交付的时间。

 

1.2 Seller will be compensated for Services fees as set forth in the Statement of Work. In addition, only if expressly permitted in the Statement of Work, Buyer may reimburse reasonable and necessary out-of-pocket costs and subcontracted costs associated with the Services, provided such costs have been previously approved by Buyer in writing. Out-of-pocket and subcontracted costs will be billed net, without mark-up.

 

供货方将获得工作说明中规定的服务费用。 此外，只有在工作说明中明确允许的情况下，供货方才能报销与服务相关的合理且必要的自付费用和分包费用，前提是这些费用事先已得到采购方的书面确认。 自付费用和分包费用将按实际支出计费，不加价。

 

1.3 Seller’s price for engineering and design services is $27.73 per hour (exchange rate is US$1 = CN￥6.5). Seller may use outside services for assistance in delivering a complete design and these sub-contractors and consultants shall bill at rates equal to or lower than Seller. It is agreed that whether Seller performs the services itself or uses sub-contractors and/or consultants, the total amounts charged to Buyer for completion of the design and Deliverables shall not exceed the amount set forth on the face of the subject Purchase Order, without Buyer’s prior written approval.供货方提供的工程和设计服务价格为每小时$_27.73_ 美元(汇率6.5）。 供货方可以使用外部服务来协助交付完整的设计，而这些分包商和顾问的费率应等于或低于供货方。 双方同意，未经采购方的事先书面批准，无论是供货方自己提供服务还是使用分包商和/或顾问，为完成设计和交付成果而向采购方收取的总金额均不得超过标的采购订单规定的金额。

 

(Note: in case a Purchase Order or Statement of Work contains more than one category of work, savings in one category shall not operate to increase the amounts in other categories. Costs incurred in excess of the amounts in the respective categories cannot be transferred or paid out of the money budgeted for other categories. The parties will meet monthly to review and audit the work done and hours expended by Seller in the categories of work listed in the subject Purchase Orders and Statements of Work.)

 

（注意：如果采购订单或工作说明包含不止一个类别的工作，则某一个类别所节省的费用不得用于增加其他类别的金额。超过相应类别金额的成本或费用无法转移用于其他类别的预算付款支付。双方将每月开会，审查和审核供货方完成“采购订单和工作说明”中列出作类别的工作和花费的时间。）

 

2

 

 

2. Invoicing; Payment 开票； 付款

 

2.1 Following the provision of services, Seller shall submit an invoice in accordance with the Statement of Work. If requested in the Statement of Work or otherwise by Buyer, Seller shall submit with each invoice for payment, a progress report specifying the milestones or phases that have been completed against the Statement of Work. In those cases where a milestone or phase has not been completed, the Seller shall submit to Buyer the work performed during the period and the percentage of each milestone or phase that has been completed. Any delay in the submission of such progress report by Seller shall cause a corresponding delay in the payment obligation date of Buyer.

 

提供服务后，供货方应根据工作说明提交发票。 如果工作说明中有要求或采购方有其他额外要求，则供货方应随每张发票一起提交一份进度报告，说明根据工作说明已完成的里程碑或阶段。 在未能完成里程碑或阶段的情况下，供货方应向采购方提交在此期间完成的工作以及已完成的每个里程碑或阶段的百分比。 供货方延迟提交此类进度报告将导致采购方付款义务日期的相应延迟。

 

2.2 Buyer pays the development cost according to the important milestones of the development: 40% of the development cost is paid before the project is developed（among which $150,000 USD will be paid within 15 days upon execution of this Agreement, the balance shall be paid within 7 days upon both Parties confirm the development issues）, and 40% is paid after the project design accomplished and the verification test is completed. After the product development is completed and the production verification test is completed, the balance 20% shall be paid at delivery.

 

采购方按开发项目的里程碑重要节点支付开发费用，具体为本合同签订后15日内采购方支付给供货方15万美元，作为项目开发前支付40%的开发费用的一部分，余下部分在双方确认开发事项后7天内付清。在项目设计冻结及验证试验结束后7天内支付40%， 在产品开发完毕并完成生产验证试验，交付时支付20%。

 

3. Program Managers; Form of Design Data; Changes 项目经理； 数据格式； 变更

 

3.1 Seller and Buyer shall each set up a full-time team (at least 4 members for seller side including but not limit to the expertise of manufacture engineering, program management, logistic(import & export), product engineering) as Program Management & coordination for the work to be done under the Purchase Order and the organization of goods supply. Such persons shall be responsible for all communications between the parties and any approvals required hereunder. The Program Managers shall mutually agree on the form, whether documentary or machine readable, content and engineering language of all design data furnished by Seller to Buyer hereunder, including all engineering releases and engineering change requests.

