CONVERTIBLE LOAN AGREEMENT


 


WISeKey International Holdings Ltd, a stock
corporation (Aktiengesellschaft) incorporated in Switzerland and registered in the commercial register of the Canton of
Zug under registration number CHE-143.782.707, with its registered office at General-Guisan-Strasse 6, 6300 Zug (the Borrower)
and Crede CG III, Ltd., a limited company incorporated in Bermuda, with registered office at Clarendon House, 2 Church Street,
Hamilton HM 11, Bermuda (the Lender; the Borrower and the Lender each a Party and together the Parties), enter
into this Convertible Loan Agreement (as amended, restated, supplemented or otherwise modified from time to time, the Agreement)
as of September 28, 2018.


 


WHEREAS


 


		(A)	The Lender intends to grant the Borrower a loan in the principal amount of USD 3,000,000 (the Loan),
convertible into registered shares, par value CHF 0.05 each (the Class B Shares), of the Borrower, subject to the terms
and conditions of this Agreement;



 


		(B)	The Borrower intends to accept the Loan, subject to the terms and conditions of this Agreement;
and



 


		(C)	This Agreement documents the terms and conditions upon which the Lender is willing to extend the
Loan to the Borrower, and the Borrower is willing to accept the Loan from the Lender.



 


Now, therefore, the Parties agree
as follows:


 


		1.	Definitions



 


Capitalized terms used in this Agreement
have the meanings assigned to such terms as set forth in the body of this Agreement and referenced on Schedule 1 to this
Agreement


 


		2.	Effective Date



 


This Agreement, and the rights and obligations
hereunder of the Parties, shall become effective subject to and upon the Borrower receiving from the Swiss Federal Tax Administration
(the SFTA) and the competent cantonal tax authority a ruling (the Tax Ruling) confirming, among other things, the
Swiss federal withholding tax neutrality of the Loan grant, the interest payment under the terms hereof, the Conversion and the
creation of reserves from capital contributions upon the Conversion if the Conversion Shares are to be created through the subscription
by an Affiliate of the Borrower of Class B Shares newly issued at par value out of the Borrower's authorized share capital and
held in treasury during the term of this Agreement (the date on which the Borrower notifies the Lender in accordance with Section
7.1 of the receipt of the Tax Ruling, the Effective Date); provided, however, that if the Tax Ruling has not been
obtained within a period of thirty-five (35) Business Days after the date hereof or if the SFTA, before the expiry of the afore-mentioned
thirty-five (35)-Business Day period, rejects the Borrower's request for a positive Tax Ruling, this Agreement and all rights and
obligations of the Parties hereunder, with the exception of the provisions pursuant to Section 6(c) and Section 7, shall lapse,
without any liability of one Party to the other Party.


 






    


    
	Convertible Loan Agreement	 2 | 12




    

 


		3.	Terms of the Loan



 


		(a)	Loan | Principal Amount. The principal amount of the Loan owed by the Borrower to the Lender
under this Agreement (the Principal Amount) shall be USD 3,000,000 (in words: three million U.S. dollar). Any amounts repaid,
in whatever form, shall reduce the Principal Amount and may not be re-borrowed.



 


		(b)	Disbursement. Subject to the satisfaction of all terms and conditions of this Agreement,
the Lender shall be required to make a disbursement of the Loan in the Principal Amount (the Disbursement) to the account
designated by the Borrower no later than 3 (in words: three) Business Days after the Effective Date (the Disbursement Date).



 


		(c)	Interest. The Principal Amount shall bear interest at the Interest Rate. The Borrower shall
pay accrued interest at the Interest Rate on the Principal Amount in arrears on the last Business Day of each calendar year quarter
(each an Interest Payment Date), with the first interest payment accrued on the outstanding Principal Amount due on December
31, 2018. The Borrower may, at its sole election, pay interest on the outstanding Principal Amount by delivering such number of
Class B Shares held in treasury (the Interest Payment Conversion Shares) as corresponds to the quotient of the relevant
interest payment amount due at the relevant Interest Payment Dante and the Interest Conversion Price. The interest accruing on
the outstanding Principal Amount of the Loan shall be calculated on the basis of a 360-day year for the actual number of days elapsed.



