Exhibit 10.1


 


FORM OF STOCK PURCHASE
AGREEMENT


 


This SECURITIES
PURCHASE AGREEMENT (this “Agreement”), dated as of February 21, 2014, is by and among Dehaier Medical Systems
Limited, a British Virgin Islands company with headquarters located at Room 501, Jiuzhou Plaza, 83 Fuxing Road, Haidian District,
Beijing 100856, People’s Republic of China (the “Company”), and each of the investors listed on the
Schedule of Buyers attached hereto (individually, a “Buyer” and collectively, the “Buyers”).


RECITALS


 


		A.	The Company and each Buyer desire to enter into this
transaction to purchase the Registered Shares (as defined below) and Warrants (as defined below) set forth herein pursuant to
a currently effective shelf registration statement on Form S-3, which has at least $25,000,000 of unallocated securities, including
Common Shares (as defined below) and warrants registered thereunder (Registration Number 333-178268) (the “Registration
Statement”), which Registration Statement has been declared effective in accordance with the Securities Act of 1933,
as amended (the “1933 Act”), by the United States Securities and Exchange Commission (the “SEC”).



 


		B.	Each Buyer wishes to purchase, and the Company wishes
to sell, upon the terms stated in this Agreement, (i) the aggregate number of common shares, $0.002731 par value per share, of
the Company (the “Common Shares”) set forth opposite such Buyer’s name in column (3) on the Schedule
of Buyers (which aggregate amount for all Buyers shall be 734,700 Common Shares and shall collectively be referred to herein as
the “Registered Shares”), and (ii) a warrant to initially acquire up to the aggregate number of Common Shares
set forth opposite such Buyer’s name in column (4) on the Schedule of Buyers, as evidenced by a certificate in the form
attached hereto as Exhibit A (the “Warrants”) (as exercised, collectively, the “Warrant
Shares”).



 


		C.	The Registered Shares, the Warrants and the Warrant Shares
are collectively referred to herein as the “Securities.”



 


AGREEMENT


 


NOW, THEREFORE, in
consideration of the premises and the mutual covenants contained herein and for other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, the Company and each Buyer hereby agree as follows:


 






    	 



    	 



    

 


		1.	PURCHASE AND SALE OF COMMON SHARES AND WARRANTS.



 


		(a)	Registered Shares and Warrants. The Company shall
issue and sell to each Buyer, and each Buyer severally, but not jointly, shall purchase from the Company on the Closing Date (as
defined below), such aggregate number of Registered Shares as is set forth opposite such Buyer’s name in column (3) on the
Schedule of Buyers along with Warrants to initially acquire up to that aggregate number of Warrant Shares as is set forth opposite
such Buyer’s name in column (4) on the Schedule of Buyers.





 


		(b)	Closing. The closing (the “Closing”)
of the purchase of the Registered Shares and the Warrants by the Buyers shall occur at the offices of Greenberg Traurig, LLP,
MetLife Building, 200 Park Avenue, New York, NY 10166 or such other place as the parties shall agree. The date and time of the
Closing (the “Closing Date”) shall be 10:00 a.m., New York time, on the third (3rd) Trading Day
(as defined in the Warrants) after the date hereof (or such earlier date as is mutually agreed to by the Company and each Buyer).
As used herein “Business Day” means any day other than a Saturday, Sunday or other day on which commercial
banks in New York, New York are authorized or required by law to remain closed.





 


		(c)	Purchase Price. The aggregate purchase price for
the Registered Shares and the Warrants to be purchased by each Buyer (the “Purchase Price”) shall be the amount
set forth opposite such Buyer’s name in column (5) on the Schedule of Buyers.



 


		(d)	Payment of Purchase Price; Deliveries. On the
Closing Date, (i) each Buyer shall pay its respective Purchase Price to the Company for the Registered Shares and the Warrants
to be issued and sold to such Buyer at the Closing, by wire transfer of immediately available funds in accordance with the Company’s
written wire instructions (less, in the case of the lead Buyer, the amounts withheld pursuant to Section 4(i)) and (ii) the
Company shall (A) cause Computershare, Inc. (together with any subsequent transfer agent, the “Transfer Agent”)
through the Depository Trust Company (“DTC”) Fast Automated Securities Transfer Program, to credit such aggregate
number of Registered Shares that such Buyer is purchasing as is set forth opposite such Buyer’s name in column (3) of the
Schedule of Buyers to such Buyer’s or its designee’s balance account with DTC through its Deposit/Withdrawal at Custodian
system, (B) deliver to each Buyer a Warrant pursuant to which such Buyer shall have the right to initially acquire up to that
aggregate number of Warrant Shares as is set forth opposite such Buyer’s name in column (4) of the Schedule of Buyers, duly
executed on behalf of the Company and registered in the name of such Buyer or its designee and (C) deliver to each such Buyer
the other documents, instruments and certificates set forth in Section 6(a)(ii) duly executed on behalf of the Company.



 


		2.	BUYER’S REPRESENTATIONS AND WARRANTIES.



 


Each Buyer, severally
and not jointly, represents and warrants to the Company with respect to only itself that:


 


		(a)	Organization; Authority. Such Buyer is an entity
duly organized, validly existing and in good standing under the laws of the jurisdiction of its organization with the requisite
power and authority to enter into and to consummate the transactions contemplated by the Transaction Documents (as defined below)
to which it is a party and otherwise to carry out its obligations hereunder and thereunder.



 






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		(b)	Validity; Enforcement. This Agreement has been
duly and validly authorized, executed and delivered on behalf of such Buyer and constitutes the legal, valid and binding obligations
of such Buyer enforceable against such Buyer in accordance with its terms, except as such enforceability may be limited by general
principles of equity or applicable bankruptcy, insolvency, reorganization, moratorium, liquidation and other similar laws relating
to, or affecting generally, the enforcement of applicable creditors’ rights and remedies.



 


		(c)	No Conflicts. The execution, delivery and performance
by such Buyer of this Agreement and the consummation by such Buyer of the transactions contemplated hereby will not (i) result
in a violation of the organizational documents of such Buyer, (ii) conflict with, or constitute a default (or an event which with
notice or lapse of time or both would become a default) under, or give to others any rights of termination, amendment, acceleration
or cancellation of, any agreement, indenture or instrument to which such Buyer is a party or (iii) result in a violation of any
law, rule, regulation, order, judgment or decree (including federal and state securities laws) applicable to such Buyer, except,
in the case of clauses (ii) and (iii) above, for such conflicts, defaults, rights or violations which would not, individually
or in the aggregate, reasonably be expected to have a material adverse effect on the ability of such Buyer to perform its obligations
hereunder.



 


		(d)	Certain Trading Activities. Such Buyer has not
directly or indirectly, nor has any Person acting on behalf of or pursuant to any understanding with such Buyer, engaged in any
transactions in the securities of the Company (including, without limitation, any Short Sales (as defined below) involving the
Company’s securities) during the period commencing as of the time that such Buyer was first contacted by the Placement Agent
(as defined below) regarding the specific investment in the Company contemplated by this Agreement and ending immediately prior
to the execution of this Agreement by such Buyer. “Short Sales” means all “short sales” as defined
in Rule 200 promulgated under Regulation SHO under the 1934 Act (as defined below) (but shall not be deemed to include the location
and/or reservation of borrowable shares of Common Stock). Such Buyer is aware that Short Sales and other hedging activities may
be subject to applicable federal and state securities laws, rules and regulations and such Buyer acknowledges that the responsibility
of compliance with any such federal or state securities laws, rules and regulations is solely the responsibility of such Buyer.



 


		3.	REPRESENTATIONS AND WARRANTIES OF THE COMPANY.



 


The Company represents
and warrants to each of the Buyers that:


 


		(a)	Organization and Qualification. Each of the Company
and each of its Subsidiaries are entities duly organized and validly existing and in good standing under the laws of the jurisdiction
in which they are formed, and have the requisite power and authority to own their properties and to carry on their business as
now being conducted and as presently proposed to be conducted. Each of the Company and each of its Subsidiaries is duly qualified
as a foreign entity to do business and is in good standing in every jurisdiction in which its ownership of property or the nature
of the business conducted by it makes such qualification necessary, except to the extent that the failure to be so qualified or
be in good standing would not reasonably be expected to have a Material Adverse Effect (as defined below). As used in this Agreement,
“Material Adverse Effect” means any material adverse effect on (i) the business, properties, assets, liabilities,
operations (including results thereof), condition (financial or otherwise) or prospects of the Company or any Subsidiary, either
individually or taken as a whole, (ii) the transactions contemplated hereby or in any of the other Transaction Documents or (iii)
the authority or ability of the Company to perform any of its obligations under any of the Transaction Documents. Other than the
Persons (as defined below) set forth in the SEC Documents (as defined below), the Company has no Subsidiaries. “Subsidiaries”
means any Person in which the Company, directly or indirectly, (A) owns any of the outstanding share capital or holds any equity
or similar interest of such Person or (B) controls or operates all or any part of the business, operations or administration of
such Person, and each of the foregoing, is individually referred to herein as a “Subsidiary.”



 






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		(b)	Authorization; Enforcement; Validity. The Company
has the requisite power and authority to enter into and perform its obligations under this Agreement and the other Transaction
Documents and to issue the Securities in accordance with the terms hereof and thereof. The execution and delivery of this Agreement
and the other Transaction Documents by the Company and the consummation by the Company of the transactions contemplated hereby
and thereby (including, without limitation, the issuance of the Registered Shares, the issuance of the Warrants and the reservation
for issuance and issuance of the Warrant Shares issuable upon exercise of the Warrants) have been duly authorized by the Company’s
board of directors and (other than the filing with the SEC of the prospectus supplement required by the Registration Statement
pursuant to Rule 424(b) under the 1933 Act (the “Prospectus Supplement”) supplementing the base prospectus
forming part of the Registration Statement (the “Prospectus”) and any other filings as may be required by any
state securities agencies) no further filing, consent or authorization is required by the Company, its board of directors or its
shareholders or other governing body. This Agreement has been, and the other Transaction Documents will be prior to the Closing,
duly executed and delivered by the Company, and each constitutes the legal, valid and binding obligations of the Company, enforceable
against the Company in accordance with its respective terms, except as such enforceability may be limited by general principles
of equity or applicable bankruptcy, insolvency, reorganization, moratorium, liquidation or similar laws relating to, or affecting
generally, the enforcement of applicable creditors’ rights and remedies and except as rights to indemnification and to contribution
may be limited by federal or state securities law. “Transaction Documents” means, collectively, this Agreement,
the Warrants, the Irrevocable Transfer Agent Instructions (as defined below) and each of the other agreements and instruments
entered into or delivered by any of the parties hereto in connection with the transactions contemplated hereby and thereby, as
may be amended from time to time.



 


		(c)	Issuance of Securities; Registration Statement.
The issuance of the Registered Shares and the Warrants are duly authorized and, upon issuance in accordance with the terms of
the Transaction Documents, will be validly issued, fully paid and non-assessable and free from all preemptive or similar rights,
taxes, or Encumbrances (as defined below) with respect to the issuance thereof. As of the Closing, the Company shall have reserved
from its duly authorized share capital not less than 125% of the maximum number of Common Shares issuable upon exercise of the
Warrants (without taking into account any limitations on the exercise of the Warrants set forth therein). The issuance of the
Warrant Shares is duly authorized, and upon exercise in accordance with the Warrants, the Warrant Shares, when issued, will be
validly issued, fully paid and non-assessable and free from all preemptive or similar rights, taxes, liens, charges and other
encumbrances with respect to the issue thereof, with the holders being entitled to all rights accorded to a holder of Common Shares.
The issuance by the Company of the Securities has been registered under the 1933 Act, the Securities are being issued pursuant
to the Registration Statement and all of the Registered Shares and Warrants are freely transferable and freely tradable by each
of the Buyers without restriction. The Registration Statement is effective and available for the issuance of the Securities thereunder
and the Company has not received any notice that the SEC has issued or intends to issue a stop-order with respect to the Registration
Statement or that the SEC otherwise has suspended or withdrawn the effectiveness of the Registration Statement, either temporarily
or permanently, or intends or has threatened in writing to do so. The “Plan of Distribution” section under the Registration
Statement permits the issuance and sale of the Securities hereunder and as contemplated by the other Transaction Documents. Upon
receipt of the Securities, each of the Buyers will have good and marketable title to the Securities. The Registration Statement
and any prospectus included therein, including the Prospectus and the Prospectus Supplement, complied in all material respects
with the requirements of the 1933 Act and the Securities Exchange Act of 1934, as amended (the “1934 Act”)
and the rules and regulations of the SEC promulgated thereunder and all other applicable laws and regulations. At the time the
Registration Statement and any amendments thereto became effective, at the date of this Agreement and at each deemed effective
date thereof pursuant to Rule 430B(f)(2) of the 1933 Act, the Registration Statement and any amendments thereto complied and will
comply in all material respects with the requirements of the 1933 Act and did not and will not contain any untrue statement of
a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein not
misleading. The Prospectus and any amendments or supplements thereto (including, without limitation the Prospectus Supplement),
at the time the Prospectus or any amendment or supplement thereto was issued and at the Closing Date, complied, and will comply,
in all material respects with the requirements of the 1933 Act and did not, and will not, contain any untrue statement of a material
fact or omit to state a material fact necessary in order to make the statements therein, in light of the circumstances under which
they were made, not misleading. The Company meets all of the requirements for the use of Form S-3 under the 1933 Act for the offering
and sale of the Securities contemplated by this Agreement and the other Transaction Documents, and the SEC has not notified the
Company of any objection to the use of the form of the Registration Statement pursuant to Rule 401(g)(1) under the 1933 Act. The
Registration Statement meets the requirements set forth in Rule 415(a)(1)(x) under the 1933 Act. At the earliest time after the
filing of the Registration Statement that the Company or another offering participant made a bona fide offer (within the meaning
of Rule 164(h)(2) under the 1933 Act) relating to any of the Securities, the Company was not and is not an “Ineligible Issuer”
(as defined in Rule 405 under the 1933 Act). The Company (i) has not distributed any offering material in connection with the
offer or sale of any of the Securities and (ii) until no Buyer holds any of the Securities, shall not distribute any offering
material in connection with the offer or sale of any of the Securities to, or by, any of the Buyers (if required), in each case,
other than the Registration Statement, the Prospectus or the Prospectus Supplement. The offering of the Securities has been registered
with the SEC on Form S-3 under the 1933 Act, and the Securities are being offered pursuant to Rule 415 promulgated under the 1933
Act.



 






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		(d)	No Conflicts. The execution, delivery and performance
of the Transaction Documents by the Company and the consummation by the Company of the transactions contemplated hereby and thereby
(including, without limitation, the issuance of the Registered Shares, the Warrants and Warrant Shares and the reservation for
issuance of the Warrant Shares) will not (i) result in a violation of the Certificate of Incorporation (as defined below) (including,
without limitation, any certificate of designation contained therein) or other organizational documents of the Company or any
of its Subsidiaries, any share capital of the Company, or Memorandum of Association (as defined below), (ii) conflict with, or
constitute a default (or an event which with notice or lapse of time or both would become a default) under, or give to others
any rights of termination, amendment, acceleration or cancellation of, any agreement, indenture or instrument to which the Company
or any of its Subsidiaries is a party or (iii) result in a violation of any law, rule, regulation, order, judgment or decree (including,
without limitation, foreign, federal and state securities laws and regulations and the rules and regulations of the Nasdaq Capital
Market (the “Principal Market”) and including all applicable federal laws, rules and regulations) applicable
to the Company or any of its Subsidiaries or by which any property or asset of the Company or any of its Subsidiaries is bound
or affected, except, in the case of clause (ii) or (iii) above, to the extent such violations could not reasonably be expected
to have a Material Adverse Effect.