 

供货方和采购方应各自成立一个专职项目组（供货方至少4位成员包括但不限于生产工艺，项目管理，物流进出口，产品工程的专家），负责根据采购订单进行的工作。 项目组应对当事方之间的所有通信以及本协议要求的任何批准负责。项目经理应就由供货方根据本协议提供给采购方的包括文件格式或机器可读格式的所有设计数据的格式、内容和工程语言达成共识，包括所有工程报告和工程变更请求。

 

3

 

 

3.2 Both Parties shall have the right to demand changes to the performances specified in the Purchase Order (hereinafter “Changes”), including but not limited to Changes based on modifications of the specifications set forth in Statement of Work.

 

双方有权要求对采购订单中指定的性能进行变更（以下简称“变更”），包括但不限于基于工作说明书规定的规范进行更改的变更。

 

3.3 To the extent that the Changes do not require a substantial amount of additional work, Buyer shall not issue amended Purchase Order, and Seller shall implement such Changes without payment of additional compensation. In case of Changes which require a substantial amount of work, Seller shall accept Buyer’s amended Purchase Order and the overall compensation shall be adjusted accordingly to Changes by mutual consent, unless Seller furnishes proof that such Changes cannot be implemented.

 

如果变更不需要大量的额外工作，则采购方不再签发修改的订单，且供货方应在不收取额外补偿的情况下实施此类变更。 如果变更需要大量工作，则供货方应接受采购方的修改后的采购订单，并应经双方同意对变更产生的相应的总补偿金进行相应的调整，除非供货方提供无法实施此类变更的证据。

 

4. Meetings 会议

 

Both Parties may request meetings with Seller to evaluate the progress of the Deliverables and matters related thereto. Each party will devote reasonable efforts to ensure attendance of appropriate personnel at any such meeting, including representatives who are party to the third-party agreements whose presence Buyer requests.

 

双方均可要求举行会议，以评估可交付成果的进度及其相关事宜。 各方将尽合理的努力以确保适当的人员出席任何此类会议，包括采购方要求其在场的第三方协议的代表。

 

5. Standard of Workmanship and Warranty 工艺标准和保证

 

5.1 Seller shall use its best skills, resources and judgment to perform Services in an efficient and economical manner, to the reasonable satisfaction of Buyer. In addition to other rights provided under the Purchase Order or at law, Seller shall perform again, at no cost to Buyer, such Services and furnish any design data which, in the reasonable opinion of the Parties, does not meet such standards. Seller warrants the performance of all agreed obligations by Seller and the rights granted herein. Seller agrees to achieve Deliverables that are free and clear of third party’s rights.

 

供货方应使用其最佳技能、资源和判断力，以高效、经济的方式执行服务，以使采购方合理满意。 除采购订单或法律规定的其他权利外，若双方认为合理的不符合此类标准的任何设计数据，供货方应再次免费提供此项服务。 供货方保证供货方履行所有约定的义务以及此处授予的权利。供货方同意实现交付物无第三方权利。

 

4

 

 

5.2 When Deliverables include computer programs, including, where applicable, object code (including microcode) and source code, and any enhancements, modifications, updates or releases relating thereto (“Developed Software”), Seller further agrees to provide Buyer with the documentation related thereto including user manuals, training materials, product descriptions and applicable specifications, technical manuals and supporting materials, developed documents, and other printed information, whether distributed in print, electronic, or video format. Furthermore, Seller agrees that no portion of the Developed Software delivered to Buyer will contain any undisclosed features or any “back door,” “time bomb,” “Trojan horse,” “worm,” “drop dead device,” “virus,” or other computer software routines or hardware components designed to (i) permit access or unauthorized use of either the Developed Software or Buyer’s computer systems or vehicles, (ii) disable, damage or erase the Developed Software or data, or (iii) perform any other such actions. Furthermore, the Developed Software shall not contain preprogrammed preventative routines or similar devices which prevent Buyer from exercising the rights granted under the Agreement or from utilizing the Developed Software for the purpose for which it was designed.

 

当交付物包括计算机程序，包括（如果适用）目标代码（包括微代码）和源代码，以及与之相关的任何增强、修改、更新或发布（“开发的软件”）时，供货方进一步同意向采购方提供与之有关文档包括用户手册、培训材料、产品说明和适用的规范、技术手册和支持材料、已开发的文档以及其他印刷信息（无论是以印刷，电子还是视频格式分发）。此外，供货方同意交付给采购方的已开发软件的任何部分均不包含任何未公开的功能或任何“后门”、“定时炸弹”、“特洛伊木马”、“蠕虫”、“崩溃装置”、“病毒”或旨在（i）允许访问或未经授权使用已开发软件或采购方的计算机系统或车辆，（ii）禁用、损坏或擦除已开发的软件或数据，或（iii）执行任何其他计算机软件程式或硬件组件操作其他此类动作。此外，开发的软件不得包含预编程的预防性程式或类似设备，以防止采购方行使本协议项下授予的权利或阻止开发软件用于其设计目的。

 

5.3 The success of the design, engineering research and development efforts for the Vehicle depends on the active and open engagement of Seller and each of the sub-contractors selected for various modules of the Vehicle. The Project is intended to foster and enable this collaboration, and Seller shall exhaust its continuing efforts to achieve such success through its participation in the Project. Seller is responsible for identifying and obtaining information from Buyer regarding those parts and systems of the Vehicle and the Vehicle as a whole which are required for Seller to fully perform under this Agreement and Statements of Work. Seller shall notify Buyer in writing of any such information which it requires, consistent with the Core Principle.

