Exhibit 10.1


 


SECURITIES PURCHASE AGREEMENT


 


THIS SECURITIES
PURCHASE AGREEMENT (this “Agreement”), dated as of November 22, 2019, is between CHINA XIANGTAI FOOD
CO., LTD., an exempted company incorporated under the laws of the Cayman Islands whose registered office is at the offices
of Corporate Filing Services Ltd, 3rd Floor, Harbour Centre, PO Box 613, George Town, Grand Cayman, Cayman Islands and whose headquarters
are located at Xinganxian Plaza, Building B, Suite 21-1, Lianglukou, Yuzhong District, Chongqing, People’s Republic of China
400800 (the “Company”), and each of the investors listed on the Schedule of Buyers attached hereto (individually,
a “Buyer” and collectively the “Buyers”).


 


WITNESSETH


 


WHEREAS, the
Company and each Buyer desire to enter into this transaction for the Company to sell and the Buyers to purchase the Convertible
Debentures (as defined below) pursuant to an exemption from registration pursuant to Section 4(2) and/or Rule 506 of Regulation
D (“Regulation D”) as promulgated by the U.S. Securities and Exchange Commission (the “SEC”)
under the Securities Act of 1933, as amended (the “Securities Act”);


 


WHEREAS, the
parties desire that, upon the terms and subject to the conditions contained herein, the Company shall issue and sell to the Buyer(s),
as provided herein, and the Buyer(s) shall purchase up to $5,000,000 of convertible debentures in the form attached hereto as “Exhibit
A” (the “Convertible Debentures”), which shall be convertible into ordinary shares in the capital
of the Company with a par value of $0.01 each (the “Common Stock”) (as converted, the “Conversion Shares”),
of which $2,000,000 shall be purchased upon the signing this Agreement (the “First Closing”), $2,000,000 shall
be purchased upon the filing of a Registration Statement with the U.S. Securities and Exchange Commission registering the resale
of the Conversion Shares by the Buyers (the “Second Closing”), and $1,000,000 shall be purchased on or about
the later of the date the Registration Statement has first been declared effective by the SEC and the date 120 days from the date
hereof (the “Third Closing”) (individually referred to as a “Closing” collectively referred
to as the “Closings”), for a total purchase price of up to $5,000,000 (the “Purchase Price”)
in the respective amounts set forth opposite each Buyer(s) name on Schedule I (the “Subscription Amount”);


 


WHEREAS, contemporaneously
with the execution and delivery of this Agreement, the parties hereto are executing and delivering a Registration Rights Agreement
(the “Registration Rights Agreement”) pursuant to which the Company has agreed to provide certain registration
rights under the Securities Act and the rules and regulations promulgated there under, and applicable state securities laws;


 


WHEREAS, contemporaneously
with the execution and delivery of this Agreement, the Company is delivering Irrevocable Transfer Agent Instructions (the “Irrevocable
Transfer Agent Instructions”) to its transfer agent; and


 


WHEREAS, the
Convertible Debentures and the Conversion 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 CONVERTIBLE DEBENTURES.



 


(a)                  
Purchase of Convertible Debentures. Subject to the satisfaction (or waiver) of the conditions set forth in Sections
6 and 7 below, the Company shall issue and sell to each Buyer, and each Buyer severally, but not jointly, agrees to purchase from
the Company at each Closing Convertible Debentures in amounts corresponding with the Subscription Amount set forth opposite each
Buyer’s name on Schedule of Buyers attached as Schedule I hereto.


 


(b)                 
Closing Dates. Each Closing of the purchase of Convertible Debentures by the Buyers shall occur at the offices Yorkville
Advisors Global, LP, 1012 Springfield Avenue, Mountainside, NJ 07092. The date and time of each Closing shall be as follows: (i)
the First Closing shall be 10:00 a.m., New York time, on the first Business Day on which the conditions to the Closing set forth
in Sections 6 and 7 below are satisfied or waived (or such other date as is mutually agreed to by the Company and each Buyer) (the
 “First Closing Date”), (ii) the Second Closing shall be 10:00 a.m., New York time, by the third (3rd)
Business Day after the date on which the Registration Statement is filed by the Company with the SEC, provided the conditions to
the Closing set forth in Sections 6 and 7 below are satisfied or waived (or such other date as is mutually agreed to by the Company
and each Buyer) (the “Second Closing Date”), and (iii) the Third Closing shall be 10:00 a.m., New York time,
on the later of the third (3rd) Business Day after the date the Registration Statement has first been declared effective
by the SEC and the date 120 days from the date hereof, provided the conditions to the Closing set forth in Sections 6 and 7 below
are satisfied or waived (or such other date as is mutually agreed to by the Company and each Buyer) (the “Third Closing
Date” and collectively referred to as the “Closing Dates”). 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)                  
Form of Payment; Deliveries. Subject to the satisfaction of the terms and conditions of this Agreement, on each
Closing Date, (i) the Buyers shall deliver to the Company such aggregate proceeds for the Convertible Debentures to be issued and
sold to such Buyer at such Closing, minus the fees to be paid directly from the proceeds of such Closing as set forth herein, and
(ii) the Company shall deliver to each Buyer, Convertible Debentures which such Buyer is purchasing at such Closing in amounts
indicated opposite such Buyer’s name on Schedule I, 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, as of the date hereof and as of each
Closing Date:


 





(a)                  
Investment Purpose. The Buyer is acquiring the Securities for its own account for investment only and not with a
view towards, or for resale in connection with, the public sale or distribution thereof, except pursuant to sales registered or
exempted under the Securities Act; provided, however, that by making the representations herein, such Buyer reserves the right
to dispose of the Securities at any time in accordance with or pursuant to an effective registration statement covering such Securities
or an available exemption under the Securities Act. Such Buyer does not presently have any agreement or understanding, directly
or indirectly, with any Person to distribute any of the Securities.