 


		(d)	Maturity Date. Except as otherwise provided in this Agreement, the obligations pursuant
to this Agreement shall become due and payable on the Maturity Date in accordance with the terms and conditions of this Agreement.



 


		(e)	Repayment of Principal. The Principal Amount shall be repaid through a delivery of such
number of Class B Shares, or, at the election of the Borrower, any rights (such as American Depository Shares or American Depository
Receipts) representing Class B Shares (if any) of the Borrower (the Conversion), as corresponds to the quotient of the Principal
Amount then outstanding and the Conversion Price (the Class B Shares or rights representing Class B Shares into which the Conversion
occurs hereinafter, together with the Interest Payment Conversion Shares, if any, the Conversion Shares). In order to confirm
the Conversion, the Lender shall be required to deliver to the Borrower at the relevant Conversion Date an exercise notice, duly
executed, substantially in the form set forth on Schedule 3(e) (the Exercise Notice). Upon the Conversion, any fraction
of a Class B Share shall be rounded down to the next whole Class B Share. The Conversion Shares shall be delivered to the Lender
within 2 (in words: two) Trading Days after receipt of the Exercise Notice by the Borrower.



 


		(f)	Conversion Date. The Lender may request a Conversion of the Principal Amount by delivery
of the Exercise Notice at any time after the expiry of 30 calendar days after the Disbursement Date and any time thereafter on
or before the Maturity Date (the date on which Conversion is requested by delivery of the Exercise Notice to the addressees indicated
thereon the Conversion Date, it being understood that the delivery of the relevant number of Class B Shares to the Lender
may take up to 2 (in words: two) Trading Days.



 






    


    
	Convertible Loan Agreement	 3 | 12




    

 


		4.	Representations and Warranties



 


		4.1	Representations and Warranties of the Borrower



 


The Borrower represents and warrants
(sichert zu) to the Lender as of the date hereof, the Disbursement Date and the Conversion Date with reference to the facts
and circumstances then subsisting as follows:


 


		(a)	Organization. The Borrower is a stock corporation (Aktiengesellschaft) duly formed
and existing under the laws of Switzerland, and the execution, delivery and performance of this Agreement is within its organizational
powers, has been duly authorized, is not in contravention of applicable law or its articles of association and does not require
the consent or approval of any third party, including any governmental body, agency or authority.



 


		(b)	Absence of Conflicting Obligations. The execution of this Agreement and compliance with
its terms will not (i) result in a breach of any of the terms and conditions of any material agreement or instrument to which Borrower
is a party or its assets are subject, or (ii) result in the imposition of any lien, charge, or encumbrance upon any property
of Borrower pursuant to, or constituting a default under, any indenture or other agreement or instrument to which Borrower is a
party or by which it is bound.



 


		(c)	Qualification to do Business. The Borrower and each of its Affiliates has the full power
and authority to own, lease and operate its properties and assets and to conduct its business, and is lawfully qualified to do
business in those jurisdictions in which business is conducted by it.



 


		(d)	Capacity. The Borrower has full corporate power and capacity to deliver the Conversion Shares
to be delivered upon conversion of the Loan.



 


		(e)	No Winding-up. The Borrower has not taken any action, nor have any other steps been taken
or legal proceedings commenced or, so far as the Borrower is aware, threatened against it seeking to adjudicate it insolvent or
for its winding up or dissolution or for any similar or analogous proceeding in any jurisdiction, or for it to enter into any arrangement
or composition for the benefit of creditors, or for the appointment of an insolvency administrator, a receiver, administrative
receiver, examiner, trustee or similar officer.



 


		(f)	Capitalization, Shares.