 






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		(e)	Consents. Except for the filing of the Company’s
Listing of Additional Shares application with the Principal Market, the Company is not required to obtain any consent from, authorization
or order of, or make any filing or registration with (other than the filing with the SEC of the Prospectus Supplement and any
other filings as may be required by any state securities agencies), any Governmental Entity (as defined below) or any other Person
in order for it to execute, deliver or perform any of its obligations under, or contemplated by, the Transaction Documents, in
each case, in accordance with the terms hereof or thereof. All consents, authorizations, orders, filings and registrations which
the Company is required to obtain at or prior to the Closing have been obtained or effected on or prior to the Closing Date, and
neither the Company nor any of its Subsidiaries are aware of any facts or circumstances which might prevent the Company from obtaining
or effecting any of the registration, application or filings contemplated by the Transaction Documents. The Company is not in
violation of the requirements of the Principal Market and has no knowledge of any facts or circumstances which could reasonably
lead to delisting or suspension of the Common Shares in the foreseeable future. “Governmental Entity” means
any nation, state, county, city, town, village, district, or other political jurisdiction of any nature, federal, state, local,
municipal, foreign, or other government, governmental or quasi-governmental authority of any nature (including any governmental
agency, branch, department, official, or entity and any court or other tribunal), multi-national organization or body; or body
exercising, or entitled to exercise, any administrative, executive, judicial, legislative, police, regulatory, or taxing authority
or power of any nature or instrumentality of any of the foregoing, including any entity or enterprise owned or controlled by a
government or a public international organization or any of the foregoing.



 


		(f)	Acknowledgment Regarding Buyer’s Purchase of
Securities. The Company acknowledges and agrees that each Buyer is acting solely in the capacity of an arm’s length
purchaser with respect to the Transaction Documents and the transactions contemplated hereby and thereby and that no Buyer is,
on the date hereof, (i) an officer or director of the Company or any of its Subsidiaries, (ii) an “affiliate” (as
defined in Rule 144 promulgated under the 1933 Act (or a successor rule thereto) (collectively, “Rule 144”))
of the Company or any of its Subsidiaries or (iii) to its knowledge, a “beneficial owner” of more than 10% of the
Common Shares (as defined for purposes of Rule 13d-3 of the 1934 Act). The Company further acknowledges that no Buyer is acting
as a financial advisor or fiduciary of the Company or any of its Subsidiaries (or in any similar capacity) with respect to the
Transaction Documents and the transactions contemplated hereby and thereby, and any advice given by a Buyer or any of its representatives
or agents in connection with the Transaction Documents and the transactions contemplated hereby and thereby is merely incidental
to such Buyer’s purchase of the Securities. The Company further represents to each Buyer that the Company’s decision
to enter into the Transaction Documents has been based solely on the independent evaluation by the Company and its representatives.



 






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		(g)	Placement Agent’s Fees. The Company shall
be responsible for the payment of any placement agent’s fees, financial advisory fees, or brokers’ commissions (other
than for Persons engaged by any Buyer or its investment advisor) relating to or arising out of the transactions contemplated hereby.
Other than FT Global Capital, Inc. (the “Placement Agent”), neither the Company nor any of its Subsidiaries
has engaged any placement agent or other agent in connection with the offer or sale of the Securities.



 


		(h)	No Integrated Offering. None of the Company, its
Subsidiaries or any of their affiliates, nor any Person acting on their behalf has, directly or indirectly, made any offers or
sales of any security or solicited any offers to buy any security, under circumstances that would cause this offering of the Securities
to require approval of shareholders of the Company under any applicable shareholder approval provisions, including, without limitation,
under the rules and regulations of any exchange or automated quotation system on which any of the securities of the Company are
listed or designated for quotation. None of the Company, its Subsidiaries, their affiliates nor any Person acting on their behalf
will take any action or steps that would cause the offering of any of the Securities to be integrated with other offerings of
securities of the Company.



 


		(i)	Dilutive Effect. The Company understands and acknowledges
that the number of Warrant Shares will increase in certain circumstances. The Company further acknowledges that its obligation
to issue the Warrant Shares upon exercise of the Warrants in accordance with this Agreement and the Warrants is absolute and unconditional,
regardless of the dilutive effect that such issuance may have on the ownership interests of other shareholders of the Company.



 


		(j)	Application of Takeover Protections; Rights Agreement.
The Company and its board of directors have taken all necessary action, if any, in order to render inapplicable any control share
acquisition, interested shareholder, business combination, poison pill (including, without limitation, any distribution under
a rights agreement), shareholder rights plan or other similar anti-takeover provision under the Certificate of Incorporation,
Memorandum of Association or other organizational documents or the laws of the jurisdiction of its incorporation or otherwise
which is or could become applicable to any Buyer as a result of the transactions contemplated by this Agreement, including, without
limitation, the Company’s issuance of the Securities and any Buyer’s ownership of the Securities. The Company and
its board of directors have taken all necessary action, if any, in order to render inapplicable any shareholder rights plan or
similar arrangement relating to accumulations of beneficial ownership of Common Shares or a change in control of the Company or
any of its Subsidiaries. Notwithstanding the foregoing, the Company’s classified Board of Directors structure is not considered
an anti-takeover provision of the Company’s organizational documents.



 


		(k)	SEC Documents; Financial Statements. During the
two (2) years prior to the date hereof, the Company has timely filed all reports, schedules, forms, proxy statements, statements
and other documents required to be filed by it with the SEC pursuant to the reporting requirements of the 1934 Act (all of the
foregoing filed prior to the date hereof and all exhibits and appendices included therein and financial statements, notes and
schedules thereto and documents incorporated by reference therein being hereinafter referred to as the “SEC Documents”).
All of the SEC Documents are available on the EDGAR system. As of their respective dates, the SEC Documents complied in all material
respects with the requirements of the 1934 Act and the rules and regulations of the SEC promulgated thereunder applicable to the
SEC Documents, and none of the SEC Documents, at the time they were filed with the SEC, contained any untrue statement of a material
fact or omitted to state a material fact required to be stated therein or necessary in order to make the statements therein, in
the light of the circumstances under which they were made, not misleading. As of their respective dates, the financial statements
of the Company included in the SEC Documents complied in all material respects with applicable accounting requirements and the
published rules and regulations of the SEC with respect thereto as in effect as of the time of filing. Such financial statements
have been prepared in accordance with generally accepted accounting principles, consistently applied, during the periods involved
(except (i) as may be otherwise indicated in such financial statements or the notes thereto, or (ii) in the case of unaudited
interim statements, to the extent they may exclude footnotes or may be condensed or summary statements) and fairly present in
all material respects the financial position of the Company as of the dates thereof and the results of its operations and cash
flows for the periods then ended (subject, in the case of unaudited statements, to normal year-end audit adjustments which will
not be material, either individually or in the aggregate). No other information provided by or on behalf of the Company to any
of the Buyers which is not included in the SEC Documents contains any untrue statement of a material fact or omits to state any
material fact necessary in order to make the statements therein not misleading, in the light of the circumstance under which they
are or were made. The Company is not currently contemplating to amend or restate any of the financial statements (including without
limitation, any notes or any letter of the independent accountants of the Company with respect thereto) included in the SEC Documents
(the “Financial Statements”), nor is the Company currently aware of facts or circumstances which would require
the Company to amend or restate any of the Financial Statements, in each case, in order for any of the Financials Statements to
be in compliance with GAAP and the rules and regulations of the SEC. The Company has not been informed by its independent accountants
that they recommend that the Company amend or restate any of the Financial Statements or that there is any need for the Company
to amend or restate any of the Financial Statements.



 






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		(l)	Absence of Certain Changes. Since the date of
the Company’s most recent audited financial statements contained in a Form 10-K, except as disclosed in the SEC Documents
filed subsequent to such Form 10-K, there has been no material adverse change and no material adverse development in the business,
assets, liabilities, properties, operations (including results thereof), condition (financial or otherwise) or prospects of the
Company or any of its Subsidiaries. Since the date of the Company’s most recent audited financial statements contained in
a Form 10-K, neither the Company nor any of its Subsidiaries has (i) declared or paid any dividends, (ii) sold any assets, individually
or in the aggregate, outside of the ordinary course of business or (iii) made any capital expenditures, individually or in the
aggregate, outside of the ordinary course of business. Neither the Company nor any of its Subsidiaries has taken any steps to
seek protection pursuant to any law or statute relating to bankruptcy, insolvency, reorganization, receivership, liquidation or
winding up, nor does the Company or any Subsidiary have any knowledge or reason to believe that any of their respective creditors
intend to initiate involuntary bankruptcy proceedings or any actual knowledge of any fact which would reasonably lead a creditor
to do so. The Company and its Subsidiaries, individually and on a consolidated basis, are not as of the date hereof, and after
giving effect to the transactions contemplated hereby to occur at the Closing will not be, Insolvent (as defined below). For the
purpose of this Section 3(l) “Insolvent” means, (A) with respect to the Company and its Subsidiaries, on a
consolidated basis, (I) the present fair saleable value of the Company’s and its Subsidiaries’ assets is less than
the amount required to pay the Company’s and its Subsidiaries’ total Indebtedness (as defined below), (II) the Company
and its Subsidiaries are unable to pay their debts and liabilities, subordinated, contingent or otherwise, as such debts and liabilities
become absolute and matured or (III) the Company and its Subsidiaries intend to incur or believe that they will incur debts that
would be beyond their ability to pay as such debts mature; and (B) with respect to the Company and each Subsidiary, individually,
(I) the present fair saleable value of the Company’s or such Subsidiary’s (as the case may be) assets is less than
the amount required to pay its respective total Indebtedness, (II) the Company or such Subsidiary (as the case may be) is unable
to pay its respective debts and liabilities, subordinated, contingent or otherwise, as such debts and liabilities become absolute
and matured or (III) the Company or such Subsidiary (as the case may be) intends to incur or believes that it will incur debts
that would be beyond its respective ability to pay as such debts mature. Neither the Company nor any of its Subsidiaries has engaged
in any business or in any transaction, and is not about to engage in any business or in any transaction, for which the Company’s
or such Subsidiary’s remaining assets constitute unreasonably small capital.



 






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		(m)	No Undisclosed Events, Liabilities, Developments or
Circumstances. No event, liability, development or circumstance has occurred or exists, or is reasonably expected to occur
or exist with respect to the Company, any of its Subsidiaries or any of their respective businesses, properties, liabilities,
prospects, operations (including results thereof) or condition (financial or otherwise) that (i) would be required to be disclosed
by the Company under applicable securities laws on a registration statement on Form S-1 or Form F-1 filed with the SEC relating
to an issuance and sale by the Company of its Common Shares and which has not been publicly announced, (ii) could have a material
adverse effect on any Buyer’s investment hereunder or (iii) could have a Material Adverse Effect.



 


		(n)	Conduct of Business; Regulatory Permits. Neither
the Company nor any of its Subsidiaries is in violation of any term of or in default under its Certificate of Incorporation, any
certificate of designation, preferences or rights of any other outstanding series of preferred shares of the Company or any of
its Subsidiaries or Memorandum of Association or their organizational charter, certificate of formation or certificate of incorporation
or bylaws, respectively. Neither the Company nor any of its Subsidiaries is in violation of any judgment, decree or order or any
statute, ordinance, rule or regulation applicable to the Company or any of its Subsidiaries, and neither the Company nor any of
its Subsidiaries will conduct its business in violation of any of the foregoing, except in all cases for possible violations which
could not, individually or in the aggregate, have a Material Adverse Effect. Without limiting the generality of the foregoing,
the Company is not in violation of any of the rules, regulations or requirements of the Principal Market and has no knowledge
of any facts or circumstances that could reasonably lead to delisting or suspension of the Common Shares by the Principal Market
in the foreseeable future. Since the date of the Company’s last Annual Report on Form 10-K filed with the SEC, (i) the Common
Shares has been listed or designated for quotation on the Principal Market, (ii) trading in the Common Shares has not been suspended
by the SEC or the Principal Market and (iii) the Company has received no communication, written or oral, from the SEC or the Principal
Market regarding the suspension or delisting of the Common Shares from the Principal Market. The Company and each of its Subsidiaries
possess all certificates, authorizations and permits issued by the appropriate regulatory authorities necessary to conduct their
respective businesses, except where the failure to possess such certificates, authorizations or permits would not reasonably be
expected to have, individually or in the aggregate, a Material Adverse Effect, and neither the Company nor any such Subsidiary
has received any notice of proceedings relating to the revocation or modification of any such certificate, authorization or permit.



 


		(o)	Foreign Corrupt Practices Neither the Company nor any of its Subsidiaries nor any
                                                                                director, officer, agent, employee, nor any other person acting for or on behalf of the foregoing (individually and
                                                                                collectively, a “Company Affiliate”) have violated the U.S. Foreign Corrupt Practices Act (the
                                                                                “FCPA”) or any other applicable anti-bribery or anti-corruption laws, nor has any Company Affiliate
                                                                                offered, paid, promised to pay, or authorized the payment of any money, or offered, given, promised to give, or authorized
                                                                                the giving of anything of value, to any officer, employee or any other person acting in an official capacity for any
                                                                                Governmental Entity to any political party or official thereof or to any candidate for political office (individually and
                                                                                collectively, a “Government Official”) or to any person under circumstances where such Company
                                                                                Affiliate knew or was aware of a high probability that all or a portion of such money or thing of value would be offered,
                                                                                given or promised, directly or indirectly, to any Governmental Official, for the purpose of:



 


(i)                
(A) influencing any act or decision of such Government Official in his/her official capacity, (B) inducing such Government
Official to do or omit to do any act in violation of his/her lawful duty, (C) securing any improper advantage, or (D) inducing
such Government Official to influence or affect any act or decision of any Governmental Entity, or


 


(ii)              
assisting the Company or its Subsidiaries in obtaining or retaining business for or with, or directing business to, the
Company or its Subsidiaries.


 


		(p)	Sarbanes-Oxley Act. The Company and each Subsidiary
is in compliance with all applicable requirements of the Sarbanes-Oxley Act of 2002, and all applicable rules and regulations
promulgated by the SEC thereunder.



 


		(q)	Transactions With Affiliates. Other than the grant
of share options disclosed in the SEC Documents, none of the officers, directors or employees or affiliates of the Company or
any of its Subsidiaries is presently a party to any transaction with the Company or any of its Subsidiaries (other than for ordinary
course services as employees, officers or directors), including any contract, agreement or other arrangement providing for the
furnishing of services to or by, providing for rental of real or personal property to or from, or otherwise requiring payments
to or from any such officer, director, employee or affiliate or, to the knowledge of the Company or any of its Subsidiaries, any
corporation, partnership, trust or other Person in which any such officer, director, employee or affiliate has a substantial interest
or is an employee, officer, director, affiliate, trustee or partner.