 






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(b)                 
Accredited Investor Status. The Buyer is an “Accredited Investor” as that term is defined in Rule 501(a)(3)
of Regulation D.


 


(c)                  
Reliance on Exemptions. The Buyer understands that the Securities are being offered and sold to it in reliance on
specific exemptions from the registration requirements of United States federal and state securities laws and that the Company
is relying in part upon the truth and accuracy of, and such Buyer’s compliance with, the representations, warranties, agreements,
acknowledgments and understandings of such Buyer set forth herein in order to determine the availability of such exemptions and
the eligibility of such Buyer to acquire the Securities.


 


(d)                 
Information. The Buyer and its advisors (and his or, its counsel), if any, have been furnished with all materials
relating to the business, finances and operations of the Company and information he deemed material to making an informed investment
decision regarding his purchase of the Securities, which have been requested by such Buyer. The Buyer and its advisors, if any,
have been afforded the opportunity to ask questions of the Company and its management. Neither such inquiries nor any other due
diligence investigations conducted by such Buyer or its advisors, if any, or its representatives shall modify, amend or affect
such Buyer’s right to rely on the Company’s representations and warranties contained in Section 3 below. The Buyer
understands that its investment in the Securities involves a high degree of risk. The Buyer has sought such accounting, legal and
tax advice, as it has considered necessary to make an informed investment decision with respect to its acquisition of the Securities.


 


(e)                
Transfer or Resale. The Buyer understands that: (i) the Securities have not been registered under the Securities
Act or any state securities laws, and may not be offered for sale, sold, assigned or transferred unless (A) subsequently registered
thereunder, (B) such Buyer shall have delivered to the Company an opinion of counsel, in a generally acceptable form, to the effect
that such Securities to be sold, assigned or transferred may be sold, assigned or transferred pursuant to an exemption from such
registration requirements, or (C) such Buyer provides the Company with reasonable assurances (in the form of seller and broker
representation letters) that such Securities can be sold, assigned or transferred pursuant to Rule 144 promulgated under the Securities
Act, as amended (or a successor rule thereto) (collectively, “Rule 144”), in each case following the applicable
holding period set forth therein; and (ii) any sale of the Securities made in reliance on Rule 144 may be made only in accordance
with the terms of Rule 144 and further, if Rule 144 is not applicable, any resale of the Securities under circumstances in which
the seller (or the person through whom the sale is made) may be deemed to be an underwriter (as that term is defined in the
Securities Act) may require compliance with some other exemption under the Securities Act or the rules and regulations of the
SEC thereunder.


 






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(f)                   
Legends. The Buyer agrees to the imprinting, so long as its required by this Section 2(f), of a restrictive legend
on the Securities in substantially the following form:


 


THE SECURITIES REPRESENTED BY THIS
CERTIFICATE [AND THOSE SECURITIES INTO WHICH THEY ARE CONVERTIBLE] HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES [AND THOSE SECURITIES INTO WHICH THEY ARE CONVERTIBLE] HAVE BEEN ACQUIRED
SOLELY FOR INVESTMENT PURPOSES AND NOT WITH A VIEW TOWARD RESALE AND MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED
IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE
STATE SECURITIES LAWS, OR AN OPINION OF COUNSEL, IN A GENERALLY ACCEPTABLE FORM, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT
OR APPLICABLE STATE SECURITIES LAWS


 


Certificates evidencing the Conversion
Shares shall not contain any legend (including the legend set forth above), (i) while a registration statement covering the resale
of such security is effective under the Securities Act, (ii) following any sale of such Conversion Shares pursuant to Rule 144,
(iii) if such Conversion Shares are eligible for sale under Rule 144, or (iv) if such legend is not required under applicable requirements
of the Securities Act (including judicial interpretations and pronouncements issued by the staff of the SEC). The Buyer agrees
that the removal of restrictive legend from certificates representing Securities as set forth in this Section 3(f) is predicated
upon the Company’s reliance that the Buyer will sell any Securities pursuant to either the registration requirements of the
Securities Act, including any applicable prospectus delivery requirements, or an exemption therefrom, and that if Securities are
sold pursuant to a registration statement, they will be sold in compliance with the plan of distribution set forth therein.


 


(g)                 
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.


 


(h)                 
Authorization, Enforcement. This Agreement has been duly and validly authorized, executed and delivered on behalf
of such Buyer and shall constitute 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 to applicable bankruptcy, insolvency,
reorganization, moratorium, liquidation and other similar laws relating to, or affecting generally, the enforcement of applicable
creditors' rights and remedies.


 









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(i)                   
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 could 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.


 


(j)                   
Certain Trading Activities. The Buyer has not directly or indirectly, nor has any Person acting on behalf of or pursuant
to any understanding with the 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 the Buyer
first contacted the Company or the Company's agents regarding the specific investment in the Company contemplated by this Agreement
and ending immediately prior to the execution of this Agreement by such Buyer. The Buyer hereby agrees that it shall not directly
or indirectly, engage in any Short Sales involving the Company’s securities during the period commencing on the date hereof
and ending when no Convertible Debentures remain outstanding. "Short Sales" means all "short sales" as defined
in Rule 200 promulgated under Regulation SHO under the 1934 Act (as defined below). The Buyer is aware that Short Sales and other
hedging activities may be subject to applicable federal and state securities laws, rules and regulations and the Buyer acknowledges
that the responsibility of compliance with any such federal or state securities laws, rules and regulations is solely the responsibility
of the Buyer.


 


(a)              
Trading Limitation and Information. On any given Trading Day, the Buyer agrees that it (together with any affiliates)
shall not sell such number of shares of Common Stock that would exceed 20% of the aggregate trading volume on such Trading Day.
Upon the Company’s request, the Buyer agrees to provide the Company with trading reports setting forth the number and average
sales prices of Common Stock sold the Buyer on each Trading Day the prior trading week along with the total aggregate number of
shares of Common Stock traded on each Trading Day. “Trading Day” means a day on which the shares of Common Stock
are quoted or traded on an Eligible Market on which the shares of Common Stock are then quoted or listed; provided, that in the
event that the shares of Common Stock are not listed or quoted, then Trading Day shall mean a Business Day.