 


		(i)	The share capital of the Borrower registered in the commercial register amounts to CHF 1,738,709.73,
consisting of (A) 26,769,797 Class B Shares and (B) 40,021,988 registered shares with a nominal value of CHF 0.01 each (the shares
pursuant to (A) and (B) collectively the Existing Shares);



 


		(ii)	The Class B Shares are freely tradable and admitted to trading on the SIX; all Existing Shares
have been duly and validly issued, are fully paid and non-assessable;



 


		(iii)	Other than as publicly disclosed by the Borrower, there are no securities or other rights in issue
of the Borrower or any of its subsidiaries that are convertible into or exchangeable for shares of the Borrower (it being acknowledged
by the Lender that the Borrower has issued, and will be issuing after the date hereof, options and other rights to acquire Class
B Shares in accordance with the terms of its equity compensation plans), and there are neither any claims against the Borrower
to buy nor any obligations of the Borrower or any of its subsidiaries to issue, any shares of the Borrower; other than publicly
disclosed, there are no restrictions on the transfer or voting of any of the Existing Shares of the Borrower pursuant to the Borrower’s
Articles of Association, any applicable law or any agreement to which the Borrower is a party;



 






    


    
	Convertible Loan Agreement	 4 | 12




    

 


		(iv)	Subject to compliance with the statutory provisions of Swiss corporate law, there are no restrictions
on the payment of dividends on the Existing Shares;



 


		(v)	The Conversion Shares to be delivered upon Conversion in accordance with the terms of this Agreement:



 


		(A)	will, if and when an Exercise Notice is delivered in accordance with the terms of this Agreement,
be validly issued, fully paid and non-assessable; and



 


		(B)	will, if and when an Exercise Notice is delivered in accordance with the terms of this Agreement,
rank pari passu and be fungible with the outstanding Class B Shares and/or the outstanding rights representing Class B Shares
in issue on the relevant Conversion Date;



 


		(vi)	(A) No material public statement contains an untrue statement of material fact or omits to state
a fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they
were made, not misleading in any material respect, in each case as at the date it was made; and (B) in respect of each such public
statement, when taken together with all other such public statements, no circumstances have arisen which would result in such statement
containing an untrue statement of material fact or omitting to state a fact required to be stated therein or necessary to make
the statements therein, in light of the circumstances under which they were made, not misleading in any material respect as at
each date on which this representation is made or repeated;



 


		(vii)	All expressions of intention or expectation contained in the Borrower’s public statements
are truly and honestly held and have been made on reasonable grounds after due and careful consideration and enquiry;



 


		(viii)	To the best knowledge of the Borrower as of the respective dates on which this representation is
given, no false or materially misleading information has been provided by the Borrower to the Lender or their advisors which has
not been subsequently corrected prior to the date on which this representation is given;



 


		(ix)	Except for the transactions contemplated by this Agreement, the Borrower is not aware of any price-sensitive
information required to be disclosed pursuant to the rules and regulations of the SIX with respect to the Borrower or its securities;



 


		(g)	Financial Information. The Borrower's audited consolidated financial statements for the
financial years ended on 31 December 2017 and the Borrower’s consolidated financial statements for the six months ended 30
June 2018 each give a true and fair view of the assets, the liabilities and the financial position of the Borrower and its group
as at the date as of which they were prepared (the Relevant Date) and of the results of the operations of the Borrower and
its group for the financial year or, as the case may be, period ended on the Relevant Date;



 


		(h)	Material Adverse Effect. Since 30 June 2018, there has been, save as publicly disclosed
by the Borrower as of the date of this Agreement, no Material Adverse Effect;



 






    


    
	Convertible Loan Agreement	 5 | 12




    

 


		(i)	Monitoring. The Borrower (A) makes and keeps accurate books, accounts, records which fairly
reflect the transactions and dispositions of assets of such entity and (B) maintains internal accounting controls which provide
reasonable assurance that (i) transactions are executed in accordance with management's authorisation, (ii) transactions are recorded
as necessary to permit preparation of its financial statements and to maintain accountability for its assets and (iii) access to
its assets is permitted only in accordance with management's authorization; and



 


		(j)	Stabilisation/Manipulation: Neither the Borrower nor any of its Affiliates, nor any Person
acting on its or their behalf has taken, or will take, directly or indirectly, any action which was designed to (or which might
reasonably be expected to) cause or result in or caused or resulted in the stabilisation or manipulation of the price of the Class
B Shares or any securities or other documents that embody the right to receive Class B Shares or other securities of the Issuer.