 






    	9



    	 



    

 


		(r)	Equity Capitalization. As of the date hereof,
the authorized share capital of the Company consists of 18,307,038 Common Shares, of which 4,776,000 are issued and outstanding
and 1,093,500 shares are reserved for issuance pursuant to Convertible Securities (as defined below) (other than the Registered
Shares and the Warrants) exercisable or exchangeable for, or convertible into, Common Shares. All of such outstanding shares are
duly authorized and have been, or upon issuance will be, validly issued and are fully paid and non-assessable. 1,177,742 shares
of the Company’s issued and outstanding Common Shares on the date hereof are, as of the date hereof, owned by Persons who
are “affiliates” (as defined in Rule 405 of the 1933 Act and calculated based on the assumption that only officers,
directors and holders of at least 10% of the Company’s issued and outstanding Common Shares are “affiliates”
without conceding that any such Persons are “affiliates” for purposes of federal securities laws) of the Company or
any of its Subsidiaries. To the Company’s knowledge, other than as disclosed in the SEC Documents, no Person owns 10% or
more of the Company’s issued and outstanding Common Shares (calculated based on the assumption that all Convertible Securities
(as defined below), whether or not presently exercisable or convertible, have been fully exercised or converted (as
the case may be) taking account of any limitations on exercise or conversion (including “blockers”) contained therein
without conceding that such identified Person is a 10% shareholder for purposes of federal securities laws). Except as disclosed
in the SEC Documents: (i) none of the Company’s or any Subsidiary’s share capital is subject to preemptive rights
or any other similar rights or any Encumbrances suffered or permitted by the Company or any Subsidiary; (ii) except under the
Company’s 2009 and 2013 Share Incentive Plans or in connection with the Company’s initial public offering, there are
no outstanding options, warrants, scrip, rights to subscribe to, calls or commitments of any character whatsoever relating to,
or securities or rights convertible into, or exercisable or exchangeable for, any share capital of the Company or any of its Subsidiaries,
or contracts, commitments, understandings or arrangements by which the Company or any of its Subsidiaries is or may become bound
to issue additional share capital of the Company or any of its Subsidiaries or options, warrants, scrip, rights to subscribe to,
calls or commitments of any character whatsoever relating to, or securities or rights convertible into, or exercisable or exchangeable
for, any share capital of the Company or any of its Subsidiaries; (iii) there are no outstanding debt securities, notes, credit
agreements, credit facilities or other agreements, documents or instruments evidencing Indebtedness of the Company or any of its
Subsidiaries or by which the Company or any of its Subsidiaries is or may become bound; (iv) there are no financing statements
securing obligations in any amounts filed in connection with the Company or any of its Subsidiaries; (v) there are no agreements
or arrangements under which the Company or any of its Subsidiaries is obligated to register the sale of any of their securities
under the 1933 Act (except pursuant to this Agreement); (vi) there are no outstanding securities or instruments of the Company
or any of its Subsidiaries which contain any redemption or similar provisions, and there are no contracts, commitments, understandings
or arrangements by which the Company or any of its Subsidiaries is or may become bound to redeem a security of the Company or
any of its Subsidiaries; (vii) there are no securities or instruments containing anti-dilution or similar provisions that will
be triggered by the issuance of the Securities; (viii) neither the Company nor any Subsidiary has any share appreciation rights
or “phantom shares” plans or agreements or any similar plan or agreement; and (ix) neither the Company nor any of
its Subsidiaries have any liabilities or obligations required to be disclosed in the SEC Documents which are not so disclosed
in the SEC Documents, other than those incurred in the ordinary course of the Company’s or its Subsidiaries’ respective
businesses and which, individually or in the aggregate, do not or could reasonably be expected to not have a Material Adverse
Effect. The SEC Documents contain true, correct and complete copies of the Company’s Articles of Association, as amended
and as in effect on the date hereof (the “Articles of Association”), and the Company’s Memorandum
of Association, as amended and as in effect on the date hereof (the “Memorandum of Association”), and the terms
of all securities convertible into, or exercisable or exchangeable for, Common Shares and the material rights of the holders thereof
in respect thereto.



 






    	10



    	 



    

 


		(s)	Indebtedness and Other Contracts. Except as set
forth in the SEC Documents, neither the Company nor any of its Subsidiaries (i) has any outstanding Indebtedness (as defined below),
(ii) is a party to any contract, agreement or instrument, the violation of which, or default under which, by the other party(ies)
to such contract, agreement or instrument could reasonably be expected to result in a Material Adverse Effect, (iii) is in violation
of any term of, or in default under, any contract, agreement or instrument relating to any Indebtedness, except where such violations
and defaults would not reasonably be expected to result, individually or in the aggregate, in a Material Adverse Effect, or (iv)
is a party to any contract, agreement or instrument relating to any Indebtedness, the performance of which, in the judgment of
the Company’s officers, has had or is reasonably expected to have a Material Adverse Effect. For purposes of this Agreement:
“Indebtedness” of any Person means, without duplication (A) all indebtedness for borrowed money, (B) all obligations
issued, undertaken or assumed as the deferred purchase price of property or services (including, without limitation, “capital
leases” in accordance with generally accepted accounting principles) (other than trade payables entered into in the ordinary
course of business), (C) all reimbursement or payment obligations with respect to letters of credit, surety bonds and other similar
instruments, (D) all obligations evidenced by notes, bonds, debentures or similar instruments, including obligations so evidenced
incurred in connection with the acquisition of property, assets or businesses, (E) all indebtedness created or arising under any
conditional sale or other title retention agreement, or incurred as financing, in either case with respect to any property or
assets acquired with the proceeds of such indebtedness (even though the rights and remedies of the seller or bank under such agreement
in the event of default are limited to repossession or sale of such property), (F) all monetary obligations under any leasing
or similar arrangement which, in connection with generally accepted accounting principles, consistently applied for the periods
covered thereby, is classified as a capital lease, (G) all indebtedness referred to in clauses (A) through (F) above secured by
(or for which the holder of such Indebtedness has an existing right, contingent or otherwise, to be secured by) any Encumbrance
upon or in any property or assets (including accounts and contract rights) owned by any Person, even though the Person which owns
such assets or property has not assumed or become liable for the payment of such indebtedness, and (H) all Contingent Obligations
in respect of indebtedness or obligations of others of the kinds referred to in clauses (A) through (G) above; “Contingent
Obligation” means, as to any Person, any direct or indirect liability, contingent or otherwise, of that Person with
respect to any indebtedness, lease, dividend or other obligation of another Person if the primary purpose or intent of the Person
incurring such liability, or the primary effect thereof, is to provide assurance to the obligee of such liability that such liability
will be paid or discharged, or that any agreements relating thereto will be complied with, or that the holders of such liability
will be protected (in whole or in part) against loss with respect thereto; and “Person” means an individual,
a limited liability company, a partnership, a joint venture, a corporation, a trust, an unincorporated organization, a Governmental
Entity, any other entity and a government or any department or agency thereof.



 


		(t)	Absence of Litigation Except as disclosed in the SEC Documents, there is no action,
                                                                                suit, proceeding, inquiry or investigation before or by the Principal Market, any court, public board, other Governmental
                                                                                Entity, self-regulatory organization or body pending or, to the knowledge of the Company, threatened against or affecting the
                                                                                Company or any of its Subsidiaries, the Common Shares or any of the Company’s or its Subsidiaries’ officers or
                                                                                directors which is outside of the ordinary course of business or individually or in the aggregate material to the Company or
                                                                                any of its Subsidiaries. No director, officer or employee of the Company or any of its subsidiaries has willfully violated 18
                                                                                U.S.C. §1519 or engaged in spoliation in reasonable anticipation of litigation. There has not been, and to the knowledge
                                                                                of the Company, there is not pending or contemplated, any investigation by the SEC involving the Company, any of its
                                                                                Subsidiaries or any current or former director or officer of the Company or any of its Subsidiaries. The SEC has not issued
                                                                                any stop order or other order suspending the effectiveness of any registration statement filed by the Company under the 1933
                                                                                Act or the 1934 Act, including, without limitation, the Registration Statement.



 






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		(u)	Insurance. The Company and each of its Subsidiaries
are insured by insurers of recognized financial responsibility against such losses and risks and in such amounts as management
of the Company believes to be prudent and customary in the businesses in which the Company and its Subsidiaries are engaged. Neither
the Company nor any such Subsidiary has been refused any insurance coverage sought or applied for, and neither the Company nor
any such Subsidiary has any reason to believe that it will be unable to renew its existing insurance coverage as and when such
coverage expires or to obtain similar coverage from similar insurers as may be necessary to continue its business at a cost that
would not have a Material Adverse Effect.



 


		(v)	Employee Relations. Neither the Company nor any
of its Subsidiaries is a party to any collective bargaining agreement or employs any member of a union. The Company believes that
its and its Subsidiaries’ relations with their respective employees are good. No executive officer (as defined in Rule 501(f)
promulgated under the 1933 Act) or other key employee of the Company or any of its Subsidiaries has notified the Company or any
such Subsidiary that such officer intends to leave the Company or any such Subsidiary or otherwise terminate such officer’s
employment with the Company or any such Subsidiary. No executive officer or other key employee of the Company or any of its Subsidiaries
is, or is now expected to be, in violation of any material term of any employment contract, confidentiality, disclosure or proprietary
information agreement, non-competition agreement, or any other contract or agreement or any restrictive covenant, and the continued
employment of each such executive officer or other key employee (as the case may be) does not subject the Company or any of its
Subsidiaries to any liability with respect to any of the foregoing matters. The Company and its Subsidiaries are in compliance
with all federal, state, local and foreign laws and regulations respecting labor, employment and employment practices and benefits,
terms and conditions of employment and wages and hours, except where failure to be in compliance would not, either individually
or in the aggregate, reasonably be expected to result in a Material Adverse Effect.



 


		(w)	Title. The Company and its Subsidiaries have good
and marketable title in fee simple to all real property, and have good and marketable title to all personal property, owned by
them which is material to the business of the Company and its Subsidiaries, in each case, free and clear of all Encumbrances and
defects except such as do not materially affect the value of such property and do not interfere with the use made and proposed
to be made of such property by the Company and any of its Subsidiaries. Any real property and facilities held under lease by the
Company or any of its Subsidiaries are held by them under valid, subsisting and enforceable leases with such exceptions as are
not material and do not interfere with the use made and proposed to be made of such property and buildings by the Company or any
of its Subsidiaries.



 


		(x)	Intellectual Property Rights. The Company and
its Subsidiaries own or possess adequate rights or licenses to use all trademarks, trade names, service marks, service mark registrations,
service names, patents, patent rights, copyrights, original works, inventions, licenses, approvals, governmental authorizations,
trade secrets and other intellectual property rights and all applications and registrations therefor necessary to conduct their
respective businesses as now conducted and as presently proposed to be conducted (“Intellectual Property Rights”).
None of the Company’s or its Subsidiaries’ Intellectual Property Rights have expired, terminated or been abandoned,
or are expected to expire, terminate or be abandoned, within three years from the date of this Agreement. The Company has no knowledge
of any infringement by the Company or any of its Subsidiaries of Intellectual Property Rights of others. There is no claim, action
or proceeding being made or brought, or to the knowledge of the Company or any of its Subsidiaries, being threatened, against
the Company or any of its Subsidiaries regarding their Intellectual Property Rights. The Company is not aware of any facts or
circumstances which might give rise to any of the foregoing infringements or claims, actions or proceedings. The Company and each
of its Subsidiaries have taken reasonable security measures to protect the secrecy, confidentiality and value of all of their
Intellectual Property Rights.



 






    	12



    	 



    

 


		(y)	Environmental Laws. The Company and its Subsidiaries
(i) are in compliance with all Environmental Laws (as defined below), (ii) have received all permits, licenses or other approvals
required of them under applicable Environmental Laws to conduct their respective businesses and (iii) are in compliance with all
terms and conditions of any such permit, license or approval where, in each of the foregoing clauses (i), (ii) and (iii), the
failure to so comply could be reasonably expected to have, individually or in the aggregate, a Material Adverse Effect. The term
“Environmental Laws” means all federal, state, local or foreign laws relating to pollution or protection of
human health or the environment (including, without limitation, ambient air, surface water, groundwater, land surface or subsurface
strata), including, without limitation, laws relating to emissions, discharges, releases or threatened releases of chemicals,
pollutants, contaminants, or toxic or hazardous substances or wastes (collectively, “Hazardous Materials”)
into the environment, or otherwise relating to the manufacture, processing, distribution, use, treatment, storage, disposal, transport
or handling of Hazardous Materials, as well as all authorizations, codes, decrees, demands or demand letters, injunctions, judgments,
licenses, notices or notice letters, orders, permits, plans or regulations issued, entered, promulgated or approved thereunder.



 


		(z)	Subsidiary Rights. The Company or one of its Subsidiaries
has the unrestricted right to vote, and (subject to limitations imposed by applicable law) to receive dividends and distributions
on, all capital securities of its Subsidiaries as owned by the Company or such Subsidiary.



 


		(aa)	Tax Status. Except to the extent that the failure
to do so would not have a Material Adverse Effect, the Company and each of its Subsidiaries (i) has timely made or filed all foreign,
federal and state income and all other tax returns, reports and declarations required by any jurisdiction to which it is subject,
(ii) has timely paid all taxes and other governmental assessments and charges that are material in amount, shown or determined
to be due on such returns, reports and declarations, except those being contested in good faith and (iii) has set aside on its
books provision reasonably adequate for the payment of all taxes for periods subsequent to the periods to which such returns,
reports or declarations apply. There are no unpaid taxes in any material amount claimed to be due by the taxing authority of any
jurisdiction, and the officers of the Company and its Subsidiaries know of no basis for any such claim. The Company is not operated
in such a manner as to qualify as a passive foreign investment company, as defined in Section 1297 of the U.S. Internal Revenue
Code of 1986, as amended.



 






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		(bb)	Internal Accounting and Disclosure Controls. Except
as disclosed in the SEC Documents, the Company and each of its Subsidiaries maintains internal control over financial reporting
(as such term is defined in Rule 13a-15(f) under the 1934 Act) that is effective to provide reasonable assurance regarding the
reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally
accepted accounting principles, including that (i) transactions are executed in accordance with management’s general or
specific authorizations, (ii) transactions are recorded as necessary to permit preparation of financial statements in conformity
with generally accepted accounting principles and to maintain asset and liability accountability, (iii) access to assets or incurrence
of liabilities is permitted only in accordance with management’s general or specific authorization and (iv) the recorded
accountability for assets and liabilities is compared with the existing assets and liabilities at reasonable intervals and appropriate
action is taken with respect to any difference. The Company maintains disclosure controls and procedures (as such term is defined
in Rule 13a-15(e) under the 1934 Act) that are effective in ensuring that information required to be disclosed by the Company
in the reports that it files or submits under the 1934 Act is recorded, processed, summarized and reported, within the time periods
specified in the rules and forms of the SEC, including, without limitation, controls and procedures designed to ensure that information
required to be disclosed by the Company in the reports that it files or submits under the 1934 Act is accumulated and communicated
to the Company’s management, including its principal executive officer or officers and its principal financial officer or
officers, as appropriate, to allow timely decisions regarding required disclosure. Neither the Company nor any of its Subsidiaries
has received any notice or correspondence from any accountant or other Person relating to any potential material weakness or significant
deficiency in any part of the internal controls over financial reporting of the Company or any of its Subsidiaries.



 


		(cc)	Off Balance Sheet Arrangements. There is no transaction,
arrangement, or other relationship between the Company or any of its Subsidiaries and an unconsolidated or other off balance sheet
entity that is required to be disclosed by the Company in its 1934 Act filings and is not so disclosed or that otherwise could
be reasonably likely to have a Material Adverse Effect.



 


		(dd)	Investment Company Status. The Company is not,
and upon consummation of the sale of the Securities will not be, an “investment company,” an affiliate of an “investment
company,” a company controlled by an “investment company” or an “affiliated person” of, or “promoter”
or “principal underwriter” for, an “investment company” as such terms are defined in the Investment Company
Act of 1940, as amended.



 


		(ee)	Acknowledgement Regarding Buyers’ Trading Activity.
It is understood and acknowledged by the Company that (i) following the public disclosure of the transactions contemplated by
the Transaction Documents, in accordance with the terms thereof, none of the Buyers have been asked by the Company or any of its
Subsidiaries to agree, nor has any Buyer agreed with the Company or any of its Subsidiaries, to desist from effecting any transactions
in or with respect to (including, without limitation, purchasing or selling, long and/or short) any securities of the Company,
or “derivative” securities based on securities issued by the Company or to hold any of the Securities for any specified
term; (ii) any Buyer, and counterparties in “derivative” transactions to which any such Buyer is a party, directly
or indirectly, presently may have a “short” position in the Common Shares which was established prior to such Buyer’s
knowledge of the transactions contemplated by the Transaction Documents; and (iii) each Buyer shall not be deemed to have any
affiliation with or control over any arm’s length counterparty in any “derivative” transaction. The Company
further understands and acknowledges that following the public disclosure of the transactions contemplated by the Transaction
Documents pursuant to the Press Release (as defined below) one or more Buyers may engage in hedging and/or trading activities
at various times during the period that the Securities are outstanding, including, without limitation, during the periods that
the value and/or number of the Warrant Shares deliverable with respect to the Securities are being determined and such hedging
and/or trading activities, if any, can reduce the value of the existing shareholders’ equity interest in the Company both
at and after the time the hedging and/or trading activities are being conducted. The Company acknowledges that such aforementioned
hedging and/or trading activities do not constitute a breach of this Agreement, the Warrants or any other Transaction Document
or any of the documents executed in connection herewith or therewith.



 






    	14



    	 



    

 


		(ff)	Manipulation of Price. Neither the Company nor
any of its Subsidiaries has, and, to the knowledge of the Company, no Person acting on their behalf has, directly or indirectly,
(i) taken any action designed to cause or to result in the stabilization or manipulation of the price of any security of the Company
or any of its Subsidiaries to facilitate the sale or resale of any of the Securities, (ii) sold, bid for, purchased, or paid any
compensation for soliciting purchases of, any of the Securities (other than the Placement Agent), or (iii) paid or agreed to pay
to any Person any compensation for soliciting another to purchase any other securities of the Company or any of its Subsidiaries.
For purposes of this section, no press releases put out in the ordinary course of business shall be interpreted or construed to
constitute a manipulation of price.