 


		3.	REPRESENTATIONS AND WARRANTIES OF THE COMPANY.



 


Except as set forth
under the corresponding section of the Disclosure Schedules which Disclosure Schedules shall be deemed a part hereof and to qualify
any representation or warranty otherwise made herein to the extent of such disclosure, the Company hereby makes the representations
and warranties set forth below to The Buyer:


 






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(a)            
Organization and Qualification. The Company and each of its Subsidiaries are entities duly formed or incorporated,
validly existing and in good standing under the laws of the jurisdiction in which they are formed or incorporated, 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. 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 and its Subsidiaries, taken as a whole, (ii) the transactions contemplated
hereby or in any of the other Transaction Documents or any other agreements or instruments to be entered into by the Company in
connection herewith or therewith or (iii) the authority or ability of the Company to perform any of its obligations under any of
the Transaction Documents (as defined below). “Subsidiaries” means any Person in which the Company, directly
or indirectly, owns a majority of the outstanding capital stock having voting power or holds a majority of the equity or similar
interest of such Person, and each of the foregoing, is individually referred to herein as a “Subsidiary”.


 


(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 Convertible Debentures, the reservation for issuance and issuance of the Conversion Shares issuable upon conversion of the
Convertible Debentures), have been duly authorized by the Company's board of directors and no further filing, consent or authorization
is required by the Company, its board of directors or its stockholders or other governmental body. This Agreement has been, and
the other Transaction Documents to which the Company is a party 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 Registration Rights Agreement, the Convertible
Debentures, the Irrevocable Transfer Agent Instructions, and each of the other agreements and instruments entered into by the Company
or delivered by the Company in connection with the transactions contemplated hereby and thereby, as may be amended from time to
time.


 






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(c)            
Issuance of Securities. The issuance of the Securities has been duly authorized and, upon issuance and payment in
accordance with the terms of the Transaction Documents, the Securities shall be validly issued, fully paid and non-assessable
and free from all preemptive or similar rights, mortgages, defects, claims, liens, pledges, charges, taxes, rights of first refusal,
encumbrances, security interests and other encumbrances (collectively “Liens”) with
respect to the issuance thereof. As of each Closing Date, the Company shall have reserved from its duly authorized capital stock
not less than 300% of the maximum number of shares of Common Stock issuable upon conversion of all Convertible Debentures (assuming
for purposes hereof that (x) such Convertible Debentures are convertible at the Conversion Price (as defined therein) as of the
date of determination, (y) any such conversion shall not take into account any limitations on the conversion of the Convertible
Debentures set forth therein, including the Floor Price). Upon issuance or conversion in accordance with the Convertible Debentures,
the Conversion Shares, when issued, will be validly issued, fully paid and nonassessable and free from all preemptive or similar
rights or Liens with respect to the issue thereof, with the holders being entitled to all rights accorded to a holder of Common
Stock. 


 


(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 Convertible
Debentures, the Conversion Shares, and the reservation for issuance of the Conversion Shares) will not (i) result in a violation
of the Articles or the certificate of formation or incorporation, memorandum of association, articles of association, bylaws or
other organizational documents of the Company or any of its Subsidiaries, or any capital stock, shares or other securities of the
Company or any of its Subsidiaries, (ii) conflict with, or constitute 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,
U.S. federal and state securities laws and regulations, the securities laws of the jurisdictions of the Company's incorporation
or in which it or its subsidiaries operate and the rules and regulations of the Nasdaq (the “Principal Market”)
and including all applicable laws, rules and regulations of the Cayman Islands) 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 (ii) and
(iii) for any conflict, default, right or violation that would not reasonably be expected to result in a Material Adverse Effect.


 


(e)            
Consents. The Company is not required to obtain any material consent from, authorization or order of, or make any
filing or registration with (other than any filings as may be required by any federal or state securities agencies and any filings
as may be required by the Principal Market), any Governmental Entity (as defined below) or any regulatory or self-regulatory agency
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 or any Subsidiary is required to obtain pursuant to the preceding sentence have been or will be obtained or
effected on or prior to each Closing Date, and neither the Company nor any of its Subsidiaries are aware of any facts or circumstances
which might prevent the Company or any of its Subsidiaries 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 Stock
in the foreseeable future. The Company has notified the Principal Market of the issuance of all of the Securities hereunder, which
does not require obtaining the approval of the stockholders of the Company or any other Person or Governmental Entity, and the
Principal Market has completed its review of the related Listing of Additional Share form. “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. 


 






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(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 (i) an officer or director of the Company or any of its Subsidiaries, (ii) to its knowledge,
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 shares of Common Stock (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 to which it is a party has been based solely on the independent evaluation
by the Company and its representatives.


 


(g)            
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 stockholders of the Company under any
applicable stockholder 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.


 


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


 


(i)             
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 stockholder, business combination,
poison pill (including, without limitation, any distribution under a rights agreement), stockholder rights plan or other similar
anti-takeover provision under the Articles 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.


 






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(j)             
 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 Securities Exchange Act of 1934, as amended (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”). The Company has delivered or has made available to the Buyers or their respective representatives true,
correct and complete copies of each of the SEC Documents not 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 (“GAAP”),
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). The reserves, if any,
established by the Company or the lack of reserves, if applicable, are reasonable based upon facts and circumstances known by
the Company on the date hereof and there are no loss contingencies that are required to be accrued by the Statement of Financial
Accounting Standard No. 5 of the Financial Accounting Standards Board which are not provided for by the Company in its financial
statements or otherwise. No other information provided by or on behalf of the Company to any of the Buyers which is not included
in the SEC Documents (including, without limitation, information in the disclosure schedules to this Agreement) 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.