 


		4.2	Representations and Warranties
of the Lender



 


The Lender represents and warrants
(sichert zu) to the Borrower as of the date hereof, the Disbursement Date and the Conversion Date with reference to the
facts and circumstances then subsisting as follows as follows:


 


		(a)	Organization. The Lender is a limited company duly formed and existing under the laws of
Bermuda, and the execution, delivery and performance of this Agreement is within its organizational powers, has been duly authorized,
is not in contravention of applicable law or its articles of association and does not require the consent or approval of any third
party, including any governmental body, agency or authority.



 


		(b)	Swiss Federal Withholding Tax. The Lender is considered one (1) creditor only for Swiss
federal withholding tax purposes.



 


		5.	Conditions Precedent to Disbursement



 


Notwithstanding any other terms
of this Agreement, the Lender shall not be required to make the Disbursement unless all of the following conditions are met at
or prior to the Disbursement Date of the Loan:


 


		(a)	Continued Listing. The Class B Shares continue to be listed on the SIX and the Borrower
continues to satisfy the prerequisites for a continued listing on the SIX.



 


		(b)	Representations True. The Borrower’s representations
and warranties (Zusicherungen) in this Agreement are in all material respects true as of the Disbursement Date, unless the
applicable representation or warranty is made as of a specific date, in which case the representation was true and correct in all
material respects as of that date.



 


		(c)	Compliance With Covenants. The Borrower shall have complied with its covenants and obligations
under this Agreement in all material respects.



 


		(d)	No Event of Default. No Event of Default under this Agreement exists.



 






    


    
	Convertible Loan Agreement	 6 | 12




    

 


		6.	Other Covenants and Agreements



 


		(a)	Option to Acquire Class B Shares. The Borrower and the Lender shall, on or before the Disbursement
Date, with effect as of and subject to the Disbursement, execute the option agreement in the form attached hereto as Schedule
6(a).



 


		(b)	Payments. All payments with respect to this Agreement to be made in cash shall be made to
the Lender by wire transfer of immediately available funds denominated in U.S. dollars to an account as specified by the Lender
reasonably prior to the maturity for any payment hereunder.



 


		(c)	Expenses. Each Party bears its own costs incurred in connection with this Agreement; provided,
however, that the Borrower shall be responsible and liable to the Lender for the payment of the Legal Expenses.



 


		(d)	Tax Indemnity. The Borrower shall indemnify the Lender for any withholding or deduction
for or on account of, any taxes, duties, assessments or governmental charges of whatever nature imposed, levied, collected, withheld
or assessed by or on behalf of Switzerland, or any political subdivision or any authority thereof or therein having power to tax,
in connection with the issuance and/or delivery of the Conversion Shares.



 


		(e)	Lender Trading Limitation. For as long as the Lender holds any Conversion Shares, the Lender
undertakes to limit on any Trading Day its, its Affiliates' or any related Person's trading in any of the Class B Shares or rights
representing Class B Shares to 20% or less of the daily trading volume in Class B Shares or rights representing Class B Shares
on and as reported by the SIX or, as the case may be, on and as reported by any other stock exchange.



 


		7.	General Provisions



 


		7.1	Notices



 


		(a)	All notices or other communications to be given under or in connection with this Agreement shall
be in writing and delivered by hand or sent (postage prepaid) by registered, certified or express mail (return receipt requested),
courier, facsimile or by electronic transmission in .pdf format or similar format as follows:



 





	 	 	Marianne Acosta
	 	 	 
	if to the Lender:	 	 
	 	 	 
	 	 	Crede Capital Group, LLC

        11601 Wilshire Blvd, Suite 1100

        Los Angeles, CA 90025

        Tel: +1 (310) 444-4346

        E-Mail: Macosta@CredeCG.com

        Fax: +1 (310) 444-4394




 





	with a copy to:	 	Michael
Wachs
	 	 	Crede Capital Group, LLC,

        211 East 43rd Street -4th Floor,

        NY, NY 10017

        Tel: +1 (646) 278-6785

        E-Mail: michael@credecg.com

        Fax: +1 (212) 732-1131




 