 

车辆的设计，工程研发工作的成功取决于供货方和为车辆的各种模块选择的每个分包商的积极开发的参与。 本项目旨在促进这种合作，供货方应尽其所能通过参与该项目而取得成功。 供货方负责从采购方那里识别并获得有关供货方必须完全履行本协议和工作说明书规定的车辆零件和系统以及整个车辆的信息。供货方应按照核心原则将所需的任何此类信息书面通知采购方。

 

5

 

 

6. Proprietary Information 专有信息

 

In order that Seller’s employees, approved sub-contractors and agents (“Seller’s Personnel”) may effectively provide the Services to Buyer under the Purchase Order, it may be necessary or desirable for Buyer to disclose confidential or proprietary information pertaining to Buyer’s past, present and future activities. All proprietary information furnished or made available by Buyer to Seller or to Seller’s Personnel in connection with the work or Services to be performed for Buyer hereunder, and all proprietary information provided, generated or developed by Seller or Seller’s Personnel for Buyer (collectively Buyer’s proprietary information), shall be owned by Buyer, shall be treated as confidential by the Parties and shall not be used or disclosed by the Sellers’ Personnel, either in whole or in part, except upon consent by the Buyer. Both Parties shall make the Parties’ Personnel aware of their obligation not to use or disclose Buyer’s proprietary information. Where non-breaching party becomes aware of circumstances regarding breaching party’s Personnel which compromises or may compromise non-breaching party’s proprietary information, breaching party will immediately inform non-breaching party of such circumstances.

 

为了使供货方的雇员、经批准的分包商和代理商（“供货方的人员”）可以根据采购订单有效地向采购方提供服务，采购方可能有必要或希望披露与采购方过去、现在有关的机密或专有信息和未来的活动。采购方向供货方或供货方人员提供的由采购方拥有的、与采购方根据本协议要执行的工作或服务有关的所有专有信息，以及供货方或供货方人员为采购方提供，生成或开发的所有专有信息（统称为采购方专有信息），双方人员将其视为机密信息，除非获得采购方同意认可，供货方否则不得全部或部分使用或披露该信息。双方应告知双方人员其不使用或不披露采购方专有信息的义务。如果守约方知道与违约方人员有关的情况在损害或可能损害守约方的专有信息，则违约方将立即将此情况通知守约方。

 

7. Intellectual Property 知识产权

 

7.1 The intellectual property rights (including but not limited to invention patents, utility models, and appearance designs, which relate to the completed vehicle unit or parts) before the kick-off of this project still belong to the Supplier. During the development of this project, for the parts jointly developed by both Parties, the corresponding intellectual property rights shall be shared by both Parties; for parts independently developed by the Supplier, the relevant intellectual property rights shall be owned by the Supplier; for parts independently developed by the Purchaser, the relevant intellectual property rights shall be owned by the Purchaser; however, if the development is carried out on the basis of the data, models and other information provided by the Supplier, the intellectual property rights shall be jointly owned by the Parties; the two Parties shall subsequently signed a corresponding intellectual property agreement of joint ownership.

 

本项目执行前属于供货方所有的知识产权（包括但不限于与整车和部件相关的发明专利、实用新型、外观设计等）仍归属于供货方。本项目执行过程中，针对双方共同开发的部件，相应知识产权由双方共有；由供货方单独开发的部件，相关知识产权由供货方所有；由采购方单独开发的部件，相关知识产权归采购方所有，但在供货方提供的数据、模型等信息的基础上进行开发的，知识产权归双方共有，双方后续签订对应知识产权共有协议。

 

6

 

 

7.2 Regarding the intellectual property rights solely owned by one Party, if the other Party (or a third party) request to be licensed, a separate written agreement shall be executed by the Parties; for the intellectual property rights jointly owned by both Parties, neither Party may transfer or license to a third party without written consent from the other Party.