 


(k)            
Absence of Certain Changes. Since the date of the Company's most recent audited financial statements contained in
a Form 20-F, there has been no Material Adverse Effect, nor any event or occurrence specifically affecting the Company or its Subsidiaries
that would be reasonably expected to result in a Material Adverse Effect. Since the date of the Company's most recent audited financial
statements contained in a Form 20-F, neither the Company nor any of its Subsidiaries has (i) declared or paid any dividends, (ii)
sold any material assets, individually or in the aggregate, outside of the ordinary course of business or (iii) made any material
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.


 


(l)             
No Undisclosed Events, Liabilities, Developments or Circumstances. No event, liability, development or circumstance
has occurred or exists, or is reasonably expected to exist or occur specific 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 has not been publicly disclosed and would reasonably be expected to have a Material Adverse Effect.


 






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(m)         
Conduct of Business; Regulatory Permits. Neither the Company nor any of its Subsidiaries is in violation of
any term under the Articles, any certificate of designation, preferences or rights of any other outstanding series of preferred
stock or shares of the Company or any of its Subsidiaries or their organizational charter, certificate of formation, memorandum
of association, articles of association, articles of incorporation 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 violations which would not reasonably be expected to 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 Stock by the Principal Market in the foreseeable future. During the one year prior to the date hereof,
(i) the Common Stock has been listed or designated for quotation on the Principal Market, (ii) trading in the Common Stock 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 Stock from the Principal Market, which has
not been publicly disclosed. 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 of its Subsidiaries has received any notice of proceedings relating to the revocation
or modification of any such certificate, authorization or permit. There is no agreement, commitment, judgment, injunction, order
or decree binding upon the Company or any of its Subsidiaries or to which the Company or any of its Subsidiaries is a party which
has or would reasonably be expected to have the effect of prohibiting or materially impairing any business practice of the Company
or any of its Subsidiaries, any acquisition of property by the Company or any of its Subsidiaries or the conduct of business by
the Company or any of its Subsidiaries as currently conducted other than such effects, individually or in the aggregate, which
have not had and would not reasonably be expected to have a Material Adverse Effect on the Company or any of its Subsidiaries.



 


(n)            
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 Company or any of its Subsidiaries (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 Government Official, for the purpose, in violation of applicable law, 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.


 






    10


     


    

 


(o)            
Equity Capitalization.





 


(i)                
Definitions:


 


(A)             
“Common Stock” means (x) the Company's ordinary shares with a par value of $0.01 per share, and (y) any
shares into which such shares shall have been converted or any share capital resulting from a reclassification of such shares.


 


(ii)              
Authorized Share Capital and Outstanding Shares. As of the date hereof, the authorized share capital of the Company
is US$500,000 consisting of 50,000,000 ordinary shares with a par value of $0.01 per share, of which 21,964,027 are issued and
outstanding.


 


(iii)            
Valid Issuance; Available Shares. All of such outstanding shares are duly authorized and have been validly issued
and are fully paid and nonassessable.


 


(iv)             
Existing Securities; Obligations. Except as disclosed in the SEC Documents: (A) none of the Company's or any
Subsidiary's shares, interests or capital stock is subject to preemptive rights or any other similar rights or Liens suffered or
permitted by the Company or any Subsidiary; (B) 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 shares, interests or capital stock 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 shares, interests or
capital stock 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 shares,
interests or capital stock of the Company or any of its Subsidiaries; (C) 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); (D) 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;
(E) there are no securities or instruments containing anti-dilution or similar provisions that will be triggered by the issuance
of the Securities; and (G) neither the Company nor any Subsidiary has any stock appreciation rights or "phantom stock"
plans or agreements or any similar plan or agreement.


 


(v)               
Organizational Documents. The Company has furnished to the Buyers or filed on EDGAR true, correct and complete copies
of the Company's memorandum and articles of association as in effect on the date hereof (the “Articles”), and
the terms of all convertible securities and the material rights of the holders thereof in respect thereto.


 






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(p)            
Litigation. Except as disclosed in the SEC Documents, there is no action, suit, arbitration, 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 Stock or any of the Company's or its Subsidiaries' officers or directors, whether of a civil or criminal nature or otherwise,
in their capacities as such, which would reasonably be expected to result in a Material Adverse Effect. After reasonable inquiry
of its employees, the Company is not aware of any event which might result in or form the basis for any such action, suit, arbitration,
investigation, inquiry or other proceeding. Without limitation of the foregoing, 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. Neither the Company nor any of its Subsidiaries
is the subject of any order, writ, judgment, injunction, decree, determination or award of any Governmental Entity that would reasonably
be expected to result in a Material Adverse Effect.


 


(q)            
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. In accordance with the previous sentence, the Company currently maintains
no insurance policies. 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.


 


(r)             
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,
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.


 


(s)             
Registration Eligibility. The Company is eligible to register the resale of the Conversion Shares by the Buyers using
Form F-3 promulgated under the 1933 Act.


 


(t)             
Shell Company Status. The Company is not, and has never been, an issuer identified in, or subject to, Rule 144(i).


 


(u)            
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 (“Sanctions
Programs”) administered by the U.S. Office of Foreign Assets Control (“OFAC”),
including, without limitation, (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 any
regulations contained in 31 CFR, Subtitle B, Chapter V. 


 






    12


     


    

 


(v)            
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, taken as a whole, 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.
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.


 


(w)          
No General Solicitation. Neither the Company, nor any of its affiliates, nor any Person acting on its or their behalf,
has engaged in any form of general solicitation or general advertising (within the meaning of Regulation D under the Securities
Act) in connection with the offer or sale of the Securities.


 





(x)            
Private Placement. Assuming the accuracy of the Buyers’ representations and warranties set forth in Section
2, no registration under the Securities Act is required for the offer and sale of the Securities by the Company to the Buyers as
contemplated hereby. The issuance and sale of the Securities hereunder does not contravene the rules and regulations of the Primary
Market.


 






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		4.	COVENANTS.