    


    
	Convertible Loan Agreement	 7 | 12




    

 





	if to the Borrower:	 	Peter Ward,
Chief Financial Officer
	 	 	WISeKey International Holding
Ltd Chief Financial Officer


General-Guisan-Strasse
6, 6300 Zug


Switzerland


E-mail:
peter.ward@wisekey.com


Fax: +41 22 594 30 01





 





	with a copy to:	 	David Oser
	 	 	Homburger
AG 


Prime
Tower


Hardstrasse
201


8005
Zurich, Switzerland


E-Mail:
david.oser@homburger.ch


Fax: +41 43 222 15 00





 





		(b)	Notices delivered by hand shall be deemed delivered when actually delivered. Notices given by courier
shall be deemed delivered on the date delivery is promised by the courier. Notices given by facsimile or by electronic transmission
shall be deemed given on the date of receipt (if a Business Day), otherwise the first Business Day following receipt; provided
that a notice delivered by facsimile or electronic transmission shall only be effective if such notice is also delivered by hand,
registered mail, or given by courier on or before two (2) Business Days after its delivery by facsimile or electronic transmission.



 


		7.2	Entire Agreement



 


This Agreement, including the
Schedules, Annexes and any other documents referred to herein, constitutes the entire agreement and understanding among the Parties
with respect to the subject matter hereof, and supersedes all prior oral or written agreements and understandings of the Parties
relating to such subject matter.


 


		7.3	Amendment and Waiver



 


This Agreement may only be modified
or amended by a document signed by both Parties. Compliance with any term or provision contained in this Agreement by the Party
that was or is obligated to comply or perform with such term or provision may only be waived by a document signed by the Party
waiving such compliance.


 


		7.4	No Assignment



 


The Lender shall not have the
right to assign this Agreement or any rights or obligations hereunder without the prior written consent of the Borrower.


 


		7.5	Confidentiality



 


The Lender agrees to keep all
information under or in connection with this Agreement confidential and not to disclose such information to anyone other than its
agents, Affiliates, and counsel, as long as it remains non-public, save to the extent required by law, regulation, administrative
or court order. For the avoidance of doubt, nothing in this Agreement shall limit the Borrower from complying with its applicable
disclosure obligations based on applicable law and regulations, including stock exchange regulations.


 






    


    
	Convertible Loan Agreement	 8 | 12




    

 


		7.6	Severability



 


If any part or provision of this
Agreement or the application of any such part or provision to any Person or circumstance shall be held to be invalid, illegal or
unenforceable in any respect by any competent arbitral tribunal, court, governmental or administrative authority, (a) such invalidity,
illegality or unenforceability shall not affect any other part or provision of this Agreement or the application of such part or
provision to any other Person or circumstances, and (b) the Parties shall endeavour to negotiate a substitute provision that best
reflects the economic intentions of the Parties without being invalid, illegal or unenforceable, and shall execute all agreements
and documents required for its implementation.


 


		7.7	Counterparts; Delivery by Electronic Transmission



 


This Agreement may be executed
and delivered by each party in separate counterparts, each of which when so executed and delivered shall be deemed an original
and all of which taken together shall constitute one and the same Agreement. This Agreement and any other transaction document
relating to this Agreement, and any amendments hereto or thereto, to the extent signed and delivered by means of a facsimile machine
or other electronic transmission (e.g., email delivery in .pdf format or similar format), shall be treated in all manner and respects
as an original contract and shall be considered to have the same binding legal effects as if it were the original signed version
thereof delivered in person.


 


		8.	Governing Law and Jurisdiction



 


		(a)	Governing Law. This Agreement and any claim, controversy or dispute arising out of or related
to this Agreement, any of the transactions contemplated hereby, the relationship of the Parties hereunder, or the interpretation
and enforcement of the rights and duties of the Parties, whether arising in contract, tort or otherwise, shall be governed by and
construed in accordance with the substantive laws of Switzerland.