 


		(gg)	U.S. Real Property Holding Corporation. Neither
the Company nor any of its Subsidiaries is, or has ever been, and so long as any of the Securities are held by any of the Buyers,
shall become, a U.S. real property holding corporation within the meaning of Section 897 of the Code, and the Company and each
Subsidiary shall so certify upon any Buyer’s request.



 


		(hh)	Registration Eligibility. The Company is eligible
to register the issuance and sale of the Securities to the Buyers using Form S-3 promulgated under the 1933 Act.



 


		(ii)	Transfer Taxes. On the Closing Date, all share
transfer or other taxes (other than income or similar taxes) which are required to be paid in connection with the issuance, sale
and transfer of the Securities to be sold to each Buyer hereunder will be, or will have been, fully paid or provided for by the
Company, and all laws imposing such taxes will be or will have been complied with.



 


		(jj)	Bank Holding Company Act. Neither the Company
nor any of its Subsidiaries is subject to the Bank Holding Company Act of 1956, as amended (the “BHCA”) and
to regulation by the Board of Governors of the Federal Reserve System (the “Federal Reserve”). Neither the
Company nor any of its Subsidiaries or affiliates owns or controls, directly or indirectly, five percent (5%) or more of the outstanding
shares of any class of voting securities or twenty-five percent (25%) or more of the total equity of a bank or any equity that
is subject to the BHCA and to regulation by the Federal Reserve. Neither the Company nor any of its Subsidiaries or affiliates
exercises a controlling influence over the management or policies of a bank or any entity that is subject to the BHCA and to regulation
by the Federal Reserve.



 


		(kk)	Public Utility Holding Act. None of the Company
nor any of its Subsidiaries is a “holding company,” or an “affiliate” of a “holding company,”
as such terms are defined in the Public Utility Holding Act of 2005.



 






    	15



    	 



    

 


		(ll)	Federal Power Act. None of the Company nor any
of its Subsidiaries is subject to regulation as a “public utility” under the Federal Power Act, as amended.



 


		(mm)	No Additional Agreements. The Company does not
have any agreement or understanding with any Buyer with respect to the transactions contemplated by the Transaction Documents
other than as specified in the Transaction Documents.



 


		(nn)	Real Property. Each of the Company and its Subsidiaries
holds good title to all real property, leases in real property, or other interests in real property owned or held by the Company
or any of its Subsidiaries (the “Real Property”) owned by the Company or any of its Subsidiaries (as applicable).
The Real Property is free and clear of all mortgages, defects, claims, liens, pledges, charges, taxes, rights of first refusal,
encumbrances, security interests and other encumbrances (collectively “Encumbrances”) and is not subject to
any rights of way, building use restrictions, exceptions, variances, reservations, or limitations of any nature except for (a)
liens for current taxes not yet due and (b) zoning laws and other land use restrictions that do not impair the present or anticipated
use of the property subject thereto.



 


		(oo)	Fixtures and Equipment. Each of the Company and
its Subsidiaries (as applicable) has good title to, or a valid leasehold interest in, the tangible personal property, equipment,
improvements, fixtures, and other personal property and appurtenances that are used by the Company or its Subsidiary in connection
with the conduct of its business (the “Fixtures and Equipment”). The Fixtures and Equipment are structurally
sound, are in good operating condition and repair, are adequate for the uses to which they are being put, are not in need of maintenance
or repairs except for ordinary, routine maintenance and repairs and are sufficient for the conduct of the Company’s and/or
its Subsidiaries’ businesses (as applicable) in the manner as conducted prior to the Closing. Each of the Company and its
Subsidiaries owns all of its Fixtures and Equipment free and clear of all Encumbrances except for (a) liens for current taxes
not yet due and (b) zoning laws and other land use restrictions that do not impair the present or anticipated use of the property
subject thereto.



 


		(pp)	Illegal or Unauthorized Payments; Political Contributions.
Neither the Company nor any of its Subsidiaries nor, to the best of the Company’s knowledge (after reasonable inquiry of
its officers and directors), any of the officers, directors, employees, agents or other representatives of the Company or any
of its Subsidiaries or any other business entity or enterprise with which the Company or any Subsidiary is or has been affiliated
or associated, has, directly or indirectly, made or authorized any payment, contribution or gift of money, property, or services,
whether or not in contravention of applicable law, (a) as a kickback or bribe to any Person or (b) to any political organization,
or the holder of or any aspirant to any elective or appointive public office except for personal political contributions not involving
the direct or indirect use of funds of the Company or any of its Subsidiaries.



 


		(qq)	Money Laundering. The Company and its Subsidiaries
are in compliance with, and have not previously violated, the USA Patriot Act of 2001 and all other applicable U.S. and non-U.S.
anti-money laundering laws and regulations, including, but not limited to, the laws, regulations and Executive Orders and sanctions
programs administered by the U.S. Office of Foreign Assets Control, including, but not limited to, (i) Executive Order 13224 of
September 23, 2001 entitled, “Blocking Property and Prohibiting Transactions With Persons Who Commit, Threaten to Commit,
or Support Terrorism” (66 Fed. Reg. 49079 (2001)); and (ii) any regulations contained in 31 CFR, Subtitle B, Chapter V.



 






    	16



    	 



    

 


		(rr)	Management. Except as set forth in Schedule
3(rr) hereto, during the past five year period, no current or former officer or director or, to the knowledge of the Company,
no current ten percent (10%) or greater shareholder of the Company or any of its Subsidiaries has been the subject of:



 


(i)                
a petition under bankruptcy laws or any other insolvency or moratorium law or the appointment by a court of a receiver,
fiscal agent or similar officer for such Person, or any partnership in which such person was a general partner at or within two
years before the filing of such petition or such appointment, or any corporation or business association of which such person was
an executive officer at or within two years before the time of the filing of such petition or such appointment;


 


(ii)              
a conviction in a criminal proceeding or a named subject of a pending criminal proceeding (excluding traffic violations
that do not relate to driving while intoxicated or driving under the influence);


 


(iii)            
any order, judgment or decree, not subsequently reversed, suspended or vacated, of any court of competent jurisdiction,
permanently or temporarily enjoining any such person from, or otherwise limiting, the following activities:


 


(1)              Acting
as a futures commission merchant, introducing broker, commodity trading advisor, commodity pool operator, floor broker, leverage
transaction merchant, any other person regulated by the United States Commodity Futures Trading Commission or an associated person
of any of the foregoing, or as an investment adviser, underwriter, broker or dealer in securities, or as an affiliated person,
director or employee of any investment company, bank, savings and loan association or insurance company, or engaging in or continuing
any conduct or practice in connection with such activity;


 


(2)              
Engaging in any type of business practice; or


 


(3)              
Engaging in any activity in connection with the purchase or sale of any security or commodity or in connection with any
violation of securities laws or commodities laws;


 


(iv)            
any order, judgment or decree, not subsequently reversed, suspended or vacated, of any authority barring, suspending or
otherwise limiting for more than 60 days the right of any such person to engage in any activity described in the preceding sub
paragraph, or to be associated with persons engaged in any such activity;


 


(v)              
a finding by a court of competent jurisdiction in a civil action or by the SEC or other authority to have violated any securities
law, regulation or decree and the judgment in such civil action or finding by the SEC or any other authority has not been subsequently
reversed, suspended or vacated; or


 


(vi)            
a finding by a court of competent jurisdiction in a civil action or by the Commodity Futures Trading Commission to have
violated any federal commodities law, and the judgment in such civil action or finding has not been subsequently reversed, suspended
or vacated.


 






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		(ss)	Registration Rights. No holder of securities of
the Company has rights to the registration of any securities of the Company because of the filing of the Registration Statement
or the issuance of the Securities hereunder that could expose the Company to material liability or any Buyer to any liability
or that could impair the Company’s ability to consummate the issuance and sale of the Securities in the manner, and at the
times, contemplated hereby, which rights have not been waived by the holder thereof as of the date hereof.



 


		(b)	Share Option Plans. Each share option granted by the Company was granted (i) in
                                                                                accordance with the terms of the applicable share option plan of the Company and (ii) with an exercise price at least equal
                                                                                to the fair market value of the Common Shares on the date such share option would be considered granted under GAAP and
                                                                                applicable law. No share option granted under the Company's share option plan has been backdated. The Company has not
                                                                                knowingly granted, and there is no and has been no policy or practice of the Company to knowingly grant, share options prior
                                                                                to, or otherwise knowingly coordinate the grant of share options with, the release or other public announcement of material
                                                                                information regarding the Company or its Subsidiaries or their financial results or prospects.



 


		(c)	No Disagreements
with Accountants and Lawyers. There are no material disagreements of any kind presently existing, or reasonably anticipated
by the Company to arise, between the Company and the accountants and lawyers formerly or presently employed by the Company and
the Company is current with respect to any fees owed to its accountants and lawyers which could affect the Company's ability to
perform any of its obligations under any of the Transaction Documents. In addition, on or prior to the date hereof, the Company
had discussions with its accountants about its financial statements previously filed with the SEC. Based on those discussions,
the Company has no reason to believe that it will need to restate any such financial statements or any part thereof.



 


		(d)	No Disqualification
Events. None of the Company, any of its predecessors, any affiliated issuer, any director, executive officer, other officer
of the Company participating in the offering contemplated hereby, any beneficial owner of 20% or more of the Company's outstanding
voting equity securities, calculated on the basis of voting power, nor any promoter (as that term is defined in Rule 405 under
the 1933 Act) connected with the Company in any capacity at the time of sale (each, an "Issuer Covered Person")
is subject to any of the "Bad Actor" disqualifications described in Rule 506(d)(1)(i) to (viii) under the 1933 Act (a
"Disqualification Event"), except for a Disqualification Event covered by Rule 506(d)(2) or (d)(3). The Company
has exercised reasonable care to determine whether any Issuer Covered Person is subject to a Disqualification Event.



 


		(tt)	Disclosure. The Company confirms that neither
it nor any other Person acting on its behalf has provided any of the Buyers or their agents or counsel with any information that
constitutes or could reasonably be expected to constitute material, non-public information concerning the Company or any of its
Subsidiaries, other than the existence of the transactions contemplated by this Agreement and the other Transaction Documents.
The Company understands and confirms that each of the Buyers will rely on the foregoing representations in effecting transactions
in securities of the Company. All disclosure provided to the Buyers regarding the Company and its Subsidiaries, their businesses
and the transactions contemplated hereby, including the schedules to this Agreement, furnished by or on behalf of the Company
or any of its Subsidiaries is true and correct and does not contain any untrue statement of a material fact or omit to state any
material fact necessary in order to make the statements made therein, in the light of the circumstances under which they were
made, not misleading. All of the written information furnished after the date hereof by or on behalf of the Company or any of
its Subsidiaries to each Buyer pursuant to or in connection with this Agreement and the other Transaction Documents, taken as
a whole, will be true and correct in all material respects as of the date on which such information is so provided and will not
contain any untrue statement of a material fact or omit to state any material fact necessary in order to make the statements made
therein, in the light of the circumstances under which they were made, not misleading. Each press release issued by the Company
or any of its Subsidiaries during the twelve (12) months preceding the date of this Agreement did not at the time of release contain
any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary in order to
make the statements therein, in the light of the circumstances under which they are made, not misleading. No event or circumstance
has occurred or information exists with respect to the Company or any of its Subsidiaries or its or their business, properties,
liabilities, prospects, operations (including results thereof) or conditions (financial or otherwise), which, under applicable
law, rule or regulation, requires public disclosure at or before the date hereof or announcement by the Company but which has
not been so publicly disclosed. All financial projections and forecasts that have been prepared by or on behalf of the Company
or any of its Subsidiaries and made available to the Buyers have been prepared in good faith based upon reasonable assumptions
and represented, at the time each such financial projection or forecast was delivered to each Buyer, the Company’s best
estimate of future financial performance (it being recognized that such financial projections or forecasts are not to be viewed
as facts and that the actual results during the period or periods covered by any such financial projections or forecasts may differ
from the projected or forecasted results). The Company acknowledges and agrees that no Buyer makes or has made any representations
or warranties with respect to the transactions contemplated hereby other than those specifically set forth in Section 2.



 






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		4.	COVENANTS.



 


		(a)	Amendments to the Registration Statement; Prospectus
Supplements; Free Writing Prospectuses(a)                    
.



 


(i)                
Except as provided in this Agreement and other than periodic reports required to be filed pursuant to the 1934 Act, the
Company shall not file with the SEC any amendment to the Registration Statement that relates to the Buyer, this Agreement or the
transactions contemplated hereby or thereby or file with the SEC any Prospectus Supplement that relates to the Buyer, this Agreement
or the transactions contemplated hereby or thereby with respect to which (a) the Buyer shall not previously have been advised,
(b) the Company shall not have given due consideration to any comments thereon received from the Buyer or its counsel, or (c) the
Buyer shall reasonably object after being so advised, unless the Company reasonably has determined that it is necessary to amend
the Registration Statement or make any supplement to the Prospectus to comply with the 1933 Act or any other applicable law or
regulation, in which case the Company shall promptly (but in no event later than 24 hours) so inform the Buyer, the Buyer shall
be provided with a reasonable opportunity to review and comment upon any disclosure relating to the Buyer and the Company shall
expeditiously furnish to the Buyer an electronic copy thereof. In addition, for so long as, in the reasonable opinion of counsel
for the Buyer, the Prospectus (or in lieu thereof, the notice referred to in Rule 173(a) under the 1933 Act) is required to be
delivered in connection with any acquisition or sale of Securities by the Buyer, the Company shall not file any Prospectus Supplement
with respect to the Securities without delivering or making available a copy of such Prospectus Supplement, together with the Prospectus,
to the Buyer promptly.


 






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(ii)              
The Company has not made, and agrees that unless it obtains the prior written consent of the Buyer it will not make, an
offer relating to the Securities that would constitute an “issuer free writing prospectus” as defined in Rule 433 promulgated
under the Securities Act (an “Issuer Free Writing Prospectus”) or that would otherwise constitute a “free
writing prospectus” as defined in Rule 405 promulgated under the Securities Act (a “Free Writing Prospectus”)
required to be filed by the Company or the Buyer with the SEC or retained by the Company or the Buyer under Rule 433 under the
1933 Act. The Buyer has not made, and agrees that unless it obtains the prior written consent of the Company it will not make,
an offer relating to the Securities that would constitute a Free Writing Prospectus required to be filed by the Company with the
SEC or retained by the Company under Rule 433 under the 1933 Act. Any such Issuer Free Writing Prospectus or other Free Writing
Prospectus consented to by the Buyer or the Company is referred to in this Agreement as a “Permitted Free Writing Prospectus.”
The Company agrees that (x) it has treated and will treat, as the case may be, each Permitted Free Writing Prospectus as an Issuer
Free Writing Prospectus and (y) it has complied and will comply, as the case may be, with the requirements of Rules 164 and 433
under the Securities Act applicable to any Permitted Free Writing Prospectus, including in respect of timely filing with the SEC,
legending and record keeping.