 


(a)              
Reporting Status. For the period beginning on the date hereof, and ending 6 months after the date on which all the
Convertible Debentures are no longer outstanding (the “Reporting Period”), the Company shall use its best efforts
to file on a timely basis 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 or otherwise permit such termination.


 


(b)              
Use of Proceeds. Neither the Company nor any Subsidiary will, directly or indirectly, use the proceeds of the transactions
contemplated herein to repay any loans to any executives or employees of the Company. Neither the Company nor any Subsidiary will,
directly or indirectly, use the proceeds of the transactions contemplated herein, or lend, contribute, facilitate or otherwise
make available such proceeds to any Person (i) to fund, either directly or indirectly, any activities or business of or with any
Person that is identified on the list of Specially Designated Nationals and Blocker Persons maintained by OFAC, or in any country
or territory, that, at the time of such funding, is, or whose government is, the subject of Sanctions Programs, or (ii) in any
other manner that will result in a violation of Sanctions Programs.


 


(c)              
Listing. To the extent applicable, the Company shall promptly secure the listing or designation for quotation (as
the case may be) of all of the Underlying Securities (as defined below) upon each national securities exchange and automated quotation
system, if any, upon which the Common Stock is then listed or designated for quotation (as the case may be, each an “Eligible
Market”), subject to official notice of issuance, and shall use reasonable efforts to maintain such listing or designation
for quotation (as the case may be) of all Underlying Securities from time to time issuable under the terms of the Transaction Documents
on such Eligible Market for the Reporting Period. Neither the Company nor any of its Subsidiaries shall take any action which could
be reasonably expected to result in the delisting or suspension of the Common Stock on an Eligible Market during the Reporting
Period. The Company shall pay all fees and expenses in connection with satisfying its obligations under this Section 4(c). “Underlying
Securities” means the (i) the Conversion Shares, and (ii) any common stock of the Company issued or issuable with respect
to the Conversion Shares, including, without limitation, (1) as a result of any stock split, stock dividend, recapitalization,
exchange or similar event or otherwise and (2) shares of capital stock of the Company into which the shares of Common Stock are
converted or exchanged without regard to any limitations on conversion of the Convertible Debentures.


 






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(d)               Fees.
The Company shall pay to YA Global II SPV, LLC, an affiliate of the lead Buyer (the “Subsidiary Fund”), a
commitment fee (the “Commitment Fee”) equal to 4% of the Purchase Price of each Closing and a one-time
due diligence and structuring fee of $15,000, of which $5,000 was previously received. Each Commitment Fee due and payable at
each Closing shall be deducted from the gross proceeds of each Closing. The unpaid balance of due diligence and structuring
fee shall be deducted from the gross proceeds of the First Closing. The Company authorizes each Buyer to deduct any fees due
hereunder from the gross process of the purchase of any Convertible Debentures.


 


(e)              
Pledge of Securities. Notwithstanding anything to the contrary contained in this Agreement, the Company acknowledges
and agrees that, subject to compliance with applicable federal and state securities laws, the Securities may be pledged by an Investor
in connection with a bona fide margin agreement or other loan or financing arrangement that is secured by the Securities. 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.


 


(f)               
Disclosure of Transactions and Other Material Information. On or before 9:30 a.m., New York time, on the first Business
Day after the date of this Agreement, the Company shall file a current report of foreign private issuer 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 Statement of Designations) (including all attachments, the “Current Report”). From and after the
filing of the Current Report, 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. In addition, effective upon the filing of the Current Report,
the Company acknowledges and agrees that any and all confidentiality or similar obligations with respect to the transactions contemplated
by the Transaction Documents under any agreement, whether written or oral, between the Company, any of its Subsidiaries or any
of their respective officers, directors, affiliates, employees or agents, on the one hand, and any of the Buyers or any of their
affiliates, on the other hand, shall terminate. 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 date hereof without the express prior written consent
of such Buyer (which may be granted or withheld in such Buyer's sole discretion).


 


(g)               Reservation
of Shares. So long as any of the Convertible Debentures 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 the lesser of (a) 19.99% of
21,964,0271 and (b) 300% of
the maximum number of shares of Common Stock issuable upon conversion of all the Convertible Debentures then outstanding
(assuming for purposes hereof that (x) the Convertible Debentures are convertible at the Conversion Price then in effect, and
(y) any such conversion shall not take into account any limitations on the conversion of the Convertible Debentures,
including the Floor Price) (the “Required Reserve Amount”); provided that at no time shall the number
of shares of Common Stock reserved pursuant to this Section 4(g) be reduced other than proportionally in connection with any
conversion and/or redemption, or reverse stock split. If at any time the number of shares of Common Stock authorized and
reserved for issuance is not sufficient to meet the Required Reserved Amount, the Company will promptly take all corporate
action necessary to authorize and reserve a sufficient number of shares, including, without limitation, calling a special
meeting of stockholders to authorize additional shares to meet the Company's obligations pursuant to the Transaction
Documents, in the case of an insufficient number of authorized shares, recommending that stockholders vote in favor of an
increase in such authorized number of shares sufficient to meet the Required Reserved Amount.


 





 



 


1
Insert amount equal to 19.99% of outstanding ordinary shares on date of SPA.


 






    15


     


    

 


(h)              
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.


 


(i)               
From the date hereof until (A) no more than $1,000,000 of Debentures remain outstanding, or (B) the first date when
each of the following conditions are satisfied: (i) the Registration Statement has been declared effective by the SEC and remains
in effect for at least 90 days or 9 months have elapsed from the First Closing Date and the Buyers are eligible to freely resell
Conversion Shares pursuant to Rule 144, (ii) the closing price of the Common Stock during each of the five (5) consecutive prior
Trading Days shall be at least 150% of the Floor Price (as defined in the Debentures), and (iii) no Event of Default (as defined
in the Debentures) shall have occurred), unless the holders of at least 67% in principal amount of the then outstanding Convertible
Debentures shall have given prior written consent, the Company shall not, and shall not permit any of its subsidiaries (whether
or not a subsidiary on the date hereof) to, directly or indirectly (i) other than Permitted
Indebtedness, enter into, create, incur, assume, guarantee or suffer to exist any indebtedness for borrowed money of any kind,
including, but not limited to, a guarantee, on or with respect to any of its property or assets now owned or hereafter acquired
or any interest therein or any income or profits therefrom, (ii) other than Permitted Liens, enter into, create, incur, assume
or suffer to exist any lien, security interest, option or other charge or encumbrance (each, a “Lien”)
of any kind, on or with respect to any of its property or assets now owned or hereafter
acquired or any interest therein or any income or profits therefrom, or (iii) amend its charter documents, including, without
limitation, its certificate of incorporation and bylaws, in any manner that materially and adversely affects any rights of the
holders of the Convertible Debentures. 


 


“Permitted
Indebtedness” shall mean: (i) indebtedness evidenced by the Convertible Debentures; (ii) indebtedness described on
a Disclosure Schedule attached hereto and subsequent refinancing thereto; (iii) indebtedness incurred solely for the purpose
of financing the acquisition or lease of any equipment, including capital lease obligations with no recourse other than to
such equipment; (iv) indebtedness (A) the repayment of which has been subordinated to the payment of the Convertible
Debentures on terms and conditions acceptable to the Buyers, including with regard to interest payments and repayment of
principal, (B) which does not mature or otherwise require or permit redemption or repayment prior to or on the 91st day after
the maturity date of any Convertible Debentures then outstanding; and (C) which is not secured by any assets of the Company
or its subsidiaries; (v) indebtedness associated with acquiring new intellectual property assets and licenses, so long as the
proceeds are going to the party(ies) from which the Company is acquiring the assets, licenses, and other properties and (vi)
any indebtedness (other than the indebtedness set out in (i) – (v) above) incurred after the date hereof, provided that
such indebtedness does not exceed $20,000 at any given time.


 






    16


     


    

 


“Permitted
Liens” shall mean (1) any security interest granted to the Buyers to secure the obligations under the Convertible Debentures,
(2) any prior security interest granted to the Buyers, (3) existing Liens disclosed by the Company on a Disclosure Schedule attached
hereto; (4) inchoate Liens for taxes, assessments or governmental charges or levies not yet due, as to which the grace period,
if any, related thereto has not yet expired, or being contested in good faith and by appropriate proceedings for which adequate
reserves have been established in accordance with GAAP; (5) Liens of carriers, materialmen, warehousemen, mechanics and landlords
and other similar Liens which secure amounts which are not yet overdue by more than 60 days or which are being contested in good
faith by appropriate proceedings for which adequate reserves have been established in accordance with GAAP; (6) licenses, sublicenses,
leases or subleases granted to other persons not materially interfering with the conduct of the business of the Company; (7) Liens
securing capitalized lease obligations and purchase money indebtedness incurred solely for the purpose of financing an acquisition
or lease; (8) easements, rights-of-way, restrictions, encroachments, municipal zoning ordinances and other similar charges or encumbrances,
and minor title deficiencies, in each case not securing debt and not materially interfering with the conduct of the business of
the Company and not materially detracting from the value of the property subject thereto; (9) Liens arising out of the existence
of judgments or awards which judgments or awards do not constitute an Event of Default; (10) Liens incurred in the ordinary course
of business in connection with workers compensation claims, unemployment insurance, pension liabilities and social security benefits
and Liens securing the performance of bids, tenders, leases and contracts in the ordinary course of business, statutory obligations,
surety bonds, performance bonds and other obligations of a like nature (other than appeal bonds) incurred in the ordinary course
of business (exclusive of obligations in respect of the payment for borrowed money); (11) Liens in favor of a banking institution
arising by operation of law encumbering deposits (including the right of set-off) and contractual set-off rights held by such banking
institution and which are within the general parameters customary in the banking industry and only burdening deposit accounts or
other funds maintained with a creditor depository institution; (12) usual and customary set-off rights in leases and other contracts;
(13) escrows in connection with acquisitions and dispositions and (14) royalties and other rights to revenue derived from the sale
of the Company’s products that are granted in the ordinary course of business.


 


		5.	REGISTER; TRANSFER AGENT INSTRUCTIONS; LEGEND.



 


(a)               Register.
The Company shall maintain at its principal executive offices or with the Transfer Agent (or at such other office or agency
of the Company as it may designate by notice to each holder of Securities), a register for the Convertible Debentures in
which the Company shall record the name and address of the Person in whose name the Convertible Debentures have been
issued (including the name and address of each transferee), the amount of Convertible Debentures held by such Person, and the
number of Conversion Shares issuable upon conversion of the Convertible Debentures 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.


 






    17


     


    

 


(b)              
Transfer Restrictions. The Securities may only be disposed of in compliance with state and federal securities laws.
In connection with any transfer of Securities other than pursuant to an effective registration statement or Rule 144, to the Company
or to an Affiliate of a Buyer or in connection with a pledge as contemplated herein, the Company may require the transferor thereof
to provide to the Company an opinion of counsel selected by the transferor and reasonably acceptable to the Company, the form and
substance of which opinion shall be reasonably satisfactory to the Company, to the effect that such transfer does not require registration
of such transferred Securities under the Securities Act. As a condition of transfer, any such transferee shall agree in writing
to be bound by the terms of this Agreement and shall have the rights and obligations of a Buyer under this Agreement.


 


 


		6.	CONDITIONS TO THE COMPANY’S OBLIGATION TO SELL.



 


The obligation of
the Company hereunder to issue and sell the Convertible Debentures to each Buyer at each Closing is subject to the satisfaction,
at or before each Closing Date, of each of the following conditions, provided that these conditions are for the Company's sole
benefit and may be waived by the Company at any time in its sole discretion by providing each Buyer with prior written notice thereof:


 


(a)              
Such Buyer shall have executed each of the Transaction Documents to which it is a party and delivered the same to the Company.