 


		(b)	Jurisdiction. The exclusive place of jurisdiction for any dispute, claim or controversy
arising under, out of or in connection with or related to this Agreement (or subsequent amendments thereof), including, without
limitation, disputes, claims or controversies regarding its existence, validity, interpretation, performance, breach or termination,
shall be the city of Zurich, Switzerland.



 


[Signatures on the Next Page]


 






    


    
	Convertible Loan Agreement	 9 | 12




    

 


IN WITNESS WHEREOF, the Borrower and the
Lender, each by its duly authorized officers, have executed this Agreement as of the day and year first written above.


 


	
        WISeKey International Holding
Ltd.

	 	
        

        

	 	 	 
	/s/ Carlos Moreira	 	/s/ Peter Ward
	Carlos Moreira	 	Peter Ward
	Chief Executive Officer | Chairman of the Board of Directors	 	Chief Financial Officer | Member of the Board of Directors
	 	 	 
	
        Crede CG III, Ltd.
	 	 
	 	 	 
	/s/	 	 


 






    


    
	Convertible Loan Agreement	 10 | 12




    

 


Schedule 1 | Definitions


 


A.       Terms Defined
in the Body of the Agreement 


 


 


	Agreement	1	 	Interest Conversion VWAP Period	12
	Borrower	1	 	Interest Payment Conversion Shares	2
	Class B Shares	1, 14	 	Interest Payment Date	2
	Conversion	2	 	Lender	1
	Conversion Date	3	 	Loan	1
	Conversion Shares	2	 	Parties	1
	Converted Amount	14	 	Party	1
	Convertible Loan Agreement	14	 	Principal Amount	2
	Convertible Note	14	 	Relevant Date	5
	Disbursement	2	 	SFTA	1
	Disbursement Date	2	 	Share Conversion VWAP Period	11
	Effective Date	1	 	Tax Ruling	1
	Exercise Notice	2	 	VWAP	11
	Existing Shares	4	 	 	 


 





 


B.       Other
Definitions


 


As used in this Agreement in capitalized
form, the following terms shall have the following meaning:


 


Affiliate shall mean a Person that
exercises Control over a second Person, or is under Control by it, or is under common Control by the same Person.


 


Business Day means a day (other
than a Saturday, Sunday or public holiday) when banks in Zurich, Switzerland, are open for business.


 


Control shall be deemed to exist
if a Person (either alone or with its Affiliates) owns more than half of the voting rights or equity capital of a Person, or is
otherwise able to exercise a controlling influence over another Person.


 


Conversion Price shall mean 93%
of the average of the two lowest daily volume-weighted average prices of the Class B Shares (VWAP) quoted on the SIX during
the 10 (in words: ten) Trading Days immediately preceding the relevant Conversion Date or, as the case may be, the date on which
an Event of Default occurs (any such period the Share Conversion VWAP Period), disregarding for purposes of determining
the Conversion Price any Trading Day during the Share Conversion VWAP Period on which the Lender, any of its Affiliates or any
Person related to the Lender or its Affiliates has effected any trade in Class B Shares or securities related to Class B Shares,
converted into U.S. dollars at the exchange rate on the relevant Conversion Date, using as exchange rate the exchange rate reported
by Bloomberg at 9 a.m. Swiss time on the Conversion Date.


 


Event of Default means any of the
following events: (i) the Borrower’s Class B Shares are delisted from the SIX, or (ii) the Borrower's inability, or the admission
by the Borrower of its inability, to pay its debt as they fall due (zahlungsunfähig), the Borrower's suspension of,
or threat to suspend, payments on any of its debt, the Borrower's over-indebtedness (Überschul-dung) not cured within
the applicable grace period, or the initiation against the Borrower or the initiation by the Borrower of: (1) bankruptcy proceedings
(Konkurs) ending with the opening of bankruptcy (Konkurseröffnung), (2) proceedings leading to a provisional
or a definitive composition moratorium (provisorische oder definitive Nachlassstundung) if such moratorium is granted, (3)
proceedings leading to an emergency moratorium (Notstundung), (4) proceedings for a postponement of bankruptcy pursuant
to Article 725a of the Swiss Code of Obligations (Konkursaufschub) or (5) any proceeding pursuant to Article 731b of the
Swiss Code of Obligations if the judge orders any such measures.