 

针对一方单独享有的知识产权，如需授权许可对方（或第三方）使用的，另行签署书面协议进行确认；针对双方共有的知识产权，未经另一方书面同意，任一方不得擅自向第三方转让或许可第三方使用。

 

9. Right to Audit 复核

 

Seller hereby grants to Buyer access to all pertinent records, correspondence, writings, electronic files, drawings, and receipts related to the Services performed by Seller under the Purchase Order. Seller further agrees to maintain such records for a minimum period of five (5) years after final payment, unless local laws otherwise require a different retention period for any particular records.

 

供货方特此授予采购方访问与供货方根据采购订单提供的服务相关的所有相关记录、书信、文字、电子文件、图纸和收据的权限。 供货方进一步同意在最终付款后将此类记录保留至少五（5）年，除非当地法律另外要求对任何特定记录有不同的保留期。

 

10. Subcontracting 分包

 

Seller agrees not to subcontract any portion of the Services without obtaining prior consent from Buyer. In the event of such consent obtained, Seller shall a) notify any approved subcontractor of Seller’s obligations under the Purchase Order, b) include similar provisions in the subcontract, and c) shall demand strict adherence to the provisions set forth in the Purchase Order.

 

未经采购方事先同意许可，供货方同意不将服务的任何部分分包。 在取得同意许可的情况下，供货方应：a）通知任何经批准的分包商其在采购订单项下的义务，b）在分包合同中包含类似规定，并且c）要求严格遵守采购订单中的规定。

 

11. Independent Contractor 独立承包商

 

It is expressly understood and agreed that the Seller’s Personnel shall be and will remain Seller’s employees or approved subcontractors, and under no circumstances are they to be considered Buyer’s employees or agents. Seller acknowledges and agrees that there shall be an independent contractor relationship between Seller and Buyer at all times. Seller shall provide the Services at its own risk and assume full responsibility for such Services.

 

供货方明确理解并同意，供货方人员应是并且将继续是供货方的雇员或经批准的分包商，在任何情况下均不得将其视为采购方的雇员或代理商。 供货方承认并同意，供货方与采购方之间应始终保持独立的承包商关系。供货方应自行承担提供服务的责任，并对此类服务承担全部责任。 

 

7

 

 

12. Governing Law and Jurisdiction 管辖法律和法院

 

This Agreement shall be governed by and construed under the laws of CHINA without regard to its conflicts of laws principles that would require the application of the laws of any other jurisdiction. The Convention on the International Sale of Goods shall not apply. Except as otherwise provided in this Agreement, any claims and disputes arising under or relating to this Agreement are to be settled by binding arbitration at Hong Kong International Arbitration Center (HKIAC). The arbitration shall be conducted on a confidential basis pursuant to the HKIAC Rules. Any decision or award as a result of any such arbitration proceeding shall be in writing and shall provide an explanation for all conclusions of law and fact and shall include the assessment of costs, expenses, and reasonable attorneys’ fees. Any such arbitration shall be conducted by an arbitrator experienced in international supply chain dispute and shall include a written record of the arbitration hearing. An award of such arbitration is final, non-appealable, and may be confirmed in a court of competent jurisdiction.

 


本协议应受中国法律法规的约束，并应根据中国法律进行解释，不考虑法律冲突原则要求的其他司法管辖区的法律。《国际货物销售公约》不适用。除非本协议另有规定，否则任何与本协议相关或与之相关的纠纷均应在香港国际仲裁中心进行具有约束力的仲裁。仲裁将根据HKIAC规则在保密的基础上进行。做出的任何决定或裁定均应采用书面形式，应为所有法律和事实提供解释，并应包括对成本、费用和合理的律师费的评估。任何此类仲裁均应由具有国际供应链争议经验的仲裁员进行，并应包括仲裁听证的书面记录。该仲裁的裁决是终局裁决，不能上诉，并可以取得辖区法院的确认。

 

13. Counterparts. 多份副本

 

This Agreement may be executed in one or more counterparts, each of which will be deemed to be an original of this Agreement and all of which, when taken together, will be deemed to constitute one and the same agreement.

 

本合同应当签署一个或多个副本，每一份都被视为本合同的原件，且所有副本共同被视为相同的同一合同。

 

14. Languages. 语言

 

This Agreement is written in both English and Simplified Chinese. In the event there is any conflict or inconsistency between the two languages, English shall have higher priority with due respect to the interpretation of Chinese language.

 

本合同以英文和简体中文书写。两种语言具同等效力，如两种文字存在冲突或不一致时英语在尊重中文含义的前提下将具有优先解释。

 

[Remainder of Page Intentionally Left Blank]

 

8

 

 

IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed by their duly authorized representatives as of the date first above written.