 


(b)              
Such Buyer and each other Buyer shall have delivered to the Company the Purchase Price (less, in the case of any Buyer,
the amounts withheld pursuant to Section 4(d)) for the Convertible Debentures being purchased by such Buyer at the Closing by wire
transfer of immediately available funds in accordance with the Closing Statement.


 


(c)              
The representations and warranties of such Buyer shall be true and correct in all material respects as of the date when
made and as of each Closing Date as though originally made at that time (except for representations and warranties that speak as
of a specific date, which shall be true and correct as of such specific date), and such Buyer shall have performed, satisfied and
complied in all material respects with the covenants, agreements and conditions required by this Agreement to be performed, satisfied
or complied with by such Buyer at or prior to such Closing Date.


 


		7.	CONDITIONS TO EACH BUYER'S OBLIGATION TO PURCHASE.



 


The obligation of each Buyer hereunder
to purchase its Convertible Debentures at each Closing is subject to the satisfaction, at or before each Closing Date, of each
of the following conditions, provided that these conditions are for each Buyer's sole benefit and may be waived by such Buyer at
any time in its sole discretion by providing the Company with prior written notice thereof:


 


(a)               The
Company shall have duly executed and delivered to such Buyer each of the Transaction Documents to which it is a party and the
Company shall have duly executed and delivered to such Buyer such aggregate principal amount of Convertible Debentures as is
set forth opposite such Buyer's name in column (b) of the Schedule of Buyers for each Closing.


 






    18


     


    

 


(b)              
Such Buyer shall have received the opinion of counsel/s to the Company, dated as of the First Closing Date, in a form reasonably
acceptable to such Buyer.


 


(c)              
The Company shall have delivered to each Buyer copies of its and each Subsidiaries certified copies of its charter, as well
as any shareholder or operating agreements by or among the shareholders or members of any of the Company’s Subsidiaries.


 


(d)              
The Company shall have delivered to such Buyer a certificate evidencing the incorporation and good standing of the Company
issued by the Registrar of Companies of the Cayman Islands as of a date within ten (10) days of the Closing Date.


 


(e)              
Each and every representation and warranty of the Company shall be true and correct in all material respects (other than
representations and warranties qualified by materiality, which shall be true and correct in all respects) as of the date when made
and as of each Closing Date as though originally made at that time (except for representations and warranties that speak as of
a specific date, which shall be true and correct as of such specific date) and the Company shall have performed, satisfied and
complied in all respects with the covenants, agreements and conditions required to be performed, satisfied or complied with by
the Company at or prior to each Closing Date, as set forth in section 3 and 4.


 


(f)               
The Common Stock (A) shall be designated for quotation or listed (as applicable) on the Principal Market and (B) shall not
have been suspended, as of each Closing Date, by the SEC or the Principal Market from trading on the Principal Market nor shall
suspension by the SEC or the Principal Market have been threatened, as of each Closing Date, either (I) in writing by the SEC or
the Principal Market or (II) by falling below the minimum maintenance requirements of the Principal Market.


 


(g)              
The Company shall have obtained all governmental, regulatory or third-party consents and approvals, if any, necessary for
the sale of the Securities, including without limitation, those required by the Principal Market, if any.


 


(h)              
No statute, rule, regulation, executive order, decree, ruling or injunction shall have been enacted, entered, promulgated
or endorsed by any court or Governmental Entity of competent jurisdiction that prohibits the consummation of any of the transactions
contemplated by the Transaction Documents.


 


(i)               
Since the date of execution of this Agreement, no event or series of events shall have occurred that has resulted in or
would reasonably be expected to result in a Material Adverse Effect.


 


(j)               
The Company shall have obtained approval of the Principal Market to list or designate for quotation (as the case may be)
the Conversion Shares, if applicable.


 






    19


     


    

 


(k)              
Such Buyer shall have received a letter, duly executed by an officer of the Company, setting forth the wire amounts of each
Buyer and the wire transfer instructions of the Company (the “Closing Statement”).


 


(l)               
From the date hereof to the applicable Closing Date, (i) trading in the Common Stock shall not have been suspended by the
SEC or the Principal Market (except for any suspension of trading of limited duration agreed to by the Company, which suspension
shall be terminated prior to the Closing), (ii) the closing price of the Common Stock during each of the five (5) consecutive Trading
Days immediately prior to the applicable Closing Date shall be at least 120% of the Floor Price (as defined in the Convertible
Debentures), and (iii) at any time prior to the applicable Closing Date, trading in securities generally as reported by Bloomberg
L.P. shall not have been suspended or limited, or minimum prices shall not have been established on securities whose trades are
reported by such service, or on the Principal Market, nor shall a banking moratorium have been declared either by the United States
or New York State authorities nor shall there have occurred any material outbreak or escalation of hostilities or other national
or international calamity of such magnitude in its effect on, or any material adverse change in, any financial market which, in
each case, in the reasonable judgment of each Buyer, makes it impracticable or inadvisable to purchase the Securities at the Closing.


 


(m)           
The Company and its Subsidiaries shall have delivered to such Buyer such other documents, instruments or certificates relating
to the transactions contemplated by this Agreement as such Buyer or its counsel may reasonably request.


 


(n)              
Solely with respect to the Second Closing, the Company shall have filed the Registration Statement with the SEC.


 


(o)              
Solely with respect to the Third Closing, the Registration Statement shall be effective


 


		8.	TERMINATION.



 


In the
event that the First Closing shall not have occurred with respect to a Buyer within five (5) days of 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, (i) the right to terminate
this Agreement under this Section 8 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 breach of this Agreement and (ii) the abandonment
of the sale and purchase of the Convertible Debentures 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 herein. Nothing contained in this Section 8 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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		9.	MISCELLANEOUS.