 


		(b)	Prospectus Delivery. Immediately prior to execution
of this Agreement, the Company shall have delivered to the Buyer, and as soon as practicable after execution of this Agreement
the Company shall file, Prospectus Supplements with respect to the Securities to be issued on the Initial Closing Date, as required
under, and in conformity with, the 1933 Act, including Rule 424(b) thereunder. The Company shall provide the Buyer a reasonable
opportunity to comment on a draft of each Prospectus Supplement and any Issuer Free Writing Prospectus, shall give due consideration
to all such comments and, subject to the provisions of Section 1(a) hereof, shall deliver or make available to the Buyer, without
charge, an electronic copy of each form of Prospectus Supplement, together with the Prospectus, and any Permitted Free Writing
Prospectus on the Closing Date. The Company consents to the use of the Prospectus (and of any Prospectus Supplements thereto)
in accordance with the provisions of the 1933 Act and with the securities or “blue sky” laws of the jurisdictions
in which the Securities may be sold by the Buyer, in connection with the offering and sale of the Securities and for such period
of time thereafter as the Prospectus (or in lieu thereof, the notice referred to in Rule 173(a) under the 1933 Act) is required
by the 1933 Act to be delivered in connection with sales of the Securities. If during such period of time any event shall occur
that in the judgment of the Company and its counsel is required to be set forth in the Registration Statement or the Prospectus
or any Permitted Free Writing Prospectus or should be set forth therein in order to make the statements made therein (in the case
of the Prospectus, in light of the circumstances under which they were made) not misleading, or if it is necessary to amend the
Registration Statement or supplement or amend the Prospectus or any Permitted Free Writing Prospectus to comply with the 1933
Act or any other applicable law or regulation, the Company shall forthwith prepare and, subject to Section 1(a) above, file with
the SEC an appropriate amendment to the Registration Statement or Prospectus Supplement to the Prospectus (or supplement to the
Permitted Free Writing Prospectus) and shall expeditiously furnish or make available to the Buyer an electronic copy thereof.



 






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		(c)	Stop
Order. The Company shall advise the Buyer promptly (but in no event later than 24 hours) and shall confirm such advice in
writing: (i) of the Company’s receipt of notice of any request by the SEC for amendment of or a supplement to the Registration
Statement, the Prospectus, any Permitted Free Writing Prospectus or for any additional information; (ii) of the Company’s
receipt of notice of the issuance by the SEC of any stop order suspending the effectiveness of the Registration Statement or prohibiting
or suspending the use of the Prospectus or any Prospectus Supplement, or of the suspension of qualification of the Securities
for offering or sale in any jurisdiction, or the initiation or contemplated initiation of any proceeding for such purpose; (iii)
of the Company becoming aware of the happening of any event, which makes any statement of a material fact made in the Registration
Statement, the Prospectus or any Permitted Free Writing Prospectus untrue or which requires the making of any additions to or
changes to the statements then made in the Registration Statement, the Prospectus or any Permitted Free Writing Prospectus in
order to state a material fact required by the 1933 Act to be stated therein or necessary in order to make the statements then
made therein (in the case of the Prospectus, in light of the circumstances under which they were made) not misleading, or of the
necessity to amend the Registration Statement or supplement the Prospectus or any Permitted Free Writing Prospectus to comply
with the 1933 Act or any other law or (iv) if at any time following the date hereof the Registration Statement is not effective
or is not otherwise available for the issuance of the Securities or any Prospectus contained therein is not available for use
for any other reason. Thereafter, the Company shall promptly notify such holders when the Registration Statement, the Prospectus,
any Permitted Free Writing Prospectus and/or any amendment or supplement thereto, as applicable, is effective and available for
the issuance of the Securities. If at any time the SEC shall issue any stop order suspending the effectiveness of the Registration
Statement or prohibiting or suspending the use of the Prospectus or any Prospectus Supplement, the Company shall use best efforts
to obtain the withdrawal of such order at the earliest possible time. So long as any Warrants remain outstanding, the Company
shall use its best efforts to maintain the continuous effectiveness of the Registration Statement under the 1933 Act.



 


		(d)	Blue Sky. If required, the Company, on or before
the Closing Date, shall take such action as the Company shall reasonably determine is necessary in order to obtain an exemption
for, or to, qualify the Securities for sale to the Buyers at the Closing pursuant to this Agreement under applicable securities
or “Blue Sky” laws of the states of the United States (or to obtain an exemption from such qualification), and shall
provide evidence of any such action so taken to the Buyers on or prior to the Closing Date. Without limiting any other obligation
of the Company under this Agreement, the Company shall timely make all filings and reports relating to the offer and sale of the
Securities required under all applicable securities laws (including, without limitation, all applicable federal securities laws
and all applicable “Blue Sky” laws), and the Company shall comply with all applicable federal, state and local laws,
statutes, rules, regulations and the like relating to the offering and sale of the Securities to the Buyers.



 


		(e)	Reporting Status. Until the date on which no Warrants
are outstanding (the “Reporting Period”), the Company shall timely file all reports required to be filed with
the SEC pursuant to the 1934 Act, and the Company shall not terminate its status as an issuer required to file reports under the
1934 Act even if the 1934 Act or the rules and regulations thereunder would no longer require such filings or otherwise permit
such termination.



 






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		(f)	Use of Proceeds. The Company shall use the net
proceeds from the sale of the Securities hereunder solely for general working capital purposes. Without limiting the foregoing,
none of such proceeds shall be used, directly or indirectly, (i) for the satisfaction of any debt of the Company or any of its
Subsidiaries (other than payment of trade payables incurred in the ordinary course of business of the Company and its Subsidiaries
and consistent with prior practices), (ii) for the redemption of any securities of the Company or (iii) with respect to any litigation
involving the Company or any of its Subsidiaries (including, without limitation, (A) any settlement thereof or (B) the payment
of any costs or expenses related thereto).



 


		(g)	Financial Information. The Company agrees to send
the following to each Buyer during the Reporting Period (i) unless the following are filed with the SEC through EDGAR and are
available to the public through the EDGAR system, within one (1) Business Day after the filing thereof with the SEC, a copy of
its Annual Reports on Form 20-F (or Annual Report on Form 10-K or other applicable form), any interim or periodic reports or any
consolidated balance sheets, income statements, shareholders’ equity statements and/or cash flow statements for any period
other than annual, any Current Reports on Form 6-K and any registration statements (other than on Form S-8) or amendments filed
pursuant to the 1933 Act, (ii) unless the following are either filed with the SEC through EDGAR or are otherwise widely disseminated
via a recognized news release service (such as PR Newswire), on the same day as the release thereof, facsimile copies of all press
releases issued by the Company or any of its Subsidiaries and (iii) unless the following are filed with the SEC through EDGAR,
copies of any notices and other information made available or given to the shareholders of the Company generally, contemporaneously
with the making available or giving thereof to the shareholders.



 


		(h)	Listing. The Company shall promptly secure the
listing or authorization for quotation (as the case may be) of all of the Registered Shares and Warrant Shares upon each national
securities exchange and automated quotation system, if any, upon which the Common Shares is then listed or designated for quotation
(as the case may be) (subject to official notice of issuance) (but in no event later than the Closing Date) and shall maintain
such listing or designation for quotation (as the case may be) of all the Common Shares from time to time issuable under the terms
of the Transaction Documents on such national securities exchange or automated quotation system. The Company shall maintain the
Common Shares’ listing or designation for quotation (as the case may be) on the Principal Market, The New York Stock Exchange,
the NYSE Amex, the Nasdaq Global Select Market or the Nasdaq Global Market (each, an “Eligible Market”). Neither
the Company nor any of its Subsidiaries shall take any action that could be reasonably expected to result in the delisting or
suspension of the Common Shares on an Eligible Market. The Company shall pay all fees and expenses in connection with satisfying
its obligations under this Section 4(h).



 


		(i)	Fees. The Company shall reimburse Greenberg Traurig,
LLP for all costs and expenses incurred by it or its affiliates in connection with the transactions contemplated by the Transaction
Documents (including, without limitation, all legal fees and disbursements in connection therewith, structuring, documentation
and implementation of the transactions contemplated by the Transaction Documents and due diligence and regulatory filings in connection
therewith) in a non-accountable amount equal to $40,000, which amount shall be withheld by the lead Buyer from its Purchase Price
at the Closing or paid by the Company on demand by Greenberg Traurig, LLP if the lead Buyer terminates its obligations under this
Agreement in accordance with Section 7 (as the case may be), less $20,000 which was previously advanced to Greenberg Traurig,
LLP by the Company. The Company shall be responsible for the payment of any placement agent’s fees, financial advisory fees,
transfer agent fees, DTC fees or broker’s commissions (other than for Persons engaged by any Buyer) relating to or arising
out of the transactions contemplated hereby (including, without limitation, any fees payable to the Placement Agent, who is the
Company’s sole placement agent in connection with the transactions contemplated by this Agreement). The Company shall pay,
and hold each Buyer harmless against, any liability, loss or expense (including, without limitation, reasonable attorneys’
fees and out-of-pocket expenses) arising in connection with any claim relating to any such payment. Except as otherwise set forth
in the Transaction Documents, each party to this Agreement shall bear its own expenses in connection with the sale of the Securities
to the Buyers.



 






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		(j)	Pledge of Securities. Notwithstanding anything
to the contrary contained in this Agreement, the Company acknowledges and agrees that the Securities may be pledged by a Buyer
in connection with a bona fide margin agreement or other loan or financing arrangement that is secured by the Securities. The
pledge of Securities shall not be deemed to be a transfer, sale or assignment of the Securities hereunder, and no Buyer effecting
a pledge of Securities shall be required to provide the Company with any notice thereof or otherwise make any delivery to the
Company pursuant to this Agreement or any other Transaction Document. The Company hereby agrees to execute and deliver such documentation
as a pledgee of the Securities may reasonably request in connection with a pledge of the Securities to such pledgee by a Buyer.



 


		(k)	Disclosure
                                         of Transactions and Other Material Information. The
                                         Company shall, on or before 8:30 a.m., New York time, on the date of this Agreement,
                                         (i) issue a press release (the “Press Release”) reasonably acceptable
                                         to the Buyers disclosing all the material terms of the transactions
                                         contemplated by the Transaction Documents and (ii) file a Current Report
                                         on Form 6-K describing all the material terms of the transactions contemplated by the
                                         Transaction Documents in the form required by the 1934 Act and attaching all the material
                                         Transaction Documents (including, without limitation, this Agreement (and all schedules
                                         to this Agreement) and the form of Warrants) (including all attachments, the “6-K
                                         Filing”). From and after the issuance of the Press Release, the Company shall
                                         have disclosed all material, non-public information (if any) provided to any of the Buyers
                                         by the Company or any of its Subsidiaries, or any of their respective officers, directors,
                                         employees or agents in connection with the transactions contemplated by the Transaction
                                         Documents. The Company shall not, and the Company shall cause each of its Subsidiaries
                                         and each of its and their respective officers, directors, employees and agents, not to,
                                         provide any Buyer with any material, non-public information regarding the Company or
                                         any of its Subsidiaries from and after the issuance of the Press Release without the
                                         express prior written consent of such Buyer (which may be granted or withheld in such
                                         Buyer’s sole discretion). In the event of a breach of any of the foregoing covenants,
                                         including, without limitation, Section 4(p) of this Agreement or any of the covenants
                                         or agreements contained in any other Transaction Document, by the Company, any of its
                                         Subsidiaries, or any of its or their respective officers, directors, employees and agents
                                         (as determined in the reasonable good faith judgment of such Buyer), in addition to any
                                         other remedy provided herein or in the Transaction Documents, such Buyer shall have the
                                         right to make a public disclosure, in the form of a press release, public advertisement
                                         or otherwise, of such breach or such material, non-public information, as applicable,
                                         without the prior approval by the Company, any of its Subsidiaries, or any of its or
                                         their respective officers, directors, employees or agents; provided, however, that the
                                         Buyer shall first give the Company at least four hours’ advance written notice
                                         of such intended public disclosure to allow the Company an opportunity to release such
                                         information itself. No Buyer shall have any liability to the Company, any of its Subsidiaries,
                                         or any of its or their respective officers, directors, employees, shareholders or agents,
                                         for any such disclosure. Subject to the foregoing, neither the Company, its Subsidiaries
                                         nor any Buyer shall issue any press releases or any other public statements with respect
                                         to the transactions contemplated hereby; provided, however, the Company shall be entitled,
                                         without the prior approval of any Buyer, to make any press release or other public disclosure
                                         with respect to such transactions (A) in substantial conformity with the 6-K Filing and
                                         contemporaneously therewith and (B) as is required by applicable law and regulations
                                         (provided that in the case of clause (A) each Buyer shall be consulted by the Company
                                         in connection with any such press release or other public disclosure prior to its release).
                                         Without the prior written consent of the applicable Buyer (which may be granted or withheld
                                         in such Buyer’s sole discretion, subject to such cases in which such information
                                         is required by law), the Company shall not (and shall cause each of its Subsidiaries
                                         and affiliates to not) disclose the name of such Buyer in any filing (other than the
                                         6-K Filing), announcement, release or otherwise. Notwithstanding anything contained in
                                         this Agreement to the contrary and without implication that the contrary would otherwise
                                         be true other than as required by law, the Company expressly acknowledges and agrees
                                         that no Buyer has had, and no Buyer shall have (unless expressly agreed to by a particular
                                         Buyer after the date hereof in a written definitive and binding agreement executed by
                                         the Company and such particular Buyer (it being understood and agreed that no Buyer may
                                         bind any other Buyer with respect thereto)), any duty of confidentiality with respect
                                         to, or a duty not to trade on the basis of, any information regarding the Company or
                                         any of its Subsidiaries.



 






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		(l)	Additional Issuance of Securities. The Company
agrees that for the period commencing on the date hereof and ending on the date immediately following the thirty (30) Trading
Day anniversary of the Closing Date (provided that such period shall be extended by the number of Trading Days during such period
and any extension thereof contemplated by this proviso on which the Registration Statement is not effective or any prospectus
contained therein is not available for use) (the “Restricted Period”), neither the Company nor any of
its Subsidiaries shall directly or indirectly issue, offer, sell, grant any option or right to purchase, or otherwise dispose
of (or announce any issuance, offer, sale, grant of any option or right to purchase or other disposition of) any equity security
or any equity-linked or related security (including, without limitation, any “equity security” (as that term is defined
under Rule 405 promulgated under the 1933 Act), any Convertible Securities (as defined below), any debt, preferred shares or any
purchase rights) (any such issuance, offer, sale, grant, disposition or announcement (whether occurring during the Restricted
Period or at any time thereafter) is referred to as a “Subsequent Placement”). Notwithstanding the foregoing,
this Section 4(l) shall not apply in respect of the issuance of (i) Common Shares or standard options to purchase Common Shares
to directors, officers, employees or consultants of the Company or any of its Subsidiaries in their capacity as such pursuant
to an Approved Share Grant (as defined below) (it being expressly understood and agreed for purposes of this section that lawyers,
law firms, accountants, accounting firms and other similar professional advisors and professional advisory firms are not consultants),
provided that (A) all such issuances (taking into account the Common Shares issuable upon exercise of such options) after the
date hereof pursuant to this clause (i) do not, in the aggregate, exceed more than two hundred thousand (200,000) Common Shares
(adjusted for share splits, share combinations and other similar transactions) and (B) the exercise price of any such options
is not lowered, none of such options are amended to increase the number of shares issuable thereunder and none of the terms or
conditions of any such options are otherwise materially changed in any manner that adversely affects any of the Buyers; (ii) Common
Shares issued upon the conversion or exercise of Convertible Securities (other than standard options to purchase Common Shares
issued pursuant to an Approved Share Grant that are covered by clause (i) above) issued prior to the date hereof, provided that
the conversion, exercise or other method of issuance (as the case may be) of any such Convertible Security is made solely pursuant
the conversion, exercise or other method of issuance (as the case may be) provisions of such Convertible Security that were in
effect on the date immediately prior to the date of this Agreement, the conversion exercise or issuance price of any such Convertible
Securities (other than standard options to purchase Common Shares issued pursuant to an Approved Share Grant that are covered
by clause (i) above) is not lowered, none of such Convertible Securities (other than standard options to purchase Common Shares
issued pursuant to an Approved Share Grant that are covered by clause (i) above) are amended or waived in any manner (whether
by the Company or the holder thereof) to increase, or which results in an increase in, the number of shares issuable thereunder
and none of the terms or conditions of any such Convertible Securities (other than standard options to purchase Common Shares
issued pursuant to an Approved Share Grant that are covered by clause (i) above) are otherwise materially changed or waived (whether
by the Company or the holder thereof) in any manner that adversely affects any of the Buyers; (iii) Common Shares issued pursuant
to a bona fide firm commitment underwritten public offering with a nationally recognized underwriter that generates gross proceeds
to the Company in excess of $25,000,000 (but expressly excluding “at-the-market offerings” (as defined in Rule 415(a)(4)
under the 1933 Act) and “equity lines of credit”); (iv) Common Shares issued in connection with strategic alliances,
strategic mergers and acquisitions and strategic partnerships, provided that (A) the primary purpose of such issuance is not to
raise capital as determined in good faith by the Buyers, (B) the purchaser or acquirer of such Common Shares in such issuance
solely consists of either (1) the actual participants in such strategic alliance or strategic partnership, (2) the actual owners
of such assets or securities acquired in such merger or acquisition or (3) the shareholders, partners or members of the foregoing
Persons, (C) the number or amount (as the case may be) of such Common Shares issued to such Person by the Company shall not be
disproportionate to such Person’s actual participation in such strategic alliance or strategic partnership or ownership
of such assets or securities to be acquired by the Company (as applicable) and (D) all such issuances of Common Shares after the
date hereof pursuant to this clause (iv) do not, in the aggregate, exceed more than five hundred thousand (500,000) Common Shares
(adjusted for share splits, share combinations and other similar transactions); (v) standard warrants to purchase Common Shares
and the Common Shares issuable upon exercise of such warrants issued solely to placement agents solely as compensation for services
rendered to the Company in their capacity as such in connection with a Subsequent Placement, provided that (A) all such issuances
(taking into account the Common Shares issuable upon exercise of such warrants) after the date hereof pursuant to this clause
(i) do not, in the aggregate, exceed more than two hundred thousand (200,000) Common Shares (adjusted for share splits, share
combinations and other similar transactions), (B) the exercise price of any such warrants is not lower than the Exercise Price
(as defined in the Warrants) and (C) the exercise price of any such warrants is not lowered, none of such warrants are amended
to increase the number of shares issuable thereunder and none of the terms or conditions of any such warrants are otherwise materially
changed in any manner that adversely affects any of the Buyers; (vi) the Registered Shares, (vii) the Warrants and (viii) the
Warrant Shares (each of the foregoing in clauses (i) through (viii), collectively the “Excluded Securities”).
“Approved Share Grant” means any employee benefit plan, employment agreement or consulting agreement which
has been approved by the board of directors of the Company prior to or subsequent to the date hereof pursuant to which Common
Shares and standard options to purchase Common Shares may be issued to any employee, officer, director or consultant for services
provided to the Company or any of its Subsidiaries in their capacity as such. “Convertible Securities” means
any share capital, note, debenture or other security of the Company or any of its Subsidiaries that is, or may become, at any
time and under any circumstances directly or indirectly convertible into, exercisable or exchangeable for, or which otherwise
entitles the holder thereof to acquire, any share capital, note, debenture or other security of the Company (including, without
limitation, Common Shares) or any of its Subsidiaries.