 

各方已经由其授权代表于开头所示日期签署此合同，以昭信守。

 

BUYER 采购方:   SELLER 供货方:
       
[ELM]   [柳州五菱汽车工业有限公司Liuzhou Wuling
  Automobile Industry Co., Ltd]
       
By:  /s/ James Taylor   By: /s/ Yong Rong Liu
  Name:   Name:
  Title: CEO   Title:

 

 

 

 

 

Exhibit 10.3

 

SUPPLEMENTAL AGREEMENT

(to the Agreement for Engineering, Design and Development, Dated March 18, 2021,
and Master Purchase Agreement, Dated March 19, 2021)

 

对2021 年 3 月 18 日签署的《工程、设计和开发协议》
和2021 年 3 月 19 日签署的《主采购协议》的补充协议

 

This Agreement is executed this 25 day of JUNE 2021 by and between ELECTRIC LAST MILE, INC.(“PURCHASER”) and LIUZHOU WULING AUTOMOBILE INDUSTRY CO., LTD. (“SELLER”).

 

本协议由ELECTRIC LAST MILE, INC.(“采购方”)和LIUZHOU WULING AUTOMOBILE INDUSTRY CO., LTD. (“销售方”)于 2021 年 6 月 25 日签署

 

WHEREAS, Purchaser and Seller entered into an Agreement for Engineering, Design and Development, Dated March 18, 2021, and Master Purchase Agreement, Dated March 19, 2021 (collectively, the “Original Agreements”) and

 

鉴于采购方和销售方于2021 年 3 月 18 日签署了《工程、设计和开发协议》又于2021 年 3 月 19 日签署了《主采购协议》（两协议合称“原协议”）

 

WHEREAS, Purchaser and Seller desire to amend and supplement the Original Agreements as provided herein.

 

鉴于，采购方和销售方希望修改和补充该原协议。

 

NOW, THEREFORE, in consideration of the mutual covenants contained herein and other good and valuable consideration the parties agree to amend the Original Agreements as follows:

 

因此，考虑到此处包含的共同契约和其他良好且有价值的对价，双方同意将原协议修改如下：

 

1. Purchaser shall be responsible to product liability claims against the vehicle units in the United States and designated territory according to applicable laws.

 

采购方应根据适用法律对美国和指定区域内的整车的产品责任负责。

 

2. Seller shall be responsible to product liability claims against the parts according to the extent of the participation in development and manufacturing.

 

销售方应根据部件参与研发、制造的程度承担相应的产品质量责任。

 

3. Purchaser shall be responsible for interpreting and establishing the technical standards of parts and vehicles in order to satisfy the entry of U.S. market. Borrowed Parts: parts that do not need to change and satisfy the North American standards and other regional standards agreed in writing by both parties; New Parts: parts that need to be confirmed by both parties according to technical specifications, newly designed or developed, or partially changed;

 

采购方应负责解释和建立零部件和车辆的技术标准，以满足进入美国市场的要求。借用件：无需更改且满足北美以及双方书面同意的其他区域标准的零件；新零件：需根据双方确认的技术规格、新设计开发或部分更改的零件；

 

 

 

 

4. Purchaser shall be responsible for approving all design changes for purpose of meeting US homologation requirements, laws and regulations.

 

采购方应负责批准所有设计变更以满足美国的认证和法规要求。

 

5. If the Purchaser requests a design change, it shall be implemented by the Seller upon discussion and mutual agreement of the parties. The Purchaser shall confirm the process and sign for approval in accordance with the protocol.

 

采购方如有设计变更需求，经双方讨论并一致同意后，由销售方实施。采购方应确认过程并按流程签字批准。

 

6. According to the U.S. regulations provided by the Purchaser and the technical requirements confirmed by both parties, the Seller shall carry on engineering development and shares the engineering development process, technical information and development interests with the Purchaser.

 

依据采购方提供的美国法规以及双方确认的技术要求，销售方应进行技术开发并与采购方共享技术开发流程、技术信息和开发权益。

 

7. Within 14 working days after execution of this agreement, the Purchaser shall make a lumpsum payment of RMB 26 million (or equivalent US dollars) as advance payment for engineering development. In order to support the development progress, the Purchaser shall continue to replenish funds during the development process to ensure that the advance payment for engineering development retained by the Seller is not less than the amount of the aforementioned advance payment. The engineering development costs is based on the scope of work and the working hours approved by both parties in writing with signature and the work carried out afterwards, that is, the Purchaser place each work order with development requirements to the Seller through Exhibit One “Development Work Confirmation List”. According to the development workload requested in Exhibit One, the Seller shall respond with Exhibit Two “Project Development Cost Confirmation List” to the Purchaser to confirm the costs. The Purchaser shall confirm by designated personnel and send the signed Exhibit Two back to the Seller. Both parties make separate settlements for each development order. The Purchaser shall pay the development costs 14 working days after receiving the Seller’s invoice. If the Purchaser’s payment amount for one single order is insufficient and the Seller has to use a portion of the aforementioned advance payment for development, the Purchaser shall replenish the advance payment to RMB 26 million (or equivalent US dollars) within 14 working days of notice from the Seller. Regarding other expenses that the Seller has to pay to its suppliers, such as test fees, mold fees, etc., the Seller shall report to the Purchaser in writing and obtain signature for confirmation, and the Purchaser shall fulfill the budget to ensure that the Seller can complete the procurement bidding. In the event a bidding exceeds the budget and the Seller has to use the aforementioned advance payment to pay for the purchase, the Purchaser shall replenish the advance payment to RMB 26 million (or equivalent US dollars) within 14 working days of notice from the Seller. If the aforementioned advance payment of RMB 26 million (or equivalent US dollars) has a balance, the Seller shall return the balance to the Purchaser within 14 working days after both parties assess that all development work has been accomplished and the Purchaser confirms in writing.