 


(a)              
Governing Law; Jurisdiction; Jury Trial. All questions concerning the construction, validity, enforcement
and interpretation of this Agreement 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 jurisdictions other than the State of New York. The Company 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 in connection herewith or under any of the other Transaction Documents or with any transaction contemplated
hereby or thereby, 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. 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 UNDER ANY OTHER TRANSACTION DOCUMENT OR IN
CONNECTION WITH OR ARISING OUT OF THIS AGREEMENT, ANY OTHER TRANSACTION DOCUMENT OR ANY TRANSACTION CONTEMPLATED HEREBY OR THEREBY.


 


(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)               Entire
Agreement, Amendments. This Agreement supersedes all other prior oral or written agreements between the Buyer, the
Company, their affiliates and persons acting on their behalf with respect to the matters discussed herein, and this
Agreement and the instruments referenced herein contain the entire understanding of the parties with respect to the matters
covered herein and therein and, 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. No provision of this Agreement may be
waived or amended other than by an instrument in writing signed by the party to be charged with enforcement.


 






    21


     


    

 


(e)              
Notices. Any notices, consents, waivers or other communications required or permitted to be given under the terms
of this Agreement must be in writing by letter and email and will be deemed to have been delivered: upon the later of (A) either
(i) receipt, when delivered personally or (ii) one (1) Business Day after deposit with an overnight courier service with next-day
international delivery specified, in each case, properly addressed to the party to receive the same and (B) receipt, when sent
by electronic mail. The addresses and e-mail addresses for such communications shall be:


 


	If to the Company, to:	CHINA XIANGTAI FOOD CO., LTD.
	 	
        Xinganxian Plaza, Building B, Suite 21-1

        Lianglukou, Yuzhong District

        Chongqing, People’s Republic of China 400800

        Attention: Chief Executive Officer

        Telephone: +86 (023) 86330158

        Email: ir@cqplinfood.com

         

	With Copy to:	
        William Rosenstadt

        Ortoli Rosenstadt

        366 Madison Avenue, 3rd Floor

        New York, NY 10017

        Telephone:  212-588-0022

        E-Mail:  wsr@orllp.legal

	 	 
	If to a Buyer, to its address and e-mail address set forth on the Schedule of Buyers, with copies to such Buyer's representatives as set forth on the Schedule of Buyers,
	 	 
	With copy to:	
        David Gonzalez, Esq.

        c/o Yorkville Advisors Global, LP

        1012 Springfield Avenue

        Mountainside, NJ 07092

        Email: legal@yorkvilleadvisors.com



 


or to such other
address, e-mail address 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. Written confirmation of receipt (A) given
by the recipient of such notice, consent, waiver or other communication, (B) electronically generated by the sender's e-mail
service provider containing the time, date, recipient e-mail address 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


 






    22


     


    

 


(f)               
Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their respective
successors and assigns, including any purchasers of any of the Convertible Debentures (but excluding any purchasers of Underlying
Securities, unless pursuant to a written assignment by such Buyer). The Company shall not assign this Agreement or any rights or
obligations hereunder without the prior written consent of the Buyers. In connection with any transfer of any or all of its Securities,
a Buyer may assign all, or a portion, of its rights and obligations hereunder in connection with such Securities without the consent
of the Company, in which event such assignee shall be deemed to be a Buyer hereunder with respect to such transferred Securities.


 


(g)              
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 stockholders, 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 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 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, or (C) any disclosure properly made by
such Buyer pursuant to Section 4(f), 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.


 






    23


     


    

 


(ii)              Promptly
after receipt by an Indemnitee under this Section 9(g) 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 9(g), 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 reasonably 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 9(g),
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 9(g) shall be made by periodic payments of the amount thereof during the course
of the investigation or defense, within ten (10) days after bills supporting the Indemnified Liabilities are received by the Company.


 


(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.


 






    24


     


    

 


(h)              
No Strict 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.


 


 


[REMAINDER
PAGE INTENTIONALLY LEFT BLANK]


 






    25


     


    

 


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


 


 


	 	
        COMPANY:

         

	 	CHINA XIANGTAI FOOD CO., LTD.
	 	 
	 	By:	/s/ Zeshu Dai
	 	Name:  	Zeshu Dai
	 	Title:  	Chief Executive Officer


 






    26


     


    

 


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


 


	 	BUYER:
	 	 
	 	YA II PN, LTD. 
	 	 
	 	By:	Yorkville Advisors Global, LP
	 	Its:	Investment Manager
	 	 
	 	 	By:    Yorkville Advisors Global II, LLC
	 	 	Its:    General Partner
	 	 
	 	 	By:	/s/ Matt Beckman
	 	 	Name:	Matt Beckman
	 	 	Title:	Member


 






    27


     


    

 


LIST OF EXHIBITS:


 






    28


     


    

 


EXHIBIT A


 


FORM OF CONVERTIBLE DEBENTURES


 






    29


     


    

 


SCHEDULE OF BUYERS


 


 


	(a)	 	 	 	(b)	 	 	(c)	 
	Buyer	 	 	 	Principal Amount

 of Convertible 

Debentures	 	 	Purchase Price

 (100% of Face

 Value)	 
	YA II PN, Ltd.	 	 	 	 	 	 	 	 	 	 
	1012 Springfield Avenue	 	First Closing:	 	$	2,000,000.00	 	 	$	2,000,000.00	 
	Mountainside, NJ 07092	 	Second Closing	 	$	2,000,000.00	 	 	$	2,000,000.00	 
	Email: Legal@yorkvilleadvisors.com	 	Third Closing	 	$	1,000,000.00	 	 	$	1,000,000.00	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	Aggregate:	 	$	5,000,000.00	 	 	$	5,000,000.00	 




 


	Legal Representative’s Address and E-Mail Address	 	 
	David Gonzalez, Esq.	 	 	 
	1012 Springfield Avenue	 	 	 
	Mountainside, NJ 07092	 	 	 
	Email: Legal@yorkvilleadvisors.com