 






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		(m)	Reservation of Shares. So long as any of the Warrants
remain outstanding, the Company shall take all action necessary to at all times have authorized, and reserved for the purpose
of issuance, no less than 125% of the maximum number of Common Shares issuable upon exercise of all the Warrants then outstanding
(without regard to any limitations on the exercise of the Warrants set forth therein).



 


		(n)	Conduct of Business. The business of the Company
and its Subsidiaries shall not be conducted in violation of any law, ordinance or regulation of any Governmental Entity, except
where such violations would not reasonably be expected to result, either individually or in the aggregate, in a Material Adverse
Effect.



 


		(o)	Variable Rate Transaction. So long as any Warrants
remain outstanding, the Company and each Subsidiary shall be prohibited from effecting or entering into an agreement to effect
any Subsequent Placement involving a Variable Rate Transaction. “Variable Rate Transaction” means a transaction
in which the Company or any Subsidiary (i) issues or sells any Convertible Securities either (A) at a conversion, exercise or
exchange rate or other price that is based upon and/or varies with the trading prices of, or quotations for, the Common Shares
at any time after the initial issuance of such Convertible Securities, or (B) with a conversion, exercise or exchange price that
is subject to being reset at some future date after the initial issuance of such Convertible Securities or upon the occurrence
of specified or contingent events directly or indirectly related to the business of the Company or the market for the Common Shares,
other than pursuant to a customary “weighted average” anti-dilution provision or (ii) enters into any agreement (including,
without limitation, an “equity line of credit” or an “at-the-market offering”) whereby the Company or
any Subsidiary may sell securities at a future determined price (other than standard and customary “preemptive” or
“participation” rights). Each Buyer shall be entitled to obtain injunctive relief against the Company and its Subsidiaries
to preclude any such issuance, which remedy shall be in addition to any right to collect damages.



 


		(p)	Participation Right. From the date hereof through
the eighteen (18) month anniversary of the Closing Date, neither the Company nor any of its Subsidiaries shall, directly or indirectly,
effect any Subsequent Placement unless the Company shall have first complied with this Section 4(p). The Company acknowledges
and agrees that the right set forth in this Section 4(p) is a right granted by the Company, separately, to each Buyer.



 






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(i)                
At least three (3) Trading Days prior to any proposed or intended Subsequent Placement, the Company shall deliver to each
Buyer a written notice of its proposal or intention to effect a Subsequent Placement (each such notice, a “Pre-Notice”),
which Pre-Notice shall not contain any information (including, without limitation, material, non-public information) other than:
(A) a statement that the Company proposes or intends to effect a Subsequent Placement, (B) a statement that the statement in clause
(A) above does not constitute material, non-public information and (iii) a statement informing such Buyer that it is entitled to
receive an Offer Notice (as defined below) with respect to such Subsequent Placement upon its written request. Upon the written
request of a Buyer within two (2) Trading Days after the Company’s delivery to such Buyer of such Pre-Notice, and only upon
a written request by such Buyer, the Company shall promptly, but no later than one (1) Trading Day after such request, deliver
to such Buyer an irrevocable written notice (the “Offer Notice”) of any proposed or intended issuance or sale
or exchange (the “Offer”) of the securities being offered (the “Offered Securities”) in a
Subsequent Placement, which Offer Notice shall (1) identify and describe the Offered Securities, (2) describe the price and other
terms upon which they are to be issued, sold or exchanged, and the number or amount of the Offered Securities to be issued, sold
or exchanged, (3) identify the Persons (if known) to which or with which the Offered Securities are to be offered, issued, sold
or exchanged and (4) offer to issue and sell to or exchange with such Buyer in accordance with the terms of the Offer forty percent
(40%) of the Offered Securities, provided that the number of Offered Securities which such Buyer shall have the right to subscribe
for under this Section 4(p) shall be (a) based on such Buyer’s pro rata portion of the aggregate number of Registered Shares
purchased hereunder by all Buyers (the “Basic Amount”), and (b) with respect to each Buyer that elects to purchase
its Basic Amount, any additional portion of the Offered Securities attributable to the Basic Amounts of other Buyers as such Buyer
shall indicate it will purchase or acquire should the other Buyers subscribe for less than their Basic Amounts (the “Undersubscription
Amount”).


 


(ii)              
To accept an Offer, in whole or in part, such Buyer must deliver a written notice to the Company prior to the end of the
third (3rd) Trading Day after such Buyer’s receipt of the Offer Notice (the “Offer Period”), setting forth
the portion of such Buyer’s Basic Amount that such Buyer elects to purchase and, if such Buyer shall elect to purchase all
of its Basic Amount, the Undersubscription Amount, if any, that such Buyer elects to purchase (in either case, the “Notice
of Acceptance”). If the Basic Amounts subscribed for by all Buyers are less than the total of all of the Basic Amounts,
then such Buyer who has set forth an Undersubscription Amount in its Notice of Acceptance shall be entitled to purchase, in addition
to the Basic Amounts subscribed for, the Undersubscription Amount it has subscribed for; provided, however, if the Undersubscription
Amounts subscribed for exceed the difference between the total of all the Basic Amounts and the Basic Amounts subscribed for (the
“Available Undersubscription Amount”), such Buyer who has subscribed for any Undersubscription Amount shall
be entitled to purchase only that portion of the Available Undersubscription Amount as the Basic Amount of such Buyer bears to
the total Basic Amounts of all Buyers that have subscribed for Undersubscription Amounts, subject to rounding by the Company to
the extent it deems reasonably necessary. Notwithstanding the foregoing, if the Company desires to modify or amend the terms and
conditions of the Offer prior to the expiration of the Offer Period, the Company may deliver to each Buyer a new Offer Notice and
the Offer Period shall expire on the third (3rd) Trading Day after such Buyer’s receipt of such new Offer Notice.


 






    	26



    	 



    

 


(iii)            
The Company shall have five (5) days from the expiration of the Offer Period above (A) to offer, issue, sell or exchange
all or any part of such Offered Securities as to which a Notice of Acceptance has not been given by a Buyer (the “Refused
Securities”) pursuant to a definitive agreement(s) (the “Subsequent Placement Agreement”), but only
to the offerees described in the Offer Notice (if so described therein) and only upon terms and conditions (including, without
limitation, unit prices and interest rates) that are not more favorable to the acquiring Person or Persons or less favorable to
the Company than those set forth in the Offer Notice and (B) to publicly announce (1) the execution of such Subsequent Placement
Agreement, and (2) either (a) the consummation of the transactions contemplated by such Subsequent Placement Agreement or (b) the
termination of such Subsequent Placement Agreement, which shall be filed with the SEC on a Current Report on Form 6-K with such
Subsequent Placement Agreement and any documents contemplated therein filed as exhibits thereto.


 


(iv)            
In the event the Company shall propose to sell less than all the Refused Securities (any such sale to be in the manner and
on the terms specified in Section 4(p)(iii) above), then such Buyer may, at its sole option and in its sole discretion, reduce
the number or amount of the Offered Securities specified in its Notice of Acceptance to an amount that shall be not less than the
number or amount of the Offered Securities that such Buyer elected to purchase pursuant to Section 4(p)(ii) above multiplied by
a fraction, (A) the numerator of which shall be the number or amount of Offered Securities the Company actually proposes to issue,
sell or exchange (including Offered Securities to be issued or sold to Buyers pursuant to this Section 4(p) prior to such reduction)
and (B) the denominator of which shall be the original amount of the Offered Securities. In the event that any Buyer so elects
to reduce the number or amount of Offered Securities specified in its Notice of Acceptance, the Company may not issue, sell or
exchange more than the reduced number or amount of the Offered Securities unless and until such securities have again been offered
to the Buyers in accordance with Section 4(p)(i) above.


 


(v)              
Upon the closing of the issuance, sale or exchange of all or less than all of the Refused Securities, such Buyer shall acquire
from the Company, and the Company shall issue to such Buyer, the number or amount of Offered Securities specified in its Notice
of Acceptance. The purchase by such Buyer of any Offered Securities is subject in all cases to the preparation, execution and delivery
by the Company and such Buyer of a separate purchase agreement relating to such Offered Securities reasonably satisfactory in form
and substance to such Buyer and its counsel.


 


(vi)            
Any Offered Securities not acquired by a Buyer or other Persons in accordance with this Section 4(p) may not be issued,
sold or exchanged until they are again offered to such Buyer under the procedures specified in this Agreement.


 


(vii)          
The Company and each Buyer agree that if any Buyer elects to participate in the Offer, neither the Subsequent Placement
Agreement with respect to such Offer nor any other transaction documents related thereto (collectively, the “Subsequent
Placement Documents”) shall include any term or provision whereby such Buyer shall be required to agree to any restrictions
on trading as to any securities of the Company or be required to consent to any amendment to or termination of, or grant any waiver,
release or the like under or in connection with, any agreement previously entered into with the Company or any instrument received
from the Company.


 






    	27



    	 



    

 


(viii)        
Notwithstanding anything to the contrary in this Section 4(p) and unless otherwise agreed to by such Buyer, the Company
shall either confirm in writing to such Buyer that the transaction with respect to the Subsequent Placement has been abandoned
or shall publicly disclose its intention to issue the Offered Securities, in either case in such a manner such that such Buyer
will not be in possession of any material, non-public information, by the fifth (5th) Business Day following delivery
of the Offer Notice. If by such fifth (5th) Business Day, no public disclosure regarding a transaction with respect
to the Offered Securities has been made, and no notice regarding the abandonment of such transaction has been received by such
Buyer, such transaction shall be deemed to have been abandoned and such Buyer shall not be in possession of any material, non-public
information with respect to the Company or any of its Subsidiaries. Should the Company decide to pursue such transaction with respect
to the Offered Securities, the Company shall provide such Buyer with another Offer Notice in accordance with, and subject to, the
terms of this Section 4(p) and such Buyer will again have the right of participation set forth in this Section 4(p). The Company
shall not be permitted to deliver more than one Offer Notice to such Buyer in any forty-five (45) day period, except as expressly
contemplated by the last sentence of Section 4(p)(ii).


 


(ix)            
The restrictions contained in this Section 4(p) shall not apply in connection with the issuance of any Excluded Securities.
The Company shall not circumvent the provisions of this Section 4(p) by providing terms or conditions to one Buyer that are not
provided to all.


 


		(q)	Passive Foreign Investment Company. The Company
shall conduct its business in such a manner as will ensure that the Company will not be deemed to constitute a passive foreign
investment company within the meaning of Section 1297 of the U.S. Internal Revenue Code of 1986, as amended.



 


		(r)	Restriction on Redemption and Cash Dividends. So long as any Warrants remain outstanding,
the Company shall not, directly or indirectly, redeem, or declare or pay any cash dividend or distribution on, any securities of
the Company without the prior express written consent of the Buyers.



 


		(s)	Corporate Existence. So long as any Warrants remain outstanding, the Company shall not be
party to any Fundamental Transaction (as defined in the Warrants) unless the Company is in compliance with the applicable provisions
governing Fundamental Transactions set forth in the Warrants.



 


		(t)	Share Splits. So long as any Warrants remain outstanding, the Company shall not effect any
share combination, reverse share split or other similar transaction (or make any public announcement or disclosure with respect
to any of the foregoing) without the prior written consent of the Required Holders (as defined below).



 






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		(u)	Exercise Procedures. The form of Notice of Exercise
included in each of the Warrants set forth the totality of the procedures required of the Buyers in order to exercise the Warrants.
No additional legal opinion, other information or instructions shall be required of the Buyers to exercise their Warrants. The
Company shall honor exercises of the Warrants and shall deliver the Warrant Shares in accordance with the terms, conditions and
time periods set forth in the Warrants.



 


		(v)	Closing Documents. On or prior to fourteen (14)
calendar days after the Closing Date, the Company agrees to deliver, or cause to be delivered, to each Buyer and Greenberg Traurig,
LLP executed copies of the Transaction Documents, Securities and other document required to be delivered to any party pursuant
to Section 6 hereof.



 


		5.	REGISTER; TRANSFER AGENT INSTRUCTIONS; LEGEND.



 


		(a)	Register. The Company shall maintain at its principal
executive offices (or such other office or agency of the Company as it may designate by notice to each holder of Securities),
a register for the Registered Shares and the Warrants in which the Company shall record the name and address of the Person in
whose name the Registered Shares and the Warrants have been issued (including the name and address of each transferee),
the number of Registered Shares held by such Person and the number of Warrant Shares issuable upon exercise of the Warrants held
by such Person. The Company shall keep the register open and available at all times during business hours for inspection of any
Buyer or its legal representatives.



 


		(b)	Transfer Agent Instructions. The Company shall
issue irrevocable instructions to the Transfer Agent in the form previously provided to the Company (the “Irrevocable
Transfer Agent Instructions”) to issue certificates or credit shares to the applicable balance accounts at DTC, registered
in the name of each Buyer or its respective nominee(s), for the Registered Shares and the Warrant Shares in such amounts as specified
from time to time by each Buyer to the Company upon delivery of the Registered Shares or the exercise of the Warrants (as the
case may be). The Company represents and warrants that no instruction other than the Irrevocable Transfer Agent Instructions referred
to in this Section 5(b) will be given by the Company to the Transfer Agent with respect to the Securities, and that the Securities
shall otherwise be freely transferable on the books and records of the Company. If a Buyer effects a sale, assignment or transfer
of the Securities, the Company shall permit the transfer and shall promptly instruct the Transfer Agent to issue one or more certificates
or credit shares to the applicable balance accounts at DTC in such name and in such denominations as specified by such Buyer to
effect such sale, transfer or assignment. The Company acknowledges that a breach by it of its obligations hereunder will cause
irreparable harm to each Buyer. Accordingly, the Company acknowledges that the remedy at law for a breach of its obligations under
this Section 5(b) will be inadequate and agrees, in the event of a breach or threatened breach by the Company of the provisions
of this Section 5(b), that each Buyer shall be entitled, in addition to all other available remedies, to an order and/or injunction
restraining any breach and requiring immediate issuance and transfer, without the necessity of showing economic loss and without
any bond or other security being required. Any fees (with respect to the Transfer Agent, counsel to the Company or otherwise)
associated with the issuance of such opinion shall be borne by the Company.