 






    


    
	Convertible Loan Agreement	 11 | 12




    

 


Legal Expenses means all documented
legal fees reasonably incurred by Lender in connection with this Agreement up to an amount of USD 30,000.


 


Interest Conversion Price shall
mean 93% of the average of the two lowest daily volume-weighted average prices quoted on the SIX during the 10 (in words: ten)
Trading Days immediately preceding the relevant Interest Payment Date (the Interest Conversion VWAP Period), disregarding
for purposes of determining the Interest Conversion Price any Trading Day during the Interest Conversion VWAP Period on which the
Lender, any of its Affiliates or any Person related to the Lender or its Affiliates has effected any trade in Class B Shares or
securities related to Class B Shares, converted into U.S. dollars at the exchange rate on the relevant Interest Payment Date, using
as exchange rate the exchange rate reported by Bloomberg at 9 a.m. Swiss time on the Interest Payment Date.


 


Interest Rate means a per annum
rate of interest equal to ten percent (10%).


 


Material Adverse Effect shall mean
an event, change or occurrence which, individually or together with any other event, change or occurrence, could have a material
adverse effect on the business, assets, liabilities or financial position of the Borrower and its assets taken as a whole.


 


Maturity Date shall mean the two-year
anniversary date of the date hereof (or if such date is not a Business Day, the next Business Day) or, in the event of an Event
of Default, the date on which the Event of Default occurred (or if such date is not a Business Day, the next Business Day).


 


Person means any individual, sole
proprietorship, partnership, joint venture, trust, limited liability company, unincorporated organization, association, corporation,
government, or any agency or political division thereof, or any other entity.


 


SIX means SIX Swiss Exchange Ltd.
and the stock exchange operated by it.


 


Trading Days means any day that
is a trading day on the SIX Swiss Exchange.


 






    


    
	Convertible Loan Agreement	 12 | 12




    

 


Schedule 3(e) | Form of Exercise Notice


 


Ladies and Gentlemen:


 


The undersigned is the holder of a convertible
instrument (the Convertible Note) granted to it by the Borrower on September ______, 2018, pursuant to the terms of the
convertible loan agreement (the Convertible Loan Agreement), such Convertible Note representing the right of the Lender
to purchase and receive from the Borrower, and the obligation of the Borrower to issue to the Lender, a specified number of registered
shares, par value CHF 0.05 each (the Class B Shares), at an issue price per Class B Share corresponding to the Conversion
Price of CHF _____ by way of set-off with the Principal Amount. A copy of the Convertible Note as included in the Convertible Loan
Agreement is attached hereto as Annex 1.


 


Capitalized terms shall have the meaning
set forth in the Convertible Loan Agreement dated as of September ______, 2018.


 


We hereby exercise the right to Conversion
pursuant to Section 3(e) of the Convertible Loan Agreement in respect of the Principal Amount, corresponding to CHF _____ (the
Converted Amount). We hereby declare to set off the Converted Amount with our obligation to pay in the aggregate issue price
of CHF ______ for _____ Class B Shares (such number of Class B Shares calculated by dividing the Converted Amount by Conversion
Price (i.e., CHF _____).


 


[We hereby confirm that neither we, any
of our Affiliates or any Person related to us or our Affiliates has, during the Share Conversion VWAP Period, effected any trade
in Class B Shares or securities related to Class B Shares.] [We [or, as applicable: one of our Affiliates, a Person related to
us or our Affiliates] has effected a trade in Class B Shares or securities related to Class B Shares on the following Trading Days
during the Share Conversion VWAP Period: [■]. The Conversion Price used in this Exercise Period has therefore been determined,
in compliance with the requirements pursuant to the Convertible Loan Note as outlined in the "Conversion Price" definition,
without any regard to any such Trading Day(s).]


 


The newly issued Class B Shares shall
be delivered via Euroclear to: ______________________________


 


Yours sincerely,


 





	Crede CG III, Ltd.