 

本协议签订后14个工作日内，采购方一次性支付2600万元人民币（或等值美元）作为技术开发预付款。为支持开发进度，采购方应在开发过程中持续补充款项以确保销售方留存的技术开发预付款不低于前述预付款的金额。技术开发费以双方核定的工作范围以及工时数书面签字确认后开展工作，即采购方每次通过附件一《开发内容确认清单》向销售方提出开发需求。销售方根据附件一的开发工作量，向采购方反馈附件二《项目开发费用确认清单》对开发费用进行确认。采购方确认无误后由其指定人员在附件二上签字确认并发回销售方。双方对每个开发订单单独结算。采购方收到销售方发票后14个工作日后支付该次开发所需费用。如采购方单次开发费用未足额支付，导致销售方动用前述预付款进行开发的，采购方应在收到销售方通知后的14个工作日内补足前述预付款至2600万元人民币（或等值美元）。关于销售方需向其供应商支付的其他费用如试验费、模具费等，销售方应向采购方书面汇报并获得签字确认，而采购方应提供足额预算确保销售方可以完成采购招标。若招标结果超出预算导致销售方动用前述预付款支付招标采购的，采购方应在收到销售方通知后的14个工作日内补足超出部分，以确保前述预付款达到2600万元人民币（ 或等值美元）。若前述预付款2600万元人民币（或等值美元）尚有余额，销售方应于双方评估所有开发工作达到完成状态并由采购方最终书面确认开发工作完成后的14个工作日内将余额全部退还给采购方。

 

The signature confirmation personnel designated by both parties for the above annexes and other correspondence documents of this Agreement are:

 

The person designated by the seller is 1. Yourong Liu 2. Hongqiao Yu

 

The person designated by the purchaser is 1. James Taylor 2. Jerry Woo

 

双方针对以上附件及本协议其他往来文件指定的签字确认人员为：

 

销售方指定人员为：1， 刘友荣， 2，余洪桥

 

采购方指定人员为 1. James Taylor 2, Jerry Woo

 

-2-

 

 

8. After engineering development orders being confirmed by the Purchaser in writing, the Purchaser shall be responsible for the development results of its compliance with U.S. laws and regulations, and shall be responsible for the legal issues, investigations, disputes and lawsuits in the U.S. that may rise from the development. The Seller shall be responsible to the Purchaser to the extent of quality of the product, but shall make the best efforts to assist the Purchaser in responding to any issues or investigations under U.S. law, and is obliged to provide the Purchaser with the corresponding information and materials required within the time limit provided by laws.

 

技术开发事项经采购方书面确认后，采购方对开发成果符合美国法规负责，对由此可能引发的美国涉及的法律事务、调查、纠纷和诉讼负责。销售方仅限于产品质量对采购方承担相应责任，但需要尽力协助采购方应对美国法律的任何事务和调查，并有义务在法律规定时限内向采购方提供相应所需的信息和资料。

 

9. The Purchaser shall be the only party that responds to data requests and safty investigations from customers in the United States and designated territory, as well as U.S. government agencies. The Seller is responsible for fully cooperating with the Purchaser to provide the necessary information to respond to such inquiries including but not limited to vehicle sales permit, vehicle safety, and after-sales claims.

 

采购方应是对来自美国和指定区域的客户以及美国政府部门的数据请求和安全问题调查作出回应的唯一一方。销售方有责任全力配合采购方提供必要信息以应对包括但不仅限于：整车销售准入、车辆安全、售后索赔的需求。

 

10. Seller and certain suppliers selected and approved by Purchaser shall implement reengineering in accordance with technical requirements that the Purchaser approved.

 

销售方和采购方选定并批准的某些供应商应按照采购方批准的技术要求进行技术改进。

 

11. The plan and update of the project development shall be communicated and discussed completely by both parties, and implemented by both parties upon written confirmation.

 

项目开发计划的制定和更新应经过双方充分沟通讨论，在书面形式确认后双方实施。

 

12. As to New Parts, the Seller recommends the suppliers independently according to the product development progress and requirements, and shall be approved by the Purchaser after considering the price and technical capabilities, then Seller shall be responsible for the timing of the design change and suppliers management; and the relative information shall be shared with Purchaser for approval of technical requirement and price.

 

对于新零件，销售方根据产品开发进度和要求自主推荐的供应商经采购方考虑价格和技术能力批准后，销售方负责设计变更的时间安排和供应商管理；为获得技术要求和价格的批准，相关信息应与采购方共享。

 

-3-

 

 

13. In the process of locating New Parts, in order to obtain technical requirements and price approval, the Seller must obtain the Purchaser’s signed confirmation on the supplier’s selection and determination.

 

在新零件定点过程中，为获得技术要求和价格的批准，销售方须取得采购方对供应商选择和确定的签字确认。

 

14. Respecting the principle of competitiveness, Purchaser shall have the ultimate discretion on selecting and approving suppliers, either Purchaser or Seller shall be responsible for managing the suppliers respectively.

 

鉴于竞争力原则，采购方拥有选择和批准供应商的最终决定权，采购方或销售方分别负责管理各自的供应商。

 

15. Seller shall provide entire and accurate retrieving information according to the key parts list confirmed by both parties.

 

销售方应按照双方确认的关键零部件清单提供完整、准确的追溯信息。

 

16. Seller shall be responsible for development and tests; Purchaser shall be able to participate in the whole course of development and tests.

 

销售方负责开发验证；采购方可以参与开发和验证的全过程。

 

17. Seller shall be responsible for delivery of complete vehicles in the area designated by the Seller in accordance with the inspection standards executed by both parties; the Purchaser is responsible for delivering qualified parts to the area designated by the Seller.

 

销售方负责在销售方指定区域按照双方共同签订的检验标准交付整车；采购方负责将合格零件交付至销售方指定区域。

 

18. Seller shall be responsible for providing after-sales service information and after-sales technical support to vehicle and parts according to the requests confirmed by both parties.

 

销售方按照双方确认的需求提供整车及零部件的售后服务信息和售后技术支持。

 

19. Seller shall supply aftermarket parts to Purchaser upon request.

 

销售方应根据采购方的要求提供售后零件。

 

-4-

 

 

20. For vehicle and parts supplied, technical service and engineering rendered by Seller to Purchaser that priced and calculated in Chinese currency (“RMB”), the price and rate shall apply the exchange rates of the day on which the PO is released, according to “BOC Conversion (Middle) Rate (中行折算價)” posted on the official website at https://www.boc.cn/sourcedb/whpj If the Seller encounters an exchange rate variation at foreign exchange settlement in RMB, it will be adjusted in the next order with regard to the principle of “return overcharge and demand shortage”.

 

对于以中国货币（“RMB”）定价和计算的销售方向采购方提供的车辆和零部件、技术服务和工程，其价格和费率应适用采购订单发布之日的汇率，根据“ 中行折算中间价（中行折算价）” 在其官网https://www.boc.cn/sourcedb/whpj发布。若销售方在接收外汇结算人民币时出现汇率差价，则按照“多退少补”的原则在下一个订单中调整。

 

21. The hourly rate of the technical service provided by Seller shall be 288 RMB/Hour rather than 27.73 USD/Hour in the Original Agreements; and the meeting minutes, resolutions and work products are property of Purchaser’s and subject to audit by Purchaser from time to time.

 

销售方提供技术服务的小时费率为288人民币/小时，而非原协议约定的27.73美元/小时；会议纪要及决议和工作成果是采购方的财产且供采购方随时复核。

 

22. The trading methods between the Seller and the Purchaser are composed of international and China domestic (the time of conversion to China domestic shall be no later than April 1, 2022). The INCOTERM is FOB, which is the Seller delivers the vehicles and parts to port designated by Purchaser, and the Seller is responsible for export customs clearance. If INCOTERMS other than FOB is used, the two parties shall consult with each other in the case. In China domestic trade, the Seller shall contract with the Purchaser’s subsidiary in China. After the seller delivers the vehicles and after-sales parts to the Purchaser, the Purchaser is responsible for export customs clearance, and the Seller assists in providing relevant export documents.

 

销售方和采购方的贸易方式包括国际贸易和中国国内贸易两种方式（转换为中国国内贸易的时间应不迟于2022年4月1日）。国际贸易方式为FOB贸易条款，即销售方将车辆和零部件按采购方的要求运输到指定的港口进行交付，由销售方负责出口报关。如有FOB贸易条款之外的贸易条款，双方再临时友好协商。中国国内贸易为销售方与采购方在中国的子公司签订订单合同，销售方将车辆和售后配件交付采购方后，由采购方负责出口报关，销售方协助提供相关出口单据和文件。

 

-5-

 

 

23. After-sales breach of warranty: as to the vehicles and after-sales parts sold by the Seller to the Purchaser, if there are quality claims in the Purchaser’s sales territory, the Purchaser shall bear the responsibility. The Seller only assists the Purchaser in dealing with the vehicles and after-sales parts, without any tie with third parties related to the quality claims. The Purchaser is responsible for any contact with third parties.

 

售后违约处理：对于销售方销售给采购方的车辆和售后配件，在采购方销售市场出现质量等问题，全部由采购方承担责任，销售方仅针对车辆和售后配件协助采购方处理，不与质量问题的第三方发生任何联系，采购方负责与第三方的任何联系。

 

24. Port of Delivery: the Original Agreements price was based on FOB Shenzhen, and freight for other ports shall be repriced accordingly.

 

货物交付港口：原协议中的FOB中国港口是以FOB深圳为基础价格，其他港口参照此港口另行运费定价。

 

25. Product prices may be adjusted due to fluctuations in raw material prices. Both parties reserve the right to change the price based on the price of the master purchase agreement. Both parties can adjust the sales price based on the raw material price fluctuation released by a third party that is mutually recognized by the parties. If price adjustment is required, both parties shall discuss on the basis of the agreed sales price and implement the adjustment after reaching an agreement.

 

关于产品销售价格可能会因原材料价格上下波动而调整。双方以主采购协议价格为基础，均有保留更改价格的权利。双方可以通过共同认可的由第三方发布的原材料价格波动数据为依据调整销售价格。如需价格调整，双方应以约定的销售价格为基础进行讨论，达成一致后进行调整。

 

26. Both parties develop vehicles that comply with U.S. regulations. The Purchaser performs the sales in North American projecting to the first order of 15,000 vehicles. The Seller provides marketing support, including but not limited to products, promotion, research, information, financing, and after-sales, etc. Both parties share channel and sales interests outside North America.

 

双方开发符合美国法规的车辆。采购方按首期目标1.5万辆整车订单进行北美区域销售。销售方给予营销支持，包括但不限于产品、推广、调研、信息、融资、售后等。北美区域以外双方共享渠道和销售权益。

 

27. This supplemental agreement is binding upon the parties and their successors and may not be assigned without the express written consent of the other party.

 

本补充协议对双方和其继承人具有约束力，未经另一方明确书面同意，不得转让。

 

28. As an integral part of the Original Agreements, this supplementary agreement is effective upon execution by the legal representatives or authorized representatives of both parties and with the company seal or seal of the contract. This supplementary agreement shall have the same effect as the Original Agreements. This supplementary agreement shall prevail if there is any conflict to the Original Agreements. Any issue that is not stipulated in this supplementary agreement shall be performed according to the Original Agreements.

 

本补充协议作为原协议不可分割的一部分，经双方法定代表人或有权代表签字并加盖公司公章或合同专用章后生效，与原协议具备同等效力，发生冲突之处，以本补充协议为准。本补充协议未约定事项，根据原协议执行。

 

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IN WITNESS WHEREOF, the parties have executed this agreement the date and year first above written.

 

兹证明，双方已于上述日期和年份签署本协议。

 

The following three annexes as attached:

 

本协议由如下三个附件。

 

附件一、开发内容确认清单

 

Annex I. Confirmation List of Development Contents

 

附件二、项目开发费用确认清单

 

Annex II. Confirmation List of Project Development Costs

 

附件三、开发流程图

 

Annex III. Development Flow Chart

 

PURCHASER 采购方:   SELLER 供货方:
     
[ELM]   [Liuzhou Wuling Automobile Industry Co., Ltd]
    柳州五菱汽车工业有限公司
     
By: /s/ James Taylor   By: /s/ Yong Rong Liu
Name: JE Taylor   Name:  
Title: CEO   Title:  

 

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附件一Annex I

 

开发内容确认清单 Confirmation List of Development Contents
Item 项目 Part Name 零件名称 Description 描述 Timing (day) 周期(天) Status & Responsibility 状态及责任
Wuling ELM
No.1：
1          
2          
No.2：
1          
2        

 

采购方签字确认：

Signature of purchaser for confirmation: 

 

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附件二：

 

项目开发费用确认清单
序号 开发内容 人工费用（人民币，元，不含税） 工装模具费用（人民币，元，不含税） 合计（人民币，元） 备注
1          
2          
3          
4 ....        
费用小计（人民币，元）        

增值税

增值税附加税

印花税

水利建设基金

管理费

其他

费用含税总计（人民币，元）  -     -       
说明：此附表有关“开发内容”、各税费事项以及涉及的费用、费率和税率如有增减，双方协商确认后进行调整。


采购方签字确认：

 

 

 

 

 

 


销售方签字确认：

 

 

 

  

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 附件三: 开发流程图 Annex III. Development Flow Chart

 

 

 

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