 


		(c)	Legends. Certificates and any other instruments
evidencing the Securities shall not bear any restrictive or other legend.



 






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		6.	ADDITIONAL CLOSING DELIVERIES OF THE COMPANY. 



 


		(a)	Deliveries. The Company shall deliver to each
Buyer on the Closing Date each of the following:



 


(i)                
The opinion of Kaufman & Canoles, P.C., the
Company’s counsel, dated as of the Closing Date, in the form previously provided to the Company.


 


(ii)              
A copy of the Irrevocable Transfer Agent Instructions, in the form previously provided to the Company, that have been delivered
to and acknowledged in writing by the Transfer Agent.


 


(iii)            
A certificate evidencing the formation and good standing of the Company and each of its Subsidiaries in each such entity’s
jurisdiction of formation issued by the Secretary of State (or comparable office) of such jurisdiction of formation as of a date
within ten (10) days of the Closing Date.


 


(iv)            
A certificate evidencing the Company’s qualification as a foreign corporation and good standing issued by the Secretary
of State (or comparable office) of each jurisdiction in which the Company conducts business and is required to so qualify, as of
a date within ten (10) days of the Closing Date.


 


(v)              
A certified copy of the Certificate of Incorporation as certified by the Secretary of State of the Company’s jurisdiction
of formation within ten (10) days of the Closing Date.


 


(vi)            
A certificate, in the form previously provided to the Company, executed by an officer of the Company and dated as of the
Closing Date, as to (i) the resolutions consistent with Section 3(b) as adopted by the Company’s board of directors in a
form reasonably acceptable to such Buyer, (ii) the Certificate of Incorporation and (iii) the Memorandum of Association, each as
in effect at the Closing.


 


(vii)          
A letter from the Transfer Agent certifying the number of Common Shares outstanding on the Closing Date immediately prior
to the Closing.


 


(viii)        
A letter on the letterhead of the Company, duly executed by the Chief Executive Officer of the Company, setting forth the
wire amounts of each Buyer and the wire transfer instructions of the Company.


 


(ix)            
Such other documents, instruments or certificates relating to the transactions contemplated by this Agreement as such Buyer
or its counsel may reasonably request.


 


		7.	TERMINATION. 



 


In the event that the
Closing shall not have occurred with respect to a Buyer within five (5) days after the date hereof, then such Buyer shall have
the right to terminate its obligations under this Agreement with respect to itself at any time on or after the close of business
on such date without liability of such Buyer to any other party; provided, however, (a) the right to terminate this Agreement under
this Section 7 shall not be available to such Buyer if the failure of the transactions contemplated by this Agreement to have been
consummated by such date is the result of such Buyer’s failure to proceed to Closing or other breach of this Agreement and
(b) the abandonment of the sale and purchase of the Registered Shares and the Warrants shall be applicable only to such Buyer providing
such written notice, provided further that no such termination shall affect any obligation of the Company under this Agreement
to reimburse such Buyer for the expenses described in Section 4(i) above. Nothing contained in this Section 7 shall be deemed to
release any party from any liability for any breach by such party of the terms and provisions of this Agreement or the other Transaction
Documents or to impair the right of any party to compel specific performance by any other party of its obligations under this Agreement
or the other Transaction Documents.


 






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		8.	MISCELLANEOUS.



 


		(a)	Governing Law; Jurisdiction; Jury Trial. All questions
concerning the construction, validity, enforcement and interpretation of this Agreement and the other Transaction Documents shall
be governed by the internal laws of the State of New York, without giving effect to any choice of law or conflict of law provision
or rule (whether of the State of New York or any other jurisdictions) that would cause the application of the laws of any jurisdiction
other than the State of New York. Each party hereby irrevocably submits to the exclusive jurisdiction of the state and federal
courts sitting in The City of New York, Borough of Manhattan, for the adjudication of any dispute hereunder or under any of the
other Transaction Documents or in connection herewith or therewith or with any transaction contemplated hereby or thereby or discussed
herein or therein, and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it
is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is brought in an inconvenient
forum or that the venue of such suit, action or proceeding is improper. Each party hereby irrevocably waives personal service
of process and consents to process being served in any such suit, action or proceeding by mailing a copy thereof to such party
at the address for such notices to it under this Agreement and agrees that such service shall constitute good and sufficient service
of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any
manner permitted by law. Nothing contained herein shall be deemed or operate to preclude any Buyer from bringing suit or taking
other legal action against the Company in any other jurisdiction to collect on the Company’s obligations to such Buyer or
to enforce a judgment or other court ruling in favor of such Buyer. The Company hereby appoints Vcorp Agent Services, Inc., 25
Robert Pitt Drive, Suite 204, Monsey, NY, 10952, Rockland County, as its agent for service of process in New York. Nothing contained
herein shall be deemed to limit in any way any right to serve process in any manner permitted by law. EACH PARTY HEREBY IRREVOCABLY
WAIVES ANY RIGHT IT MAY HAVE TO, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION
WITH OR ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY. The choice of the laws of the State of New York
as the governing law of this Agreement is a valid choice of law and would be recognized and given effect to in any action brought
before a court of competent jurisdiction in the British Virgin Islands, except for those laws (i) which such court considers to
be procedural in nature, (ii) which are revenue or penal laws or (iii) the application of which would be inconsistent with public
policy, as such term is interpreted under the laws of the British Virgin Islands. The choice of laws of the State of New York
as the governing law of this Agreement will be honored by competent courts in the People’s Republic of China, subject to
compliance with relevant People’s Republic of China civil procedural requirements. The Company or any of their respective
properties, assets or revenues does not have any right of immunity under British Virgin Islands, the People’s Republic of
China or New York law, from any legal action, suit or proceeding, from the giving of any relief in any such legal action, suit
or proceeding, from set-off or counterclaim, from the jurisdiction of any British Virgin Islands and the People’s Republic
of China, New York or United States federal court, from service of process, attachment upon or prior to judgment, or attachment
in aid of execution of judgment, or from execution of a judgment, or other legal process or proceeding for the giving of any relief
or for the enforcement of a judgment, in any such court, with respect to its obligations, liabilities or any other matter under
or arising out of or in connection with this Agreement; and, to the extent that the Company, or any of its properties, assets
or revenues may have or may hereafter become entitled to any such right of immunity in any such court in which proceedings may
at any time be commenced, the Company hereby waives such right to the extent permitted by law and hereby consents to such relief
and enforcement as provided in this Agreement and the other Transaction Documents.



 






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		(b)	Counterparts. This Agreement may be executed in
two or more identical counterparts, all of which shall be considered one and the same agreement and shall become effective when
counterparts have been signed by each party and delivered to the other party. In the event that any signature is delivered by
facsimile transmission or by an e-mail which contains a portable document format (.pdf) file of an executed signature page, such
signature page shall create a valid and binding obligation of the party executing (or on whose behalf such signature is executed)
with the same force and effect as if such signature page were an original thereof.



 


		(c)	Headings; Gender. The headings of this Agreement
are for convenience of reference and shall not form part of, or affect the interpretation of, this Agreement. Unless the context
clearly indicates otherwise, each pronoun herein shall be deemed to include the masculine, feminine, neuter, singular and plural
forms thereof. The terms “including,” “includes,” “include” and words of like import shall
be construed broadly as if followed by the words “without limitation.” The terms “herein,” “hereunder,”
“hereof” and words of like import refer to this entire Agreement instead of just the provision in which they are found.



 


		(d)	Severability; Usury. If any provision of this
Agreement is prohibited by law or otherwise determined to be invalid or unenforceable by a court of competent jurisdiction, the
provision that would otherwise be prohibited, invalid or unenforceable shall be deemed amended to apply to the broadest extent
that it would be valid and enforceable, and the invalidity or unenforceability of such provision shall not affect the validity
of the remaining provisions of this Agreement so long as this Agreement as so modified continues to express, without material
change, the original intentions of the parties as to the subject matter hereof and the prohibited nature, invalidity or unenforceability
of the provision(s) in question does not substantially impair the respective expectations or reciprocal obligations of the parties
or the practical realization of the benefits that would otherwise be conferred upon the parties. The parties will endeavor in
good faith negotiations to replace the prohibited, invalid or unenforceable provision(s) with a valid provision(s), the effect
of which comes as close as possible to that of the prohibited, invalid or unenforceable provision(s). Notwithstanding anything
to the contrary contained in this Agreement or any other Transaction Document (and without implication that the following is required
or applicable), it is the intention of the parties that in no event shall amounts and value paid by the Company and/or any of
its Subsidiaries (as the case may be), or payable to or received by any of the Buyers, under the Transaction Documents (including
without limitation, any amounts that would be characterized as “interest” under applicable law) exceed amounts permitted
under any applicable law. Accordingly, if any obligation to pay, payment made to any Buyer, or collection by any Buyer pursuant
the Transaction Documents is finally judicially determined to be contrary to any such applicable law, such obligation to pay,
payment or collection shall be deemed to have been made by mutual mistake of such Buyer, the Company and its Subsidiaries and
such amount shall be deemed to have been adjusted with retroactive effect to the maximum amount or rate of interest, as the case
may be, as would not be so prohibited by the applicable law. Such adjustment shall be effected, to the extent necessary, by reducing
or refunding, at the option of such Buyer, the amount of interest or any other amounts which would constitute unlawful amounts
required to be paid or actually paid to such Buyer under the Transaction Documents. For greater certainty, to the extent that
any interest, charges, fees, expenses or other amounts required to be paid to or received by such Buyer under any of the Transaction
Documents or related thereto are held to be within the meaning of “interest” or another applicable term to otherwise
be violative of applicable law, such amounts shall be pro-rated over the period of time to which they relate.



 






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		(e)	Entire Agreement; Amendments. This Agreement,
the other Transaction Documents and the schedules and exhibits attached hereto and thereto and the instruments referenced herein
and therein supersede all other prior oral or written agreements between the Buyers, the Company, their affiliates and Persons
acting on their behalf solely with respect to the matters contained herein and therein, and this Agreement, the other Transaction
Documents, the schedules and exhibits attached hereto and thereto and the instruments referenced herein and therein contain the
entire understanding of the parties solely with respect to the matters covered herein and therein; provided, however, nothing
contained in this Agreement or any other Transaction Document shall (or shall be deemed to) (i) have any effect on any agreements
any Buyer has entered into with the Company or any of its Subsidiaries prior to the date hereof with respect to any prior investment
made by such Buyer in the Company or (ii) waive, alter, modify or amend in any respect any obligations of the Company or any of
its Subsidiaries, or any rights of or benefits to any Buyer or any other Person, in any agreement entered into prior to the date
hereof between or among the Company and/or any of its Subsidiaries and any Buyer and all such agreements shall continue in full
force and effect. Except as specifically set forth herein or therein, neither the Company nor any Buyer makes any representation,
warranty, covenant or undertaking with respect to such matters. For clarification purposes, the Recitals are part of this Agreement.
No provision of this Agreement may be amended other than by an instrument in writing signed by the Company and each of the Buyers.
No waiver shall be effective unless it is in writing and signed by an authorized representative of the waiving party. No consideration
shall be offered or paid to any Person to amend or consent to a waiver or modification of any provision of any of the Transaction
Documents unless the same consideration also is offered to all of the parties to the Transaction Documents, all holders of Registered
Shares or all holders of the Warrants (as the case may be). The Company has not, directly or indirectly, made any agreements with
any Buyers relating to the terms or conditions of the transactions contemplated by the Transaction Documents except as set forth
in the Transaction Documents. Without limiting the foregoing, the Company confirms that, except as set forth in this Agreement,
no Buyer has made any commitment or promise or has any other obligation to provide any financing to the Company, any Subsidiary
or otherwise. As a material inducement for each Buyer to enter into this Agreement, the Company expressly acknowledges and agrees
that (A) no due diligence or other investigation or inquiry conducted by a Buyer, any of its advisors or any of its representatives
shall affect such Buyer’s right to rely on, or shall modify or qualify in any manner or be an exception to any of, the Company’s
representations and warranties contained in this Agreement or any other Transaction Document, (B) nothing contained in the Registration
Statement, the Prospectus or the Prospectus Supplement shall affect such Buyer’s right to rely on, or shall modify or qualify
in any manner or be an exception to any of, the Company’s representations and warranties contained in this Agreement or
any other Transaction Document and (C) unless a provision of this Agreement or any other Transaction Document is expressly preceded
by the phrase “except as disclosed in the SEC Documents,” nothing contained in any of the SEC Documents shall affect
such Buyer’s right to rely on, or shall modify or qualify in any manner or be an exception to any of, the Company’s
representations and warranties contained in this Agreement or any other Transaction Document.



 






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		(f)	Notices. Any notices, consents, waivers or other
communications required or permitted to be given under the terms of this Agreement must be in writing and will be deemed to have
been delivered: (i) upon receipt, when delivered personally; (ii) upon receipt, when sent by facsimile (provided confirmation
of transmission is mechanically or electronically generated and kept on file by the sending party); (ii) when sent, if sent by
electronic mail (provided that such sent e-mail is kept on file (whether electronically or otherwise) by the sending party and
the sending party does not receive an automatically generated message from the recipient’s e-mail server that such e-mail
could not be delivered to such recipient); or (iv) one (1) Business Day after deposit with an overnight courier service with next
day delivery specified, in each case, properly addressed to the party to receive the same. The addresses and facsimile numbers
for such communications shall be:



 


If to the Company:


 


Dehaier Medical Systems Limited

Room 501

Jiuzhou Plaza

83 Fuxing Road

Haidian District, Beijing 100856

People’s Republic of China

Telephone: +86 (10) 5166-0080

Attention: Chief Executive Officer

E-mail: chenping@dehaier.com.cn


 


 


With a copy (for informational
purposes only) to:


 


Kaufman & Canoles, P.C.


Two James Center, 14th Floor


1021 E. Cary St.


Richmond, VA 23219


Telephone: (804) 771-5700


Facsimile: (804) 771-5777

Attention: Anthony W. Basch, Esq.


E-mail: awbasch@kaufcan.com


 






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If to the Transfer Agent:


 


Computershare


350 Indiana Street, Suite 750,


Golden, Colorado 80401


Facsimile: (303) 262-0610]


Attention: Christine Abbey


E-mail address: essential.registry@computershare.com


 


If to a Buyer, to its address and facsimile
number set forth on the Schedule of Buyers, with copies to such Buyer’s representatives as set forth on the Schedule of Buyers,


 


with a copy (for informational
purposes only) to:


 


Greenberg Traurig, LLP

MetLife Building

200 Park Avenue

New York, NY 10166

Telephone: (212) 801-9200

Facsimile: (212) 805-9222

Attention: Michael A. Adelstein, Esq.

E-mail: adelsteinm@gtlaw.com


 


or to such other address and/or facsimile
number and/or to the attention of such other Person as the recipient party has specified by written notice given to each other
party five (5) days prior to the effectiveness of such change, provided that Greenberg Traurig, LLP shall only be provided copies
of notices sent to the lead Buyer. Written confirmation of receipt (A) given by the recipient of such notice, consent, waiver or
other communication, (B) mechanically or electronically generated by the sender’s facsimile machine containing the time,
date, recipient facsimile number and an image of the first page of such transmission or (C) provided by an overnight courier service
shall be rebuttable evidence of personal service, receipt by facsimile or receipt from an overnight courier service in accordance
with clause (i), (ii) or (iii) above, respectively. A copy of the e-mail transmission containing the time, date and recipient e-mail
address shall be rebuttable evidence of receipt by e-mail in accordance with clause (iii) above.


 


		(g)	Successors and Assigns. This Agreement shall be
binding upon and inure to the benefit of the parties and their respective successors and assigns, including, as contemplated below,
any assignee of any of the Securities. The Company shall not assign this Agreement or any rights or obligations hereunder without
the prior written consent of each of the Buyers, including, without limitation, by way of a Fundamental Transaction (as defined
in the Warrants) (unless the Company is in compliance with the applicable provisions governing Fundamental Transactions set forth
in the Warrants). A Buyer may assign some or all of its rights hereunder in connection with any transfer of any of its Securities
without the consent of the Company, in which event such assignee shall be deemed to be a Buyer hereunder with respect to such
assigned rights.



 


		(h)	No Third Party Beneficiaries. This Agreement is
intended for the benefit of the parties hereto and their respective permitted successors and assigns, and is not for the benefit
of, nor may any provision hereof be enforced by, any other Person, other than the Indemnitees referred to in Section 8(k).



 






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		(i)	Survival. The representations, warranties, agreements
and covenants shall survive the Closing. Each Buyer shall be responsible only for its own representations, warranties, agreements
and covenants hereunder.



 


		(j)	Further Assurances. Each party shall do and perform,
or cause to be done and performed, all such further acts and things, and shall execute and deliver all such other agreements,
certificates, instruments and documents, as any other party may reasonably request in order to carry out the intent and accomplish
the purposes of this Agreement and the consummation of the transactions contemplated hereby.



 


		(k)	Indemnification.



 


(i)                
In consideration of each Buyer’s execution and delivery of the Transaction Documents and acquiring the Securities
thereunder and in addition to all of the Company’s other obligations under the Transaction Documents, the Company shall defend,
protect, indemnify and hold harmless each Buyer and each holder of any Securities and all of their shareholders, partners, members,
officers, directors, employees and direct or indirect investors and any of the foregoing Persons’ agents or other representatives
(including, without limitation, those retained in connection with the transactions contemplated by this Agreement) (collectively,
the “Indemnitees”) from and against any and all actions, causes of action, suits, claims, losses, costs, penalties,
fees, liabilities and damages, and expenses in connection therewith (irrespective of whether any such Indemnitee is a party to
the action for which indemnification hereunder is sought), and including reasonable attorneys’ fees and disbursements (the
“Indemnified Liabilities”), incurred by any Indemnitee as a result of, or arising out of, or relating to (i)
any misrepresentation or breach of any representation or warranty made by the Company or any Subsidiary in any of the Transaction
Documents, (ii) any breach of any covenant, agreement or obligation of the Company or any Subsidiary contained in any of the Transaction
Documents or (iii) any cause of action, suit, proceeding or claim brought or made against such Indemnitee by a third party (including
for these purposes a derivative action brought on behalf of the Company or any Subsidiary) or which otherwise involves such Indemnitee
that arises out of or results from (A) the Company’s execution, delivery, performance or enforcement of any of the Transaction
Documents, (B) any transaction financed or to be financed in whole or in part, directly or indirectly, with the proceeds of the
issuance of the Securities, (C) any disclosure properly made by such Buyer pursuant to Section 4(k), or (D) the status of such
Buyer or holder of the Securities either as an investor in the Company pursuant to the transactions contemplated by the Transaction
Documents or as a party to this Agreement (including, without limitation, as a party in interest or otherwise in any action or
proceeding for injunctive or other equitable relief). To the extent that the foregoing undertaking by the Company may be unenforceable
for any reason, the Company shall make the maximum contribution to the payment and satisfaction of each of the Indemnified Liabilities
which is permissible under applicable law.


 






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(ii)              
Promptly after receipt by an Indemnitee under this Section 8(k) of notice of the commencement of any action or proceeding
(including any governmental action or proceeding) involving an Indemnified Liability, such Indemnitee shall, if a claim in respect
thereof is to be made against the Company under this Section 8(k), deliver to the Company a written notice of the commencement
thereof, and the Company shall have the right to participate in, and, to the extent the Company so desires, to assume control of
the defense thereof with counsel mutually satisfactory to the Company and the Indemnitee; provided, however, that an Indemnitee
shall have the right to retain its own counsel with the fees and expenses of such counsel to be paid by the Company if: (A) the
Company has agreed in writing to pay such fees and expenses; (B) the Company shall have failed promptly to assume the defense of
such Indemnified Liability and to employ counsel reasonably satisfactory to such Indemnitee in any such Indemnified Liability;
or (C) the named parties to any such Indemnified Liability (including any impleaded parties) include both such Indemnitee and the
Company, and such Indemnitee shall have been advised by counsel that a conflict of interest is likely to exist if the same counsel
were to represent such Indemnitee and the Company (in which case, if such Indemnitee notifies the Company in writing that it elects
to employ separate counsel at the expense of the Company, then the Company shall not have the right to assume the defense thereof
and such counsel shall be at the expense of the Company), provided further, that in the case of clause (C) above the Company shall
not be responsible for the reasonable fees and expenses of more than one (1) separate legal counsel for the Indemnitees. The Indemnitee
shall reasonably cooperate with the Company in connection with any negotiation or defense of any such action or Indemnified Liability
by the Company and shall furnish to the Company all information reasonably available to the Indemnitee which relates to such action
or Indemnified Liability. The Company shall keep the Indemnitee reasonably apprised at all times as to the status of the defense
or any settlement negotiations with respect thereto. The Company shall not be liable for any settlement of any action, claim or
proceeding effected without its prior written consent, provided, however, that the Company shall not unreasonably withhold, delay
or condition its consent. The Company shall not, without the prior written consent of the Indemnitee, consent to entry of any judgment
or enter into any settlement or other compromise which does not include as an unconditional term thereof the giving by the claimant
or plaintiff to such Indemnitee of a release from all liability in respect to such Indemnified Liability or litigation, and such
settlement shall not include any admission as to fault on the part of the Indemnitee. Following indemnification as provided for
hereunder, the Company shall be subrogated to all rights of the Indemnitee with respect to all third parties, firms or corporations
relating to the matter for which indemnification has been made. The failure to deliver written notice to the Company within a reasonable
time of the commencement of any such action shall not relieve the Company of any liability to the Indemnitee under this Section
8(k), except to the extent that the Company is materially and adversely prejudiced in its ability to defend such action.


 


(iii)            
The indemnification required by this Section 8(k) shall be made by periodic payments of the amount thereof during the course
of the investigation or defense, within ten (10) days after bills are received or Indemnified Liabilities are incurred.


 






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(iv)            
The indemnity agreement contained herein shall be in addition to (A) any cause of action or similar right of the Indemnitee
against the Company or others, and (B) any liabilities the Company may be subject to pursuant to the law.


 


		(l)	Construction. The language used in this Agreement
will be deemed to be the language chosen by the parties to express their mutual intent, and no rules of strict construction will
be applied against any party. No specific representation or warranty shall limit the generality or applicability of a more general
representation or warranty. Each and every reference to share prices, Common Shares and any other numbers in this Agreement that
relate to the Common Shares shall be automatically adjusted for any share splits, share dividends, share combinations, recapitalizations
or other similar transactions that occur with respect to the Common Shares after the date of this Agreement. It is expressly understood
and agreed that for all purposes of this Agreement, and without implication that the contrary would otherwise be true, neither
transactions nor purchases nor sales shall include the location and/or reservation of borrowable Common Shares.



 


		(m)	Remedies. Each Buyer and in the event of assignment
by Buyer of its rights and obligations hereunder, each holder of Securities, shall have all rights and remedies set forth in the
Transaction Documents and all rights and remedies which such holders have been granted at any time under any other agreement or
contract and all of the rights which such holders have under any law. Any Person having any rights under any provision of this
Agreement shall be entitled to enforce such rights specifically (without posting a bond or other security), to recover damages
by reason of any breach of any provision of this Agreement and to exercise all other rights granted by law. Furthermore, the Company
recognizes that in the event that it or any Subsidiary fails to perform, observe, or discharge any or all of its or such Subsidiary’s
(as the case may be) obligations under the Transaction Documents, any remedy at law may prove to be inadequate relief to the Buyers.
The Company therefore agrees that the Buyers shall be entitled to seek specific performance and/or temporary, preliminary and
permanent injunctive or other equitable relief from any court of competent jurisdiction in any such case without the necessity
of proving actual damages and without posting a bond or other security. The remedies provided in this Agreement and the other
Transaction Documents shall be cumulative and in addition to all other remedies available under this Agreement and the other Transaction
Documents, at law or in equity (including a decree of specific performance and/or other injunctive relief).



 


		(n)	Withdrawal Right. Notwithstanding anything to
the contrary contained in (and without limiting any similar provisions of) the Transaction Documents, whenever any Buyer exercises
a right, election, demand or option under a Transaction Document and the Company or any Subsidiary does not timely perform its
related obligations within the periods therein provided, then such Buyer may rescind or withdraw, in its sole discretion from
time to time upon written notice to the Company or such Subsidiary (as the case may be), any relevant notice, demand or election
in whole or in part without prejudice to its future actions and rights.



 


		(o)	Payment Set
Aside; Currency. To the extent that the Company makes a payment or payments to any Buyer hereunder or pursuant to any of
the other Transaction Documents or any of the Buyers enforce or exercise their rights hereunder or thereunder, and such payment
or payments or the proceeds of such enforcement or exercise or any part thereof are subsequently invalidated, declared to be fraudulent
or preferential, set aside, recovered from, disgorged by or are required to be refunded, repaid or otherwise restored to the Company,
a trustee, receiver or any other Person under any law (including, without limitation, any bankruptcy law, foreign, state or federal
law, common law or equitable cause of action), then to the extent of any such restoration the obligation or part thereof originally
intended to be satisfied shall be revived and continued in full force and effect as if such payment had not been made or such
enforcement or setoff had not occurred. Unless otherwise expressly indicated, all dollar amounts referred to in this Agreement
and the other Transaction Documents are in United States Dollars (“U.S. Dollars”), and all amounts owing under
this Agreement and all other Transaction Documents shall be paid in U.S. Dollars. All amounts denominated in other currencies
(if any) shall be converted into the U.S. Dollar equivalent amount in accordance with the Exchange Rate on the date of calculation.
“Exchange Rate” means, in relation to any amount of currency to be converted into U.S. Dollars pursuant
to this Agreement, the U.S. Dollar exchange rate as published in the Wall Street Journal on the relevant date of calculation.



 






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		(p)	Independent Nature of Buyers’ Obligations and
Rights. The obligations of each Buyer under the Transaction Documents are several and not joint with the obligations of any
other Buyer, and no Buyer shall be responsible in any way for the performance of the obligations of any other Buyer under any
Transaction Document. Nothing contained herein or in any other Transaction Document, and no action taken by any Buyer pursuant
hereto or thereto, shall be deemed to constitute the Buyers as, and the Company acknowledges that the Buyers do not so constitute,
a partnership, an association, a joint venture or any other kind of group or entity, or create a presumption that the Buyers are
in any way acting in concert or as a group or entity with respect to such obligations or the transactions contemplated by the
Transaction Documents or any matters, and the Company acknowledges that the Buyers are not acting in concert or as a group, and
the Company shall not assert any such claim, with respect to such obligations or the transactions contemplated by the Transaction
Documents. The decision of each Buyer to purchase Securities pursuant to the Transaction Documents has been made by such Buyer
independently of any other Buyer. Each Buyer acknowledges that no other Buyer has acted as agent for such Buyer in connection
with such Buyer making its investment hereunder and that no other Buyer will be acting as agent of such Buyer in connection with
monitoring such Buyer’s investment in the Securities or enforcing its rights under the Transaction Documents. The Company
and each Buyer confirms that each Buyer has independently participated with the Company in the negotiation of the transaction
contemplated hereby with the advice of its own counsel and advisors. Each Buyer shall be entitled to independently protect and
enforce its rights, including, without limitation, the rights arising out of this Agreement or out of any other Transaction Documents,
and it shall not be necessary for any other Buyer to be joined as an additional party in any proceeding for such purpose. The
use of a single agreement to effectuate the purchase and sale of the Securities contemplated hereby was solely in the control
of the Company, not the action or decision of any Buyer, and was done solely for the convenience of the Company and not because
it was required or requested to do so by any Buyer. It is expressly understood and agreed that each provision contained in this
Agreement and in each other Transaction Document is between the Company and a Buyer, solely, and not between the Company and the
Buyers collectively and not between and among the Buyers.



 


		(q)	Judgment Currency.



 


(i)                
If for the purpose of obtaining or enforcing judgment against the Company in any court in any jurisdiction it becomes necessary
to convert into any other currency (such other currency being hereinafter in this Section 8(q) referred to as the “Judgment
Currency”) an amount due in U.S. Dollars under this Agreement or any other Transaction Document, the conversion shall
be made at the Exchange Rate prevailing on the Trading Day immediately preceding: (A) the date actual payment of the amount due,
in the case of any proceeding in the courts of New York or in the courts of any other jurisdiction that will give effect to such
conversion being made on such date or (B) the date on which the foreign court determines, in the case of any proceeding in the
courts of any other jurisdiction (the date as of which such conversion is made pursuant to this Section 8(q)(i) being hereinafter
referred to as the “Judgment Conversion Date”).


 






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(ii)              
If in the case of any proceeding in the court of any jurisdiction referred to in Section 8(q)(i) above, there is a change
in the Exchange Rate prevailing between the Judgment Conversion Date and the date of actual payment of the amount due, the applicable
party shall pay such adjusted amount as may be necessary to ensure that the amount paid in the Judgment Currency, when converted
at the Exchange Rate prevailing on the date of payment, will produce the amount of U.S. Dollars which could have been purchased
with the amount of Judgment Currency stipulated in the judgment or judicial order at the Exchange Rate prevailing on the Judgment
Conversion Date.


 


(iii)            
Any amount due from the Company under this provision shall be due as a separate debt and shall not be affected by judgment
being obtained for any other amounts due under or in respect of this Agreement or any other Transaction Document.


 


		(r)	Taxes.



 


(i)                
Without limiting any other provision of this Agreement, any and all payments by the Company hereunder shall be made free
and clear of and without deduction for any and all present or future taxes, levies, imposts, deductions, charges or withholdings,
and all liabilities with respect thereto (collectively referred to as “Taxes”) unless the Company is required
to withhold or deduct any amounts for, or on account of Taxes pursuant to any applicable law. If the Company shall be required
to deduct any Taxes from or in respect of any sum payable hereunder to any Buyer, (i) the sum payable shall be increased by the
amount by which the sum payable would otherwise have to be increased (the “make-whole amount”) to ensure that
after making all required deductions (including deductions applicable to the make-whole amount) such Buyer would receive an amount
equal to the sum it would have received had no such deductions been made, (ii) the Company shall make such deductions and (iii)
the Company shall pay the full amount withheld or deducted to the relevant governmental authority within the time required.


 


(ii)              
In addition, the Company agrees to pay to the relevant governmental authority in accordance with applicable law any present
or future stamp or documentary taxes or any other excise or property taxes, charges or similar levies that arise from any payment
made hereunder or in connection with the execution, delivery, registration or performance of, or otherwise with respect to, this
Agreement (“Other Taxes”).


 


(iii)            
The Company shall deliver to each Buyer official receipts, if any, in respect of any Taxes and Other Taxes payable hereunder
promptly after payment of such Taxes and Other Taxes or other evidence of payment reasonably acceptable to each such Buyer.


 






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(iv)            
If the Company fails to pay any amounts in accordance with this Section 8(r), the Company shall indemnify each Buyer within
ten (10) calendar days after written demand therefor, for the full amount of any Taxes or Other Taxes, plus any related interest
or penalties, that are paid by the applicable Buyer to the relevant governmental authority or other relevant governmental authority
as a result of such failure.


 


(v)              
The obligations of the Company under this Section 8(r) shall survive the termination of this Agreement and the payment of
all amounts payable hereunder.


 


 


 


[signature
pages follow]


 






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IN WITNESS WHEREOF,
each Buyer and the Company have caused their respective signature page to this Agreement to be duly executed as of the date first
written above.


 


 


COMPANY:


 


DEHAIER MEDICAL SYSTEMS LIMITED


 


 


 


By: ___________________________


Name: 


Title:


 






    	 



    	 



    

 


IN WITNESS WHEREOF,
each Buyer and the Company have caused their respective signature page to this Agreement to be duly executed as of the date first
written above.


 


 


BUYER:


 


 


 


By:
______________________________


Name:


Title: