Document:

Exhibit 10.1

 

AKERNA
Corp.

common
stock sales agreement

 

September 28, 2022

 

A.G.P./Alliance Global Partners

590 Madison Avenue, 28th Floor

New York, NY 10022

 

Ladies and Gentlemen:

 

Akerna Corp., a Delaware corporation
(the “Company”), confirms its agreement (this “Agreement”) with A.G.P./Alliance Global Partners
(the “Sales Agent”), as follows:

 

1. Issuance and Sale of
Shares. The Company agrees that, from time to time during the term of this Agreement, on the terms and subject to the conditions set
forth herein, it may issue and sell to or through the Sales Agent, acting as agent and/or principal, shares of the Company’s common
stock, par value $0.0001 per share (the “Common Stock”), having an aggregate offering price of up to $20 million (the
“Maximum Amount”), subject to the limitations set forth in Section 3(b) hereof. The issuance and sale of shares
of Common Stock to or through the Sales Agent will be effected pursuant to the Registration Statement (as defined below) filed, or to
be filed, by the Company in accordance with the provisions of the Securities Act of 1933, as amended, and the rules and regulations thereunder
(collectively, the “Securities Act”), with the U.S. Securities and Exchange Commission (the “Commission”)
and after such Registration Statement has been declared effective by the Commission, although nothing in this Agreement shall be construed
as requiring the Company to use the Registration Statement (as defined below) to issue the Common Stock.

 

Prior to the date of this
Agreement, the Company has filed with the Commission in accordance with the Securities Act a registration statement on Form S-3 (File
No. 333-256878), including a base prospectus, relating to certain securities, including the Common Stock, to be issued from time to time
by the Company, and which incorporates by reference documents that the Company has filed or will file in accordance with the provisions
of the Securities Exchange Act of 1934, as amended, and the rules and regulations thereunder (collectively, the “Exchange Act”).
The Company has prepared a prospectus supplement specifically relating to the offer and sale of Placement Shares (as defined below) pursuant
to this Agreement included as part of such registration statement (the “ATM Prospectus”). The Company will furnish
to the Sales Agent, for use by the Sales Agent, copies of the ATM Prospectus included as part of such registration statement, relating
to the Placement Shares. Except where the context otherwise requires, the various parts of such registration statement, at any given time,
each part as amended or supplemented as of such time, including all documents and exhibits filed as part thereof or incorporated by reference
therein, and including any information contained in a Prospectus (as defined below) subsequently filed with the Commission pursuant to
Rule 424(b) under the Securities Act or deemed to be a part of such registration statement pursuant to Rules 430B or 462(b) of the Securities
Act, are herein called the “Registration Statement.” The base prospectus, including all documents incorporated therein
by reference, together with the ATM Prospectus, including all documents incorporated therein by reference, each of which is included in
the Registration Statement, as each may be supplemented by any additional prospectus supplement, in the form in which such prospectus
and/or ATM Prospectus have most recently been filed by the Company with the Commission, is herein called the “Prospectus.”
Any reference herein to the Registration Statement, the Prospectus or any amendment or supplement thereto shall be deemed to refer to
and include the documents incorporated by reference therein, and any reference herein to the terms “amend,” “amendment”
or “supplement” with respect to the Registration Statement or the Prospectus shall be deemed to refer to and include the filing
after the execution hereof of any document with the Commission deemed to be incorporated by reference therein. For purposes of this Agreement,
all references to the Registration Statement, the Prospectus or to any amendment or supplement thereto shall be deemed to include any
copy filed with the Commission pursuant to the Electronic Data Gathering Analysis and Retrieval System or any successor thereto (collectively
“EDGAR”).

 

     

     

    

 

2. Placements. Each
time that the Company wishes to issue and sell the Common Stock through the Sales Agent, as agent, hereunder (each, a “Placement”),
it will notify the Sales Agent by email notice (or other method mutually agreed to in writing by the parties) (a “Placement Notice”)
containing the parameters in accordance with which it desires the Common Stock to be sold, which shall at a minimum include the number
of shares of Common Stock to be issued (the “Placement Shares”), the time period during which sales are requested to
be made, any limitation on the number of shares of Common Stock that may be sold in any one Trading Day (as defined in Section 3),
and any minimum price below which sales may not be made, a form of which containing such minimum sales parameters necessary is attached
hereto as Schedule 1. The Placement Notice shall originate from any of the individuals from the Company set forth on Schedule
2 (with a copy to each of the other individuals from the Company listed on such schedule) and shall be addressed to each of the
individuals from the Sales Agent set forth on Schedule 2, as such Schedule 2 may be amended from time to time.
The Placement Notice shall be effective upon receipt by the Sales Agent unless and until (i) in accordance with the notice requirements
set forth in Section 4, the Sales Agent declines to accept the terms contained therein for any reason, in its sole discretion,
(ii) the entire amount of the Placement Shares have been sold, (iii) in accordance with the notice requirements set forth in Section
4, the Company suspends or terminates the Placement Notice, (iv) the Company issues a subsequent Placement Notice with parameters
superseding those on the earlier dated Placement Notice, or (v) this Agreement has been terminated under the provisions of Section
11. The amount of any discount, commission or other compensation to be paid by the Company to the Sales Agent in connection with the
sale of the Placement Shares through the Sales Agent, as agent, shall be as set forth in Schedule 3. It is expressly acknowledged
and agreed that neither the Company nor the Sales Agent will have any obligation whatsoever with respect to a Placement or any Placement
Shares unless and until the Company delivers a Placement Notice to the Sales Agent and the Sales Agent does not decline such Placement
Notice pursuant to the terms set forth above, and then only upon the terms specified therein and herein. In the event of a conflict between
the terms of this Agreement and the terms of a Placement Notice, the terms of the Placement Notice will control.

 

3. Sale of Placement Shares
by the Sales Agent.

 

(a) Subject to the terms
and conditions herein set forth, upon the Company’s issuance of a Placement Notice, and unless the sale of the Placement Shares
described therein has been declined, suspended, or otherwise terminated in accordance with the terms of this Agreement, the Sales Agent,
as agent for the Company, will use its commercially reasonable efforts consistent with its normal trading and sales practices and applicable
state and federal laws, rules and regulations, and the rules of The Nasdaq Capital Market (the “Exchange”), for the
period specified in the Placement Notice, to sell such Placement Shares up to the amount specified by the Company in, and otherwise in
accordance with the terms of, such Placement Notice. If acting as agent hereunder, the Sales Agent will provide written confirmation to
the Company (including by email correspondence to each of the individuals of the Company set forth on Schedule 2, if receipt
of such correspondence is actually acknowledged by any of the individuals to whom the notice is sent, other than via auto-reply) no later
than the opening of the Trading Day (as defined below) immediately following the Trading Day on which it has made sales of Placement Shares
hereunder, setting forth the number of Placement Shares sold on such day, the compensation payable by the Company to the Sales Agent pursuant
to Section 2 with respect to such sales, and the Net Proceeds (as defined below) payable to the Company, with an itemization of
the deductions made by the Sales Agent (as set forth in Section 5(a)) from the gross proceeds that it receives from such sales.
Subject to the terms of the Placement Notice, the Sales Agent may sell Placement Shares by any method permitted by law deemed to be an
“at the market” offering as defined in Rule 415 under the Securities Act, including without limitation sales made directly
on the Exchange, on any other existing trading market for the Common Stock or to or through a market maker. If expressly authorized by
the Company in a Placement Notice, the Sales Agent may also sell Placement Shares in privately negotiated transactions. Subject to Section
3(c) below, the Sales Agent may not purchase Placement Shares for its own account as principal, unless expressly authorized to do
so by the Company in a Placement Notice. The Company acknowledges and agrees that (i) there can be no assurance that the Sales Agent will
be successful in selling Placement Shares, and (ii) the Sales Agent will incur no liability or obligation to the Company or any other
person or entity if it does not sell Placement Shares for any reason other than a failure by the Sales Agent to use its commercially reasonable
efforts consistent with its normal trading and sales practices and applicable law and regulations to sell such Placement Shares as required
under this Section 3. For the purposes hereof, “Trading Day” means any day on which the Company’s Common
Stock is purchased and sold on the principal market on which the Common Stock is listed or quoted.

 

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(b) Under no circumstances
shall the Company cause or request the offer or sale of any Placement Shares if, after giving effect to the sale of such Placement Shares,
the aggregate number or gross sales proceeds of Placement Shares sold pursuant to this Agreement would exceed the lesser of: (i) the number
or dollar amount of shares of Common Stock registered pursuant to the Registration Statement pursuant to which the offering hereunder
is being made, (ii) the number of authorized but unissued and unreserved shares of Common Stock, (iii) the number or dollar amount of
shares of Common Stock permitted to be offered and sold by the Company under Form S-3 (including General Instruction I.B.6. of Form S-3,
if and for so long as applicable), (iv) the number or dollar amount of shares of Common Stock authorized from time to time to be issued
and sold under this Agreement by the Company’s board of directors, a duly authorized committee thereof or a duly authorized executive
officer, and notified to the Sales Agent in writing, or (v) the number or dollar amount of shares of Common Stock for which the Company
has filed the ATM Prospectus or other prospectus or prospectus supplement thereto specifically relating to the offering of the Placement
Shares pursuant to this Agreement. Under no circumstances shall the Company cause or request the offer or sale of any Placement Shares
pursuant to this Agreement at a price lower than the minimum price authorized from time to time by the Company’s board of directors,
a duly authorized committee thereof or a duly authorized executive committee, and notified to the Sales Agent in writing. Notwithstanding
anything to the contrary contained herein, the parties hereto acknowledge and agree that compliance with the limitations set forth in
this Section 3(b) on the number or dollar amount of Placement Shares that may be issued and sold under this Agreement from time
to time shall be the sole responsibility of the Company, and that the Sales Agent shall have no obligation in connection with such compliance.

 

(c) The Company acknowledges
and agrees that the Sales Agent has informed the Company that the Sales Agent may, to the extent permitted under the Securities Act and
the Exchange Act (including, without limitation, Regulation M promulgated thereunder), purchase and sell shares of Common Stock for its
own account while this Agreement is in effect, and shall be under no obligation to purchase Placement Shares on a principal basis pursuant
to this Agreement, except as otherwise agreed by the Sales Agent in a Placement Notice; provided, that no such purchase or sales
shall take place while a Placement Notice is in effect (except (i) as agreed by the Company and the Sales Agent in the Placement Notice
or (ii) to the extent the Sales Agent may engage in sales of Placement Shares purchased or deemed purchased from the Company as a “riskless
principal” or in a similar capacity); and, provided, further, that the Sales Agent acknowledges and agrees that, except
as expressly set forth in a Placement Notice, any such transactions are not being, and shall not be deemed to have been, undertaken at
the request or direction of, or for the account of, the Company, and that the Company has and shall have no control over any decision
by the Sales Agent to enter into any such transactions.

 

(d) During the term of this
Agreement and notwithstanding anything to the contrary herein, the Sales Agent agrees that in no event will the Sales Agent or its affiliates
engage in any market making, bidding, stabilization or other trading activity with regard to the Common Stock or related derivative securities
if such activity would be prohibited under Regulation M or other anti-manipulation rules under the Exchange Act.

 

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(e) The Sales Agent represents
and warrants that it is duly registered as a broker-dealer under the Financial Industry Regulatory Authority, Inc. (“FINRA”)
and the applicable statutes and regulations of each state in which the Placement Shares will be offered and sold, except such states in
which the Sales Agent is exempt from registration or such registration is not otherwise required in connection with the offer and sale
of the Placement Shares. The Sales Agent shall continue, for the term of this Agreement, to be duly registered as a broker-dealer under
FINRA and the applicable statutes and regulations of each state in which the Placement Shares will be offered and sold, except such states
in which it is exempt from registration or such registration is not otherwise required in connection with the offer and sale of the Placement
Shares.

 

4. Suspension of Sales.

 

(a) The Company or the Sales
Agent may, upon notice to the other party in writing (including by email correspondence to each of the individuals of the other party
set forth on Schedule 2, if receipt of such correspondence is actually acknowledged by any of the individuals to whom the
notice is sent, other than via auto-reply) or by telephone (confirmed immediately by verifiable facsimile transmission or email correspondence
to each of the individuals of the other party set forth on Schedule 2), suspend any sale of Placement Shares for a period
of time (a “Suspension Period”); provided, however, that such suspension shall not affect or impair either
party’s obligations with respect to any Placement Shares sold hereunder prior to the receipt of such notice. While a Suspension
Period is in effect, any obligation under Sections 7(m), 7(n), and 7(o) with respect to the delivery of certificates,
opinions or comfort letters to the Sales Agent shall be suspended. Each of the parties agrees that no such notice under this Section
4 shall be effective against the other unless it is made to one of the individuals named on Schedule 2 hereto, as such
schedule may be amended from time to time. During a Suspension Period, the Company shall not issue any Placement Notices, and the Sales
Agent shall not sell any Placement Shares hereunder. The party that issued a suspension notice shall notify the other party in writing
of the Trading Day on which the Suspension Period shall expire not later than twenty-four (24) hours prior to such Trading Day. Following
the expiration of any Suspension Period, the Company will not issue any Placement Notices, and the Sales Agent will not be obligated to
sell any Placement Shares until such time as the Company has brought current its obligation under Sections 7(m), 7(n), and
7(o) with respect to the delivery of certificates, opinions or comfort letters to the Sales Agent.

 

(b) Notwithstanding any other
provision of this Agreement, during any period in which the Company is in possession of material non-public information, the Company and
the Sales Agent agree that (i) no sale of Placement Shares will take place, (ii) the Company shall not request the sale of any Placement
Shares, and (iii) the Sales Agent shall not be obligated to sell or offer to sell any Placement Shares.

 

5. Settlement.

 

(a) Settlement of Placement
Shares. Unless otherwise specified in the applicable Placement Notice, settlement for sales of Placement Shares will occur on the
second (2nd) Trading Day (or such earlier day as is industry practice for regular-way trading) following the respective Point of Sale
(as defined below) (each, a “Settlement Date”). The amount of proceeds to be delivered to the Company on a Settlement
Date against receipt of the Placement Shares sold (the “Net Proceeds”) will be equal to the aggregate sales price received
by the Sales Agent at which such Placement Shares were sold, after deduction for (i) the Sales Agent’s discount, commission or other
compensation for such sales payable by the Company pursuant to Section 2 hereof, (ii) any other amounts due and payable by the
Company to the Sales Agent hereunder pursuant to Section 7(g) hereof and (iii) any transaction fees imposed by any governmental
or self-regulatory organization in respect of such sales. “Point of Sale” means, for a Placement, the time at which
an acquiror of Placement Shares entered into a contract, binding upon such acquiror, to acquire such Placement Shares.

 

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(b) Delivery of Placement
Shares. On each Settlement Date, the Company will, or will cause its transfer agent to, electronically transfer the Placement Shares
being sold by crediting the Sales Agent’s or its designees’ account (provided the Sales Agent shall have given the
Company written notice of such designee prior to the Settlement Date) at The Depository Trust Company through its Deposit and Withdrawal
at Custodian System or by such other means of delivery as may be mutually agreed upon by the parties hereto, which in all cases shall
be freely tradable, transferable, registered shares in good deliverable form. On each Settlement Date, the Sales Agent will deliver the
related Net Proceeds in same day funds to an account designated by the Company on, or prior to, the Settlement Date. The Company agrees
that if the Company, or its transfer agent (if applicable), defaults in its obligation to deliver duly authorized Placement Shares on
a Settlement Date, in addition to and in no way limiting the rights and obligations set forth in Section 9(a) hereto, the Company
will (i) hold the Sales Agent, its directors, officers, members, partners, employees and agents of the Sales Agent, each broker dealer
affiliate of the Sales Agent, and each person, if any, who (A) controls the Sales Agent within the meaning of Section 15 of the Securities
Act or Section 20 of the Exchange Act or (B) is controlled by or is under common control with the Sales Agent (each, a “Sales
Agent Affiliate”), harmless against any loss, claim, damage, or reasonable expense (including reasonable legal fees and expenses),
as incurred, arising out of or in connection with such default by the Company or its transfer agent (if applicable) and (ii) pay to the
Sales Agent any commission, discount, or other compensation to which it would otherwise have been entitled absent such default.

 

6. Representations and
Warranties of the Company. The Company, on behalf of itself and its subsidiaries, represents and warrants to, and agrees with, the
Sales Agent that as of each Applicable Time (as defined in Section 22(a)):

 

(a) Compliance with Registration
Requirements. As of each Applicable Time other than the date of this Agreement, the Registration Statement has been declared effective
by the Commission under the Securities Act, and any 462(b) Registration Statement has become automatically effective pursuant to Rule
462(b) under the Securities Act. The Company has complied to the Commission’s satisfaction with all requests of the Commission for
additional or supplemental information related to the Registration Statement and the Prospectus. No stop order suspending the effectiveness
of the Registration Statement or any Rule 462(b) Registration Statement is in effect and no proceedings for such purpose or pursuant to
Section 8A of the Securities Act have been instituted or are pending or, to the knowledge of the Company, are contemplated or threatened
by the Commission. The Registration Statement and the offer and sale of the Placement Shares as contemplated hereby meet the requirements
of Rule 415 under the Securities Act and comply in all material respects with said Rule. In the section entitled “Plan of Distribution”
in the ATM Prospectus, the Company has named A.G.P./Alliance Global Partners as agent that the Company has engaged in connection with
the transactions contemplated by this Agreement. The Company was an “ineligible issuer” as defined in Rule 405 under the Securities
Act at the time of filing of the Registration Statement.

 

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(b) No Misstatement or
Omission. The Prospectus when filed will comply or complied and, as amended or supplemented, if applicable, will comply in all material
respects with the Securities Act. Each of the Registration Statement, any Rule 462(b) Registration Statement and any post-effective amendment
thereto, at the time it becomes effective, and as of each Applicable Time, if any, will comply in all material respects with the Securities
Act and did not and, as of each Applicable Time, if any, will not contain any untrue statement of a material fact or omit to state a material
fact required to be stated therein or necessary to make the statements therein not misleading. The Prospectus, as amended or supplemented,
as of its date, did not and, as of each Applicable Time, if any, will not contain any untrue statement of a material fact or omit to state
a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading.
The representations and warranties set forth in the two immediately preceding sentences do not apply to statements in or omissions from
the Registration Statement, any Rule 462(b) Registration Statement, or any post-effective amendment thereto, or the Prospectus, or any
amendments or supplements thereto, made in reliance upon and in conformity with information furnished to the Company in writing by the
Sale Agent expressly for use therein. The parties hereto agree that the information provided in writing by or on behalf of the Sales Agent
expressly for use in the Registration Statement, any Rule 462(b) Registration Statement, or any post-effective amendment thereto, or the
Prospectus, or any amendments or supplements thereto, consists solely of the material referred to in Schedule 5 hereto,
as updated from time to time.

 

(c) S-3 Eligibility.
At the time the Registration Statement and any Rule 462(b) Registration Statement was or will be filed with the Commission, at the time
the Registration Statement and any Rule 462(b) Registration Statement was or will be declared effective by the Commission, and at the
time the Company’s most recent Annual Report on Form 10-K was filed with the Commission, the Company met or will meet the then applicable
requirements for the use of Form S-3 under the Securities Act, including, but not limited to, General Instructions I.B.1. or I.B.6. of
Form S-3, if and for so long as applicable. The Company is not a shell company (as defined in Rule 405 under the Securities Act) and has
not been a shell company for at least 12 calendar months previously.

 

(d) Distribution of Offering
Material by the Company. The Company has not distributed and will not distribute, prior to the completion of the Sales Agent’s
distribution of the Placement Shares, any offering material in connection with the offering and sale of the Placement Shares other than
the Prospectus or the Registration Statement.

 

(e) Emerging Growth Company.
The Company has been and is an “emerging growth company,” as defined in Section 2(a) of the Securities Act (an “Emerging
Growth Company”).

 

(f) Incorporated Documents.
The documents incorporated by reference in the Registration Statement and the Prospectus, when they were filed with the Commission, conformed
in all material respects to the requirements of the Securities Act or the Exchange Act, as applicable, and none of such documents contained
any untrue statement of a material fact or omitted to state a material fact necessary to make the statements therein, in the light of
the circumstances under which they were made, not misleading; and any further documents so filed and incorporated by reference in the
Registration Statement and the Prospectus, when such documents are filed with the Commission, at each Point of Sale and each Settlement
Date, will conform in all material respects to the requirements of the Exchange Act and will not contain any untrue statement of a material
fact or omit to state a material fact necessary to make the statements therein, in the light of the circumstances under which they were
made, not misleading.

 

(g) Financial Statements.
The financial statements (including the related notes thereto) of the Company and its consolidated subsidiaries included or incorporated
by reference in the Registration Statement and the Prospectus comply in all material respects with the applicable requirements of the
Securities Act and the Exchange Act, as applicable and present fairly the financial position of the Company and its consolidated subsidiaries
as of the dates indicated and the results of their operations and the changes in their cash flows for the periods specified; such financial
statements have been prepared in conformity with generally accepted accounting principles (“GAAP”) in the United States
applied on a consistent basis throughout the periods covered thereby, and any supporting schedules included or incorporated by reference
in the Registration Statement and the Prospectus present fairly the information required to be stated therein; and the other financial
information included or incorporated by reference in the Registration Statement and the Prospectus has been derived from the accounting
records of the Company and its consolidated subsidiaries and presents fairly the information shown thereby; all disclosures included or
incorporated by reference in the Registration Statement and the Prospectus regarding “non-GAAP financial measures” (as such
term is defined by the rules and regulations of the Commission) comply with Regulation G of the Exchange Act and Item 10 of Regulation
S-K of the Securities Act, to the extent applicable; and the pro forma financial information and the related notes thereto included or
incorporated by reference in the Registration Statement and the Prospectus have been prepared in accordance with the applicable requirements
of the Securities Act and the Exchange Act, as applicable, and the assumptions underlying such pro forma financial information are reasonable
and are set forth in the Registration Statement and the Prospectus.

 

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(h) No “Prohibited
Activities”. Except as preapproved in accordance with the requirements set forth in Section 10A of the Exchange Act, the accounting
firm that certified the financial statements and supporting schedules of the Company has not been engaged by the Company to perform any
“prohibited activities” (as defined in Section 10A of the Exchange Act).

 

(i) No Material Off-Balance
Sheet Arrangements. There are no material off-balance sheet arrangements (as defined in Item 303 of Regulation S-K) that have or are
reasonably likely to have a material current or future effect on the Company’s financial condition, results of operations, liquidity,
capital expenditures or capital resources.

 

(j) The Sales Agreement.
This Agreement has been duly authorized, executed and delivered by the Company, and constitutes a valid, legal, and binding obligation
of the Company, enforceable against the Company in accordance with its terms, except as rights to indemnity hereunder may be limited by
federal or state securities laws and except as such enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium
or similar laws affecting the rights of creditors generally, and subject to general principles of equity. The Company has full corporate
power and authority to enter into this Agreement and to authorize, issue and sell the Placement Shares as contemplated by this Agreement.
This Agreement conforms in all material respects to the descriptions thereof in the Registration Statement and the Prospectus.

 

(k) No Material Adverse
Change. Since the date of the most recent financial statements of the Company included or incorporated by reference in the Registration
Statement and the Prospectus, (i) there has not been any change in the capital stock (other than the issuance of shares of Common Stock
upon exercise of stock options and warrants described as outstanding in, and the grant of options and awards under existing equity incentive
plans described in, the Registration Statement and the Prospectus), short-term debt or long-term debt of the Company or any of its subsidiaries,
or any dividend or distribution of any kind declared, set aside for payment, paid or made by the Company on any class of capital stock,
or any material adverse change, or any development involving a prospective material adverse change, in or affecting the business, properties,
management, financial position, stockholders’ equity, results of operations or prospects of the Company and its subsidiaries taken
as a whole; (ii) neither the Company nor any of its subsidiaries has entered into any transaction or agreement (whether or not in the
ordinary course of business) that is material to the Company and its subsidiaries taken as a whole or incurred any liability or obligation,
direct or contingent, that is material to the Company and its subsidiaries taken as a whole; and (iii) neither the Company nor any of
its subsidiaries has sustained any loss or interference with its business that is material to the Company and its subsidiaries taken as
a whole and that is either from fire, explosion, flood or other calamity, whether or not covered by insurance, or from any labor disturbance
or dispute or any action, order or decree of any court or arbitrator or governmental or regulatory authority, except in each case as otherwise
disclosed in the Registration Statement and the Prospectus.

 

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(l) Organization and Good
Standing. The Company and each of its subsidiaries have been duly organized or formed, as applicable, and are validly existing and
in good standing (where such concept is recognized under the laws of the jurisdiction in which they are organized and formed) under the
laws of their respective jurisdictions of organization, are duly qualified to do business and are in good standing in each jurisdiction
in which their respective ownership or lease of property or the conduct of their respective businesses requires such qualification, and
have all power and authority necessary to own or hold their respective properties and to conduct the businesses in which they are engaged,
except where the failure to be so qualified or in good standing or have such power or authority would not, individually or in the aggregate,
have a material adverse effect on the business, properties, management, financial position, stockholders’ equity, results of operations
or prospects of the Company and its subsidiaries taken as a whole or on the performance by the Company of its obligations under this Agreement
(a “Material Adverse Effect”). The subsidiaries listed in Schedule 4 to this Agreement are the only subsidiaries
of the Company.

 

(m) Capitalization.
The Company has an authorized capitalization as set forth in the Registration Statement and the Prospectus under the heading “Description
of Capital Stock”; all the outstanding shares of capital stock of the Company have been duly and validly authorized and issued and
are fully paid and non-assessable and are not subject to any pre-emptive or similar rights; except as disclosed in the Registration Statement
and the Prospectus, there are no outstanding rights (including, without limitation, pre-emptive rights), warrants or options to acquire,
or instruments convertible into or exchangeable for, any shares of capital stock or other equity interest in the Company or any of its
subsidiaries, or any contract, commitment, agreement, understanding or arrangement of any kind relating to the issuance of any capital
stock of the Company or any such subsidiary, any such convertible or exchangeable securities or any such rights, warrants or options;
the capital stock of the Company conforms in all material respects to the description thereof contained in the Registration Statement
and the Prospectus; and all the outstanding shares of capital stock or other equity interests of each subsidiary owned, directly or indirectly,
by the Company have been duly and validly authorized and issued, are fully paid and non-assessable and are owned directly or indirectly
by the Company, free and clear of any lien, charge, encumbrance, security interest, restriction on voting or transfer or any other claim
of any third party.

 

(n) Authorization of the
Placement Shares. The Placement Shares to be sold by the Sales Agent, acting as agent and/or principal for the Company, have been
duly authorized and, when issued and paid for as contemplated herein, will be validly issued, fully paid and non-assessable. The issuance
of the Placement Shares is not subject to the preemptive or other similar rights of any stockholder of the Company.

 

(o) No Applicable Registration
or Other Similar Rights. There are no persons with registration or other similar rights to have any equity or debt securities registered
for sale under the Registration Statement or included in the offering contemplated by this Agreement, except for such rights as have been
duly waived or terminated. Other than as set forth in this Agreement, no person has the right to act as an underwriter or as a financial
advisor to the Company in connection with the offer and sale of the Placement Shares hereunder, whether as a result of the filing or effectiveness
of the Registration Statement or the sale of the Placement Shares as contemplated hereby or otherwise.

 

(p) Stock Options.
The Company has not granted any stock options under its equity compensation plans.

 

(q) No Violation or Default.
Neither the Company nor any of its subsidiaries is (i) in violation of its charter or by-laws or similar organizational documents; (ii)
in default, and no event has occurred that, with notice or lapse of time or both, would constitute such a default, in the due performance
or observance of any term, covenant or condition contained in any indenture, mortgage, deed of trust, loan agreement or other agreement
or instrument to which the Company or any of its subsidiaries is a party or by which the Company or any of its subsidiaries is bound or
to which any of the property or assets of the Company or any of its subsidiaries is subject; or (iii) in violation of any law, statute,
rule, regulation, judgment, order, writ or decree of any arbitrator, court, governmental body, regulatory body, administrative agency
or other authority, body or agency having jurisdiction over the Company or its subsidiaries or any of their respective properties, assets
or operations, except, in the case of clauses (ii) and (iii) above, for any such default or violation that would not, individually or
in the aggregate, have a Material Adverse Effect.

 

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(r) No Conflicts.
The execution, delivery and performance by the Company of this Agreement, the
issuance and sale of the Placement Shares by the Company and the consummation by the Company of the transactions contemplated by this
Agreement or the Prospectus will not (i) conflict with or result in a breach or violation of any of the terms or provisions of, or constitute
a default under, result in the termination, modification or acceleration of, or result in the creation or imposition of any lien, charge
or encumbrance upon any property, right or asset of the Company or any of its subsidiaries pursuant to, any indenture, mortgage, deed
of trust, loan agreement or other agreement or instrument to which the Company or any of its subsidiaries is a party or by which the Company
or any of its subsidiaries is bound or to which any property, right or asset of the Company or any of its subsidiaries is subject, (ii)
result in any violation of the provisions of the charter or by-laws or similar organizational documents of the Company or any of its subsidiaries,
or (iii) result in the violation of any law, statute, rule, regulation, judgment, order, writ or decree of any arbitrator, court, governmental
body, regulatory body, administrative agency or other authority, body or agency having jurisdiction over the Company or its subsidiaries
or any of their respective properties, assets or operations, except, in the case of clauses (i) and (iii) above, for any such conflict,
breach, violation, default, lien, charge or encumbrance that would not, individually or in the aggregate, have a Material Adverse Effect.

 

(s) No Consents Required.
No consent, approval, authorization, order, license, registration or qualification of or with any court or arbitrator or governmental
or regulatory authority is required for the execution, delivery and performance by the Company of this Agreement, the issuance and sale
of the Placement Shares and the consummation of the transactions contemplated by this Agreement, except for the registration of the Placement
Shares under the Securities Act, and such consents, approvals, authorizations, orders and registrations or qualifications as may be required
by FINRA, the Exchange and under applicable state securities laws in connection with the distribution and sale of the Placement Shares
by the Sales Agent.

 

(t) FINRA Matters.
All of the information provided to the Sales Agent or to counsel for the Sales Agent by the Company, its counsel, its officers and directors
and the holders of any securities (debt or equity) or options to acquire any securities of the Company in connection with the offering
of the Placement Shares, is true, complete, correct and compliant in all material respects with FINRA’s rules, and any letters,
filings or other supplemental information provided to FINRA pursuant to FINRA rules or the National Association of Securities Dealers,
or NASD, Conduct Rules is true, complete, correct and compliant in all material respects.

 

(u) Legal Proceedings.
Except as described in the Registration Statement and the Prospectus, there are no legal, governmental or regulatory investigations, actions,
demands, claims, suits, arbitrations, inquiries or proceedings (“Legal Proceedings”) pending to which the Company or
any of its subsidiaries is or may be a party or to which any property of the Company or any of its subsidiaries is or may be the subject
that, individually or in the aggregate, if determined adversely to the Company or any of its subsidiaries, could reasonably be expected
to have a Material Adverse Effect; no such Legal Proceedings are threatened or, to the knowledge of the Company, contemplated by any governmental
or regulatory authority or threatened by others; and (i) there are no current or pending Legal Proceedings that are required under the
Securities Act to be described in the Registration Statement or the Prospectus that are not so described in the Registration Statement
and the Prospectus, and (ii) there are no statutes, regulations or contracts or other documents that are required under the Securities
Act to be filed as exhibits to the Registration Statement or described in the Registration Statement or the Prospectus that are not so
filed as exhibits to the Registration Statement or described in the Registration Statement and the Prospectus.

 

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(v) Independent Accountants.
Marcum LLP, which has certified certain financial statements of the Company and its subsidiaries and expressed its opinion with respect
to the financial statements (which term as used in this Agreement includes the related notes thereto) and any supporting schedules filed
with the Commission or incorporated by reference in the Registration Statement and included or incorporated by reference in the Prospectus,
is an independent public accounting firm as required by the Securities Act and the rules of the Public Company Accounting Oversight Board
(“PCAOB”).

 

(w) Title to Real and
Personal Property. The Company and its subsidiaries have good and marketable title in fee simple to, or have valid rights to lease
or otherwise use, all items of real and personal property that are material to the respective businesses of the Company and its subsidiaries,
in each case free and clear of all liens, encumbrances, claims and defects and imperfections of title except those that (i) do not materially
interfere with the use made and proposed to be made of such property by the Company and its subsidiaries or (ii) could not reasonably
be expected, individually or in the aggregate, to have a Material Adverse Effect.

 

(x) Title to Intellectual
Property. Except as disclosed in the Registration Statement and the Prospectus, the Company owns or possesses the valid right to use
all (i) valid and enforceable patents, patent applications, trademarks, trademark registrations, service marks, service mark registrations,
Internet domain name registrations, copyrights, copyright registrations, licenses, trade secret rights (“Intellectual Property
Rights”) and (ii) inventions, software, works of authorships, trademarks, service marks, trade names, databases, formulae, know
how, Internet domain names and other intellectual property (including trade secrets and other unpatented and/or unpatentable proprietary
confidential information, systems, or procedures) (collectively, “Intellectual Property Assets”) necessary to conduct
its business as currently conducted, and as proposed to be conducted and described in the Registration Statement and the Prospectus. The
Company has not received any notice of, nor is aware of, any infringement of or conflict with asserted rights of others with respect to
any Intellectual Property Rights or Intellectual Property Assets. Further, the Company has not received any opinion from its legal counsel
concluding that any activities of its business infringe, misappropriate, or otherwise violate, valid and enforceable Intellectual Property
Rights of any other person, and has not received written notice of any challenge, which is to its knowledge still pending, by any other
person to the rights of the Company with respect to any Intellectual Property Rights or Intellectual Property Assets owned or used by
the Company. To the Company’s knowledge, the Company’s business as now conducted does not give rise to any infringement of,
any misappropriation of, or other violation of, any valid and enforceable Intellectual Property Rights of any other person. All licenses
for the use of the Intellectual Property Rights described in the Registration Statement and the Prospectus are valid, binding upon, and
enforceable by or against the parties thereto in accordance with their terms. The Company has complied in all material respects with,
and is not in breach nor has received any asserted or threatened claim of breach of any Intellectual Property license, and the Company
has no knowledge of any breach or anticipated breach by any other person to any Intellectual Property license. No claim has been made
against the Company alleging the infringement by the Company of any patent, trademark, service mark, trade name, copyright, trade secret,
license in or other intellectual property right or franchise right of any person. The Company has taken all reasonable steps to protect,
maintain and safeguard its Intellectual Property Rights, including the execution of appropriate nondisclosure and confidentiality agreements.
The consummation of the transactions contemplated by this Agreement will not result in the loss or impairment of or payment of any additional
amounts with respect to, nor require the consent of any other person in respect of, the Company’s right to own, use, or hold for
use any of the Intellectual Property Rights as owned, used or held for use in the conduct of the business as currently conducted. The
Company has at all times complied with all applicable laws relating to privacy, data protection, and the collection and use of personal
information collected, used, or held for use by the Company in the conduct of the Company’s business. No claims have been asserted
or threatened against the Company alleging a violation of any person’s privacy or personal information or data rights and the consummation
of the transactions contemplated hereby will not breach or otherwise cause any violation of any law related to data privacy, data protection,
or the collection and use of personal information collected, used, or held for use by the Company in the conduct of the Company’s
business. The Company takes reasonable measures to ensure that such information is protected against unauthorized access, use, modification,
or other misuse. The Company has taken all necessary actions to obtain ownership of all works of authorship and inventions made by its
employees, consultants and contractors during the time they were employed by or under contract with the Company and which relate to the
Company’s business. All founders and key employees have signed confidentiality and invention assignment agreements with the Company.

 

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(y) No Undisclosed Relationships.
No relationship, direct or indirect, exists between or among the Company or any of its subsidiaries, on the one hand, and the directors,
officers, stockholders, customers, suppliers or other affiliates of the Company or any of its subsidiaries, on the other, that is required
by the Securities Act to be described in each of the Registration Statement and the Prospectus and that is not so described in such documents.

 

(z) Company Not an “Investment
Company”. The Company is not and, after giving effect to the offering and sale of the Placement Shares and the application of
the proceeds thereof as described in the Registration Statement and the Prospectus, will not be required to register as an “investment
company” or an entity “controlled” by an “investment company” within the meaning of the Investment Company
Act of 1940, as amended, and the rules and regulations of the Commission thereunder (collectively, the “Investment Company Act”).

 

(aa) Tax Law Compliance.
The Company and its subsidiaries have paid all federal, state, local and foreign taxes and filed all tax returns required to be paid or
filed through the date hereof; and except as otherwise disclosed in each of the Registration Statement and the Prospectus, there is no
tax deficiency that has been, or could reasonably be expected to be, asserted against the Company or any of its subsidiaries or any of
their respective properties or assets, except such as would not, individually or in the aggregate, have a Material Adverse Effect.

 

(bb) Licenses and Permits.
The Company and its subsidiaries possess all licenses, sub-licenses, certificates, permits and other authorizations issued by, and have
made all declarations and filings with, the appropriate federal, state, local or foreign governmental or regulatory authorities that are
necessary for the ownership or lease of their respective properties or the conduct of their respective businesses as described in each
of the Registration Statement and the Prospectus, except where the failure to possess or make the same would not, individually or in the
aggregate, have a Material Adverse Effect; and except as described in each of the Registration Statement and the Prospectus, neither the
Company nor any of its subsidiaries has received notice of any revocation or modification of any such license, sub-license, certificate,
permit or authorization or has any reason to believe that any such license, sub-license, certificate, permit or authorization will not
be renewed in the ordinary course. The Company and its subsidiaries are in compliance with all statutes, rules and regulations applicable
to the ownership, testing, development, manufacture, packaging, processing, use, distribution, storage, import, export or disposal of
any product manufactured or distributed by the Company or its subsidiaries.

 

(cc) No Labor Disputes.
No labor disturbance by or dispute with employees of the Company or any of its subsidiaries exists or, to the knowledge of the Company,
is contemplated or threatened, and the Company is not aware of any existing or imminent labor disturbance by, or dispute with, the employees
of any of its or its subsidiaries’ principal suppliers, contractors or customers, except as would not have a Material Adverse Effect.
Neither the Company nor any of its subsidiaries has received any notice of cancellation or termination with respect to any collective
bargaining agreement to which it is a party.

 

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(dd) Certain Environmental
Matters. (i) The Company and its subsidiaries (x) are in compliance with all, and have not violated any, applicable federal, state,
local and foreign laws (including common law), rules, regulations, requirements, decisions, judgments, ordinance, policy, code, decrees,
orders and other legally enforceable requirements relating to pollution or the protection of human health or safety, the environment (including,
without limitation, ambient air, surface water, groundwater, land surface or subsurface strata), wildlife, natural resources, hazardous
or toxic substances or wastes, petroleum or petroleum products, asbestos-containing materials, mold, pollutants or contaminants (collectively,
“Environmental Laws”), (y) have received and are in compliance with all, and have not violated any, permits, licenses,
certificates or other authorizations or approvals required of them under any Environmental Laws to conduct their respective businesses,
and (z) have not received notice of any actual or potential liability or obligation under or relating to, or any actual or potential violation
of, any Environmental Laws, including for the investigation or remediation of any disposal or release of hazardous or toxic substances
or wastes, pollutants or contaminants, and have no knowledge of any event or condition that would reasonably be expected to result in
any such notice; (ii) there are no costs or liabilities associated with Environmental Laws of or relating to the Company or its subsidiaries,
except in the case of each of (i) and (ii) above, for any such matter, as would not, individually or in the aggregate, reasonably be expected
to have a Material Adverse Effect; and (iii) except as described in each of the Registration Statement and the Prospectus, (x) there is
no proceeding that is pending, or that is known to be contemplated, against the Company or any of its subsidiaries under any Environmental
Laws in which a governmental entity is also a party, other than such proceeding regarding which it is reasonably believed no monetary
sanctions of $100,000 or more will be imposed, (y) the Company and its subsidiaries are not aware of any facts or issues regarding compliance
with Environmental Laws, or liabilities or other obligations under Environmental Laws or concerning hazardous or toxic substances or wastes,
pollutants or contaminants, that could reasonably be expected to have a material effect on the capital expenditures, earnings or competitive
position of the Company and its subsidiaries, and (z) none of the Company or its subsidiaries anticipates material capital expenditures
relating to any Environmental Laws.

 

(ee) Compliance with ERISA.
(i) Each employee benefit plan, within the meaning of Section 3(3) of the Employee Retirement Income Security Act of 1974, as amended
(“ERISA”), for which the Company or any member of its “Controlled Group” (defined as any entity, whether
or not incorporated, that is under common control with the Company within the meaning of Section 4001(a)(14) of ERISA or any entity that
would be regarded as a single employer with the Company under Section 414(b), (c), (m) or (o) of the Internal Revenue Code of 1986, as
amended (the “Code”), would have any liability (each, a “Plan”) has been maintained in compliance
with its terms and the requirements of any applicable statutes, orders, rules and regulations, including but not limited to, ERISA and
the Code; (ii) no prohibited transaction, within the meaning of Section 406 of ERISA or Section 4975 of the Code, has occurred with respect
to any Plan excluding transactions effected pursuant to a statutory or administrative exemption; (iii) for each Plan that is subject to
the funding rules of Section 412 of the Code or Section 302 of ERISA, no Plan has failed (whether or not waived), or is reasonably expected
to fail, to satisfy the minimum funding standards (within the meaning of Section 302 of ERISA or Section 412 of the Code) applicable to
such Plan; (iv) no Plan is, or is reasonably expected to be, in “at risk status” (within the meaning of Section 303(i) of
ERISA) and no Plan that is a “multiemployer plan” within the meaning of Section 4001(a)(3) of ERISA is in “endangered
status” or “critical status” (within the meaning of Sections 304 and 305 of ERISA); (v) the fair market value of the
assets of each Plan exceeds the present value of all benefits accrued under such Plan (determined based on those assumptions used to fund
such Plan); (vi) no “reportable event” (within the meaning of Section 4043(c) of ERISA and the regulations promulgated thereunder)
has occurred or is reasonably expected to occur; (vii) each Plan that is intended to be qualified under Section 401(a) of the Code is
so qualified, and nothing has occurred, whether by action or by failure to act, which would cause the loss of such qualification; (viii)
neither the Company nor any member of the Controlled Group has incurred, nor reasonably expects to incur, any liability under Title IV
of ERISA (other than contributions to the Plan or premiums to the Pension Benefit Guarantee Corporation, in the ordinary course and without
default) in respect of a Plan (including a “multiemployer plan”, within the meaning of Section 4001(a)(3) of ERISA); and (ix)
none of the following events has occurred or is reasonably likely to occur: (A) a material increase in the aggregate amount of contributions
required to be made to all Plans by the Company or its Controlled Group affiliates in the current fiscal year of the Company and its Controlled
Group affiliates compared to the amount of such contributions made in the Company’s and its Controlled Group affiliates’ most
recently completed fiscal year; or (B) a material increase in the Company and its subsidiaries’ “accumulated post-retirement
benefit obligations” (within the meaning of Accounting Standards Codification Topic 715-60) compared to the amount of such obligations
in the Company and its subsidiaries’ most recently completed fiscal year, except in each case with respect to the events or conditions
set forth in (i) through (ix) hereof, as would not, individually or in the aggregate, have a Material Adverse Effect.

 

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(ff) Disclosure Controls.
Except as disclosed in the Registration Statement and the Prospectus, the Company and its subsidiaries maintain an effective system of
“disclosure controls and procedures” (as defined in Rule 13a-15(e) of the Exchange Act) that complies with the requirements
of the Exchange Act and that has been designed to ensure that information required to be disclosed by the Company in reports that it files
or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the Commission’s
rules and forms, including controls and procedures designed to ensure that such information is accumulated and communicated to the Company’s
management as appropriate to allow timely decisions regarding required disclosure. The Company and its subsidiaries have carried out evaluations
of the effectiveness of their disclosure controls and procedures as required by Rule 13a-15 of the Exchange Act.

 

(gg) Accounting Controls.
Except as disclosed in the Registration Statement and the Prospectus, the Company and its subsidiaries maintain systems of “internal
control over financial reporting” (as defined in Rule 13a-15(f) of the Exchange Act) that comply with the requirements of the Exchange
Act and have been designed by, or under the supervision of, their respective principal executive and principal financial officers, or
persons performing similar functions, to provide reasonable assurance regarding the reliability of financial reporting and the preparation
of financial statements for external purposes in accordance with GAAP. Except as disclosed in the Registration Statement and the Prospectus,
the Company and its subsidiaries maintain internal accounting controls sufficient to provide reasonable assurance that (i) transactions
are executed in accordance with management’s general or specific authorizations; (ii) transactions are recorded as necessary to
permit preparation of financial statements in conformity with GAAP and to maintain asset accountability; (iii) access to assets is permitted
only in accordance with management’s general or specific authorization; (iv) the recorded accountability for assets is compared
with the existing assets at reasonable intervals and appropriate action is taken with respect to any differences; and (v) interactive
data in eXtensible Business Reporting Language included or incorporated by reference in the Registration Statement and the Prospectus
fairly presents the information called for in all material respects and is prepared in accordance with the Commission’s rules and
guidelines applicable thereto. Based on the Company’s most recent evaluation of its internal controls over financial reporting pursuant
to Rule 13a-15(c) of the Exchange Act, except as disclosed in the Registration Statement and the Prospectus, there are no material weaknesses
in the Company’s internal controls. The Company’s auditors and the audit committee of the Board of Directors of the Company
have been advised of: (i) all significant deficiencies and material weaknesses in the design or operation of internal controls over financial
reporting which have adversely affected or are reasonably likely to adversely affect the Company’s ability to record, process, summarize
and report financial information; and (ii) any fraud, whether or not material, that involves management or other employees who have a
significant role in the Company’s internal controls over financial reporting.

 

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(hh) Insurance. Except
as otherwise described in the Registration Statement and the Prospectus, the Company and its subsidiaries have insurance covering their
respective properties, operations, personnel and businesses, including business interruption insurance, which insurance is in amounts
and insures against such losses and risks as are adequate to protect the Company and its subsidiaries and their respective businesses;
and neither the Company nor any of its subsidiaries has (i) received notice from any insurer or agent of such insurer that capital improvements
or other expenditures are required or necessary to be made in order to continue such insurance or (ii) any reason to believe that it will
not be able to renew its existing insurance coverage as and when such coverage expires or to obtain similar coverage at reasonable cost
from similar insurers as may be necessary to continue its business.

 

(ii) Privacy and Data
Protection. (i)(x) To the knowledge of Company, there has been no security breach or other compromise of any Personal Data (as defined
herein) and/or any of the Company’s information technology and computer systems, networks, hardware, software used to store and/or
process any Personal Data (collectively, “IT Systems and Data”), except as would not, individually or in the aggregate,
have a Material Adverse Effect, and (y) the Company has not been notified of, and has no knowledge of any event or condition that would
reasonably be expected to result in, any security breach or other compromise to their IT Systems and Data; (ii) the Company is presently
in compliance with all applicable laws or statutes and all applicable judgments, orders, rules and regulations of any court or arbitrator
or governmental or regulatory authority, internal policies and contractual obligations relating to the privacy and security of IT Systems
and Data and to the protection of such IT Systems and Data from unauthorized use, access, misappropriation or modification, if any, except
as would not, in the case of this clause (ii), individually or in the aggregate, have a Material Adverse Effect; and (iii) the Company
has implemented backup and disaster recovery technology consistent with industry standards and practices. “Personal Data”
means (i) a natural person’s name, street address, telephone number, email address, photograph, social security number, bank information,
or customer or account number; (ii) any information which would qualify as “personally identifying information” under the
Federal Trade Commission Act, as amended; (iii) Protected Health Information as defined by Health Insurance Portability and Accountability
Act, as amended; and (iv) any other piece of information that identifies such natural person, or his or her family, or identifies a specific
person’s health condition or sexual orientation.

 

(jj) No Unlawful Payments.
Neither the Company nor any of its subsidiaries nor any director, officer or employee of the Company or any of its subsidiaries nor any
director, officer, agent, employee, affiliate or other person associated with or acting on behalf of the Company or any of its subsidiaries
has (i) used any corporate funds for any unlawful contribution, gift, entertainment or other unlawful expense relating to political activity;
(ii) made or taken an act in furtherance of an offer, promise or authorization of any direct or indirect unlawful payment or benefit to
any foreign or domestic government official or employee, including of any government-owned or controlled entity or of a public international
organization, or any person acting in an official capacity for or on behalf of any of the foregoing, or any political party or party official
or candidate for political office; (iii) violated or is in violation of any provision of the Foreign Corrupt Practices Act of 1977, as
amended, or any applicable law or regulation implementing the OECD Convention on Combating Bribery of Foreign Public Officials in International
Business Transactions, or committed an offence under the Bribery Act 2010 of the United Kingdom or any other applicable anti-bribery or
anti-corruption law; or (iv) made, offered, agreed, requested or taken an act in furtherance of any unlawful bribe or other unlawful benefit,
including, without limitation, any rebate, payoff, influence payment, kickback or other unlawful, or improper payment or benefit. The
Company and its subsidiaries have instituted, maintain and enforce, and will continue to maintain and enforce policies and procedures
designed to promote and ensure compliance with all applicable anti-bribery and anti-corruption laws.

 

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(kk) Compliance with Anti-Money
Laundering Laws. The operations of the Company and its subsidiaries are and have been conducted at all times in compliance with applicable
financial recordkeeping and reporting requirements, including those of the Currency and Foreign Transactions Reporting Act of 1970, as
amended, the applicable money laundering statutes of all jurisdictions where the Company or any of its subsidiaries conducts business,
the rules and regulations thereunder and any related or similar rules, regulations or guidelines, issued, administered or enforced by
any governmental agency (collectively, the “Anti-Money Laundering Laws”), and no action, suit or proceeding by or before
any court or governmental agency, authority or body or any arbitrator involving the Company or any of its subsidiaries with respect to
the Anti-Money Laundering Laws is pending or, to the knowledge of the Company, threatened.

 

(ll) No Conflicts with
Sanctions Laws.

 

i. Neither the
Company, nor any of its subsidiaries, directors, officers, or employees, nor, to the knowledge of the Company, any agent or affiliate
of the Company or any of its subsidiaries, or other person associated with or acting on behalf of the Company or any of its subsidiaries
is (i) currently the subject or the target of any sanctions administered or enforced by the U.S. government (including, without limitation,
the Office of Foreign Assets Control of the U.S. Department of the Treasury (“OFAC”) or the U.S. Department of State
and including, without limitation, the designation as a “specially designated national” or “blocked person”),
the United Nations Security Council, the European Union, Her Majesty’s Treasury, or other relevant sanctions authority (collectively,
“Sanctions”), nor is (ii) located, organized or resident in a country or territory that is the subject or the target
of Sanctions, including, without limitation, Crimea, Cuba, Iran, North Korea and Syria (each, a “Sanctioned Country”).

 

ii. The Company
will not, directly or indirectly, use the proceeds of the offering of the Shares hereunder, or lend, contribute or otherwise make available
such proceeds to any subsidiary, joint venture partner or other person or entity (i) to fund or facilitate any activities or business
of or with any person that, at the time of such funding or facilitation, is the subject or the target of Sanctions, (ii) to fund or facilitate
any activities of or business in any Sanctioned Country or (iii) in any other manner that will result in a violation by any person (including
any person participating in the transaction, whether as underwriter, advisor, investor or otherwise) of Sanctions.

 

iii. For the past
five years, the Company and its subsidiaries have not engaged in and are not now engaged in, and will not engage in, any dealings or transactions
with any person that at the time of the dealing or transaction is or was the subject or the target of Sanctions or with any Sanctioned
Country.

 

iv. The Company
has implemented and maintains in effect policies and procedures designed to ensure compliance by the Company, and the Company and its
subsidiaries, and their respective directors, officers and employees, and to the knowledge of the Company, the agents of the Company and
its subsidiaries, are in compliance with all applicable Sanctions, and are not knowingly engaged in any activity that would reasonably
be expected to result in the Company being designated as the subject or target of Sanctions.

 

(mm) Lending Relationship.
The Company (i) does not have any material lending or other relationship with any banking or lending affiliate of the Sales Agent and
(ii) does not intend to use any of the proceeds from the sale of the Placement Shares to repay any outstanding debt owed to any affiliate
of the Sales Agent.

 

(nn) No Restrictions on
Subsidiaries. No subsidiary of the Company is currently prohibited, directly or indirectly, under any agreement or other instrument
to which it is a party or is subject, from paying any dividends to the Company, from making any other distribution on such subsidiary’s
capital stock or similar ownership interest, from repaying to the Company any loans or advances to such subsidiary from the Company or
from transferring any of such subsidiary’s properties or assets to the Company or any other subsidiary of the Company.

 

(oo) No Broker’s
Fees. Neither the Company nor any of its subsidiaries is a party to any contract, agreement or understanding with any person (other
than this Agreement) that would give rise to a valid claim against the Company or any of its subsidiaries or the Sales Agent for a brokerage
commission, finder’s fee or like payment in connection with the offering and sale of the Placement Shares.

 

(pp) No Registration Rights.
No person has the right to require the Company or any of its subsidiaries to register any securities for sale under the Securities Act
by reason of the filing of the Registration Statement with the Commission, the issuance and sale of the Placement Shares by the Company.

 

(qq) No Price Stabilization
or Manipulation. Neither the Company, nor any of its subsidiaries, nor any of its or their respective directors, officers or, to the
knowledge of the Company, controlling persons has taken, directly or indirectly, any action designed to or that might reasonably be expected
to cause or result in the stabilization or manipulation of the price of any security of the Company to facilitate the sale or resale of
the Common Stock.

 

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(rr) Related-Party Transactions.
There are no business relationships or related-party transactions involving the Company or any of its subsidiaries or any other person
required to be described in the Registration Statement and the Prospectus that have not been described as required.

 

(ss) No Outstanding Loans
or Other Indebtedness. There are no outstanding loans, advances (except normal advances for business expenses in the ordinary course
of business) or guarantees of indebtedness by the Company to or for the benefit of any of the officers or directors of the Company or
any of their respective family members, except as disclosed in the Prospectus. The Company has not directly or indirectly extended or
maintained credit, arranged for the extension of credit, or renewed an extension of credit, in the form of a personal loan to or for any
director or executive officer of the Company.

 

(tt) No Reliance.
The Company has not relied upon the Sales Agent or legal counsel for the Sales Agent for any legal, tax or accounting advice in connection
with the offering and sale of the Placement Shares.

 

(uu) Compliance with Laws.
The Company has not been advised, and has no reason to believe, that it and each of its subsidiaries are not conducting business in compliance
with all applicable laws, rules and regulations of the jurisdictions in which it is conducting business, except where failure to be so
in compliance would not result in a Material Adverse Effect.

 

(vv) Sarbanes-Oxley Act.
Except as disclosed in the Registration Statement and the Prospectus, there is and has been no failure on the part of the Company or to
the knowledge of the Company any of the Company’s directors or officers, in their capacities as such, to comply in all material
respects with any applicable provision of the Sarbanes-Oxley Act of 2002 and the rules and regulations promulgated in connection therewith
(the “Sarbanes- Oxley Act”), including Section 402 related to loans and Sections 302 and 906 related to certifications.

 

(ww) Exchange Listing.
The Common Stock is currently listed on the Exchange under the trading symbol “KERN”. Except as disclosed in the Registration
Statement and the Prospectus, the Company has not, in the 12 months preceding the date the first Placement Notice is given hereunder,
received notice from the Exchange to the effect that the Company is not in compliance with the listing or maintenance requirements. Except
as disclosed in the Registration Statement and the Prospectus, the Company has no reason to believe that it will not, in the foreseeable
future, continue to be in compliance with all such listing and maintenance requirements.

 

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(xx) Margin Rules.
Neither the issuance, sale and delivery of the Placement Shares nor the application of the proceeds thereof by the Company as described
in the Registration Statement and the Prospectus will violate Regulation T, U or X of the Board of Governors of the Federal Reserve System
or any other regulation of such Board of Governors.

 

(yy) Continuous Offering
Agreements. Except for this Agreement, the Company is not party to any other equity distribution or sales agency agreement or other
similar arrangement with any other agent or any other representative in respect of any “at the market offering” or other continuous
equity offering transaction.

 

(zz) Forward-Looking Statements.
No forward-looking statement (within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act) included or
incorporated by reference in any of the Registration Statement and the Prospectus has been made or reaffirmed without a reasonable basis
or has been disclosed other than in good faith.

 

(aaa) No Material Defaults.
Neither the Company nor any of its subsidiaries has defaulted on any installment on indebtedness for borrowed money or on any rental on
one or more long-term leases, which defaults, individually or in the aggregate, could reasonably be expected to result in a Material Adverse
Effect.

 

(bbb) Statistical and
Market Data. Nothing has come to the attention of the Company that has caused the Company to believe that the statistical and market-related
data included or incorporated by reference in each of the Registration Statement and the Prospectus is not based on or derived from sources
that are reliable and accurate in all material respects.

 

(ccc) Conformity of Issuer
Free Writing Prospectus. Any “issuer free writing prospectus,” as defined in Rule 433 of the Securities Act, relating
to the Placement Shares (“Issuer Free Writing Prospectus”) conforms or will conform in all material respects to the
requirements of the Securities Act on the date of first use, and the Company has complied, or will comply, with any filing requirements
applicable to such Issuer Free Writing Prospectus pursuant to the Securities Act. Each Issuer Free Writing Prospectus, as of its issue
date and at all subsequent times through the completion of the public offer and sale of the Placement Shares, does not, did not and will
not include any information that conflicts, conflicted or will conflict with the information contained in the Registration Statement or
the Prospectus, including any document incorporated by reference therein that has not been superseded or modified. The Company has not
made any offer relating to the Placement Shares that would constitute an Issuer Free Writing Prospectus without the prior written consent
of the Sales Agent. The Company has retained in accordance with the Securities Act all Issuer Free Writing Prospectuses that were not
required to be filed pursuant to the Securities Act.

 

(ddd) No Integration.
Neither the Company, nor any of its affiliates, nor any person acting on its or 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 the offer and sale of the Placement
Shares hereunder to be integrated with prior offerings by the Company for purposes of the Securities Act that would require the registration
of any such securities under the Securities Act.

 

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(eee) Broker-Dealer Status.
Neither the Company nor any of its subsidiaries (i) is required to register as a “broker” or “dealer” in accordance
with the provisions of the Exchange Act or (ii) directly or indirectly through one or more intermediaries, controls or is a “person
associated with a member” or “associated person of a member” (as defined in FINRA By-Laws, Article I) of any member
firm of FINRA. To the Company’s knowledge, there are no affiliations or associations between any member of FINRA and any of the
Company’s officers, directors or 5% or greater security holders, except as set forth in the Registration Statement.

 

Any certificate signed by
an officer of the Company and delivered to the Sales Agent or to counsel for the Sales Agent pursuant to or in connection with this Agreement
shall be deemed to be a representation and warranty by the Company to the Sales Agent as to the matters set forth therein. The Company
acknowledges that the Sales Agent and, for purposes of the opinions to be delivered pursuant to Section 7 hereof, counsel to the
Company and counsel to the Sales Agent will rely upon the accuracy and truthfulness of the foregoing representations and hereby consents
to such reliance.

 

7. Covenants of the Company.
The Company covenants and agrees with the Sales Agent that:

 

(a) Registration
Statement Amendments. After the date of this Agreement and during any period in which a Prospectus relating to any Placement
Shares is required to be delivered by the Sales Agent under the Securities Act (including in circumstances where such requirement
may be satisfied pursuant to Rule 172 under the Securities Act), (i) the Company will notify the Sales Agent promptly of the time
when any subsequent amendment to the Registration Statement, other than documents incorporated by reference, has been filed with the
Commission and/or has become effective or any subsequent supplement to the Prospectus has been filed and of any request by the
Commission for any amendment or supplement to the Registration Statement or Prospectus or for additional information, (ii) the
Company will prepare and file with the Commission, promptly upon the Sales Agent’s request, any amendments or supplements to
the Registration Statement or Prospectus that, in the Sales Agent’s reasonable opinion, may be necessary or advisable in
connection with the distribution of the Placement Shares by the Sales Agent (provided, however, that the failure of
the Sales Agent to make such request shall not relieve the Company of any obligation or liability hereunder, or affect the Sales
Agent’s right to rely on the representations and warranties made by the Company in this Agreement, and provided, further,
that the only remedy the Sales Agent shall have with respect to the failure to make such filing shall be to cease making sales under
this Agreement until such amendment or supplement is filed); (iii) the Company will not file any amendment or supplement to the
Registration Statement or Prospectus, other than documents incorporated by reference, relating to the Placement Shares or a security
convertible into the Placement Shares unless a copy thereof has been submitted to the Sales Agent within a reasonable period of time
before the filing and the Sales Agent has not reasonably objected thereto (provided, however, that the failure of the
Sales Agent to make such objection shall not relieve the Company of any obligation or liability hereunder, or affect the Sales
Agent’s right to rely on the representations and warranties made by the Company in this Agreement, and provided, further,
that the only remedy the Sales Agent shall have with respect to the failure by the Company to obtain such consent shall be to cease
making sales under this Agreement); (iv) the Company will furnish to the Sales Agent at the time of filing thereof a copy of any
document that upon filing is deemed to be incorporated by reference into the Registration Statement or Prospectus, except for those
documents available via EDGAR; (v) the Company will cause each amendment or supplement to the Prospectus, other than documents
incorporated by reference, to be filed with the Commission as required pursuant to the applicable paragraph of Rule 424(b) of the
Securities Act (without reliance on Rule 424(b)(8) of the Securities Act) or, in the case of any documents incorporated by
reference, to be filed with the Commission as required pursuant to the Exchange Act, within the time period prescribed (the
determination to file or not file any amendment or supplement with the Commission under this Section 7(a), based on the
Company’s reasonable opinion or reasonable objections, shall be made exclusively by the Company).

 

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(b) Notice of Commission
Stop Orders. The Company will advise the Sales Agent, promptly after it receives notice or obtains knowledge thereof, of the issuance
by the Commission of any stop order suspending the effectiveness of the Registration Statement or any notice objecting to, or other order
preventing or suspending the use of, the Prospectus, of the suspension of the qualification of the Placement Shares for offering or sale
in any jurisdiction, or of the initiation of any proceeding for any such purpose or any examination pursuant to Section 8(e) of the Securities
Act, or if the Company becomes the subject of a proceeding under Section 8A of the Securities Act in connection with the offering of the
Placement Shares; and the Company will promptly use its commercially reasonable efforts to prevent the issuance of any stop order or to
obtain its withdrawal if such a stop order should be issued. Until such time as any stop order is lifted, the Sales Agent shall cease
making offers and sales under this Agreement.

 

(c) Delivery of Prospectus;
Subsequent Changes. During any period in which a Prospectus relating to the Placement Shares is required to be delivered by the Sales
Agent under the Securities Act with respect to a pending sale of the Placement Shares (including in circumstances where such requirement
may be satisfied pursuant to Rule 172 under the Securities Act), the Company will comply with all requirements imposed upon it by the
Securities Act, as from time to time in force, and to file on or before their respective due dates all reports and any definitive proxy
or information statements required to be filed by the Company with the Commission pursuant to Sections 13(a), 13(c), 14, 15(d) or any
other provision of or under the Exchange Act. If during such period any event occurs as a result of which the Prospectus as then amended
or supplemented would include an untrue statement of a material fact or omit to state a material fact necessary to make the statements
therein, in the light of the circumstances then existing, not misleading, or if during such period it is necessary to amend or supplement
the Registration Statement or Prospectus to comply with the Securities Act, the Company will promptly notify the Sales Agent to suspend
the offering of Placement Shares during such period and the Company will promptly amend or supplement the Registration Statement or Prospectus
(at the expense of the Company) so as to correct such statement or omission or effect such compliance; provided, however,
that the Company may delay the filing of any amendment or supplement if, in the judgment of the Company, it is in the best interest of
the Company.

 

(d) Listing of Placement
Shares. During any period in which the Prospectus relating to the Placement Shares is required to be delivered by the Sales Agent
under the Securities Act with respect to a pending sale of the Placement Shares (including in circumstances where such requirement may
be satisfied pursuant to Rule 172 under the Securities Act), the Company will use commercially reasonable efforts to cause the Placement
Shares to be listed on the Exchange and to qualify the Placement Shares for sale under the securities laws of such jurisdictions as the
Sales Agent reasonably designates and to continue such qualifications in effect so long as required for the distribution of the Placement
Shares; provided, however, that the Company shall not be required in connection therewith to qualify as a foreign corporation
or dealer in securities or file a general consent to service of process in any jurisdiction.

 

(e) Delivery of Registration
Statement and Prospectus. The Company will furnish to the Sales Agent and its counsel (at the expense of the Company) copies of (i)
the Registration Statement and the Prospectus (including all documents incorporated by reference therein) filed with the Commission on
the date of this Agreement and (ii) all amendments and supplements to the Registration Statement or Prospectus that are filed with the
Commission during any period in which a Prospectus relating to the Placement Shares is required to be delivered by the Sales Agent under
the Securities Act (including all documents filed with the Commission during such period that are deemed to be incorporated by reference
therein), in each case as soon as reasonably practicable and in such quantities as the Sales Agent may from time to time reasonably request
and, at the Sales Agent’s request, will also furnish copies of the Prospectus to each exchange or market on which sales of the Placement
Shares may be made; provided, however, that the Company shall not be required to furnish any document (other than the Prospectus)
to the Sales Agent to the extent such document is available on EDGAR.

 

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(f) Earnings Statement.
The Company will make generally available to its security holders and the Sales Agent as soon as practicable, but in any event not later
than 15 months after the end of the Company’s current fiscal quarter, an earnings statement of the Company and its subsidiaries
(which need not be audited) covering a 12-month period that complies with Section 11(a) and Rule 158 of the Securities Act. The terms
“earnings statement” and “make generally available to its security holders” shall have the meanings set forth
in Rule 158 under the Securities Act.

 

(g) Expenses. The
Company, whether or not the transactions contemplated hereunder are consummated or this Agreement is terminated in accordance with the
provisions of Section 11 hereunder, will pay the following expenses all incident to the performance of its obligations hereunder,
including, but not limited to, expenses relating to (i) the preparation, printing and filing of the Registration Statement and each amendment
and supplement thereto, of each Prospectus and of each amendment and supplement thereto, (ii) the preparation, issuance and delivery of
the Placement Shares, including any stock or other transfer taxes and any stamp or other duties payable upon the sale, issuance or delivery
of the Placement Shares to the Sales Agent, (iii) the fees and disbursements of the counsel, accountants and other advisors to the Company
in connection with the transactions contemplated by this Agreement; (iv) the qualification of the Placement Shares under securities laws
in accordance with the provisions of Section 7(d) of this Agreement, including filing fees (provided, however, that any fees or
disbursements of counsel for the Sales Agent in connection therewith shall be paid by the Sales Agent except as set forth in (ix) below),
(v) the printing and delivery to the Sales Agent of copies of the Prospectus and any amendments or supplements thereto, and of this Agreement,
(vi) the fees and expenses incurred in connection with the listing or qualification of the Placement Shares for trading on the Exchange,
(vii) the fees and expenses of the transfer agent or registrar for the Common Stock; (viii) filing fees and expenses, if any, of the Commission
and the FINRA Corporate Financing Department (including, with respect to any required review by FINRA, the fees and expenses of the Sales
Agent’s counsel); and (ix) the Company shall reimburse the Sales Agent for the fees and disbursements of the Sales Agent’s
counsel in an amount not to exceed (a) $50,000 in connection with the establishment of this at-the-market offering, and (b) thereafter,
$3,000 on a quarterly basis (such approval not to be unreasonably withheld, conditioned or delayed).

 

(h) Use of Proceeds.
The Company will use the Net Proceeds as described in the Prospectus in the section entitled “Use of Proceeds.”

 

(i) Notice of Other Sales.
During the pendency of any Placement Notice given hereunder, the Company shall provide the Sales Agent notice as promptly as reasonably
possible before it offers to sell, contracts to sell, sells, grants any option to sell or otherwise disposes of any shares of Common Stock
(other than Placement Shares offered pursuant to the provisions of this Agreement) or securities convertible into or exchangeable for
Common Stock, warrants or any rights to purchase or acquire Common Stock; provided, that such notice shall not be required in connection
with the (i) issuance, grant or sale of Common Stock, options or other rights to purchase or otherwise acquire Common Stock, or Common
Stock issuable upon the exercise of options or other equity awards, in each case granted pursuant to any stock option, stock bonus or
other stock or compensatory plan or arrangement, whether now in effect or hereafter implemented, (ii) issuance of securities in connection
with an acquisition, merger, or sale or purchase of assets, (iii) issuance or sale of Common Stock upon conversion of securities or the
exercise of warrants, options or other rights then in effect or outstanding, and disclosed in filings by the Company available on EDGAR
or otherwise in writing to the Sales Agent, and (iv) issuance or sale of Common Stock pursuant to any dividend reinvestment and stock
purchase plan that the Company has in effect or may adopt from time to time, provided that the implementation of such new plan is disclosed
to the Sales Agent in advance. If the Company notifies the Sales Agent under this Section 7(i) of a proposed sale of shares of
Common Stock or Common Stock equivalents, the Sales Agent may suspend any offers and sales of securities under this Agreement for a period
of time deemed appropriate by the Sales Agent.

 

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(j) Change of Circumstances.
The Company will, at any time during a fiscal quarter in which the Company intends to tender a Placement Notice or sell Placement Shares,
advise the Sales Agent promptly after it shall have received notice or obtained knowledge thereof, of any information or fact that would
alter or affect in any material respect any opinion, certificate, letter or other document provided to the Sales Agent pursuant to this
Agreement.

 

(k) Due Diligence Cooperation.
The Company will cooperate with any reasonable due diligence review conducted by the Sales Agent or its agents in connection with the
transactions contemplated hereby, including, without limitation, providing information and making available documents and senior corporate
officers, during regular business hours and at the Company’s principal offices, as the Sales Agent may reasonably request.

 

(l) Required Filings Relating
to Placement of Placement Shares. The Company shall set forth in each Annual Report on Form 10-K and Quarterly Report on Form 10-Q
filed by the Company with the Commission in respect of any quarter in which sales of Placement Shares were made by or through the Sales
Agent under this Agreement, with regard to the relevant period, the amount of Placement Shares sold to or through the Sales Agent, the
Net Proceeds to the Company and the compensation payable by the Company to the Sales Agent with respect to such sales of Placement Shares.
To the extent that the filing of a prospectus supplement to the Prospectus with the Commission with respect to any sales of Placement
Shares becomes required under Rule 424(b) under the Securities Act, the Company agrees that, on or before such dates as the Securities
Act shall require, the Company will (i) file a prospectus supplement to the Prospectus with the Commission under the applicable paragraph
of Rule 424(b) under the Securities Act, which prospectus supplement will set forth, with regard to the relevant period, the amount of
Placement Shares sold to or through the Sales Agent, the Net Proceeds to the Company and the compensation payable by the Company to the
Sales Agent with respect to such Placement Shares, and (ii) deliver such number of copies of each such prospectus supplement to each exchange
or market on which such sales were effected as may be required by the rules or regulations of such exchange or market. The Company shall
afford the Sales Agent and its counsel with a reasonable opportunity to review and comment upon, shall consult with the Sales Agent and
its counsel on the form and substance of, and shall give due consideration to all such comments from the Sales Agent or its counsel on,
any such filing prior to the issuance, filing or public disclosure thereof; provided, however, that the Company shall not be required
to submit for review (A) any portion of any periodic reports filed with the Commission under the Exchange Act other than the specific
disclosure relating to any sales of Placement Shares and (B) any disclosure contained in periodic reports filed with the Commission under
the Exchange Act if it shall have previously provided the same disclosure for review in connection with a previous filing.

 

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(m) Representation Dates;
Certificate. On or prior to the date the first Placement Notice is given hereunder and each time the Company subsequently thereafter
(i) amends or supplements the Registration Statement or the Prospectus relating to the Placement Shares (other than (A) a prospectus supplement
filed in accordance with Section 7(l) of this Agreement or (B) a supplement or amendment that relates to an offering of securities
other than the Placement Shares) by means of a post-effective amendment, sticker, or supplement but not by means of incorporation of document(s)
by reference to the Registration Statement or the Prospectus relating to the Placement Shares; (ii) files an annual report on Form 10-K
under the Exchange Act (including any Form 10-K/A containing amended financial information or a material amendment to the previously filed
Form 10-K); (iii) files a quarterly report on Form 10-Q under the Exchange Act; (iv) files a report on Form 8-K containing amended financial
information (other than an earnings release, to “furnish” information pursuant to Items 2.02 or 7.01 of Form 8-K or to provide
disclosure pursuant to Item 8.01 of Form 8-K relating to the reclassification of certain properties as discontinued operations in accordance
with Statement of Financial Accounting Standards No. 144) under the Exchange Act (unless the Sales Agent determine that the information
contained in such Form 8-K is not material); or (v) sells Placement Shares to the Sales Agent as principal at the Point of Sale pursuant
to the applicable Placement Notice (each date of filing of one or more of the documents and each other date referred to in clauses (i)
through (v) shall be a “Representation Date”), the Company shall furnish the Sales Agent within three (3) Trading Days
after each Representation Date with a certificate, in the form attached hereto as Exhibit 7(m). The requirement to provide
a certificate under this Section 7(m) shall be waived for any Representation Date occurring at a time at which no Placement Notice
is pending or during any Suspension Period, which waiver shall continue until the earlier to occur of the date the Company delivers a
Placement Notice hereunder (which for such calendar quarter shall be considered a Representation Date) and the next occurring Representation
Date or the termination of any Suspension Period; provided, however, that such waiver shall not apply for any Representation
Date on which the Company files its annual report on Form 10-K. Notwithstanding the foregoing, if the Company subsequently decides to
sell Placement Shares following a Representation Date when the Company relied on such waiver or following the termination of a Suspension
Period and did not provide the Sales Agent with a certificate under this Section 7(m), then, before the Company delivers the Placement
Notice or the Sales Agent sells any Placement Shares, the Company shall provide such Sales Agent with a certificate, in the form attached
hereto as Exhibit 7(m), dated the date of the Placement Notice.

 

(n) Legal Opinion.
On or prior to the date the first Placement Notice is given hereunder, the Company shall cause to be furnished to the Sales Agent the
written opinion and negative assurance of Dorsey & Whitney LLP, counsel to the Company (“Company Counsel”), in
form and substance reasonably satisfactory to the Sales Agent. Thereafter, within three (3) Trading Days after each Representation Date
with respect to which the Company is obligated to deliver a certificate pursuant to Section 7(m) for which no waiver or Suspension
Period is applicable pursuant to Section 7(m), and not more than once per calendar quarter, the Company shall cause to be furnished
to the Sales Agent the written opinions and negative assurance of Company Counsel substantially in the form previously agreed between
the Company and the Sales Agent, modified, as necessary, to relate to the Registration Statement and the Prospectus as then amended or
supplemented.

 

(o) Comfort Letter.
On or prior to the date the first Placement Notice is given hereunder and within three (3) Trading Days after each subsequent Representation
Date with respect to which the Company is obligated to deliver a certificate pursuant to Section 7(m) for which no waiver or Suspension
Period is applicable pursuant to Section 7(m), the Company shall cause its independent accountants to furnish the Sales Agent letters
(the “Comfort Letters”), dated the date that the Comfort Letter is delivered, in form and substance satisfactory to
the Sales Agent, (i) confirming that they are an independent registered public accounting firm within the meaning of the Securities Act,
the Exchange Act and the rules and regulations of PCAOB and are in compliance with the applicable requirements relating to the qualification
of accountants under Rule 2-01 of Regulation S-X of the Commission, (ii) stating, as of such date, the conclusions and findings of such
firm with respect to the financial information and other matters ordinarily covered by accountants’ “comfort letters”
to the Sales Agent in connection with registered public offerings (the first such letter, the “Initial Comfort Letter”)
and (iii) updating the Initial Comfort Letter with any information that would have been included in the Initial Comfort Letter had it
been given on such date and modified as necessary to relate to the Registration Statement and the Prospectus, as amended and supplemented
to the date of such letter.

 

(p) Market Activities.
The Company will not, directly or indirectly, (i) take any action designed to cause or result in, or that constitutes or might reasonably
be expected to constitute, the stabilization or manipulation of the price of any security of the Company to facilitate the sale or resale
of the Common Stock or (ii) sell, bid for, or purchase the Placement Shares to be issued and sold pursuant to this Agreement, or pay anyone
any compensation for soliciting purchases of the Placement Shares other than the Sales Agent.

 

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(q) Insurance. The
Company and its subsidiaries shall maintain, or caused to be maintained, insurance in such amounts and covering such risks as is reasonable
and customary for the business in which it is engaged.

 

(r) Compliance with Laws.
The Company and each of its subsidiaries shall maintain, or cause to be maintained, all material permits, licenses and other authorizations
required by federal, state and local law and regulations in order to conduct their businesses as described in the Registration Statement
and the Prospectus, and the Company and each of its subsidiaries shall conduct their businesses, or cause their businesses to be conducted,
in substantial compliance with such permits, licenses and authorizations and with applicable laws and regulations, except where the failure
to maintain or be in compliance with such permits, licenses and authorizations could not reasonably be expected to result in a Material
Adverse Effect.

 

(s) Investment Company
Act. The Company will conduct its affairs in such a manner so as to reasonably ensure that neither it nor its subsidiaries is or,
after giving effect to the offering and sale of the Placement Shares and the application of proceeds therefrom as described in the Prospectus,
will be, an “investment company” within the meaning of such term under the Investment Company Act.

 

(t) Securities Act and
Exchange Act. The Company will use its best efforts to comply with all requirements imposed upon it by the Securities Act and the
Exchange Act as from time to time in force, so far as necessary to permit the continuance of sales of, or dealings in, the Placement Shares
as contemplated by the provisions hereof and the Prospectus.

 

(u) No Offer to Sell.
Other than the Prospectus, neither the Sales Agent nor the Company (including its agents and representatives, other than the Sales Agent
in its capacity as such) will make, use, prepare, authorize, approve or refer to any written communication (as defined in Rule 405 under
the Securities Act), required to be filed with the Commission, that constitutes an offer to sell or solicitation of an offer to buy Placement
Shares hereunder.

 

(v) Sarbanes-Oxley Act.
The Company and its subsidiaries will use their best efforts to comply with all effective applicable provisions of the Sarbanes-Oxley
Act.

 

(w) New Registration Statement.
If immediately prior to the third anniversary of the initial effective date of the Registration Statement, any of the Placement Shares
remain unsold, the sale of the Placement Shares under this Agreement shall automatically be suspended unless and until the Company files
a new shelf registration statement relating to the Placement Shares and such new registration statement is declared effective by the Commission.
References herein to the Registration Statement shall include such new shelf registration statement. If any such new shelf registration
statement becomes effective prior to the termination date of this Agreement, the Company agrees to notify the Sales Agent of such effective
date.

 

(x) Emerging Growth Company.
The Company will promptly notify the Sales Agent if the Company ceases to be an Emerging Growth Company at any time prior to the expiration
or termination of this Agreement.

 

8. Conditions to the Sales
Agent’s Obligations. The obligations of the Sales Agent hereunder with respect to any Placement will be subject to the continuing
accuracy and completeness of the representations and warranties made by the Company herein, to the due performance by the Company of its
obligations hereunder, to the completion by the Sales Agent of a due diligence review satisfactory to the Sales Agent in its reasonable
judgment, and to the continuing satisfaction (or waiver by the Sales Agent in its sole discretion) of the following additional conditions.

 

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(a) Registration Statement
Effective. The Registration Statement shall be effective and shall be available for the sale of all Placement Shares contemplated
to be issued by any Placement Notice.

 

(b) Securities Act Filings
Made. The Company shall have filed with the Commission the ATM Prospectus pursuant to Rule 424(b) under the Securities Act within
the applicable time period prescribed for such filing by Rule 424(b) (without reliance on Rule 424(b)(8) of the Securities Act). All other
filings with the Commission required by Rule 424 under the Securities Act to have been filed prior to the issuance of any Placement Notice
hereunder shall have been made within the applicable time period prescribed for such filing by Rule 424.

 

(c) No Material Notices.
None of the following events shall have occurred and be continuing: (i) receipt by the Company or any of its subsidiaries of any request
for additional information from the Commission or any other federal or state governmental authority during the period of effectiveness
of the Registration Statement, the response to which would require any post-effective amendments or supplements to the Registration Statement
or the Prospectus; (ii) the issuance by the Commission or any other federal or state governmental authority of any stop order suspending
the effectiveness of the Registration Statement or the initiation of any proceedings for that purpose; (iii) receipt by the Company of
any notification with respect to the suspension of the qualification or exemption from qualification of any of the Placement Shares for
sale in any jurisdiction or the initiation or threatening of any proceeding for such purpose; (iv) the occurrence of any event that makes
any material statement made in the Registration Statement or the Prospectus or any material document incorporated or deemed to be incorporated
therein by reference untrue in any material respect or that requires the making of any changes in the Registration Statement, related
Prospectus or such documents so that, in the case of the Registration Statement, it will not contain any materially untrue statement of
a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein not misleading
and, that in the case of the Prospectus, it will not contain any materially untrue statement of a material fact or omit to state any material
fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were
made, not misleading.

 

(d) No Misstatement or
Material Omission. The Sales Agent shall not have advised the Company that the Registration Statement or Prospectus, or any amendment
or supplement thereto, contains an untrue statement of fact that in the Sales Agent’s reasonable opinion is material, or omits to
state a fact that in the Sales Agent’s reasonable opinion is material and is required to be stated therein or is necessary to make
the statements therein not misleading.

 

(e) Material Changes.
Except as contemplated in the Prospectus, or disclosed in the Company’s reports filed with the Commission, there shall not have
been any material adverse change in the authorized capital stock of the Company or any Material Adverse Effect or any development that
could reasonably be expected to result in a Material Adverse Effect, or any downgrading in or withdrawal of the rating assigned to any
of the Company’s securities (other than asset backed securities) by any rating organization or a public announcement by any rating
organization that it has under surveillance or review its rating of any of the Company’s securities (other than asset backed securities),
the effect of which, in the case of any such action by a rating organization described above, in the reasonable judgment of the Sales
Agent (without relieving the Company of any obligation or liability it may otherwise have), is so material as to make it impracticable
or inadvisable to proceed with the offering of the Placement Shares on the terms and in the manner contemplated by this Agreement and
the Prospectus.

 

(f) Company Counsel Legal
Opinion. The Sales Agent shall have received the opinions and negative assurances of Company Counsel required to be delivered pursuant
Section 7(n) on or before the date on which such delivery of such opinions and negative assurances is required pursuant to Section
7(n).

 

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(g) Sales Agent’s
Counsel Legal Opinion. The Sales Agent shall have received from Thompson Hine LLP, counsel to the Sales Agent, on or before the date
on which the delivery of the Company Counsel legal opinion is required pursuant to Section 7(n), such negative assurances with
respect to such matters as the Sales Agent may reasonably require, and the Company shall have furnished to such counsel such documents
as they request for enabling them to pass upon such matters.

 

(h) Comfort Letter.
The Sales Agent shall have received the Comfort Letter required to be delivered pursuant Section 7(o) on or before the date on
which such delivery of such Comfort Letter is required pursuant to Section 7(o).

 

(i) Representation Certificate.
The Sales Agent shall have received the certificate required to be delivered pursuant to Section 7(m) on or before the date on
which delivery of such certificate is required pursuant to Section 7(m).

 

(j) Secretary’s
Certificate. The Sales Agent shall have received a certificate, signed on behalf of the Company by its corporate Secretary, certifying
as to (i) the Certificate of Incorporation of the Company, (ii) the By-laws of the Company, (iii) the resolutions of the Board of Directors
of the Company (or a committee thereof) authorizing the execution, delivery and performance of this Agreement and the issuance of the
Placement Shares and (iv) the incumbency of the officers duly authorized to execute this Agreement and the other documents contemplated
by this Agreement.

 

(k) No Suspension.
Trading in the Common Stock shall not have been suspended on the Exchange, and the Common Stock shall not have been delisted from the
Exchange.

 

(l) Other Materials.
On each date on which the Company is required to deliver a certificate pursuant to Section 7(m), the Company shall have furnished
to the Sales Agent such appropriate further opinions, certificates, letters and documents as the Sales Agent may have reasonably requested.
All such opinions, certificates, letters and other documents shall have been in compliance with the provisions hereof. The Company will
furnish the Sales Agent with such conformed copies of such opinions, certificates, letters and other documents as the Sales Agent shall
have reasonably requested.

 

(m) Approval for Listing.
The Placement Shares shall have been approved for listing on the Exchange, subject only to notice of issuance.

 

(n) No Termination Event.
There shall not have occurred any event that would permit the Sales Agent to terminate this Agreement pursuant to Section 11(a).

 

(o) FINRA. The Sales
Agent shall have received a letter from the Corporate Financing Department of FINRA confirming that such department has determined to
raise no objection with respect to the fairness or reasonableness of the terms and arrangements related to the sale of the Placement Shares
pursuant to this Agreement.

 

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9. Indemnification and
Contribution.

 

(a) Company Indemnification.
The Company agrees to indemnify and hold harmless the Sales Agent, the directors, officers, members, partners, employees and agents of
the Sales Agent, each broker dealer affiliate of the Sales Agent, and each Sales Agent Affiliate, if any, from and against any and all
losses, claims, liabilities, expenses and damages (including, but not limited to, any and all reasonable investigative, legal and other
expenses incurred in connection with, and any and all amounts paid in settlement (in accordance with Section 9(c)) of, any action,
suit or proceeding between any of the indemnified parties and any indemnifying parties or between any indemnified party and any third
party, or otherwise, or any claim asserted), as and when incurred, to which the Sales Agent, or any such person, may become subject under
the Securities Act, the Exchange Act or other federal or state statutory law or regulation, at common law or otherwise, insofar as such
losses, claims, liabilities, expenses or damages arise out of or are based, directly or indirectly, on (x) any untrue statement or alleged
untrue statement of a material fact contained in the Registration Statement or the Prospectus or any amendment or supplement thereto or
in any free writing prospectus or in any application or other document executed by or on behalf of the Company or based on written information
furnished by or on behalf of the Company filed in any jurisdiction in order to qualify the Common Stock under the securities laws thereof
or filed with the Commission, (y) the omission or alleged omission to state in any such document a material fact required to be stated
in it or necessary to make the statements in it not misleading or (z) any breach by any of the indemnifying parties of any of their respective
representations, warranties and agreements contained in this Agreement; provided, however, that this indemnity agreement
shall not apply to the extent that such loss, claim, liability, expense or damage arises from the sale of the Placement Shares pursuant
to this Agreement and is caused directly by an untrue statement or omission made in reliance upon and in strict conformity with written
information relating to the Sales Agent and furnished to the Company by the Sales Agent expressly for inclusion in any document as described
in clause (x) of this Section 9(a). This indemnity agreement will be in addition to any liability that the Company might otherwise
have.

 

(b) The Sales Agent Indemnification.
The Sales Agent agrees to indemnify and hold harmless the Company and its directors and each officer of the Company that signed the Registration
Statement, and each person, if any, who (i) controls the Company within the meaning of Section 15 of the Securities Act or Section 20
of the Exchange Act or (ii) is controlled by or is under common control with the Company (each, a “Company Affiliate”)
from and against any and all losses, claims, liabilities, expenses and damages (including, but not limited to, any and all reasonable
investigative, legal and other expenses incurred in connection with, and any and all amounts paid in settlement (in accordance with Section
9(c)) of, any action, suit or proceeding between any of the indemnified parties and any indemnifying parties or between any indemnified
party and any third party, or otherwise, or any claim asserted), as and when incurred, to which any such Company Affiliate, may become
subject under the Securities Act, the Exchange Act or other federal or state statutory law or regulation, at common law or otherwise,
insofar as such losses, claims, liabilities, expenses or damages arise out of or are based, directly or indirectly, on (x) any untrue
statement or alleged untrue statement of a material fact contained in the Registration Statement or the Prospectus or any amendment or
supplement thereto, or (y) the omission or alleged omission to state in any such document a material fact required to be stated in it
or necessary to make the statements in it not misleading; provided, however, that this indemnity agreement shall apply only
to the extent that such loss, claim, liability, expense or damage is caused directly by an untrue statement or omission made in reliance
upon and in strict conformity with written information relating to the Sales Agent and furnished to the Company by the Sales Agent expressly
for inclusion in any document as described in clause (x) of this Section 9(b), which the Company acknowledges consists solely of
the material referred to in Schedule 5 hereto, as updated from time to time.

 

    26

     

    

 

(c) Procedure. Any
party that proposes to assert the right to be indemnified under this Section 9 will, promptly after receipt of notice of commencement
of any action against such party in respect of which a claim is to be made against an indemnifying party or parties under this Section
9, notify each such indemnifying party of the commencement of such action, enclosing a copy of all papers served, but the omission
so to notify such indemnifying party will not relieve the indemnifying party from (i) any liability that it might have to any indemnified
party otherwise than under this Section 9 and (ii) any liability that it may have to any indemnified party under the foregoing
provision of this Section 9 unless, and only to the extent that, such omission results in the forfeiture of substantive rights
or defenses by the indemnifying party. If any such action is brought against any indemnified party and it notifies the indemnifying party
of its commencement, the indemnifying party will be entitled to participate in and, to the extent that it elects by delivering written
notice to the indemnified party promptly after receiving notice of the commencement of the action from the indemnified party, jointly
with any other indemnifying party similarly notified, to assume the defense of the action, with counsel reasonably satisfactory to the
indemnified party, and after notice from the indemnifying party to the indemnified party of its election to assume the defense, the indemnifying
party will not be liable to the indemnified party for any legal or other expenses except as provided below and except for the reasonable
costs of investigation subsequently incurred by the indemnified party in connection with the defense. The indemnified party will have
the right to employ its own counsel in any such action, but the fees, expenses and other charges of such counsel will be at the expense
of such indemnified party unless (1) the employment of counsel by the indemnified party has been authorized in writing by the indemnifying
party, (2) the indemnified party has reasonably concluded (based on advice of counsel) that there may be legal defenses available to it
or other indemnified parties that are different from or in addition to those available to the indemnifying party, (3) a conflict or potential
conflict exists (based on advice of counsel to the indemnified party) between the indemnified party and the indemnifying party (in which
case the indemnifying party will not have the right to direct the defense of such action on behalf of the indemnified party) or (4) the
indemnifying party has not in fact employed counsel to assume the defense of such action within a reasonable time after receiving notice
of the commencement of the action, in each of which cases the reasonable fees, disbursements and other charges of counsel will be at the
expense of the indemnifying party or parties. It is understood that the indemnifying party or parties shall not, in connection with any
proceeding or related proceedings in the same jurisdiction, be liable for the reasonable fees, disbursements and other charges of more
than one separate firm admitted to practice in such jurisdiction at any one time for all such indemnified party or parties. All such fees,
disbursements and other charges will be reimbursed by the indemnifying party promptly after the indemnifying party received a written
invoice relating to the fees, disbursements and other charges in reasonable detail. An indemnifying party will not, in any event, be liable
for any settlement of any action or claim effected without its written consent. No indemnifying party shall, without the prior written
consent of each indemnified party, settle or compromise or consent to the entry of any judgment in any pending or threatened claim, action
or proceeding relating to the matters contemplated by this Section 9 (whether or not any indemnified party is a party thereto),
unless such settlement, compromise or consent includes an unconditional release of each indemnified party from all liability arising or
that may arise out of such claim, action or proceeding.

 

    27

     

    

 

(d) Contribution.
In order to provide for just and equitable contribution in circumstances in which the indemnification provided for in the foregoing paragraphs
of this Section 9 is applicable in accordance with its terms but for any reason is held to be unavailable from the Company or the
Sales Agent, the Company and the Sales Agent will contribute to the total losses, claims, liabilities, expenses and damages (including
any investigative, legal and other expenses reasonably incurred in connection with, and any amount paid in settlement of, any action,
suit or proceeding or any claim asserted, but after deducting any contribution received by the Company from persons other than the Sales
Agent, such as persons who control the Company within the meaning of the Securities Act, officers of the Company who signed the Registration
Statement and directors of the Company, who also may be liable for contribution) to which the Company and the Sales Agent may be subject
in such proportion as shall be appropriate to reflect the relative benefits received by the Company on the one hand and the Sales Agent
on the other. The relative benefits received by the Company on the one hand and the Sales Agent on the other hand shall be deemed to be
in the same proportion as the total Net Proceeds from the sale of the Placement Shares (before deducting expenses) received by the Company
bear to the total compensation received by the Sales Agent from the sale of Placement Shares on behalf of the Company. If the allocation
provided by the foregoing sentence is not permitted by applicable law, the allocation of contribution shall be made in such proportion
as is appropriate to reflect not only the relative benefits referred to in the foregoing sentence but also the relative fault of the Company,
on the one hand, and the Sales Agent, on the other, with respect to the statements or omission that resulted in such loss, claim, liability,
expense or damage, or action in respect thereof, as well as any other relevant equitable considerations with respect to such offering.
Such relative fault shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material
fact or omission or alleged omission to state a material fact relates to information supplied by the Company or the Sales Agent, the intent
of the parties and their relative knowledge, access to information and opportunity to correct or prevent such statement or omission. The
Company and the Sales Agent agree that it would not be just and equitable if contributions pursuant to this Section 9(d) were to
be determined by pro rata allocation or by any other method of allocation that does not take into account the equitable considerations
referred to herein. The amount paid or payable by an indemnified party as a result of the loss, claim, liability, expense, or damage,
or action in respect thereof, referred to above in this Section 9(d) shall be deemed to include, for the purpose of this Section
9(d), any legal or other expenses reasonably incurred by such indemnified party in connection with investigating or defending any
such action or claim to the extent consistent with Section 9(c) hereof. Notwithstanding the foregoing provisions of this Section
9(d), the Sales Agent shall not be required to contribute any amount in excess of the commissions received by it under this Agreement
and no person found guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) will be entitled
to contribution from any person who was not guilty of such fraudulent misrepresentation. For purposes of this Section 9(d), any
person who controls a party to this Agreement within the meaning of the Securities Act will have the same rights to contribution as that
party (and any officers, directors, members, partners, employees or agents of the Sales Agent and each broker dealer affiliate of the
Sales Agent will have the same rights to contribution as the Sales Agent), and each officer of the Company who signed the Registration
Statement and each director of the Company will have the same rights to contribution as the Company, subject in each case to the provisions
hereof. Any party entitled to contribution, promptly after receipt of notice of commencement of any action against such party in respect
of which a claim for contribution may be made under this Section 9(d), will notify any such party or parties from whom contribution
may be sought, but the omission to so notify will not relieve that party or parties from whom contribution may be sought from any other
obligation it or they may have under this Section 9(d) except to the extent that the failure to so notify such other party materially
prejudiced the substantive rights or defenses of the party from whom contribution is sought. Except for a settlement entered into pursuant
to the last sentence of Section 9(c) hereof, no party will be liable for contribution with respect to any action or claim settled
without its written consent if such consent is required pursuant to Section 9(c) hereof.

 

    28

     

    

 

10. Representations and
Agreements to Survive Delivery. The indemnity and contribution agreements contained in Section 9 of this Agreement and all
representations and warranties of the Company herein or in certificates delivered pursuant hereto shall survive, as of their respective
dates, regardless of (i) any investigation made by or on behalf of the Sales Agent, any controlling person of the Sales Agent, or the
Company (or any of their respective officers, directors, members or controlling persons), (ii) delivery and acceptance of the Placement
Shares and payment therefor or (iii) any termination of this Agreement.

 

11. Termination.

 

(a) The Sales Agent shall
have the right by giving notice as hereinafter specified at any time to terminate this Agreement if (i) any Material Adverse Effect, or
any development that could reasonably be expected to result in a Material Adverse Effect has occurred that, in the reasonable judgment
of the Sales Agent, may materially impair the ability of the Sales Agent to sell the Placement Shares hereunder, (ii) the Company shall
have failed, refused or been unable to perform any agreement on its part to be performed hereunder; provided, however, in
the case of any failure of the Company to deliver (or cause another person to deliver) any certification, opinion, or letter required
under Sections 7(m), 7(n), or 7(o), the Sales Agent’s right to terminate shall not arise unless such failure
to deliver (or cause to be delivered) continues for more than thirty (30) days from the date such delivery was required, (iii) any other
condition of the Sales Agent’s obligations hereunder is not fulfilled, or (iv) any suspension or limitation of trading in the Placement
Shares or in securities generally on the Exchange shall have occurred (including automatic halt in trading pursuant to market-decline
triggers, other than those in which solely program trading is temporarily halted), or a major disruption of securities settlements or
clearing services in the United States shall have occurred, or minimum prices for trading have been fixed on the Exchange. Any such termination
shall be without liability of any party to any other party except that the provisions of Section 7(g) (Expenses), Section 9
(Indemnification and Contribution), Section 10 (Representations and Agreements to Survive Delivery), Section 11(f), Section
16 (Applicable Law; Consent to Jurisdiction) and Section 17 (Waiver of Jury Trial) hereof shall remain in full force and effect
notwithstanding such termination. If the Sales Agent elects to terminate this Agreement as provided in this Section 11(a), the
Sales Agent shall provide the required notice as specified in Section 12 (Notices).

 

(b) The Company shall have
the right, by giving ten (10) days’ notice as hereinafter specified in Section 12, to terminate this Agreement in its sole
discretion at any time after the date of this Agreement. Any such termination shall be without liability of any party to any other party
except that the provisions of Section 7(g), Section 9, Section 10, Section 11(f), Section 16 and Section
17 hereof shall remain in full force and effect notwithstanding such termination.

 

(c) The Sales Agent shall
have the right, by giving ten (10) days’ notice as hereinafter specified in Section 12, to terminate this Agreement in its
sole discretion at any time after the date of this Agreement. Any such termination shall be without liability of any party to any other
party except that the provisions of Section 7(g), Section 9, Section 10, Section 11(f), Section 16
and Section 17 hereof shall remain in full force and effect notwithstanding such termination.

 

(d) Unless earlier terminated
pursuant to this Section 11, this Agreement shall automatically terminate upon the issuance and sale of all of the Placement Shares
to or through the Sales Agent on the terms and subject to the conditions set forth herein; provided that the provisions of Section
7(g), Section 9, Section 10, Section 11(f), Section 16 and Section 17 hereof shall remain in full
force and effect notwithstanding such termination.

 

(e) This Agreement shall
remain in full force and effect unless terminated pursuant to Sections 11(a), (b), (c) or (d) above or otherwise
by mutual agreement of the parties; provided, however, that any such termination by mutual agreement shall in all cases
be deemed to provide that Section 7(g), Section 9, Section 10, Section 11(f), Section 16 and Section
17 shall remain in full force and effect.

 

(f) Any termination of this
Agreement shall be effective on the date specified in such notice of termination; provided, however, that such termination
shall not be effective until the close of business on the date of receipt of such notice by the Sales Agent or the Company, as the case
may be. If such termination shall occur prior to the Settlement Date for any sale of Placement Shares, such termination shall not become
effective until the close of business on such Settlement Date and such Placement Shares shall settle in accordance with the provisions
of this Agreement.

 

    29

     

    

 

12. Notices. All notices
or other communications required or permitted to be given by any party to any other party pursuant to the terms of this Agreement shall
be in writing, unless otherwise specified, and if sent to the Sales Agent, shall be delivered to:

 

A.G.P./Alliance Global
Partners

590 Madison Avenue,
28th Floor

New York, NY 10022

Attention:
Tom Higgins

Email: atm@allianceg.com

 

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

 

Thompson Hine LLP

335 Madison Avenue

New York, NY 10017

Attention:
Faith L. Charles

Email: Faith.Charles@ThompsonHine.com

 

and if to the Company, shall
be delivered to:

 

Akerna Corp.

1550 Larimer Street,
#246

Denver, CO 80202

Attention:
Jessica Billingsley

Email: jlb@akerna.com

 

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

 

Dorsey & Whitney
LLP

1400 Wewatta Street,
Suite 400

Denver, CO 80202

Attention:
Jason K. Brenkert

Email: brenkert.jason@dorsey.com

 

Each party may change such
address for notices by sending to the other party to this Agreement written notice of a new address for such purpose. Each such notice
or other communication shall be deemed given (i) when delivered personally or by verifiable facsimile transmission on or before 4:30 p.m.,
New York City time, on a Business Day or, if such day is not a Business Day, on the next succeeding Business Day, (ii) on the next Business
Day after timely delivery to a nationally-recognized overnight courier and (iii) on the Business Day actually received if deposited in
the U.S. mail (certified or registered mail, return receipt requested, postage prepaid). For purposes of this Agreement, “Business
Day” shall mean any day on which the Exchange and commercial banks in the City of New York are open for business.

 

An electronic communication
(“Electronic Notice”) shall be deemed written notice for purposes of this Section 12 if sent to the electronic
mail address specified by the receiving party under separate cover. Electronic Notice shall be deemed received at the time the party sending
Electronic Notice receives confirmation of receipt by the receiving party (other than pursuant to auto-reply). Any party receiving Electronic
Notice may request and shall be entitled to receive the notice on paper, in a nonelectronic form (“Nonelectronic Notice”)
which shall be sent to the requesting party within ten (10) days of receipt of the written request for Nonelectronic Notice.

 

13. Successors and Assigns.
This Agreement shall inure to the benefit of and be binding upon the Company and the Sales Agent and their respective successors and permitted
assigns and, as to Sections 5(b) and 9, the other indemnified parties specified therein. References to any of the parties
contained in this Agreement shall be deemed to include the successors and permitted assigns of such party. Nothing in this Agreement,
express or implied, is intended to confer upon any other person any rights, remedies, obligations or liabilities under or by reason of
this Agreement, except as expressly provided in this Agreement. Neither party may assign its rights or obligations under this Agreement
without the prior written consent of the other party; provided, however, that the Sales Agent may assign its rights and
obligations hereunder to an affiliate of the Sales Agent without obtaining the Company’s consent.

 

    30

     

    

 

14. Adjustments for Share
Splits. The parties acknowledge and agree that all share-related numbers contained in this Agreement shall be adjusted to take into
account any share split, share dividend or similar event effected with respect to the Common Stock.

 

15. Entire Agreement; Amendment;
Severability. This Agreement (including all schedules and exhibits attached hereto and Placement Notices issued pursuant hereto) and
any other writing entered into by the parties relating to this Agreement constitutes the entire agreement and supersedes all other prior
and contemporaneous agreements and undertakings, both written and oral, among the parties hereto with regard to the subject matter hereof.
Neither this Agreement nor any term hereof may be amended except pursuant to a written instrument executed by the Company and the Sales
Agent. In the event that any one or more of the provisions contained herein, or the application thereof in any circumstance, is held invalid,
illegal or unenforceable as written by a court of competent jurisdiction, then such provision shall be given full force and effect to
the fullest possible extent that it is valid, legal and enforceable, and the remainder of the terms and provisions herein shall be construed
as if such invalid, illegal or unenforceable term or provision was not contained herein, but only to the extent that giving effect to
such provision and the remainder of the terms and provisions hereof shall be in accordance with the intent of the parties as reflected
in this Agreement.

 

16. Applicable Law; Consent
to Jurisdiction. This Agreement and all matters arising under or related to this Agreement shall be governed by, and construed in
accordance with, the internal laws of the State of New York, without regard to the principles of conflicts of laws. Each party hereby
irrevocably submits to the non-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 with any transaction contemplated hereby, 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 (certified or registered mail, return receipt requested) to such party at the address in effect
for 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.

 

17. Waiver of Jury Trial.
The Company and the Sales Agent each hereby irrevocably waives any right it may have to a trial by jury in respect of any claim based
upon or arising out of this Agreement or any transaction contemplated hereby.

 

18. Absence of Fiduciary
Relationship. The Company acknowledges and agrees that:

 

(a) the Sales Agent is acting
solely as agent in connection with the sale of the Placement Shares contemplated by this Agreement and the process leading to such transactions,
and no fiduciary or advisory relationship between the Company or any of its respective affiliates, stockholders (or other equity holders),
creditors or employees or any other party, on the one hand, and the Sales Agent, on the other hand, has been or will be created in respect
of any of the transactions contemplated by this Agreement, irrespective of whether the Sales Agent has advised or are advising the Company
on other matters, and the Sales Agent has no obligation to the Company with respect to the transactions contemplated by this Agreement,
except the obligations expressly set forth in this Agreement;

 

(b) the Company is capable
of evaluating and understanding and understands and accepts the terms, risks and conditions of the transactions contemplated by this Agreement;

 

(c) the Sales Agent has not
provided any legal, accounting, regulatory or tax advice with respect to the transactions contemplated by this Agreement, and the Company
has consulted its own legal, accounting, regulatory and tax advisors to the extent it has deemed appropriate;

 

    31

     

    

 

(d) the Company has been
advised and is aware that the Sales Agent and its affiliates are engaged in a broad range of transactions which may involve interests
that differ from those of the Company and that the Sales Agent has no obligation to disclose such interests and transactions to the Company
by virtue of any fiduciary, advisory or agency relationship; and

 

(e) the Company waives, to
the fullest extent permitted by law, any claims it may have against the Sales Agent, for breach of fiduciary duty or alleged breach of
fiduciary duty and agrees that the Sales Agent shall have no liability (whether direct or indirect, in contract, tort or otherwise) to
the Company in respect of such a fiduciary claim or to any person asserting a fiduciary duty claim on behalf of or in right of the Company,
including stockholders, partners, employees or creditors of the Company.

 

19. Use of Information.
The Sales Agent may not provide any information gained in connection with this Agreement and the transactions contemplated by this Agreement,
including due diligence, to any third party other than its legal counsel advising it on this Agreement unless expressly approved by the
Company in writing.

 

20. Counterparts. This
Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute
one and the same instrument. Delivery of an executed Agreement by one party to the other may be made by facsimile transmission or e-mail
of a PDF attachment.

 

21. Effect of Headings;
Knowledge of the Company. The section, schedule and exhibit headings herein are for convenience only and shall not affect the construction
hereof. All references in this Agreement to the “knowledge of the Company” or the “Company’s knowledge”
or similar qualifiers shall mean the actual knowledge of the directors and officers of the Company, after due inquiry.

 

22. Definitions. As
used in this Agreement, the following term has the meaning set forth below:

 

“Applicable Time”
means the date of this Agreement, each Representation Date, each date on which a Placement Notice is given, each Point of Sale, and each
Settlement Date.

 

[The remainder of this page has been intentionally
left blank.]

 

    32

     

    

 

If the foregoing correctly
sets forth the understanding between the Company and the Sales Agent, please so indicate in the space provided below for that purpose,
whereupon this letter shall constitute a binding agreement between the Company and the Sales Agent.

 

Very truly yours,

 

	AKErna corp.	 
	 	 
	By:	 	 
	Name: 	Jessica Billingsley	 
	Title:	Chief Executive Officer	 

 

Accepted and Agreed to as of

the date first written above:

 

	A.G.P./Alliance Global Partners	 
	 	 
	By:	                                 	 
	Name: 	Thomas Higgins	 
	Title:	Managing Director	 

 

[Signature Page to the Akerna Corp. Sales Agreement]

 

     

     

    

 

Schedule
1

 

Form
of Placement Notice

 

	From: 	Akerna Corp.
	To:	A.G.P./Alliance Global Partners
	 	Attention: Tom Higgins

 

Subject: At-The-Market
Offering—Placement Notice

 

Ladies and Gentlemen:

  

Pursuant
to the terms and subject to the conditions contained in the Sales Agreement between Akerna Corp., a Delaware corporation (the “Company”),
and A.G.P./Alliance Global Partners (the “Sales Agent”) dated September 28, 2022 (the “Agreement”),
I hereby request on behalf of the Company that the Sales Agent sell up to                      
shares of the Company’s common stock, par value $0.0001 per share, at a minimum market price of $              
per share, during the period beginning [MONTH/DAY/TIME] and ending [MONTH/DAY/TIME].

 

     

     

    

 

Schedule
2

 

Notice
Parties

 

Akerna Corp.

 

Jessica Billingsley,
Chief Executive Officer (jlb@akerna.com)

 

Larry Dean Ditto
Jr., Chief Financial Officer (dean.ditto@akerna.com)

 

A.G.P./Alliance Global Partners

 

Thomas J. Higgins,
Managing Director (atm@allianceg.com)

 

     

     

    

 

Schedule
3

 

Compensation

 

The Sales Agent shall be paid
compensation equal to 3.0% of the gross proceeds from the sales of Placement Shares pursuant to the terms of this Agreement and shall
be reimbursed for certain expenses in accordance with Section 7(g) of this Agreement.

 

The foregoing rate of compensation
shall not apply when the Sales Agent acts as principal, in which case the Company may sell the Placement Shares to such Sales Agent as
principal at a price agreed upon at the relevant Point of Sale pursuant to the applicable Placement Notice.

 

     

     

    

 

Schedule
4

 

schedule
of subsidiaries

 

 

1. Akerna Canada
Ample Exchange Inc.

2. Akerna Canada
Holdings Inc.

3. Ample Organics
Inc.

4. Akerna Services,
LLC

5. Dynamics 365
People Software and Services Ltd.

6. Last Call Analytics
Inc.

7. MJ Freeway,
LLC

8. Solo Sciences,
Inc.

9. The NAV People,
Inc.

10. Trellis Solutions,
Inc.

11. Viridian Sciences,
Inc.

 

     

     

    

 

Schedule
5

 

Information
Provided by Sales Agent

 

The parties acknowledge and
agree that, for purposes of Sections 6(b) and 9 of this Agreement, there is no information provided by the Sales Agent.
The information in this Schedule shall be updated from time to time in connection with the filing of a new Prospectus or otherwise as
necessary.

 

     

     

    

 

Exhibit 7(m)

 

Officer
Certificate 

 

The undersigned, the duly
qualified and appointed ____________________ of Akerna Corp., a Delaware corporation (the “Company”), does hereby certify
in such capacity and on behalf of the Company, pursuant to Section 7(m) of the Sales Agreement, dated September [●], 2022 (the “Agreement”),
between the Company and A.G.P./Alliance Global Partners, that:

 

		(i)	the representations and warranties of the Company in Section
6 of the Agreement (A) to the extent such representations and warranties are subject to qualifications and exceptions contained therein
relating to materiality or Material Adverse Effect, are true and correct on and as of the date hereof with the same force and effect
as if expressly made on and as of the date hereof, except for those representations and warranties that speak solely as of a specific
date and which were true and correct as of such date, and (B) to the extent such representations and warranties are not subject to any
qualifications or exceptions, are true and correct in all material respects as of the date hereof as if made on and as of the date hereof
with the same force and effect as if expressly made on and as of the date hereof except for those representations and warranties that
speak solely as of a specific date and which were true and correct as of such date;

		 	 

		(ii)	the Company has complied with all agreements and satisfied
all conditions on its part to be performed or satisfied pursuant to the Agreement at or prior to the date hereof;

		 	 

		(iii)	as of the date hereof, (i) the Registration Statement does
not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary in order
to make the statements therein not misleading, (ii) the Prospectus does not contain any untrue statement of a material fact or omit to
state a material fact required to be stated therein or necessary in order to make the statements therein, in the light of the circumstances
under which they were made, not misleading and (iii) no event has occurred as a result of which it is necessary to amend or supplement
the Registration Statement or the Prospectus in order to make the statements therein not untrue or misleading for clauses (i) and (ii)
above, respectively, to be true and correct;

		 	 

		(iv)	there has been no Material Adverse Effect since the date as
of which information is given in the Prospectus, as amended or supplemented;

		 	 

		(v)	the Company does not possess any material non-public information;
and

		 	 

		(vi)	the aggregate offering price of the Placement Shares that
may be issued and sold pursuant to the Agreement and the maximum number or amount of Placement Shares that may be sold pursuant to the
Agreement have been duly authorized by the Company’s board of directors or a duly authorized committee thereof.

 

Terms used herein and not
defined herein have the meanings ascribed to them in the Agreement.

 

	Date:	By:	 
	 	Name:	 
	 	Title:Document

Gogoro Network (Cayman), Taiwan Branch
NT$10,700,000,000 Syndicated Credit Facility

Syndicated Credit Facility Agreement

Arranger
Mega International Commercial Bank Co., Ltd.

Agent
Mega International Commercial Bank Co., Ltd.

Co-Arrangers
Agricultural Bank of Taiwan Co., Ltd.
Bank of Taiwan Co., Ltd.

Banking Syndicate
Mega International Commercial Bank Co., Ltd.
Agricultural Bank of Taiwan Co., Ltd.
Bank of Taiwan Co., Ltd.
First Commercial Bank Co., Ltd.
Taiwan Cooperative Bank Ltd.
EnTie Commercial Bank
Chang Hwa Commercial Bank, Ltd.
Taiwan Business Bank, Ltd.
Taipei Fubon Commercial Bank Co., Ltd.
Taishin International Bank Co., Ltd.

September 28, 2022
			
	

KPMG Law Firm
61F, No. 7, Section 5, Xinyi Road, Xinyi District, Taipei City

Table of Contents

						
	Article 1 Definitions and Interpretations
	1

	1.Definitions
	1

	2.    Interpretations
	4

	Article 2 Credit Facility
	5

	1.Granting and Purpose of Facility
	5

	2.    Credit Limit
	5

	3.    Credit Period and Extension
	5

	4.    Drawdown Deadline
	6

	5.    Drawdown Manner
	6

	6.    Drawdown Notice
	7

	Article 3 Repayment and Other Loan Conditions
	9

	1.Interest (Fee) Rate Computation and Payment
	9

	2.   Repayment
	11

	3.   Delay Interest and Breach Penalty
	12

	4.   Cancellation of Credit Limit
	12

	5.   Prepayment
	13

	6.   Change of Laws and Mandatory Prepayment
	13

	7.   Taxes and Charges
	14

	8.   Increased Cost
	14

	9.   Indemnification
	14

	10. Time and Place of Payment
	14

	Article 4 Conditions Precedent to Drawdown Limit
	15

	1.Conditions Precedent to Initial Drawdown
	15

	2.    Conditions Precedent to Subsequent Drawdown
	16

	3.    Other Conditions Precedent to Drawdown
	16

	4.    Other Conditions to Maintain Facility
	17

	Article 5 Special-Purpose Account and Security
	17

	1.Special-Purpose Account and Pledge
	17

	2.    Promissory Note
	18

	Article 6 Guarantee
	19

	1.Joint and Several Guarantee
	19

	2.    Guarantor’s Consent
	19

	3.    Addition/Replacement of Guarantor
	20

	4.    Guarantor’s Consent Letter
	20

	Article 7 Representation and Warranty
	20

	1.Corporate Existence and Authority
	21

	2.    Authority and Binding Effect
	21

	3.    Legality
	21

	4.    No Pending Litigation
	21

	5.    No Breach of Contract
	22

	6.    Information Disclosure
	22

	7.    Financial Status
	22

	8.   Taxes and Charges
	22

	9.   Full Ownership
	22

	10. Continuity
	23

	Article 8 Undertakings
	23

	1.Use of Funds
	23

	2.    Financial Report
	23

i

						
	3.   Financial Covenants
	23

	4.   Declaration and Other Materials
	24

	5.   Property Inspection and Accounting Books and Records
	24

	6.   Company and Asset Maintenance
	25

	7.   Asset Maintenance and Proper Insurance
	25

	8.   Shareholder Advance
	25

	9.   Claim Subordination
	26

	10. Due Performance and Debt Repayment
	26

	11. Compliance with Applicable Laws
	26

	12. Other Security
	26

	13. Negative Pledge
	26

	14. Insurance for Battery, Battery Swap Facility and its affiliated Facilities
	26

	15. Controlling Power
	26

	16. Capital Increase
	27

	17. Key Employee
	27

	18. Maintain Listing
	27

	19. Notice of Major Events
	27

	20. Negative Covenants
	27

	21. Loss of Debt Certificate
	28

	22. Debt Certificate and Signature
	29

	23. Information Collection and Use
	29

	24. Legal Compliance
	31

	Article 9 Breach
	31

	1.Event of Breach
	31

	2.    Determination of Event of Breach
	33

	3.    Effect of Event of Breach
	33

	4.    Setoff and Lien
	34

	5.    Order of Setoff
	35

	Article 10 Fees and Costs
	35

	1.Fees
	35

	2.    Bearing of Legal Costs, etc.
	36

	Article 11 Relationship among Agent, Arrangers and Syndicated Banks
	36

	1.Appointment
	36

	2.    Joint Claims
	37

	3.    Independent Obligations of Banks
	37

	4.    Specific Duties and Obligations
	37

	5.    Information Exchange
	38

	6.    Duties by Engagement
	38

	7.    Disclaimer
	38

	8.    Trust
	39

	9.    Income Distribution
	39

	10.  Sharing of Costs
	40

	11.  Sharing of Credit Risk
	40

	12.  Sharing of Security Interest
	40

	13.  Breach Notice
	40

	14.  Independent Credit Verification and Investigation
	40

	15.  Compensation
	41

	16.  Return of Funds
	41

	17.  Individual Capacity
	42

	18.  Successor Agent
	42

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	19.  Meeting of Syndicated Banks
	42

	Article 12 Miscellaneous
	42

	1.Assignment and Risk Sharing
	42

	2.    Revision and Exemption
	43

	3.    No Waiver
	44

	4.    Notice
	44

	5.    Exchange Rate
	44

	6.    Conflict
	45

	7.    Severability
	45

	8.    Place of Performance
	45

	9.    Governing Law and Jurisdiction
	45

	10.  Application of Applicable Laws and Charters
	45

	11.  Money Laundering Prevention and Counter-Terrorist Financing Clause
	45

	12.  Copies
	46

iii

Attachments

1.Committed Limit Details
1-1.       Contact Details
2.Drawdown Application
3.Estimated 2019 Syndicated Loan Repayment Schedule
4.Lender Specimen Seal/Signature Certificate and Borrower Specimen Seal/Signature Certificate
5.Operating Income and Expense Account Affidavit
6.Repayment Account Pledge Agreement
7.Promissory Note
8.Power of Attorney for Promissory Note
9.Guarantor’s Consent Letter
10.Declaration (including 10-1 and 10-2)
11.Shareholder Advance Claim Subordination Affidavit
12.Negative Pledge
13.Credit Limit Assignment Agreement

Syndicated Credit Facility Agreement

This Syndicated Credit Facility Agreement (hereinafter this “Agreement”) is signed by the following parties on September 28, 2022:

(I)Gogoro Network (Cayman), Taiwan Branch, incorporated in accordance with the laws of the Republic of China (Taiwan), with its principal business address at No. 33, Dinghu Road, Dahua Village, Guishan District, Taoyuan City (hereinafter the “Borrower”);

(II)Gogoro Inc., a company organized and incorporated in accordance with the laws of the Cayman Islands, with its registered address at 190 Elgin Avenue27 Hospital Road, George Town, Grand Cayman, KY1-9008, Cayman Islands (hereinafter the “Guarantor”);

(III)Mega International Commercial Bank Co., Ltd., acting as the arranger for arranging the Banking Syndicate under this Agreement (hereinafter, the “Arranger”);

(IV)Mega International Commercial Bank Co., Ltd., acting as the agent for the management of credit facility procedures and various security interests under this Agreement (referred to in such capacity as the “Agent”); and

(V)Mega International Commercial Bank Co., Ltd., Agricultural Bank of Taiwan Co., Ltd., Bank of Taiwan Co., Ltd., First Commercial Bank Co., Ltd., Taiwan Cooperative Bank Ltd., EnTie Commercial Bank, Chang Hwa Commercial Bank, Ltd., Taiwan Business Bank, Ltd., Taipei Fubon Commercial Bank Co., Ltd. and Taishin International Bank Co., Ltd., (hereinafter individually a “Syndicated Bank”, or collectively the “Banking Syndicate”).

Whereas, the Borrower asked Gogoro Inc. to act as Guarantor and engaged the Arranger to arrange the organization of the Banking Syndicate to provide a medium-term loan up to NT$10,700,000,000 (hereinafter the “Credit Facility”) in order to repay the outstanding amount of the 2019 Syndicated Loan, to purchase batteries for electric vehicles and to enrich working capital;

Whereas, the Arranger agrees to organize the Banking Syndicate to provide the above syndicated credit facility and the Syndicated Banks agree to participate in this Credit Facility based on their individual committed limits;

Therefore, the parties have agreed to the below terms and conditions:

Article 1     Definitions and Interpretations

1.Definitions

Unless otherwise provided in this Agreement, the following terms are defined as follows:

(1)“Credit Facility” means the credit facility granted by the Banking Syndicate in accordance with this Agreement.

(2)“Tranche A Facility” is the medium-term loan in New Taiwan Dollar provided to the Borrower by the Tranche A Banks with their own funds.

(3)“Tranche B Facility” is the medium-term loan in New Taiwan Dollar provided to the Borrower by the Tranche B Banks with their own funds.

(4)“Tranche C Facility” is the medium-term load in New Taiwan Dollar provided to the Borrower by the Tranche C Banks with their own funds.

(5)“Tranche Facility” means the Tranche A Facility, Tranche B Facility and (or) Tranche C Facility, either individually or collectively.

(6)“Tranche A Banks” mean the Syndicated Banks that provide the Tranche A Facility to the Borrower.

(7)“Tranche B Banks” mean the Syndicated Banks that provide the Tranche B Facility to the Borrower.

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(8)“Tranche C Banks” mean the Syndicated Banks that provide the Tranche C Facility to the Borrower.

(9)“Total Credit Limit” means the total maximum limit amount of the credit facility granted by the Banking Syndicate in accordance with this Agreement, i.e., NT$10,700,000,000, or the total credit limit after cancellation or revocation in accordance with this Agreement.

(10)“Committed Limit” means the credit limit that each Syndicated Bank agrees to provide under this Credit Facility in the amount listed in Attachment 1 or the limit after cancellation or revocation in accordance with this Agreement.

(11)“Commitment Ratio” means, (i) in relation to a Tranche Facility, the Committed Limit by each Syndicated Bank for the relevant tranche as a percentage of the credit limit of such Tranche Facility; (ii) in relation to the Total Credit Limit, the total Committed Limits under all Tranche Facilities by each Syndicated Bank as a percentage of the Total Credit Limit, as listed in Attachment 1.

(12)“Available Limit” means, (i) in relation to a Tranche Facility, the limit amount under such Tranche Facility or the limit amount remaining after repayment, cancellation or revocation in accordance with this Agreement; (ii) in relation to this Credit Facility, the Total Credit Limit or the total limit amount under this Credit Facility remaining after repayment, cancellation or revocation in accordance with this Agreement.

(13)“Business Day” means a day on which all banks located on the main island of Taiwan are open for full-day business.

(14)“Drawdown Day” means the date on which the principal of this Credit Facility is advanced to the Borrower in accordance with this Agreement, including the Initial Drawdown Date.

(15)“Initial Drawdown Date” means the date of the earliest drawdown of the credit limit under the Tranche A Facility, or the deemed date of initial drawdown in accordance with Article 2, paragraph 3 of this Agreement.

(16)“Interest Date” means the date on which the Borrower shall pay interest under this Credit Facility in accordance with Article 3, paragraph 1 of this Agreement.

(17)“Interest Adjustment Date” means the date on which the loan interest rate shall be adjusted in accordance with the variation of the reference rate in accordance with Article 3, paragraph 1 of this Agreement.

(18)“Principal Repayment Date” means the date on which the Borrower shall repay any portion of principal of this Credit Facility in accordance with Article 3, paragraph 2 of this Agreement.

(19)“Minimum Interest Rate” means, with respect to each tranches, the minimum interest rate as calculated in accordance with Article 3, paragraph 1, subparagraphs (4) and (5) of this Agreement.

(20)“Drawdown Application” means the Borrower’s application to seek drawdown of the Tranche A Facility, Tranche B Facility or Tranche C Facility in accordance with Article 2, paragraph 5 of this Agreement, in the form of Attachment 2.

(21)“2019 Syndicated Loan” means the syndicated loan of NT$7,200,000,000 signed by the Borrower and the banking syndicate arranged by Mega International Commercial Bank Co., Ltd. on March 28, 2019.

(22)“Estimated 2019 Syndicated Loan Repayment Schedule” means the schedule of outstanding credit balance under the 2019 Syndicated Loan to be repaid by the Borrower through drawdown of this Tranche A Facility, in the form of Attachment 3.

(23)“Operating Income and Expense Account” means the special-purpose account opened with the Agent by the Borrower and Gogoro Taiwan Sales and Services Limited, respectively, in accordance with Article 5, paragraph 1 of this Agreement.

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(24)“Gogoro Taiwan Limited” means the stock limited company organized and incorporated in accordance with the laws of the Republic of China (Taiwan) with its principal business address at No. 33, Dinghu Road, Guishan District, Taoyuan City.

(25)“Gogoro Taiwan Sales and Services Limited” means the stock limited company organized and incorporated in accordance with the laws of the Republic of China (Taiwan) with its principal business address at No. 33, Dinghu Road, Guishan District, Taoyuan City.

(26)“Repayment Account” means the special-purpose account opened with the Agent by the Borrower in accordance with Article 5, paragraph 1 of this Agreement.

(27)“Repayment Account Pledge Agreement” means the pledge agreement signed by the Borrower in accordance with Article 5, paragraph 1 of this Agreement to provide a maximum-limited pledge on the Repayment Account to the Agent, in the form of Attachment 6.

(28)“Borrower’s Parent” means the Borrower’s parent Gogoro Network, a company organized and incorporated in accordance with the laws of the Cayman Islands and with its registered address at 190 Elgin Avenue, George Town, Grand Cayman, KY1-9008, Cayman Islands.

(29)“Negative Pledge” means the pledge issued by the Borrower’s Parent in accordance with Article 8, paragraph 13 of this Agreement that is approved by resolution of its board of directors, in the form of Attachment 12.

(30)“Battery, Battery Swap Facility and its affiliated Facilities” means the Battery, Battery Swap Facility and its affiliated Facilities installed and owned by the Borrower in the Gogoro battery exchange energy network operated by the Borrower and its group.

(31)“Majority Syndicated Banks” means, (i) in relation to this Credit Facility, (a) the Syndicated Banks with an accumulated balance amount of principal drawn down and outstanding under this Credit Facility in excess of half of the total balance amount of principal drawn down and outstanding under this Credit Facility; (b) in the event that there has been no drawdown or there is no balance amount drawn down and outstanding, the Syndicated Banks representing accumulated Committed Limits in excess of half of Total Credit Limit; (ii) in relation to each Tranche Facility, (a) the Syndicated Banks representing accumulated balance amount of principal outstanding under such Tranche Facility in excess of half of the total balance amount of principal outstanding under such Tranche Facility; (b) in the event that there has been no drawdown or there is no balance amount drawn down and outstanding, the Syndicated Banks representing accumulated Committed Limits under such Tranche Facility in excess of half of the Committed Limits under such Tranche Facility.

(32)“Resolution of Majority Syndicated Banks” means, other than matters subject to the unanimous approval of the Banking Syndicate as expressly required in this Agreement, the resolution approved by the Majority Syndicated Banks after a meeting of the Syndicated Banks convened following written notice (including e-mail) or written enquiry issued by the Agent to the Banking Syndicate.

(33)“Credit Risk Sharing Ratio” means, (i) in relation to each Tranche Facility, (a) the ratio of each Syndicated Bank’s balance amount of principal drawn down and outstanding under such Tranche Facility to the total balance amount of principal drawn down and outstanding under such Tranche Facility; (b) in the event that there has been no drawdown or there is no balance amount drawn down and outstanding, each Syndicated Bank’s Commitment Ratio; (ii) in relation to this Credit Facility, (a) the ratio of each Syndicated Bank’s balance amount of principal drawn down and outstanding under this Credit Facility to the total balance amount of principal drawn down and outstanding under this Credit Facility; (b) in the event that there has been no drawdown or there is no balance amount drawn down and outstanding, each Syndicated Bank’s Commitment Ratio.

(34)“Credit Period” means the period during which the Banking Syndicate provides this Credit Facility to the Borrower in accordance with Article 2, paragraph 3 of this Agreement.

(35)“Period of Existence” means the period from the date on which the signature of this Agreement is completed until the date on which the Borrower and (or) the Guarantor has 
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fully repaid all indebtedness owed under this Agreement (including but not limited to principal, interest, commitment fee, arranger fee, participation fee, processing fee, delay interest, breach penalty, advance administrative charge, other fees of all kinds, relevant compensation and interest accrued thereon, as well as all other relevant indebtedness), and the Borrower, the Guarantor and the Banking Syndicate have all fully performed all their obligations under this Agreement.

(36)“Security Document” means the Repayment Account Pledge Agreement, promissory note, power of attorney for the promissory note and documents signed by the Borrower and (or) the Guarantor at any time during the Period of Existence of this Agreement to secure their obligations and indebtedness under this Agreement.

(37)“IFRS” mean the International Financial Reporting Standards, international accounting principles, interpretations and public announcements of interpretations published by the International Accounting Standards Board.

(38)“Form 6-K Consolidated Financial Report” means the unaudited condensed consolidated financial statements submitted by the Guarantor, as a foreign issuer, to the U.S. Securities and Exchange Commission (hereinafter the “SEC”) in the form of Form 6-K.

(39)“Event of Breach” means any event listed under Article 9, paragraph 1 of this Agreement.

(40)“Potential Event of Breach” means an event that constitutes an Event of Breach with the lapse of time or the satisfaction of other conditions.

(41)“Material Adverse Event” means an act or event that has material adverse impacts on (a) Borrower and Guarantor’s financial, operating or business status; and (b) Borrower and Guarantor’s ability to perform this Agreement or the relevant transactional documents.

2.Interpretations

(1)The parties to this Agreement include their respective successors.

(2)The terms used in this Agreement include their singular and plural meanings.

(3)Any professional or institution such as an accountant, attorney, insurer or appraiser referred to in this Agreement that should provide an opinion, report, statement, insurance or appraisal services means a reputable professional or institution such as a certified accountant, attorney, insurer or appraiser.

(4)The title of each clause of this Agreement is for convenience only and does not interpret or restrict the provision of the clause.

Article 2     Credit Facility

1.Granting and Purpose of Facility

This Credit Facility is granted by the Banking Syndicate providing a medium-term loan up to a total limit of NT$10,700,000,000 for the following purposes:

(1)Tranche A Facility: To repay the balance amount outstanding under the 2019 Syndicated Loan.

(2)Tranche B Facility: For the Borrower’s purchase of batteries for electric vehicles.

(3)Tranche C Facility: To enrich working capital.

2.Credit Limit

The Total Credit Limit of this Agreement is NT$10,700,000,000. The limit of each Tranche Facility is as follows:

(1)Tranche A Facility:

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Medium-term loan of NT$5,640,000,000 available for one drawdown on non-revolving basis.

(2)Tranche B Facility:

Medium-term loan of NT$3,344,000,000 available for multiple drawdowns on non-revolving basis.

(3)Tranche C Facility:

Medium-term loan of NT$1,716,000,000 available for multiple drawdowns on revolving basis.

3.

3.Credit Period and Extension

(1)Tranche A Facility: The Credit Period of the Tranche A Facility is 5 years starting from the Initial Drawdown Date.

(2)Tranche B Facility: The Credit Period of the Tranche B Facility is 5 years starting from the Initial Drawdown Date.

(3)Tranche C Facility: The Credit Period of the Tranche C Facility is 5 years starting from the Initial Drawdown Date.

(4)Subject to compliance with all conditions under this Agreement, the Borrower shall make the initial drawdown within 6 months from the date of signature of this Agreement, otherwise the expiration date of the 6-month period starting from the date of signature of this Agreement shall be deemed the Initial Drawdown Date.

(5)Extension of Credit Period

i.Where the Borrower’s operation is in normal status without any continuous Event of Breach, the Borrower may raise a written request to the Agent no later than 6 months prior to the end of Credit Period, to extend the Credit Period of this Credit Facility for 2 years, provided that the Credit Period may be extended once only.

ii.The Syndicated Banks shall reply to the Agent in writing within 2 months following the receipt of Agent’s written notice, on whether they agree to extend the Credit Period for 2 years with respect to part or all of the credit facilities at that time, in accordance with the terms and conditions under this Agreement. The Syndicated Banks shall exercise their consent rights independently and such independent act shall not affect the rights of other syndicated banks. Where the relevant syndicated banks fail to rely to the Agent within the foregoing period, it shall be deemed disagreeing on the extension.

iii.For those credit facilities that are not subject to agreement on extension, the Borrower shall repay all relevant outstanding amounts (including but not limited to the principal, interest and other amount payable) to those Syndicated Banks in accordance with this Agreement, or seek other banks (including the existing banks and newly participating banks) to assume those credit facilities that are not subject to agreement on extension.

iv.For those credit facilities that are subject to agreement on extension, the Borrower shall pay the extension fee at the rate of 0.15% of the facility subject to extension agreed by those syndicated banks (including the existing banks who agreed for the extension and newly participating banks) to the Agent by onetime payment on the expiration date of the original Credit Period, and the Agent will allocate the same to the relevant banks who agreed for the extension. For the avoidance of doubt, where the Borrower fails to pay the extension fee by the time required, it will not affect the extension of the Credit Period and the right of the Syndicated Banks for the extension fee, provided that the Borrower shall pay the delay interest and default penalty in accordance with Article 3, paragraph 3 of this Agreement.

4.Drawdown Deadline
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Subject to compliance with the conditions of this Agreement, the Borrower may draw down this Credit Facility before the following deadlines:

(1)Tranche A Facility: One full drawdown within 6 months from the date of signature of this Agreement. Any limit amount not drawn down upon the expiration of such period shall be automatically cancelled and shall not be available for further drawdown.

(2)Tranche B Facility: Drawdown (or multiple drawdowns) shall be completed within 6 months from the Initial Drawdown Date. Any limit amount not drawn down upon the expiration of such period shall be automatically cancelled and shall not be available for further drawdown.

(3)Tranche C Facility: Drawdowns may be made on revolving basis during the Credit Period of Tranche C Facility.

5.Drawdown Manner

Subject to completion of the conditions precedent to drawdowns provided in this Agreement, the Borrower shall draw down this Credit Facility in the following manner:

(1)The Borrower shall submit a Drawdown Application (in the form as Attachment 2) with the Agent at least 7 Business Days before the Drawdown Date (or other shorter period agreed by the Agent) in the case of initial drawdown, or at least 5 Business Days before the Drawdown Date (or other shorter period agreed upon by the Agent) in the case of subsequent drawdown. 

(2)For the drawdown of the Tranche A Facility:

The Borrower’s initial drawdown must include a drawdown of the Tranche A Facility, to repay the full remaining balance under the 2019 Syndicated Loan and cancel the limit. The Borrower shall also submit the Estimated 2019 Syndicated Loan Repayment Schedule (in the form of Attachment 3). All repayment procedures shall be managed by the Agent.

(3)For the drawdown of the Tranche B Facility:

i.To draw down the Tranche B Facility, each time the Borrower shall submit battery purchase agreements, transaction documents or proof of payment (including but not limited to invoices) acceptable to the Agent and the drawdown may be for made up to 80% of the amount prescribed in the transaction documents or proof of payment.

ii.Each drawdown under the Tranche B Facility shall be a minimum of NT$50,000,000 and shall be an integer multiple of NT$10,000,000 or the balance amount of the limit not yet drawn down at the time under Tranche B Facility, unless the Agent agrees otherwise.

(4)For the drawdown of the Tranche C Facility: 

i.The utilization period of Each drawdown of the Tranche C Facility shall not be shorter than 60 days and not longer than 180 days (or other utilization period as agreed by the Agent) and the end date of utilization period of each drawdown shall not be beyond the Credit Period of Tranche C Facility.

ii.Each drawdown under the Tranche C Facility shall be a minimum of NT$50,000,000 and shall be an integer multiple of NT$10,000,000 or the balance amount of the limit not yet drawn down at the time under Tranche C Facility, unless the Agent agrees otherwise.

No Drawdown Application shall be revoked (recovered) after it is issued by the Borrower and delivered to the Agent in accordance with Article 12, paragraph 4 of this Agreement. However, if the Drawdown Date specified by the Borrower on the Drawdown Application becomes a non-Business Day due to a natural disaster or other events of force majeure, the Drawdown Date shall be the following Business Day. If the Borrower subsequently changes the Drawdown Date or if the drawdown request is invalid due to failure to meet the drawdown conditions, the Borrower shall compensate the costs and losses suffered by the relevant Syndicated Banks and (or) the 
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Agent, provided that the Syndicated Banks and (or) the Agent shall provide relevant proof or supporting documents of such costs and losses.

6.Drawdown Notice

After the Borrower has applied for drawdown in accordance with the previous paragraph, the Agent shall provide photocopies of the Borrower’s Drawdown Application and give notice to relevant Syndicated Banks about the loan amounts to be advanced to be provided calculated in accordance with their individual Commitment Ratios 2 Business Days before the Drawdown Date.

(1)Drawdown of the Tranches and Advance

i.The Syndicated Banks shall transfer the loan amounts to be advanced in accordance with their Commitment Ratios into the account designated by the Agent before 11 a.m. on the Drawdown Date.

ii.If the Borrower draws down the Tranche A Facility to repay the balance amount of the Borrower’s 2019 Syndicated Loan, the Borrower hereby authorizes the Agent to further transfer (deposit) the loans advanced by the Syndicated Banks to the account designated by the relevant financial institution listed in the Estimated 2019 Syndicated Loan Repayment Schedule. Upon transfer (deposit) of the funds to such account by the Agent, it shall be deemed that the Borrower has received the loans advanced by the Syndicated Banks.

iii.If the Borrower draws down the Tranche B Facility or Tranche C Facility, the Agent shall transfer the loan amounts to the Borrower’s account with the Agent on the Drawdown Date.

iv.If the Borrower utilizes the loan amount advanced under Tranche C Facility to repay the due loan amount, Tranche C Banks and the Agent are not required to separately transfer or advance the funds with respect to the same amount, for which this Agreement may serve as the proof that the Borrower has received the funds.

v.After the Agent has given notice to the Syndicated Banks about the loan amounts to be advanced in accordance with the previous subparagraph, the Agent may trust that the Syndicated Banks will advance the loans as agreed. Unless the Agent has received a notice from the Syndicated Banks one Business Day before the Drawdown Date stating that the loans cannot be advanced in accordance with the Commitment Ratios, the Agent may (but is not obligated to) advance the loan amounts to the Borrower on time based on such trust. However, before the Agent actually receives the agreed loan amounts advanced by the Syndicated Banks, it is not obligated to release or advance any amount to the Borrower on behalf of the Syndicated Banks. If the Agent has advanced the loan amounts to the Borrower on behalf of the Syndicated Banks, such Syndicated Banks shall share the credit risk in accordance with the Credit Risk Sharing Ratio.

vi.If the Agent has advanced to the Borrower the loan amounts that should be advanced by the Syndicated Banks, and if any Syndicated Bank fails to advance the loan amount to the Agent on time making the Agent to advance the loan amount, then following the Agent’s request, the Borrower shall return to the Agent the funds that had not been advanced by the relevant Syndicated Bank but advanced by the Agent within 5 Business Days from the advance, together with interest accrued from the date of advance at the loan interest rate provided under Article 3, paragraph 1 of this Agreement. The Syndicated Bank shall be liable for compensating any damage caused to the Borrower and (or) the Agent due to its failure to advance the loan amounts in accordance with this Agreement (including but not limited to the losses and relevant expenses incurred from the acquisition of the relevant facility at a cost that is higher than the interest (fee) rates under this Agreement), provided that the Borrower and (or) the Agent shall provide relevant supporting documents. Also, the Borrower shall not be obligated to pay the commitment fee in accordance with Article 10, paragraph 1, subparagraph (1) of this Agreement for the credit limit not drawn down due to the Syndicated Bank’s failure to advance the loan.

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(2)If the loan amounts are not advanced in accordance with this Agreement due to any event that is imputable to the Syndicated Banks, the Syndicated Banks shall arrange an alternative credit facility with equivalent conditions as this Agreement for the Borrower and shall compensate all damages suffered by the Borrower and (or) the Agent (including but not limited to the losses and relevant expenses incurred from the acquisition of the relevant facility at a cost that is higher than the interest (fee) rates under this Agreement), provided that the Borrower and (or) the Agent shall provide relevant documents or proof of the losses and expenses claimed. If the event is not imputable to the Syndicated Banks, such Syndicated Banks shall negotiate with the Borrower in good faith to compensate all damages incurred by the Borrower or the Agent (including but not limited to the losses and relevant expenses incurred from the acquisition of the relevant facility at a cost that is higher than the interest (fee) rates under this Agreement) and shall make reasonable efforts to try to arrange or assist the Borrower to acquire other credit facility in an alternative manner that is feasible in the market at the time, provided that the Syndicated Banks be liable as to whether or not such alternative credit facility can indeed be acquired.

Article 3     Repayment and Other Loan Conditions

1.Interest (Fee) Rate Computation and Payment

The Borrower shall pay interest in accordance with the following:

(1)Tranche A Facility and Tranche B Facility

i.The loan interest rate for the Tranche A Facility and the Tranche B Facility shall be variable based on the reference rate plus a margin applied by the adjustment mechanism as prescribed in subparagraphs (4) and (5) of this paragraph, provided that the annual interest rate after the margin before tax shall not be lower than the Minimum Interest Rate. The Borrower shall bear the business tax and stamp duty for the interest.

“Reference rate” referred to above means the 3-month fixing rate quoted on the page of the Taipei Interbank Offered Rate (TAIBOR) published on the website of the Bankers Association of the Republic of China at about 11:30 a.m. Taipei Time 2 Business Days before each Drawdown Date and (or) Interest Adjustment Date. If such applicable reference rate is not available, the interest rate for the same period one Business Day before the date of reference rate shall be used as the reference rate. If such rate is still unavailable, the interest rate quoted for the second longest period displayed on such information system shall be adopted based on market practice.

ii.The Interest Adjustment Date is the corresponding date of the Initial Drawdown Date of the Tranche A Facility and the Tranche B Facility every 3 months (or the final date of the month if there is no corresponding date). Interest is adjusted once every 3 months. Interest is payable once a month (the interest accrual period is from the 21st day of the previous month until the 20th day of the current month). The Interest Date is the 25th day of each month, or the next Business Day if the Interest Date is not a Business Day, or the preceding Business Day, if the next Interest Date occurs to be in the next month.

(2)Tranche C Facility

i.The loan interest rate for the Tranche C Facility shall be variable based on the reference rate plus a margin applied by the adjustment mechanism as prescribed in subparagraphs (4) and (5) of this paragraph, provided that the annual interest rate after the margin before tax shall not be lower than the Minimum Interest Rate. The Borrower shall bear the business tax and stamp duty for the interest.

“Reference rate” referred to above means the 3-month fixing rate quoted on the page of the Taipei Interbank Offered Rate (TAIBOR) published on the website of the Bankers Association of the Republic of China at about 11:30 a.m. Taipei Time 2 Business Days before each Drawdown Date. If such applicable reference rate is not available, the interest rate for the same period one Business Day before the date of reference rate shall be used as the reference rate. If such rate is still unavailable, the interest rate quoted for the second longest period displayed on such information system shall be adopted based on market practice.
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iii.There will be no interest rate adjustment during the loan period of Tranche C facility. Interest is payable once a month (the interest accrual period is from the 21st day of the previous month until the 20th day of the current month). The Interest Date is the 25th day of each month, or the next Business Day if the Interest Date is not a Business Day, or the preceding Business Day, if the next Interest Date occurs to be in the next month. Provided however that the interest shall be paid on the expiration date of each loan advance.

(3)The loan interest for the Credit Facility is calculated based on 365 days a year and accrues on the actual number of days lapsed. The loan interest rates for the Credit Facility are annual rates calculated until the 4th digit after the decimal point, with the 5th digit rounded up if it is 5 or higher and rounded down if it is 4 or lower. 

(4)Interest Rate Adjustment Mechanism

Upon the expiration of the 3-month period after the Initial Drawdown Date, if none of the Borrower, the Borrower’s Parent or the Guarantor has any Event of Breach, the above annual interest rate margin shall be adjusted every half a year according to the earnings before tax margin based on the Guarantor’s latest CPA-audited annual consolidated financial report and the Form 6-K Consolidated Financial Report as published and filed with the SEC for the second quarter. The interest rate margin of each tranche shall be adjusted in accordance with the table below from the next drawdown date or interest period following the published date of the above mentioned financial report, provided that the loan interest rate before tax after applying the interest rate margin adjustment mechanism in accordance with this subparagraph shall in no event be lower than the minimum interest rate (the interest rate before tax, hereinafter the “Minimum Interest Rate”): 

									
	Applicable Benchmark:
Earnings before Tax Margin (X)
	Each Tranche Facility
Annual Interest Rate Margin
	Each Tranche Facility
Minimum Interest Rate

	X≦0%
	1.60%	1.85%
	0%<X≦5%
	1.50%	1.80%
	X >5%	1.40%	1.75%

Earnings before Tax Margin (X) = (Net Profit before Tax / Net Operating Revenue) x 100%

(5)ESG Interest Rate Adjustment Mechanism    

i.Upon the expiration of the 3-month period after the Initial Drawdown Date, if none of the Borrower, the Borrower’s Parent or the Guarantor has any Event of Breach, and the Borrower meets the following ESG benchmark, the annual interest rate may be decreased by applying the ESG interest rate adjustment mechanism:

ESG Benchmark:
The accumulated carbon emission reduction per annum (hereinafter “Carbon Saved”), contributed by the battery lease and the relevant energy technology service offered by the Borrower for the electric scooters within the Republic of China, reaches: 

(a)If the Carbon Saved reaches 100,000 tons or more compared to those of the previous year, then the interest rate margin of the Credit Facility may be lowered by 0.02%;
 
(b)If the Carbon Saved reaches 120,000 tons or more compared to those of the previous year, then the interest rate margin of the Credit Facility may be lowered by 0.04%.

ii.The foregoing Carbon Saved may be referred to the contents in the CPA-audited annual financial report of the Borrower, or a report issued by an independent third-party agency. 

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iii.If the Borrower meets the ESG benchmark of the Credit Facility, it may request for applying the ESG interest rate adjustment mechanism starting from the next drawdown date or interest rate period following the submission of the annual financial report or report of independent third-party agency to the Agent. Notwithstanding the above, if the Borrower meets the ESG benchmark of the Credit Facility before the Initial Drawdown Date and the 2021 annual financial report or report of independent third-party agency shows that Borrower’s Carbon Saved in the year of 2021 reaches the foregoing ESG benchmark, the ESG interest rate adjustment mechanism may apply from the Initial Drawdown Date in the year of 2022.

iv.The loan interest rate before tax after applying the ESG interest rate adjustment mechanism in accordance with this subparagraph shall in no event be lower than the Minimum Interest Rate as prescribed in the foregoing subparagraph (4).

(6)If the Borrower, the Borrower’s Parent or the Guarantor has any Event of Breach, the loan interest rates for each facility shall be calculated based on the highest annual interest rate margin until the Event of Breach is waived or released in accordance with this Agreement.

2.Repayment

The loan of this Credit Facility shall be repaid in the following manner:

(1)For the Tranche A Facility:

i.The balance amount of principal drawn down upon the expiration of the drawdown deadline of the Tranche A Facility shall be amortized and repaid by the Borrower over 9 installments, each installment being 6 months and the principal repayment date of the first installment being the expiration date of the 1-year period starting from the Initial Drawdown Date. 7.5% of the principal balance shall be repaid per installment from the 1st to the 8th installments and 9% of all the outstanding balance under Tranche A shall be repaid at the 9th installment.

ii.If the relevant syndicated banks agree to extend the Credit Period, on the basis of the principal amount under Tranche A subject to agreement on extension (“Extended Principal of Tranche A”), the Extended Principal of Tranche A shall be amortized and repaid over 5 installments, each installment being 6 months and the principal repayment date of the first installment being the expiration date of the original Credit Period.

(2)For the Tranche B Facility: 

i.The balance amount of principal drawn down upon expiration of the drawdown deadline of the Tranche B Facility shall be amortized and repaid by the Borrower over 6 installments, each installment being 6 months and the principal repayment date of the 1st installment being the expiration date of the 3-year period starting from the Initial Drawdown Date. 7.5% of the principal balance shall be repaid per installment from the 1st to the 4th installments and all the outstanding balance under Tranche B shall be repaid in the 5th installment.

ii.If the relevant syndicated banks agree to extend the Credit Period, on the basis of the principal amount under Tranche B subject to agreement on extension (“Extended Principal of Tranche B”), the Extended Principal of Tranche B shall be amortized and repaid over 5 installments, each installment being 6 months. 10% of the Extended Principal of Tranche B shall be repaid per installment from the 1st to the 4th installments and all outstanding balance of Extended Principal under Tranche B shall be repaid upon the expiration of Credit Period.

(3)For the Tranche C Facility:

After the Borrower draws down Tranche C Facility in accordance with this Agreement, it shall repay all balance amount of principal drawn down upon the expiration of each drawdown period by onetime payment. However, in case of revolving drawdown, the Tranche C Banks may use the newly drawdown amount as the repayment to the outstanding 
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and due principal amount, with no need to make separate remittance or transfer, and the Borrower shall be deemed its receipt of such amount.

In all circumstances, the Borrower shall fully repay all balance amount outstanding from each drawdown upon the expiration of the Credit Period, interest payable and other amounts and fees payable.

3.Delay Interest and Breach Penalty

If the Borrower delays in the repayment of principal or the payment of interest, or any other amount or fee payable in accordance with this Agreement, to the extent permitted by law, delay interest shall accrue at the delay interest rate, which shall be the original loan interest rate of this Credit Facility plus a margin of 2% per annum (each such rate after the margin hereinafter referred to as the “Delay Interest Rate”), from the due date and (or) payable date (inclusive) until the date of actual repayment. If the delay is within 6 months (inclusive), breach penalty shall also accrue at 10% of the Delay Interest Rate on the amount of delay. If the delay exceeds 6 months, breach penalty shall accrue at 20% of the Delay Interest Rate on the amount of delay. If the reference rate applied to the interest of this Credit Facility changes, delay interest and breach penalty shall accrue in a variable manner in accordance with the provisions of this Agreement. Delay interest and breach penalty accrue on a daily basis and are calculated based on the actual number of days lapsed in proportion to the 365 days of a year. If the Borrower’s payment is delayed for over a year (or a shorter period permitted by the law) and if repayment is not made following demand, the Agent may roll over delay interest under any outstanding principal, or fee payable for the common interest of the Banking Syndicate and accrue interest thereon. Delay interest and breach penalty shall be paid immediately upon the Agent’s request.

4.  Cancellation of Credit Limit

The Borrower shall not cancel all or part of the undrawn credit limit under the Tranche Facility, except if all of the following conditions are satisfied:

(1)An irrevocable written notice was given to the Agent at least 15 Business Days before the limit cancellation date;

(2)The cancelled limit amount shall be at least NT$50,000,000 and any amount in excess thereof shall be integer multiples of NT$10,000,000, or the full amount of the limit amount not drawn down at the time under the relevant Tranche Facility;

The total limit amount remaining available after the Borrower’s cancellation in accordance with the above is the limit amount of this Credit Facility starting from the date of cancellation.

If the Borrower cancels the limit amount in a manner other than in accordance with the above provisions, a one-time compensation fee shall be paid to the Agent at a fee rate of 0.10% of the cancelled amount, which shall be forwarded by the Agent to the relevant Syndicated Banks based on the Commitment Ratios. The cancelled credit limit shall no longer be available for further drawdowns.

5.Prepayment

The Borrower shall not prepay all or part of any loan amount that is not yet due under the Tranche Facility, except if all of the following conditions are satisfied:

(1)An irrevocable written notice was given to the Agent at least 15 Business Days before the prepayment date;

(2)The prepayment amount shall be at least NT$50,000,000 and any amount in excess thereof shall be integer multiples of NT$10,000,000, or the full amount of the limit amount not drawn down at the time under the relevant Tranche Facility;

(3)The prepayment date must be an Interest Date.

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Upon prepayment by the Borrower, the repayment shall be in an order that starts from the loan with the closest due date under the principle that loans that become due first shall be repaid first and all interest, fees and other amounts payable shall be paid at the same time. The limit amount prepaid under the Tranche A Facility and Tranche Facility shall no longer be available for drawdown.

Unless otherwise provided in this Agreement, if the Borrower makes prepayment other than in accordance with the above provisions, a one-time compensation fee shall be paid to the Agent at a fee rate of 0.10% of the prepayment amount, which shall be forwarded to the relevant Syndicated Banks. The Borrower shall also bear the break funding costs incurred by the relevant Syndicated Banks due to prepayment, provided that the relevant Syndicated Banks shall provide relevant documents or proof showing the break funding costs they claim.

6.Change of Laws and Mandatory Prepayment

If, after the provision of this credit facility, any Syndicated Bank’s part or all of its commitment or facility under this Agreement becomes illegal due to changes of any laws or orders or necessity to comply with laws or competent authority’s rules, such Syndicated Bank shall immediately negotiate a solution with the Borrower and shall also give immediate written notice to the Agent. The agreement reached through such negotiation shall be binding on all parties. If an agreement is not reached within 5 Business Days, the credit commitment of such Syndicated Bank with respect to violation of rules, shall be revoked or reduced and the Borrower shall repay to the Agent the loan amount already advanced, subject to revocation or reduction, by such Syndicated Bank and loan interest accrued in accordance with this Agreement from the Drawdown Date to the date of repayment, as well as any other amount payable to such Syndicated Bank in accordance with this Agreement, within a reasonable period designated by the Agent and permitted by the law. The Borrower shall not pay for the compensation for early repayment as stated in Article V, provided that the Borrower shall still bear the break funding costs incurred by the relevant Syndicated Banks due to prepayment. In addition, the Borrower shall not pay the commitment fee for such revoked or reduced credit limit since its receipt of notice from the Syndicated Bank.

If the above breach of law is imputable to an event imputable to the Syndicated Bank concerned, such Syndicated Bank shall arrange alternative credit facility with equivalent conditions as this Agreement for the Borrower and shall compensate the Borrower for the additional costs and expenses incurred due to prepayment of the facility in accordance with the previous paragraph (provided that the Borrower shall provide relevant documents or proof showing the additional costs and expenses it claims).

7.     Taxes and Charges

Other than the profit-seeking enterprise income tax of the Syndicated Banks and other provisions of this Agreement, any tax imposed currently or in the future due to any amount payable under this Agreement or any document related hereto (including but not limited to business tax and stamp duty incurred from interest accrual, etc.) shall be borne by the Borrower. If the Banking Syndicate is obliged to pay other taxes related to this Credit Facility or if the taxing basis of any tax previously borne by the Borrower is changed due to any change of law or change in the interpretation of the law by the competent authority, such tax shall be borne by the Borrower.

The Borrower shall not withhold or deduct any fee or tax from any amount paid to the Syndicated Banks. If the law requires that the Borrower must withhold any amount from the amount payable to the Syndicated Banks under this Agreement, the Borrower shall increase the amount payable so that, after the amount to be deducted is deducted (including the increased withheld amount due to the payment of such amount), the amount received by the Syndicated Banks is the same as the amount without withholding.

All taxes and reasonable costs incurred due to the signature and performance of this Agreement or documents related hereto or the security or enforcement of claims by the Syndicated Banks shall be borne by the Borrower.

  8.   Increased Cost

If the Syndicated Banks incur increased costs in granting the credit due to changes of laws or orders or changes in the interpretation of laws or orders by the competent authority, the Borrower shall pay such amount immediately in accordance with the request of the Syndicated Banks to 
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compensate the increased costs of the Syndicated Banks, provided that the Syndicated Banks shall provide relevant supporting documents.

9.     Indemnification

The Borrower and (or) the Guarantor shall indemnify any Syndicated Bank, the Arrangers or the Agent for all losses, indebtedness, damage, costs and expenses incurred in relation to this Agreement due to any Event of Breach by the Borrower and (or) the Guarantor or any breach of any obligation under this Agreement by the Borrower and (or) the Guarantor. The Borrower and (or) the Guarantor shall also indemnify any Syndicated Bank, the Arrangers or the Agent for any cost of capital such as interest or fee incurred due to the non-repayment of any relevant amount. However, the Borrower and (or) the Guarantor shall not indemnify any loss, indebtedness, damage, cost or expense incurred due to the willful conduct or gross negligence of any Syndicated Bank, the Arrangers or the Agent.

10.   Time and Place of Payment

Unless otherwise provided by this Agreement, all payments made by the Borrower in accordance with this Agreement, including but not limited to the repayment of principal of this Credit Facility, interest or other fees, shall be made by the Borrower to the business place designated by the Agent. Otherwise the repayment shall not take effect. The Borrower shall also make transfers into the account designated by the Agent before 12:00 p.m. Taipei Time on the principal repayment date, Interest Date or other due date. Payment after 12:00 p.m. Taipei Time shall be deemed payment on the following Business Day. If any due date is not a Business Day, it shall be postponed to the following Business Day. However, if the postponement goes across calendar months, payment shall be made on the previous Business Day.

Article 4    Conditions Precedent to Drawdown Limit

1.Conditions Precedent to Initial Drawdown

The Borrower’s initial drawdown of the Committed Limit of this Credit Facility in accordance with this Agreement is subject to the conditions precedent of the Agent’s receipt of the following documents at least 7 Business Days before the initial drawdown or other shorter period agreed by the Agent in the form and substance acceptable to the Agent (if any document is submitted in photocopy, the provider of the document must certify that it is a genuine, correct and full photocopy):

(1)This Agreement legally signed by all parties;

(2)Drawdown Application legally signed by the Borrower; for drawdown of the Tranche B Facility, relevant proof of transaction under Article 2, paragraph 5, subparagraph (3) of this Agreement shall be submitted;

(3)Submission of the Estimated 2019 Syndicated Loan Repayment Schedule;

(4)Photocopies of the latest documents below of the Borrower’s Parent certified as consistent with the original documents: Certificate of Incorporation, Memorandum and Articles of Association, List of Shareholders (of 10% or more shareholding), Register of Directors, Certificate of Incumbency, Certificate of Good Standing, proof of payment of annual fee, the Borrower’s Change Registration Form for Branch of Foreign Company issued by the Ministry of Economic Affairs;

(5)Minutes or authorization (Authorization Letter or similar document) showing approval from the board of directors and (or) shareholders’ meeting of the Borrower’s Parent for the signature of this Agreement, Security Documents and other contract documents and authorizing its representative or other authorized signatory to sign such relevant contracts and documents and specimen of the authorized person’s signature and (or) seal;

(6)Photocopies of the latest documents below of the Guarantor certified as consistent with the original documents: Certificate of Incorporation, Memorandum and Articles of Association, List of Shareholders (of 10% or more shareholding), Register of Directors, Certificate of Incumbency, Certificate of Good Standing, proof of payment of annual fees;
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(7)Minutes or consent showing approval from the board of directors and (or) shareholders’ meeting of the Guarantor for the signature of this Agreement, Security Documents and other contracts and documents, the provision of all security and relevant documents under this Agreement, and authorizing its representative or other authorized signatories to sign such relevant contracts and documents and specimen of the authorized person’s signature and (or) seal;

(8)The Borrower and Gogoro Taiwan Sales and Services Limited shall each have opened an Operating Income and Expense Account with the Agent in accordance with Article 5, paragraph 1, of this Agreement and have issued an Operating Income and Expense Account Affidavit in accordance with Article 5, paragraph 1 of this Agreement, in the form of Attachment 5;

(9)The Borrower shall have opened the Repayment Account and signed a Repayment Account Pledge Agreement in accordance with paragraph 1, Article 5 of this Agreement, in the form of Attachment 6;

(10)The Borrower and the Guarantors shall have co-signed the promissory note and power of attorney for the promissory note with amounts equivalent to the Total Credit Limit in accordance with Article 5, paragraph 2 of this Agreement, in the form of Attachment 7 and Attachment 8, respectively;

(11)The Borrower’s accountant-audited or most recently reviewed financial reports before initial drawdown and Guarantor’s accountant-audited or most recently reviewed financial reports before initial drawdown or the Form 6-K Consolidated Financial Report published and filed with the SEC;

(12)Legal opinion issued by the Banking Syndicate’s legal advisors for the Republic of China (Taiwan) and the Cayman Islands;

(13)In the event of advance by any shareholder of the Borrower’s Parent and (or) Guarantor, the Shareholder Advance Claim Subordination Affidavit issued by such shareholder shall be provided, in the form of Attachment 11;

(14)The Borrower’s Parent shall have provided the Negative Pledge in accordance with Article 8, paragraph 13 of this Agreement, signed with the approval by resolution of its board of directors, in the form of attachment 12;

(15)Satisfaction of the Know Your Customer (KYC) documents required by the Banking Syndicate; and

(16)Other documents or proof as reasonably required by the Agent.

2.Conditions Precedent to Subsequent Drawdown

The Borrower’s subsequent drawdown of the Committed Limit in accordance with this Agreement and the performance of commitments by each Syndicated Bank to the Borrower in accordance with this Agreement is subject to the conditions precedent of the Agent’s receipt of the following documents or proof at least 5 Business Days before the Borrower’s contemplated Drawdown Date or other shorter period agreed by the Agent (if any document is submitted in photocopy, the provider of the document must certify that it is a genuine, correct and full photocopy):

(1)Drawdown Application legally signed by the Borrower; for drawdown of the Tranche B Facility, relevant proof of transaction as prescribed in Article 2, paragraph 5, subparagraph (3) of this Agreement shall be submitted;

(2)In the event of advance by any shareholder of the Borrower’s Parent and (or) Guarantor, the Shareholder Advance Claim Subordination Affidavit issued by such shareholder shall be provided, in the form of Attachment 11; and

(3)Other documents or proof reasonably required by the Agent.

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3.Other Conditions Precedent to Drawdown

To draw down this Credit Facility, in addition to completing the above drawdown conditions, the Borrower shall also comply with the following:

(1)The credit limit that the Borrower wishes to draw down shall not have exceeded the relevant Committed Limit, drawdown deadline or Credit Period provided in this Agreement.

(2)The declarations, warranties, matters agreed and all documents and information provided by the Borrower and (or) the Guarantor in accordance with this Agreement shall be truthful, correct and most updated. There shall be no material adverse changes to their properties, finances or operating status, no litigation, arbitration, petition, administrative dispute, enforcement or non-litigative proceeding pending or existing that may have a material adverse effect on the Borrower’s and (or) the Guarantor’s ability to perform the agreement. All conditions listed in this Article and documents already provided remain valid and applicable during the Period of Existence of this Agreement.

(3)No Event of Breach or Potential Event of Breach has occurred or is continuing that is not remedied or that cannot be remedied, nor shall any drawdown of this Credit Facility result in any Event of Breach or Potential Event of Breach occurring or continuing that is not remedied or that cannot be remedied.

(4)The Borrower has paid in full all fees and amounts payable under this Agreement and no event has occurred for which the Banking Syndicate and (or) the Agent may suspend the provision of the credit limit in accordance with this Agreement.

The Borrower’s submission of the Drawdown Application constitutes the Borrower’s representation and warranty that it has complied with the conditions under subparagraphs (2) to (4) of this paragraph. In case of any Event of Breach or Potential Event of Breach, the Borrower shall give notice to the Agent before 10 a.m. on the Business Day before the Drawdown Date at the latest. The Agent may decide whether or not to suspend the drawdown or handle it otherwise depending on the actual situation.

4.Other Conditions to Maintain Facility

Each Syndicated Bank’s obligation to continuously maintain the credit limit is subject to the condition of the Borrower’s and the Guarantor’s performance of all obligations of this Agreement and timely completion of the provision of all securities under Article 5 of this Agreement.
 

Article 5    Special-Purpose Account and Security

The Syndicated Banks agree that all security provided by the Borrower and (or) the Guarantor in accordance with this Agreement and all documents that guarantee the repayment of indebtedness by the Borrower and (or) the Guarantor shall be made to the name of the Agent, which shall act in the capacity of a joint creditor in the common interest of the Banking Syndicate to hold and enjoy the interest of all security. The Agent shall also act as the assignee, pledgee and trustee of the security interest.

1.Special-Purpose Account and Pledge

Before the initial drawdown of this Credit Facility, the Borrower shall procure Gogoro Taiwan Sales and Services Limited to open a special-purpose account with the Agent before the initial drawdown of this Credit Facility and to carry out the following during the Period of Existence of this Credit Facility:

(1)Operating Income and Expense Account

The Borrower shall open an Operating Income and Expense Account with the Agent and ensure that 80% of its revenue within the territory of the Republic of China (Taiwan) shall be deposited (transferred) into such account starting from the date of signature of this Agreement. The Borrower shall also procure that Gogoro Taiwan Sales and Services Limited open an Operating Income and Expense Account with the Agent or the business unit designated by the Agent and the Borrower and Gogoro Taiwan Sales and Services Limited 
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shall issue an affidavit (in the form of Attachment 5), undertaking and ensuring that, starting from the date of signature of this Agreement, 80% of its revenue within the territory of the Republic of China (Taiwan) shall be deposited (transferred) into such account, and cooperate to provide the supporting materials relating to the revenue upon the request of Agent.

(2)Repayment Account

i.The Borrower shall open a Repayment Account with the Agent and sign a Repayment Account Pledge Agreement (in the form of Attachment 6) with the Agent, creating a maximum-limit pledge on the interest in such account for the benefit of the Agent. The Borrower shall ensure that the balance of such account shall be maintained at all times with an amount equivalent to at least 3 installments of interest payable calculated from the balance amount of principal drawn down under this Credit Facility at the end of the previous month (“Minimum Amount”).

ii.The Borrower shall complete the relevant process of pledge in accordance with the Repayment Account Pledge Agreement, including but not limited to a pledge notice by the Borrower to the Agent (in the form of Annex 1 to Attachment 6 or in other forms as agreed by the Agent) and make a pledge remark on the pledged account. The Borrower shall also provide the relevant proof documents to the Agent.

iii.The Borrower shall not withdraw any amount from the Repayment Account without Agent’s consent. It shall be confirmed that the balance of the Repayment Account shall meet the Minimum Amount after withdrawing. Prior to any change of balance of the Repayment Account, the Borrower shall re-issue a pledge notice to the pledgee in accordance with the Repayment Account Pledge Agreement (in the form of Annex 1 to Attachment 6 or in other forms as agreed by the Agent).

iv.On the condition that there is no Event of Breach, the proceeds from the Repayment Account may be collected by the Borrower or transferred to a general deposit account designated by the Borrower following the prior written consent of the Agent.
    
In case of any Event of Breach listed in this Agreement, the Agent may use the funds deposited currently or in the future in the Borrower’s Operating Income and Expense Account and (or) Repayment Account to repay any outstanding balance of this Credit Facility until all principal, interest and relevant fees owed by the Borrower under this Credit Facility are fully repaid.
Unless otherwise provided in this Agreement, neither the Borrower nor Gogoro Taiwan Sales and Services Limited shall assign, change, settle, create pledge on or otherwise encumber, deliver trust or otherwise dispose of the Operating Income and Expense Account and (or) the Repayment Account.

2.Promissory Note

Before seeking initial drawdown under this Credit Facility, the Borrower shall sign together with the Guarantor a promissory note in the form of Attachment 7, naming the Agent as the payee and with a face value that is equivalent to the Total Credit Limit. The Borrower and the Guarantor shall also co-sign a power of attorney for the promissory note in the form of Attachment 8 and hand it over to the Agent for custody, unconditionally and irrevocably authorizing the Agent to fill out the due date, interest start date and interest rate, etc., in the promissory note in accordance with the provisions of this Agreement at any time upon occurrence of any Event of Breach and exercise all rights on the promissory note. During the Period of Existence of this Agreement, the Borrower and the Guarantor shall issue a new replacement promissory note and power of attorney for the promissory note in the same form and with the same details and provide them to the Agent  at least every 2 years or when it deems necessary. After the Borrower and the Guarantor have handed over the new replacement promissory note and power of attorney for the promissory note to the Agent, the Agent shall return the previously issued old promissory note and power of attorney for the promissory note to the Borrower. After the Borrower has repaid all indebtedness in accordance with this Agreement and relevant contracts, the Agent shall return the promissory note and power of attorney for the promissory note to the Borrower. The Borrower and (or) Guarantor may ask to reduce the amount of the promissory note based on partial repayment of indebtedness or partial cancellation of credit limit and issue a new replacement promissory note and power of attorney for the promissory note based on the actual credit limit at the time, provided that there shall be no more than one such replacement per year. 

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Article 6    Guarantee

1.Joint and Several Guarantee

To secure all indebtedness owed by the Borrower in accordance with this Agreement, the Guarantor agrees to serve as the Borrower’s guarantor with joint and several liability. The Guarantor shall be jointly liable together with the Borrower in relation to all indebtedness owed by the Borrower under this Agreement (including but not limited to all costs, expenses and relevant fees incurred from the security or enforcement of the interest under this Agreement and Security Documents) for the full repayment to the Banking Syndicate.

2.Guarantor’s Consent

If the Borrower fails to perform any indebtedness owed under this Agreement, the Guarantor agrees to waive the right of discussion and immediately repay such indebtedness in full. The Guarantor also agrees to the following:

(1)Before the main indebtedness guaranteed by the Guarantor is fully repaid, if the Guarantor makes repayment to the Banking Syndicate on behalf of the Borrower, to the extent of the repayment, the Guarantor’s claim against the Borrower and the right taken over from the Banking Syndicate shall be subordinated to and shall only be repaid after all of the Banking Syndicate’s remaining claims against the Borrower in accordance with this Agreement, after deduction of the portion repaid by the Guarantor on the Borrower’s behalf, are repaid.

(2)In case of bankruptcy, reorganization, liquidation or insolvency of the Borrower, the Guarantor shall not claim any reduction of its liability and shall still be liable for the repayment of all indebtedness owed by the Borrower in accordance with this Agreement. The same applies in case of any change to the Borrower’s organization.

(3)The Guarantor agrees that all agreements, undertakings or special agreements made by the Borrower in relation to this Agreement (including but not limited to repayment, security of claim, acknowledgment of claim, collection and use of information or other agreements) are binding on the Guarantor and shall be complied with and performed by the Guarantor, except for actions or non-actions that should be performed exclusively by the Borrower.

(4)The Banking Syndicate may claim repayment from the Guarantor without having to first seek repayment from the collateral under this Agreement or exercise the claim under the promissory note under Article 5, paragraph 2 of this Agreement.

(5)Unless the Guarantor repays all indebtedness under this Credit Facility on behalf of the Borrower, the Guarantor shall not ask the Banking Syndicate to transfer the collateral and security interest. When the Guarantor has repaid all indebtedness on behalf of the Borrower and seeks the transfer of collateral from the Banking Syndicate in accordance with the law, it shall not voice any objection to the Banking Syndicate due to any defect in the security interest, proof of claim or collateral.

(6)The Guarantor’s guarantee in accordance with this Agreement shall not be impacted by the Banking Syndicate’s refusal to accept any collateral, the invalidity of any collateral already accepted or the Banking Syndicate’s consent about the disposal of any amount already paid or to be paid to the Borrower. The Guarantor agrees that the Borrower may replace or change the collateral provided to the Banking Syndicate in accordance with this Agreement and the Guarantor’s guarantee liability shall not be impacted by such replacement or change of collateral. The Guarantor hereby waives the right to require that the Banking Syndicate must first seek repayment from the Borrower or any other person before seeking repayment from the Guarantor, including the right to require a certificate of refusal, as well as any other right under Article 745 of the Civil Code.

(7)If the Banking Syndicate subsequently grants a written approval for delayed repayment of any of the Borrower’s indebtedness under this Agreement, the Guarantor shall further give a written consent (including but not limited to signing an addendum) to continue its joint and several liability together with the Borrower for any extended indebtedness and to be liable for the full repayment to the Banking Syndicate.

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(8)Any security or guarantee further provided by the Borrower currently or in the future to secure its indebtedness shall not be impacted by the signature, performance, cancellation or termination of the guarantee under this paragraph (i.e., the guarantee under this paragraph shall be without prejudice to any other security or guarantee further provided by the Borrower to secure its indebtedness) and the effect of the guarantee under this paragraph shall not be impacted by any other security or guarantee further provided by the Borrower.

(9)The Guarantor also agrees to waive any other guarantor’s right under Chapter 2, Section 24 of the Debt Volume of the Civil Code, unless prior waiver is not permitted by the law.

3.Addition/Replacement of Guarantor

During the Period of Existence of this Agreement, the Guarantor shall not use any reason to seek cancellation or release of its guarantee liability or seek replacement of the Guarantor unless a written consent is granted by the full Banking Syndicate. Based on objective and specific facts (including but not limited to deterioration of creditworthiness of the Guarantor), if it is deemed through Resolution of Majority Syndicated Banks that an additional Guarantor is required or if the full Banking Syndicate deems that the Guarantor should be replaced, upon notice from the Agent, the Borrower shall swiftly add another guarantor in accordance with the Resolution of Majority Syndicated Banks or provide a replacement guarantor acceptable to the full Banking Syndicate within the period required by the Agent. The original Guarantor and the new Guarantor shall bear the guaranteed obligations on all debts under this Agreement.

The Borrower shall procure that the additional or replacement guarantor shall sign all necessary documents required by the Agent (including but not limited to guarantee documents, promissory note, power of attorney for the promissory note, etc.) The provisions of this Agreement about the Guarantor shall also apply to the additional or replacement guarantor.

Before the guarantor replacement procedure is completed, the original Guarantor shall remain liable for the guarantee in accordance with this Agreement.

4.    Guarantor’s Consent Letter

The Guarantor does not serve as Guarantor under this Credit Facility in a capacity of director, supervisor or other period with representation right of Borrower / Borrower’s Parent. During the Period of Existence of this Agreement, if the Guarantor serves as director, supervisor or other person with representation right of Borrower / Borrower’s Parent, in case of resignation, dismissal or other removal, the Guarantor shall give immediate written notice to the Agent for the Agent to inform the Banking Syndicate upon receipt of such notice. The Agent and the Banking Syndicate may suspend the use of this Credit Facility until the Guarantor issues a letter of consent (in the form of Attachment 9) agreeing to continue serving as the Guarantor or until the Borrower and (or) the Guarantor provide another security proposal acceptable to the full Banking Syndicate and complete relevant procedures before further drawdown by the Borrower. In case of the above, the Guarantor and (or) the Borrower’s failure to give immediate written notice shall be deemed an Event of Breach.

Article 7    Representation and Warranty

To procure signature of this Agreement by the Arrangers, the Agent and each Syndicated Bank and the performance of their commitments, the Borrower and (or) the Guarantor (to the extent of applicability to the Guarantor) hereby represent and warrant the following:

1.Corporate Existence and Authority

The Borrower’s Parent and the Guarantor are companies legally incorporated and validly existing in accordance with the laws of the Cayman Islands, with corporate abilities and authority. The Borrower is a branch of a foreign company legally registered in accordance with the laws of the Republic of China (Taiwan) and may operate its business within the territory of the Republic of China (Taiwan) in accordance with the law. The Borrower’s Parent, the Borrower and the Guarantor may engage in business activities in accordance within their scopes of business and have the legal authority to possess their assets. Neither the Borrower nor the Guarantor has 
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breached any law, order or their articles of association or any other corporate bylaws leading to a Material Adverse Event.

2.Authority and Binding Effect

The Borrower and the Guarantor have completed all necessary procedures within their companies for the legal authorization to sign, deliver and perform this Agreement, the Security Documents and relevant documents and have acquired the necessary authorizations, approvals or consents of their shareholders’ meetings and (or) boards of directors. The signatures of this Agreement, the Security Documents and relevant documents signed by the Borrower and the Guarantor are legally valid and binding.

The Borrower and the Guarantor have acquired and have maintained the validity of all necessary consents, approvals, licenses, authorizations or registrations from the competent authorities for the signature, delivery and performance of the provisions and conditions under this Agreement, the Security Documents and relevant documents.

3.     Legality

The signature, delivery and performance of this Agreement, the Security Documents and relevant documents do not breach the provision of any law, charter, order or the Borrower’s or the Guarantor’s articles of association or other company bylaws, nor is there any event of forgery or alteration, nor do they breach any of the Borrower’s and (or) the Guarantor’s contract obligations agreed with any third party or constitute any event of breach by the Borrower and (or) the Guarantor.

4.     No Pending Litigation

Other than those already disclosed by the Borrower through the latest accountant-audited or reviewed financial report before the signature date of this Agreement and (or) those already disclosed by the Guarantor in the latest Form 6-K Consolidated Financial Report published and filed with the SEC before the signature date of this Agreement or provided in writing to the Arrangers, the Agent and the Banking Syndicate by the Borrower and (or) the Guarantor, there is no litigation, arbitration, petition, administrative dispute, enforcement or non-litigative proceeding that is pending or existing in any domestic or foreign court of any level, arbitration institution, government authority or other institution that may constitute a Material Adverse Event on the Borrower and (or) the Guarantor, nor is there any other ongoing proceeding that may constitute a Material Adverse Event on the financial status, property or business of the Borrower and (or) the Guarantor or this Credit Facility.

There has been no business suspension, dissolution, split, bankruptcy, settlement under bankruptcy law, reorganization, liquidation, relief, debt cleanup, debt negotiation or any other similar legal proceeding filed (petitioned) by or against the Borrower and (or) the Guarantor that is pending or ongoing and that may constitute a Material Adverse Event on the financial status, property or business of the Borrower and (or) the Guarantor or this Credit Facility.

5.     No Breach of Contract

There is no Event of Breach or Potential Event of Breach by the Borrower and (or) the Guarantor, nor is there any breach of other contracts or potential breach that may constitute a Material Adverse Event on this Credit Facility.

6.     Information Disclosure

There is no false representation or warranty about any fact in the declarations and warranties by the Borrower and (or) the Guarantor in relation to this Agreement under this Agreement, the Security Documents or relevant documents or delivered to any party to this Agreement, nor is there omission of any fact that renders such declarations, warranties or documents misleading.

All relevant documents and information provided by the Borrower and (or) the Guarantor to the Arrangers, the Agent and the Syndicated Banks are truthful and correct. Any prediction or relevant statement included in such documents is carefully and reasonably made by the Borrower and (or) the Guarantor based on the information that they are able to acquire and various hypotheses under the current environment. To the Borrower’s knowledge, anything that may 
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impact such documents, information and the relevant statements therein or anything that may impact the Banking Syndicate’s willingness to grant the credit facility to the Borrower on the terms of this Agreement has been fully disclosed in writing to the Arrangers, the Agent and the Banking Syndicate.

7.    Financial Status

The latest accountant-audited or reviewed financial reports before the date of signature of this Agreement submitted by the Borrower and the latest accountant-audited annual financial report or Form 6-K Consolidated Financial Report published and filed with the SEC before the signature date of this Agreement submitted by the Guarantor to the Arrangers, the Agent and the Banking Syndicate are prepared based on the IFRS and on a consistent basis, and they fully, correctly and reasonably record the financial status of the Guarantor and their affiliates as of the above date, as well as any changes in the overall operating results and financial status at the end of the accounting period.

From the above date until the date of signature of this Agreement, there have been no material adverse changes in the overall business, operation, property, finance or other situations of the Borrower, the Guarantor or their affiliates.

8.    Taxes and Charges

The Borrower and (or) the Guarantor have complied with all laws and regulations of the relevant competent authorities to put in place proper books and records, have filed and paid all taxes and (or) charges due, have filed remedy proceedings in cases of non-paid taxes and (or) charges and have made proper reserve provisions in accordance with the IFRS.

9.    Full Ownership

The Borrower and (or) the Guarantor have full ownership of all of their assets. Other than disclosures already made in writing to the Banking Syndicate, all of the Borrower’s and (or) the Guarantor’s real properties, personal properties and other assets are free from any mortgage, pledge, other security or encumbrance, and such assets do not include any items that cannot be seized, held, transferred or pledged due to legal prohibitions, nor are there any seizures, detentions or other similar proceedings in relation thereto.

10.   Continuity

The Borrower and the Guarantor represent and warrant to the Arrangers, the Agent and the Syndicated Banks that, during the Period of Existence of this Agreement, the above declarations will continue to be true and correct.

Article 8    Undertakings

Other than the other undertakings provided in this Agreement, the Borrower and (or) the Guarantor (to the extent of applicability to the Guarantor) also undertake to duly perform the following during the Period of Existence of this Agreement:

1.Use of Funds

The Borrower shall use all credit facility funds acquired in accordance with this Agreement for the credit facility purposes listed under Article 2, paragraph 1 of this Agreement and shall put in place proper books and records to show the utilization of this Credit Facility. However, neither the Agent nor the Syndicated Banks are responsible for supervising the actual use of such funds by the Borrower.

2.Financial Report

The Borrower and the Guarantor shall provide the Agent with financial reports in accordance with the following:

(1)Within 150 days from the end of each accounting year, the Borrower shall provide the accountant with the audited non-consolidated financial report ending in such accounting year.

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(2)Within 150 days from the end of each accounting year, the Guarantor shall provide the accountant with the audited non-consolidated financial report ending in such accounting year.

(3)Within 90 days from the end of the second quarter of each accounting year, the Guarantor shall provide the second quarter Form 6-K Consolidated Financial Report published and filed with the SEC.

(4)As deemed necessary by the Agent, the Borrower shall provide its non-consolidated non-audited financial statements within 90 days from the end of the second quarter of the accounting year.

Other than the non-audited financial statements, the financial reports provided in accordance with this paragraph shall be prepared in accordance with the IFRS. The non-consolidated financial reports provided by the Borrower shall also be audited by an accountant acceptable to the Agent; the annual consolidated financial reports provided by the Guarantor shall also be audited by an accountant acceptable to the Agent; the second quarter Form 6-K Consolidated Financial Report shall be published and filed with the SEC. The information contained in the financial reports as provided in this paragraph shall be presented in accordance with the respective and applicable IFRS on a basis of consistency, and fully, completely and reasonably record the financial status of the Borrower, Guarantor and their affiliates before the date of the relevant financial reports, as well as the change of overall operations outcomes an financial status at the end of accounting periods.

In providing the financial reports, the Borrower and (or) the Guarantor shall provide the Agent with original copies or electronic files thereof (the Agent may choose to provide only electronic files of such reports to each Syndicated Bank). The Borrower and (or) the Guarantor hereby authorize the Agent to forward all financial reports that they provide to the Syndicated Banks.

3.Financial Covenants

The Guarantor undertakes to maintain the following financial ratios and requirements during the Period of Existence of this Agreement:

(1)Liquidity ratio [liquid asset / liquid debt]: ≥ 100%.

(2)Debt ratio [(total debt – leasing debt) / shareholder equity]: 

The debt ratio shall apply based on the earnings before tax (EBT): Where the Guarantor’s EBT<0%, the debt ratio shall be ≦400%; where the Guarantor’s EBT ≧0%, the debt ratio shall be ≦450%.

The forgoing financial ratios and benchmarks shall be reviewed every half a year starting from the date of the 2022 consolidated financial report (i.e. every March 31 or September 30, hereinafter the “Review Date”).

Unless otherwise provided in this Agreement, the accounting terms used in each clause are defined in accordance with the IFRS. The above financial ratios and standards shall be based on the Guarantor’s annual consolidated financial report audited by an accountant acceptable to the Agent or the second-quarter Form 6-K Consolidated Financial Report as published and filed with the SEC.

If the Guarantor breaches any financial ratio or requirement under this paragraph, the Guarantor shall make rectification (calculated based on the Guarantor’s accountant-audited consolidated financial report or the Form 6-K Consolidated Financial Report) before the following Review Date (hereinafter the “Rectification Deadline”). Failure to make rectification before the Rectification Deadline shall not be deemed a breach. However, starting from the day following the Rectification Deadline (i.e., October 1 after the submission of the annual financial report or next June 1 after the submission of second-quarter Form 6-K Consolidated Financial Report) until the date of rectification, a monthly compensation shall be charged at 0.15% per annum (calculated based on 365 days a year, with any period shorter than one month calculated as one month) on the balance of outstanding principle under this Credit Facility, which shall be paid to the Agent on the Interest Date and forwarded to the Syndicated Banks in accordance with the Credit Risk Sharing Ratios. In case of two consecutive failures to meet the above financial ratios or requirements, unless it constitutes other Events of Breach, such failure shall still not be deemed an Event of 
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Breach. However, the Guarantor shall submit specific financial improvement measures (including but not limited to capital increase in cash) to the Agent.

4.Declaration and Other Materials

The Borrower and the Guarantor shall provide the Agent with the following documents:

(1)When the Guarantor provides its annual or second-quarter financial report in accordance with paragraph 2 of this Article, the Borrower and the Guarantor shall also submit declarations where the Borrower shall declare that (i) to its knowledge, there is no Event of Breach that has occurred or is continuing; if any Event of Breach has occurred and is not remedied or is continuing, the nature of the event shall be specified together with the contemplated measures, and (ii) all declarations and warranties made in accordance with this Agreement are correct, and the Guarantor shall declare that its financial status is consistent with the financial ratios and requirements under paragraph 3 of this Article. The declarations in accordance with this subparagraph shall be in the forms of Attachment 10-1 and Attachment 10-2, respectively.

(2)Provide financial or other relevant information as soon as possible in accordance with reasonable requests of the Agent.

5.Property Inspection and Accounting Books and Records

The Borrower’s Parent, Borrower and the Guarantor shall put in place and keep proper records and accounting books, vouchers and entries in a complete, truthful and correct manner in accordance with the IFRS. The Borrower’s Parent, Borrower and the Guarantor also agree to accept financial audit on (the purpose of) this Credit Facility, inspection of information such as their properties, business, operating status, main shareholder structures and assets, as well as the reviewing, summarizing and photocopying of relevant books, statements (including financial statements of affiliates), vouchers and documents by the Agent or its designated representatives during business hours. The Agent or its designated representatives and the employees, staff and accountants thereof shall also be allowed to discuss the business, operation, property, finance and other situations of the Borrower and the Guarantor. The Agent and the Syndicated Banks may ask the Borrower and (or) the Guarantor to fill out and submit the above financial and relevant information regularly, with all the fees borne by the Borrower.

6.    Company and Asset Maintenance

The Borrower’s Parent, Borrower and the Guarantor shall maintain the legal existence of their companies, shall keep the rights, authorizations, approvals, licenses, permits, properties and assets required for the businesses legal and valid and shall continue their operations in normal and ordinary manners. The Borrower’s Parent, Borrower and the Guarantor shall make timely payments of statutory taxes, annual fees, administrative charges, etc., in compliance with all laws and regulations of the relevant government authorities, except if remedy proceedings have been filed in accordance with the law and proper reserves have been provided for in accordance with the applicable IFRS.

The Borrower’s Parent and the Guarantor shall provide the Agent with photocopies of receipts of annual administrative charges or proof of existence from the local governments where they are registered every year to show that they are companies that continue to exist legally and validly.

7.    Asset Maintenance and Proper Insurance

The Borrower and the Guarantor shall exercise the due care of good administrators in the proper maintenance and servicing of their assets to maintain good conditions thereof and normal operation of the companies.

Unless otherwise provided in this Agreement, the Borrower and the Guarantor shall purchase insurance of various types from reputable insurers for company assets in accordance with the amounts and scopes of insurance generally purchased by companies engaged in similar types of business or having similar assets and shall maintain such insurance during the Period of Existence of this Agreement.
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8.    Shareholder Advance

During the Period of Existence of this Agreement, if the Borrower’s Parent and (or) the Guarantor receives a shareholder advance due to insufficient operating capital or other reasons, the Borrower shall acquire the Shareholder Advance Claim Subordination Affidavit in the form of Attachment 11 from the shareholder of the Borrower’s Parent and (or) Guarantor that made the advance, agreeing that the claim from its advance shall be subordinated to the claim of the Banking Syndicate from this Credit Facility and that the interest rate of the advance shall not be higher than the lowest loan interest rate of this Credit Facility for any current or subsequent loan in the same currency.

If the Borrower fails to repay principal, interest or other amounts payable in full on time in accordance with this Agreement, the Borrower’s Parent and (or) the Guarantor shall not repay the shareholder advance from their shareholders, except if such shareholders subsequently capitalize such shareholder advances.

9.    Claim Subordination

The Borrower shall ensure that a pledge on the Repayment Account is created for the benefit of the Agent in accordance with Article 5, paragraph 1 of this Agreement and the Agent, acting in the capacity of a joint creditor and in the common interest of the Syndicated Banks, is entitled to first-priority security interest. In addition to such security interest, the Banking Syndicate’s claim under this Agreement shall rank at least pari passu with the Borrower’s other unsecured creditors, except for priorities granted by the law or the situation required for normal business operation.

10.  Due Performance and Debt Repayment

The Borrower shall duly cooperate and comply with all declarations, undertakings, guarantees and conditions provided in this Agreement and relevant documents and shall ensure the truthfulness and completeness thereof.

The Borrower shall repay all its indebtedness (including but not limited to taxes) on the due date of this Credit Facility or any other amount or when this Credit Facility is deemed fully due in accordance with this Agreement due to delay, breach or other reasons.

11.   Compliance with Applicable Laws

The Borrower and the Guarantor shall duly comply with applicable laws, including but not limited to laws related to environmental protection, pollution prevention and waste management, and shall acquire necessary approvals or permits from the relevant competent authorities.

The Borrower and the Guarantor shall acquire, update and maintain the permits, licenses, consents and approvals required in relation to their business in accordance with the laws of the time and shall send photocopies of such documents to the Agent upon its request.

12.  Other Security

If the value of any collateral provided to the Banking Syndicate in accordance with Article 5 of this Agreement depreciates or if the collateral has any defect in entitlement or is involved in any dispute, the Borrower shall give immediate written notice to the Agent and shall add or replace collateral acceptable to the Agent during the period required by the Agent. Upon partial or full replacement of the collateral, the Borrower shall create a pledge or other security interest on the collateral after replacement for the benefit of the Agent or make up the difference with other collateral acceptable to the Agent.

13.  Negative Pledge

Before initial drawdown by the Borrower, the Borrower’s Parent shall issue a Negative Pledge (in the form of Attachment 12) approved by resolution of its board of directors, undertaking that no security or encumbrance shall be created on any Battery, Battery Swap Facility and its affiliated 
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Facilities owned by the Borrower’s Parent or the Borrower for the benefit of any third party during the Period of Existence of this Credit Facility. 

14.   Insurance for Battery, Battery Swap Facility and its affiliated Facilities

The Borrower and the Borrower’s Parent shall purchase sufficient-amount insurance (including but not limited to theft insurance, fire insurance, product insurance, etc.) that is consistent with the standards of the industry from insurers acceptable to the Agent for the Battery, Battery Swap Facility and its affiliated Facilities, with the insurance cost borne by the Borrower and (or) Borrower’s Parent.

15.  Controlling Power

During the Period of Existence of this Agreement, the Guarantor shall maintain control over the operation of the Borrower’s Parent and the shareholding of the Borrower’s Parent held by the Guarantor shall not be subject to any pledge for the benefit of any third party.

16.   Capital Increase

The Guarantor covenants that, unless there is special reason and it has notified the Agent, it shall engage the Agent as the fund collection bank for its capital increase.

17.   Key Employee

The Borrower and Guarantor covenants that, during the Period of Existence of this Agreement, Mr. Horace Luke shall continue acting as the Chief Executive Officer or acting in other equivalent position to the Guarantor. If Mr. Luke discontinues acting as the Chief Executive Officer or acting in other equivalent position, the Borrower shall voluntarily inform the Agent of the same and explain the reason. If the Resolution of Majority Syndicated Banks deems this situation as a Material Adverse Event, it shall be handled in accordance with Article 9 of this Agreement.

18.  Maintain Listing

The Guarantor shall maintain its listing status on Nasdaq.

19.Notice of Major Events

Upon occurrence of any of the following events, the Borrower and (or) the Guarantor shall give immediately written notice to the agent and provide an explanation about the corresponding measures undertaken. However, this does not impact any right that may be exercised by the Agent or the Banking Syndicate in accordance with this Agreement, nor does it release the Borrower and (or) the Guarantor of their obligations to be performed or complied with in accordance with the law or this Agreement.

(1)The Borrower, the Borrower’s Parent or the Guarantor has any material information that are required to be disclosed in accordance with the rules of Nasdaq (including but not limited to any passed material investment plan (including long-term equity investment), and sale, transfer, lease or disposal of material assets);

(2)Any change to the nature of business or the name, company organization, articles of association, specimen seal or signature registered with the company register, representative, representative’s scope of authority, director or supervisor of the Borrower, the Borrower’s Parent or the Guarantor;

(3)The Borrower, the Borrower’s Parent or the Guarantor is subject to any litigation, dispute, arbitration or other similar legal proceeding pending in any court, arbitration institution, government authority or other institution with an amount exceeding NT$300,000,000 or the equivalent in other currencies;

(4)Material adverse changes in the business, operation, property, finance or other aspect of the Borrower, the Borrower’s Parent or the Guarantor, or any other adverse event that has an material impact on the creditworthiness or the contract performance ability of the Borrower and (or) the Guarantor; or
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(5)Any Event of Breach under this Agreement.

20.Negative Covenants

The Borrower, the Borrower’s Parent or the Guarantor agree to not directly or indirectly engage in any of the following during the Period of Existence of this Credit Facility unless a resolution is passed by the Majority Syndicated Banks in advance and the Agent has issued a written consent:

(1)Signature or performance of any contract for any merger, split, or unlimited liability partnership that is outside the ordinary course of business, except in the case of a merger where the Borrower’s Parent or Guarantor is the remaining company and the merger does not constitute a Material Adverse Event on the ability to repay debt.

(2)Changes or any acts that create major changes to the major operation, scope or nature of business, company organization form or shareholding structure.

(3)Sale, lease, creating encumbrance, assignment or other disposal of all or major assets or business to any other person, except for selling, leasing, assigning assets or creating encumbrance to the Borrower, Borrower’s Parent and(or) Guarantor or an affiliate of the Borrower, Borrower’s Parent and Guarantor defined by the R.O.C. Company Act or selling, leasing or creating encumbrance over the collateral other than under this Credit Facility in the ordinary course of business of the Borrower or the Borrower’s Parent and daily transactions permitted by the law.

(4)Transaction with any other person with unfavorable terms that deviates from general normal commercial transactions and constituting a Material Adverse Event on the ability to perform this Agreement.

(5)Lending of company funds to others, except for lending of funds between the Borrower, Guarantor, Gogoro Taiwan Limited, Gogoro Taiwan Sales and Services Limited and the affiliates of the Borrower/the Borrower’s Parent/Guarantor defined by the R.O.C. Company Act.

(6)Direct or indirect undertaking of responsibility for others through debt undertaking, provision of guarantee, endorsement or otherwise, except guarantee or endorsement between the Borrower, Guarantor, Gogoro Taiwan Limited, Gogoro Taiwan Sales and Services Limited and the affiliates of the Borrower/the Borrower’s Parent/Guarantor defined by the R.O.C. Company Act.

(7)Failure to repay the principal, interest and other amounts payable in full and on time in accordance with this Agreement and failure by the Borrower or Borrower’s Parent to repay shareholder advance to their respective shareholder.

(8)Reduction of paid-in capital or distribution of assets or equity to shareholders, except share repurchase (including treasury shares) in accordance with the law, capital reduction following repurchase or redemption of one’s own shares and subsequent cancellation in accordance with the law or capital reduction to compensate losses.

(9)Upon occurrence of an Event of Breach or Potential Event of Breach, issuance of cash dividend or distribution of dividend or bonus through issuance of new shares.

21.Loss of Debt Certificate

If any instrument, document or any other certificate of indebtedness owed under this Agreement provided by the Borrower and (or) the Guarantor to the Syndicated Banks, the Arrangers and (or) the Agent in accordance with this Agreement is misplaced, lost, damaged, stolen, forged, altered or otherwise rendered invalid due to transmission, accident, disaster, force majeure or other unexpected event, or if the computer system that processes the business of the Syndicated Banks, the Arrangers and (or) the Agent cannot function normally due to force majeure or any event that is not imputable to the Syndicated Banks, the Arrangers and (or) the Agent, the Borrower and (or) the Guarantor agree that the books, vouchers, computer generated forms, debt certificates, 
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photocopies of correspondence, microfilms or manually prepared documents of the Syndicated Banks, the Arrangers and (or) the Agent shall prevail. If requested by the Syndicated Banks, the Arrangers and (or) the Agent, the Borrower and (or) the Guarantor shall provide alternative certificates or re-sign new instruments or debt certificates in the same format and with the same substance, and shall cooperate with the Syndicated Banks, the Arrangers and (or) the Agent to carry out the procedures of loss declaration and payment suspension required by applicable laws and shall repay the relevant indebtedness in the manner provided in this Agreement.

22.Debt Certificate and Signature

(1)This Agreement is signed by the Borrower and the Guarantor under legal authorization. Neither the Borrower nor the Guarantor shall deny the validity of this Agreement based on the reason that the specimen seal or signature on this Agreement was stolen or forged.

(2)Any instrument issued, guaranteed or endorsed by the Borrower and (or) the Guarantor and held by the Syndicated Banks, the Arrangers and (or) the Agent due to this Credit Facility are prepared by the Borrower and (or) the Guarantor under legal authorization. If the specimen seal or signature of the Borrower and (or) the Guarantor is stolen or forged and if the instrument holder is in good faith, the Borrower and (or) the Guarantor shall be liable for all losses incurred.

(3)In case of changes in the name, organization, articles of association, specimen seal, representative, representative’s scope of authority of the Borrower and (or) the Guarantor or any other event that may impact the interest of the Syndicated Banks, the Arrangers and (or) the Agent, a written notice about such change shall be given to the Agent and an application shall be filed with the Agent to change or cancel the specimen seal or signature previously provided.

(4)Before notice is given and the procedure for change or cancellation of the previous specimen seal or signature is completed under the previous subparagraph, the Borrower and (or) the Guarantor shall be liable for all transactions made between the Borrower and (or) the Guarantor and any other party to this Agreement, provided that, in the event that the specimen seal or signature is stolen or forged, the losses shall be handled in accordance with subparagraphs (1) and (2) above. 

23.Information Collection and Use

The Borrower/the Borrower’s Parent, the Guarantor and its representative, and the Personal Guarantor (hereinafter the “Personal Data Subjects”) agree to the following in relation to the collection, processing, use, international transmission (hereinafter the “Collection and Use”) of their information related to this Agreement by the Syndicated Banks, the Agent, the Arrangers and other relevant institutions:

(1)The Syndicated Banks, the Agent and (or) the Arrangers may, in accordance with the Personal Data Protection Act and (or) relevant legislations subsequently revised and implemented, (i) exchange credit verification and financial information required for credit facility activities, (ii) carry out businesses and services between banks, (iii) perform obligations under this Agreement or exercise rights under this Agreement, the Security Documents and security interest, (iv) perform operational management to the necessary extent (including but not limited to matters for the purpose of compliance with law, cooperation with financial supervision, management, inspection and other legislative requirements, client management and internal control, research of statistics and surveys, execution of money laundering prevention and global crackdown and investigation on terrorists, etc.), (v) entrust the processing of relevant matters to others, and (vi) collect basic identification information, credit verification investigative reports, credit facility information (including payment delay, collection and bad debt records), deposit information, financial information, information on collateral and other personal or real properties, instrument credit information, personal credit information, credit card (including IC card and magnetic card) credit information, credit card merchant credit information and other personal information related to credit transactions in accordance with the “Specific Purpose and Type of Personal Data under the Personal Data Protection Act”) published by the Ministry of Justice and to the extent of specific purposes of financial activities related to credit activities (hereinafter collectively, “Personal Data”).

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(2)In addition to their own collection and use, the Syndicated Banks, the Arrangers and (or) the Agent may also provide the information to their parent (headquarters) or other subsidiaries (branches), assignee of its financing interest or person sharing its risk (including any person who contemplates to be assigned such interest or to share such risk and its relevant advisors), claim appraisal or audit personnel or other personnel permitted by law, recipients of internationally transmitted personal data without restriction by central competent authority of the relevant industry, financial supervisory authority or authority with investigation right in accordance with the law, Joint Credit Information Center, Taiwan Clearing House, credit guarantee institutions, credit rating agencies, Small and Medium Enterprise Credit Guarantee Fund of Taiwan, Financial Information Service Co., Ltd. and other relevant institutions designated by the Ministry of Finance or the Financial Supervisory Commission or having dealings with other parties to this Agreement (including financial holding companies affiliated with each Syndicated Bank and their subsidiaries and affiliates), any person that contemplates to merge with any Syndicated Bank, any other person that contemplates to engage in any similar transaction with any Syndicated Bank, entrusted institutions, investors (or potential investors), arrangers, trustee institutions or other relevant personnel in the transaction of asset securitization (or transactions with substantially the same economic effect) initiated by a Syndicated Bank, as well as any third party engaged by the Banking Syndicate, the Arrangers and (or) the Agent to provide litigation, collection, professional consulting or other services for claims under this Credit Facility and the agents and users thereof, for such entities and their agents and users to collect and use the Personal Data of the Personal Data Subjects. These institutions may provide all information of the Personal Data Subjects they have to other parties to this Agreement and their attorneys, appraisers and other professional institutions for collection and use (the Syndicated Banks, the Arrangers, the Agent, the above institutions and other units or persons who use the information hereinafter individually or collective, the “Data User”).

(3)The period of the above use of Personal Data is the period of existence of the specific purposes of the collection and use of such Personal Data, the retention period stipulated by applicable laws or the retention period required by the Data User for the performance of this Agreement. The territory of use is the domestic or overseas places where the Data Users are located and the business places of other relevant institutions having dealings with the parties to this Agreement. The manner of use is collection and use through electronic equipment or machinery with reasonable and feasible scientific technologies at the time of collection and use and other non-automated manners of collection and use.

(4)The Personal Data Subjects may ask to verify or view their personal data, ask to supplement, correct, prepare duplicate copies of their Personal Data or ask to delete, stop the collection or use of their Personal Data. However, during the Period of Existence of this Agreement and after the expiration of such period, if the Personal Data Subject asks to delete and stop the collection and use of its Personal Data that is used by the Data User to perform matters related to this Agreement or that is required for its business activities (including but not limited to financial  supervision purpose or those as required by laws), the Data User may refuse such request.

(5)The Borrower/the Borrower’s Parent and the Guarantor shall urge their representatives (including subsequent replacement representatives) to agree to the above provisions about the collection and use of data.

(6)Any consent already given by a Personal Data Subject allowing the Data User to use its Personal Data shall continue to be valid to the extent that it is not in conflict with this Agreement.

(7)The Borrower agrees that the Arrangers may cite or refer to the basic information of this Credit Facility in the professional media (e.g. b.p, IFR) or publish of the same in accordance with the market practice.

In addition to collecting and using information related to Personal Data Subjects in accordance with this paragraph, each Syndicated Bank, the Agent and the Arrangers shall also comply with the confidentiality obligations under Article 48, paragraph 2 of the Banking Act.

24.Legal Compliance

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In accordance with the legislations applicable to the Agent and (or) the Syndicated Banks, the Borrower/the Borrower’s Parent and Guarantor agree to the following during the Period of Existence of this Credit Facility:

(1)Provide the Know Your Customer (KYC) documents or Customer Due Diligence (CDD) documents required by the Syndicated Banks.

(2)In accordance with the requirements of financial institutions related to the Foreign Account Tax Compliance Act (FATCA) of the United States, the Borrower/the Borrower’s Parent and Guarantor shall sign or provide relevant documents as reasonably required by the Agent and (or) the Syndicated Banks and carry out relevant matters in accordance with applicable laws.

(3)In accordance with the requirements of financial institutions related to the Common Reporting Standards (CRS) and due diligence, the Borrower/the Borrower’s Parent and Guarantor shall sign or provide relevant documents as reasonably required by the Agent and (or) the Syndicated Banks and carry out relevant matters in accordance with applicable laws.

Article 9    Breach

1.Event of Breach

Any of the following events constitutes an Event of Breach:

(1)The Borrower’s Parent and (or) the Borrower fails to pay on time any principal, interest, fees of any kind of any other amounts payable provided in this Agreement or relevant contracts.

(2)Any of the Borrower’s Parent, Borrower and (or) the Guarantor’s declarations, warranties, guarantees or any information in this Agreement or relevant documents or any statement they provided is false, concealing or omissive constituting a Material Adverse Event.

(3)The Borrower’s Parent, Borrower and (or) the Guarantor fail to comply with, fail to perform or breach any conditions, undertaking or agreement under this Agreement or any relevant contract or document (breach of financial covenant shall be handled in accordance with Article 8, paragraph 3 of this Agreement).

(4)The Borrower’s Parent, Borrower and (or) the Guarantor (to the extent of the applicability of its nature to the Guarantor) petitions (applies for) business suspension, dissolution, bankruptcy, settlement under bankruptcy law, reorganization, liquidation, relief, debt cleanup, debt negotiation or any other similar legal proceeding in accordance with the Bankruptcy Act, the Company Act or other laws, seeking to acquire release or suspension of their responsibility to repay debt; or assigns their assets for the interest of third parties; or any litigation or legal proceeding is filed against the Borrower and (or) the Guarantor, clearly having an impact on their abilities to repay the loan; or the Borrower and (or) the Guarantor is unable (or has recognized in writing that they are unable) to pay debt that is due.

(5)There is any judgment, arbitration award or administrative sanction/order to the disfavor of the Borrower’s Parent, Borrower and (or) the Guarantor, which may constitute a Material Adverse Event, or the Borrower and (or) the Guarantor has received a confirmed judgement from the court or other authorities to their disfavor and has not made payment in accordance with such judgment, which may constitute a Material Adverse Event.

(6)The Borrower’s Parent and (or) the Borrower closes its business, or suspends its business due to operating difficulties, or suspends business for more than 30 consecutive days due to reasons other than operating difficulties, or the business is suspended for an aggregate of more than 60 days in any year for reasons other than operating difficulties.

(7)The Borrower fails to create a pledge on the Repayment Account for the benefit of the Agent in accordance with Article 5, paragraph 1 of this Agreement, or the Agent, in its status as joint creditor, fails to acquire or loses for any reason the security interest under this Agreement for the common interest of the Banking Syndicate; or any part of the Security Documents under this Agreement is invalid or unenforceable, or any collateral provided in accordance with this Agreement is subject to provisional seizure, provisional disposition or 
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other security measures, enforcement or other similar proceedings, which are not removed within 14 days.

(8)When additional collateral should be provided in accordance with Article 8, paragraph 12 of this Agreement, the Borrower fails to provide collateral acceptable to the Agent within the period required in writing by the Agent.

(9)Any registration, government permit, approval or license related to the performance of obligations under this Agreement or for the operation of the Borrower and (or) the Guarantor (including but not limited to license or approval related to electric motorcycles) is nullified, revoked, seriously restricted or cannot be acquired, or there is any material breach which is not rectified before the deadline as required by the competent authority that may constitute a Material Adverse Event.

(10)The credit funds acquired by the Borrower’s Parent and (or) the Borrower in accordance with this Agreement are used for any actual funding purpose that is inconsistent with the purpose agreed under this Agreement.

(11)Any government authority forfeits, confiscates, nationalizes or undertakes other measures against the security under this Agreement or against all or major assets of the Borrower’s Parent, Borrower and (or) the Guarantor, causing the Borrower’s Parent, Borrower and (or) the Guarantor to become unable to perform the obligations related to this Agreement.

(12)The Borrower’s Parent, Borrower and (or) the Guarantor fails to pay taxes in accordance with the law, constituting a Material Adverse Event on their operation or financial status, except if administrative remedy proceedings have been filed in accordance with the law and proper reserves have been provided for in accordance with the IFRS.

(13)The main properties of the Borrower’s Parent, Borrower and (or) the Guarantor are subject to provisional seizure, provisional disposition or other security proceeding, seizure, forfeiture, enforcement or auction, or are subject to any administrative sanction or any order of forfeiture or other similar proceedings by any government authority, which are not removed within 14 days.

(14)The Borrower’s Parent, Borrower, the Borrower’s Parent and (or) the Guarantor has any event of breach in relation to any other financing or indebtedness acquired from any financial institution (including but not limited to cross default caused by other direct or contingent indebtedness), or any event of breach in relation to any guarantee provided for financing indebtedness owed by others.

(15)The Borrower’s Parent, Borrower, the Borrower’s Parent and (or) the Guarantor has any event of breach (exclusive of this Credit Facility) in relation to other non-financial indebtedness and the single amount exceeding NTD$300 million; or if the single amount does not exceed NTD$300 million, the Resolution of Majority Syndicated Banks deems it as constituting a Material Adverse Event.

(16)The Borrower’s Parent, Borrower, the Guarantor and (or) their representative issued any instrument that is rejected for payment or the Borrower, the Guarantor and (or) their representative is blacklisted by a clearing house.

(17)The financial status, business or operation of the Borrower’s Parent, the Borrower and (or) the Guarantor or the major shareholders or management structure of the Borrower’s Parent suffers material adverse changes, constituting a Material Adverse Event.

2.Determination of Event of Breach

Unless otherwise provided in this Agreement, whether an Event of Breach has occurred shall be determined by the Agent, provided that, if deemed necessary by the Agent or requested by the Syndicated Banks, a meeting of the Syndicated Banks may be convened or a written enquiry may be sent to the Syndicated Banks for the determination to be made through Resolution of Majority Syndicated Banks. During the period of determination of the Event of Breach, the Agent may suspend the Borrower’s drawdown of any credit limit.

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If any Event of Breach listed under the previous paragraph is granted any rectification or resolution period by this Agreement, drawdown shall be suspended during such period. If the Resolution of Majority Syndicated Banks deems that the event has a material impact on the Borrower’s ability to perform this Agreement, it shall be immediately deemed a breach.

3.Effect of Event of Breach

If an Event of Breach occurs under this Agreement, the Borrower’s right to draw down the Credit Limit shall immediately and automatically stop and no further drawdown shall be allowed unless it is agreed by Resolution of Majority Syndicated Banks. The Agent shall swiftly give written notice to the Borrower and the Guarantor. If the Resolution of Majority Syndicated Banks decides to file claims against the Borrower and (or) the Guarantor, the Agent shall follow the written instructions based on the Resolution of Majority Syndicated Banks and undertake all or part of the following measures:

(1)Terminate or cancel part or all of the Credit Limit yet to be drawn down;

(2)Give written notice to the Borrower and the Guarantor that all amounts payable to each Syndicated Bank and (or) the Agent in accordance with this Agreement are immediately and fully due and the Borrower and the Guarantor shall immediately repay such amounts;

(3)Exercise all rights acquired on the collateral in accordance with this Agreement and use the proceeds from enforcement against each relevant collateral to set off against all amounts outstanding owed by the Borrower;

(4)Exercise the Agent’s right on the promissory note in accordance with this Agreement and claim payment from the Borrower and (or) the Guarantor;

(5)Exercise other rights granted by the law, this Agreement, each Security Document and other relevant documents, without further presentation, demand, certificate of refusal or any notice. To the maximum extent permitted by law, the Borrower and the Guarantor agree to waive the right to require each Syndicated Bank or the Agent to present such presentation, demand, certificate of refusal or any notice, unless otherwise provided in this Agreement;

(6)Other manners of handling agreed by the Resolution of Majority Syndicated Banks.

If the Agent and (or) the Syndicated Banks are allowed to exercise their rights against the Borrower and (or) the Guarantor in accordance with this Agreement, the Borrower and the Guarantor agree that the Agent and (or) the Syndicated Banks may follow the Regulations Governing Internal Operating Systems and Procedures for the Outsourcing of Financial Institution Operation published by the competent authority and the Guidelines for Outsourced Collection of Claims Receivable by Financial Institutions established by the Bankers Association of the Republic of China and (or) other applicable laws and entrusted the collection related to this Credit Facility for processing.

All procedures and proceedings following delay breach related to this Credit Facility, including but not limited to the handling or sale of claims, disposal or sale of collateral, etc., may be determined by Resolution of Majority Syndicated Banks, which shall be binding on the full Banking Syndicate.

4.Setoff and Lien

(1)In case of any Event of Breach, the Borrower and (or) the Guarantor agree that all deposits with the Syndicated Banks and (or) the Agent and all claims against the Syndicated Banks and (or) the Agent shall be deemed due, even if the repayment period has not yet expired. Each Syndicated Bank and (or) the Agent may exercise the right of setoff thereon. The setoff shall take effect retrospectively from the time of setoff entry in the Syndicated Banks’ and (or) the Agent’s accounts after the setoff notice issued by the Syndicated Banks and (or) the Agent is delivered or deemed delivered to the Borrower and (or) the Guarantor. At the same time, any deposit certificate, passbook or other proof issued by the Syndicated Banks and (or) the Agent to the Borrower and (or) the Guarantor shall cease to be valid to the extent of the setoff. Also, if the Borrower and (or) the Guarantor has any other property deposited with the 
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Syndicated Banks and (or) the Agent, or if the Syndicated Banks and (or) the Agent receive any payment on behalf of the Borrower and (or) the Guarantor and deposit funds into their account with the Syndicated Banks and (or) Agent on their behalf, such Syndicated Banks and (or) the Agent may withhold, set off or deposit the funds into the special-purpose account designated by the Agent in accordance with the law and, to the extent permitted by law, use the funds to set off the indebtedness owed by the Borrower and (or) the Guarantor under this Agreement.

(2)If the Borrower’s and (or) the Guarantor’s deposits are fixed-term deposits, even if such deposits are not yet due, each Syndicated Bank and (or) the Agent may terminate the deposit agreement to set off against the indebtedness under this Agreement. The above setoff shall not impact the Borrower’s and (or) the Guarantor’s other remaining rights against each Syndicated Bank and (or) the Agent based on the above deposits (including fixed-term deposits) and claims.

(3)If the deposits under the previous paragraph are check deposits, the Borrower and (or) the Guarantor understand and agree that, when this Credit Facility is deemed fully due and payable in accordance with this Agreement, it constitutes one of the conditions of cancellation under the check deposit agreement signed with each Syndicated Bank and (or) the Agent. Upon completion of such cancellation condition, such check deposit agreement shall automatically cease to be valid and the Agent and (or) the Syndicated Banks may use the amounts to be returned to the Borrower and (or) the Guarantor to set off against the indebtedness owed by the Borrower and (or) the Guarantor to the Agent and (or) the Syndicated Banks.

(4)If other creditors of the Borrower and (or) the Guarantor or any government authority exercises provisional seizure, provisional disposition or other security measures or enforcement or other similar legal action against any deposit or other claims of the Borrower and (or) the Guarantor in or against any Syndicated Banks and (or) the Agent, the equivalent amount of deposits or claims actually enforced upon the balance amount of credit outstanding under this Agreement shall be deemed accelerated and due, without requiring any notice or demand by such Syndicated Bank and (or) the Agent, nor any Resolution of Majority Syndicated Banks, and such Syndicated Bank and (or) the Agent may use such deposits or other claims to set off against the Borrower’s and (or) the Guarantor’s indebtedness deemed accelerated and due in accordance with the above or deposit them into the special-purpose account designated by the Agent and, to the extent permitted by law, set off the funds against the Borrower’s and (or) the Guarantor’s indebtedness under this Agreement. Unless otherwise provided in this Agreement, the above formulated acceleration does not constitute an Event of Breach under paragraph 1 of this Article.

(5)Upon setoff, if the deposits and claims of setoff are in different currencies, setoff shall take place after conversion based on the spot middle foreign exchange rate for each currency published by the Syndicated Banks and (or) the Agent exercising the right of setoff at the time of the setoff.

5.Order of Setoff

The funds acquired by the Agent and (or) the Syndicated Banks from the exercise of their rights in accordance with this Agreement, Security Document and other relevant documents, if not sufficient to cover all indebtedness of the Borrower, shall be setoff in the following order: (i) first be used to pay all costs (including but not limited to the Agent fee) incurred by the Agent from the exercise of its rights under this Agreement, each Security Document and relevant contracts and not yet paid by the Borrower or the Syndicated Banks; (ii) then be used to pay all fees, breach penalties and interest (including delay interest) payable and not yet paid by the Borrower to each Syndicated Bank and the Agent in accordance with this Agreement; (iii) then be distributed by the Agent in proportion to the Credit Risk Sharing Ratio of the Syndicated Banks of this Credit Facility in accordance with the nature of each payment and in accordance with relevant provisions of this Agreement (if there is no clear stipulation in this Agreement, the Agent will make decisions based on its reasonable judgment).

Article 10    Fees and Costs

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1.Fees

The Borrower shall pay fees to the Syndicated Banks, Arrangers and Agent in accordance with the following:

(1)Commitment Fee

i.Tranche A Facility and Tranche B Facility: As of the drawdown deadline for the Tranche A Facility and (or) Tranche B Facility, if the actual amount of drawdowns under the Tranche A Facility and (or) Tranche B Facility has not reached 80% of the Available Limit under such Tranche Facility, the Borrower shall pay a commitment fee based on a fee rate of 0.25% on the shortfall. The commitment fee shall be paid to the Agent in one lump sum within 5 Business Days after the drawdown deadline for the Tranche A Facility and (or) Tranche B Facility and shall be forwarded to the Tranche A Banks and (or) Tranche B Banks in accordance with their Commitment Ratios of the respective tranches.

ii.Tranche C Facility: During each 6-month period starting from the date of expiration of a 12-month period from the Initial Drawdown Date of this Credit Facility until the date of expiration of the Credit Period of this Credit Facility, if the Borrower’s actual average drawdown amount under the Tranche C Facility does not reach 60% of the Available Limit of the Tranche C Facility, the Borrower shall pay a commitment fee on daily basis based on a fee rate of 0.25% per annum on the shortfall. The commitment fee shall be paid to the Agent at the end of each period and shall be forwarded by the Agent to the Tranche C Banks in accordance with their Commitment Ratios.

(2)Arranger Fee and Agent Fee: The Borrower shall pay the arranger fee (including participation fee) to the Arrangers and the participation fee shall be forwarded by the Arrangers to the Syndicated Banks. The Borrower shall also pay the agent fee to the Agent, in the amount and manner to be further negotiated by the Borrower, the Arrangers and the Agent. Each Syndicated Bank agrees that, during the Period of Existence of this Credit Facility, even if an Event of Breach has occurred, the Agent shall still have the right to continue charging the Agent fee based on the original agreement with the Borrower.

(3)Revision and Waiver Processing Fee: Other than revisions to the terms and conditions of this Agreement is necessary due to any change of the law or the interpretation of the law by the competent authority or revisions of the credit terms or contents of this agreement made due to the matters attributable to the Banking Syndicate, upon each application filed by the Borrower for any revision of the terms and conditions of this Agreement or for any waiver of any Event of Breach or performance of obligation under this Agreement, regardless of whether such application is approved by the Banking Syndicate or a Resolution of Majority Syndicated Banks (as provided in this Agreement), the Borrower shall pay the Agent a processing fee of NT$50,000 and shall also pay to the Agent a processing fee of NT$20,000 for each Syndicated Bank (including the Agent), to be forwarded by the Agent to each Syndicated Bank.

2.Bearing of Legal Costs, etc.

Legal costs incurred due to this Credit Facility (including but not limited to attorney’s fees and advisor’s fees), relevant contract drafting and revision cost and costs incurred in relation to this Credit Facility before signature of this Agreement and during the Period of Existence (including but not limited to syndication loan roadshow, signing ceremony costs, print costs, costs of advisors engaged for the interest of the Banking Syndicate, costs of accountant audit, the relevant appraisal fees relating to this Credit Facility, registration fee of the relevant security interests, the insurance costs and costs of debt assignment notice, subject to actual costs incurred) shall be borne by the Borrower. Attorney’s fees and legal costs (including but not limited to litigation costs, costs to acquire enforcement order in accordance with the law, enforcement costs, costs of participative distribution, arbitration costs, costs incurred from establishment of in-court or out-of-court settlement or signature of settlement agreement and other relevant costs) incurred from any dispute in relation to this Credit Facility (including litigation, enforcement, arbitration, settlement, etc.), regardless of whether the dispute occurred during the Period of Existence of this 
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Agreement or after its termination, shall be borne by the Borrower, except if the court or arbitral judgment confirms that any costs should be borne by the Banking Syndicate.

The Borrower shall pay each of the above costs immediately upon notice in accordance with the Agent’s request.

Article 11    Relationship among Agent, Arrangers and Syndicated Banks

1.Appointment

Each Syndicated Bank hereby irrevocably selects the Agent as the administrator on all matters related to this Credit Facility and to serve as the title owner for all security interests under this Agreement and the holder of the promissory note. The Agent only performs these duties on behalf of the Banking Syndicate. Unless otherwise provided in this Agreement, the Agent is not the representative of the Syndicated Banks. the Borrower or the Guarantor, nor a trustee under a trust relationship. The Agent shall undertake measures for the benefit of the Syndicated Banks in accordance with this Agreement, exercise and perform the rights and obligations of the Agent under this Agreement and other interests that are consistent with commercial practice and reasonable. In addition to the duties expressly provided in this Agreement, the Agent does not have any other obligation or responsibility, nor does it tacitly agree to bear any other guarantee, indebtedness, liability or obligation to the Banking Syndicate.

2.Joint Claims

Each Banking Syndicated is a joint creditor for the claims under this Credit Facility. However, other than the Agent, if any Syndicated Bank wishes to exercise its joint claim against the Borrower and (or) the Guarantor, it must acquire the unanimous consent by the Banking Syndicate, except for the exercise of setoff right, lien or commingling. The amount or any other interest acquired by the Agent or any Syndicated Bank based on the joint claims under this Credit Facility (including partial or full repayment interest acquired through the exercise of setoff right, lien or commingling) and any other costs shall be shared by all Syndicated Banks in proportion to the Credit Risk Sharing Ratios.

If each Syndicated Bank has any event of setoff or lien between the Borrower and (or) the Guarantor in accordance with Article 9, paragraph 4 of this Agreement, such Syndicated Bank shall act with the intention to enforce the Banking Syndicate’s claims and common interest.

If any Syndicated Bank receives any amount or other interest from the joint claims under this Credit Facility (such as partial or full repayment interest through exercise of setoff right, lien or commingling) and any other cost, such Syndicated Bank shall immediately pay such amount to the Agent within 3 Business Days from receipt of the amount for the Agent to distribute in proportion to the Credit Risk Sharing Ratio. For the Borrower and the Syndicated Bank that received such amount originally, such amount shall be deemed unpaid and such Syndicated Bank shall remain entitled to all claims against the Borrower and other relevant amounts (except the amount received from distribution of such amount by the Agent).

3.Independent Obligations of Banks

The obligations of each Syndicated Bank under this Agreement are severable obligations and are limited by the scope and proportion of Tranche Limit that each of them has committed. There are no joint liabilities among the Syndicated Banks in relation to the obligations under this Agreement. If any Syndicated Bank fails to perform its obligations, the other Syndicated Banks are not released of their obligations, provided that the other Syndicated Banks are not obliged to be liable for the obligations of such Syndicated Bank. The Agent may (but is not obliged to) coordinate with the other Syndicated Banks to increase the limit that is not performed by such Syndicated Bank, provided that the Syndicated Banks are not obligated to increase their limits. Also, the agent shall not be jointly liable for the portion that is not performed by the Syndicated Bank.

4.Specific Duties and Obligations

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Unless otherwise provided in this Agreement, the specific duties and obligations of the Agent in accordance with this Agreement include the following:

(1)The Agent shall distribute the amounts payable by the Borrower and (or) the Guarantor to the Syndicated Banks in accordance with this Agreement and in relation to this Credit Facility to the Syndicated Banks in accordance with paragraph 9 of this Article.

(2)The Agent shall notify the Syndicated Banks about the relevant matters as soon as possible in accordance with paragraph 5 of this Article

(3)Subject to the provisions of this Agreement, the Agent shall give legal and proper instructions to undertake or not undertake any action or measure in accordance with the Resolution of Majority Syndicated Banks or the unanimous consent of the Banking Syndicate. Such action or inaction shall be binding on the Banking Syndicate.

(4)In handling financing matters committed under this Credit Facility in accordance with this Agreement, if according to the Borrower’s actual drawdown amount, the calculation of the distribution proportion by the agent cannot be consistent with the proportion under Attachment 1, the portion that cannot be distributed in accordance with the proportion under Attachment 1 may be distributed based on the proportion that is determined by the Agent’s reasonable judgment, and the Syndicated Banks shall not voice any objection.

5.Information Exchange

Regarding the relevant matters under this Credit Facility, Arrangers, Agent and Syndicated Banks may exchange and share the information among each other in accordance with the followings:

(1)The Arrangers, Agent and Syndicated Banks may provide the relevant information of the Borrower or the Guarantor to other Syndicated Banks for investigation and analysis purpose.

(2)If the Agent becomes aware of the following matters, it shall notify the Syndicated Banks as soon as possible and convene a meeting of the Syndicated Banks to discuss about the exercise of this Credit Facility:

i.Notices received by the Agent about this Credit Facility or other documents that seeks any action from the Syndicated Banks;

ii.Any bad records, Event of Breach or other contingent matters of the Borrower or Guarantor.

(3)If the Syndicated Bank becomes aware of any bad records, Event of Breach or other contingent matters of the Borrower or the Guarantor, it shall also inform the Agent.

(4)Regarding the request and reasonable inquiry from the Syndicated Banks in relation to the credit protection or risk management, the Arrangers or Agent shall assist the Syndicated Banks in conveying the message to the Borrower, Guarantor or the related person of this Credit Facility and conveying the feedbacks to the Syndicated Banks.

(5)During the Period of Existence of this Agreement, the Agent shall provide financial, operating or other reports or information provided by the Borrower and (or) the Guarantor to other Syndicated Banks for reference regularly or from time to time.

6.Duties by Engagement

The Agent may perform its duties under this Agreement through its representatives or users and is also entitled to engage and enquire its advisors about matters related to the duties. The Agent is not liable for the willful or negligent act of the representative or the user it selects, except if the Agent has acted willfully or with gross negligence in the selection of the representative or user.

7.Disclaimer
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Neither the Arrangers nor the Agent or its agent shall be liable for any of their actions or inactions related to this Agreement unless they are willful or grossly negligent.

None of the Arrangers, the Agent or any of their staff, directors, employees, representatives or users shall be liable for any of the following: (1) Legal action or inaction by itself or any of the above persons in relation to this Agreement (except the Arrangers’ and (or) the Agent’s willful or grossly negligent act), or (2) Any explanation, statement, expression, special commitment, declaration, guarantee or warranty about any justification, report or submission referred to or presented by the Borrower and (or) the Guarantor, in accordance with this Agreement or collected by the Arrangers and (or) the Agent, or the value, validity, effect, genuineness, enforceability or sufficiency of any document related to this Credit Facility, or the Borrower’s failure to perform its obligations. Neither the Arrangers nor the Agent have the obligation to any Syndicated Bank to confirm or challenge the Borrower and (or) the Guarantor about their compliance or performance of the provisions of this Agreement or other relevant documents, or the status of such compliance or performance, or the investigation upon the Borrower’s and (or) the Guarantor’s properties, books and records.

Unless agreed by the Banking Syndicate or instructed by the Resolution of Majority Syndicated Banks in accordance with this Agreement, neither the Arrangers nor the Agent have any obligation to undertake any litigation or claim proceeding against the Borrower and (or) the Guarantor or any person in accordance with this Agreement or other relevant contracts. However, in security proceedings to secure enforcement, the Arrangers or the Agent may exercise the same level of care as in the handling of their own affairs. Neither the Arrangers nor the Agent have the obligation to undertake any action that it deems will breach the laws of the Republic of China (Taiwan) or other applicable laws based on its own reasonable judgment.

If any Syndicated Bank’s action or inaction in breach of this Agreement causes damage to the Borrower and (or) the Guarantor, each relevant party shall bear its own liability and none of the Arrangers, the Agent or other Syndicated Banks shall be jointly liable.

8.Trust

The Arrangers and (or) the Agent may reasonably trust that any communication such as memorandum, document, resolution minutes, notice, consent, certification, affidavit, letter, telefax, telegram, fax, email, etc., that they deem genuine and correct and signed or made by the proper person and trust the opinions and statements by the legal advisors (including but not limited to the Borrower’s and (or) Guarantor’s advisors), independent accountants and the experts they select. The Agent is not obliged to make further verification of the details of each document or any other relevant matter. In executing all matters related to this Agreement, the Agent may trust that the signatures and details of each relevant document it receives are valid, genuine and correct. Also, when the Agent gives notice or transfers funds to each Syndicated Bank, it may trust that the contact details of each Syndicated Bank lastly provided to the Agent are correct.

For the Syndicated Banks: (1) Unless the Agent receives a Resolution of Majority Syndicated Banks or notice from the Banking Syndicate in advance, or before the Agent receives from the Syndicated Banks compensation for liabilities or costs that may occur due to its action or continued action in accordance with the Credit Risk Sharing Ratio (except liabilities or costs incurred due to the Agent’s willful or grossly negligent act), the Agent’s action or refusal to act shall be deemed fully justified, and (2) The action or non-action of the agent in accordance with this Agreement based on the Resolution of Majority Syndicated Banks or instructions given by the Banking Syndicate shall be protected. The effect of such action or non-action based on the instructions pursuant to the Resolution of Majority Syndicated Banks shall be binding on the Banking Syndicate.

9.Income Distribution

The principal repayment, interest, delay interest, breach penalty, compensation, commitment fee, all costs and other amounts received by the Agent in accordance with this Agreement shall be forwarded to each relevant Syndicated Bank in accordance with the Credit Risk Sharing Ratio. Each Syndicated Bank shall issue a receipt for the amount actually received respectively to the Borrower or other relevant persons within 5 Business Days (except principal repayment).

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The above amounts received by the Agent shall be distributed to each Syndicated Bank in accordance with the following:

(1)If the Agent receives the amounts before 12 p.m. (inclusive) Taipei Time on a Business Day, the distribution shall be made to the other Syndicated Banks on the same Business Day.

(2)If the Agent receives the amounts after 12 p.m. (inclusive) Taipei Time on a Business Day, the distribution shall be made to the other Syndicated Banks on the following Business Day.

However, if there is a dispute about any of the amounts received by the Agent, the Agent may forward the amounts to each Syndicated Bank after a longer processing period based on its reasonable judgment.

In handling all matters related to the distribution of income of this Credit Facility, the Agent shall make distributions in accordance with applicable provisions of this Agreement. However, if the actual calculation does not allow distribution in exactly the same original proportions, the Agent may do so based on its reasonable judgment and no Syndicated Bank shall voice any objection.

10.Sharing of Costs

All costs and losses incurred and suffered by the Arrangers and (or) the Agent, including but not limited to attorney’s fees and litigation costs, enforcement costs or other legal costs incurred from the filing of a lawsuit or answering to a lawsuit by the Agent as a representative if any litigation arises due to this Credit Facility, shall be shared by each Syndicated Bank in proportion to their Credit Risk Sharing Ratio. The portion that should be borne by the Syndicated Banks may be deducted by the Agent from the amounts to be received by the Syndicated Banks in accordance with paragraph 9 of this Article, However, if a cost should be borne by the Borrower in accordance with the law or this Agreement, upon receipt of the amount, the Agent shall forward it to each Syndicated Bank in accordance with paragraph 9 of this Article.

11.Sharing of Credit Risk

The Syndicated Banks shall share the credit risk in accordance with their Credit Risk Sharing Ratios in relation to the balance amount drawn down under this Credit Facility.

12.Sharing of Security Interest

All security interest provided in accordance with this Agreement shall be shared by the Syndicated Banks in accordance with their Credit Risk Sharing Ratios.

13.Breach Notice

Unless otherwise provided in this Agreement or the Agent has received a notice of Event of Breach from the Syndicated Banks, the Borrower and (or) the Guarantor, stating that such notice is a “notice of breach”, the Agent shall not be deemed to have learned or noticed the occurrence of any Event of Breach. If the agent receives such notice, it shall give notice to the Syndicated Banks. The Agent shall undertake action against the Event of Breach in accordance with Article 9, paragraph 3 of this Agreement (including but not limited to convening a meeting of Syndicated Banks or issuing written enquiries to each Syndicated Bank). However, unless the Agent receives instructions from the Banking Syndicate or the Resolution of Majority Syndicated Banks (as may be provided in this Agreement), the Agent may (but is not obliged to) undertake action or inaction against the Event of Breach in a proper manner that it deems most favorable to the Banking Syndicate.

14.Independent Credit Verification and Investigation

The Syndicated Banks are clearly aware that none of the Arrangers, the Agent or any staff, director, employee, representative or user makes any statement or provides any guarantee to the Syndicated Banks. Also, no action undertaken by the Arrangers and (or) the Agent in accordance with this Agreement, including review of the Borrower’s and (or) the Guarantor’s affairs, shall be deemed the Arrangers’ and (or) the Agent’s statement or guarantee to any Syndicated Bank.
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The Syndicated Banks hereby represent to the Arrangers and (or) the Agent that the Syndicated Banks make their judgments independently and do not rely on the Arrangers and (or) the Agent or other Syndicated Banks and that they have evaluated and investigated the Borrower’s and (or) the Guarantor’s business, operation, property, finance and other situations and creditworthiness based on information and data they deem correct and have made their independent decisions to enter into this Credit Facility and sign this Agreement. The Syndicated Banks continue their credit analysis, evaluation and decision as to whether to undertake or not undertake action in accordance with this Agreement based on correct information and data they have and will investigate the Borrower’s and (or) the Guarantor’s business, operation, property, finance and other situations and creditworthiness as they deem necessary.

Unless this Agreement expressly requires the Arrangers and (or) the Agent to provide the Syndicated Banks with notices, reports or other documents, the Arrangers and (or) the Agent do not have the obligation or responsibility to provide Syndicated Banks with information about the Borrower’s and (or) the Guarantor’s business, operation, property, finance and other situations and creditworthiness learned by the Arrangers and (or) the Agent or their staff, directors, employees, representatives or users.
 

15.Compensation

The Syndicated Banks agree to compensate the Agent based on the Credit Risk Sharing Ratio any claim filed against the Arrangers or Agent or any liability, obligation, loss, compensation, judgment, litigation, expense, cost or advance reasonably incurred at any time in the capacity of representative of the Syndicated Banks (to the extent not repaid by the Borrower and (or) the Guarantor, without restricting the Borrower and (or) the Guarantor’s liability) due to any lawful action or non-action in accordance with this Agreement, provided that the Syndicated Banks shall not be liable for any liability, obligation, loss, compensation, judgment, litigation, expense, cost or advance incurred due to the Agent’s willful or grossly negligent act. This paragraph shall survive the repayment by the Borrower and (or) the Guarantor of this Agreement.

16.Return of Funds

If the Agent has not received from the Borrower the funds due in accordance with this Agreement but the Agent has made distribution to the Syndicated Banks, upon request by the Agent, such Syndicated Banks shall return such funds within 3 Business Days together with interest specified by the Agent as the cost of having distributed such funds during such relevant period. If any funds should be paid to the Borrower and distributed among the Syndicated Banks, upon the Agent’s request, such Syndicated Banks shall return the funds to the Borrower together with interest payable to the Borrower within 3 Business Days. Unless the Agent has received notice from the relevant Syndicated Banks that they are unable to advance the loan in accordance with the Commitment Ratio one Business Day before the Drawdown Date, the Agent may trust that such Syndicated Banks will advance the loan amounts as agreed and may (but is not obliged to) advance the loan amounts to the Borrower on time based on such trust, provided that the Agent is not obliged to advance the loan or any amount to the Borrower on behalf of any Syndicated Bank before actual receipt of the loan amounts advanced by the relevant Syndicated Banks as agreed. If the Bank has advanced any loan amount to the Borrower that it has not yet received but should have received from the Syndicated Banks in accordance with this Agreement, upon the Agent’s request, the Borrower shall return such funds together to the Agent with interest accrued in accordance with this Agreement within 5 Business Days from the advance. If the Agent suffers any damage, it may also seek compensation from the Syndicated Banks that fail to provide the funds as agreed.

If any Syndicated Bank must return any portion of the amount already received from the Borrower and already distributed by the Agent in accordance with paragraph 2 of this Article, the other Syndicated Banks shall provide the funds to the Agent so that the Agent may return the amount to such Syndicated Bank for return to the Borrower (after deduction of the amount already distributed by the Agent from such amount to such Syndicated Bank).

17.Individual Capacity

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The Arrangers and (or) the Agent may grant other credit facility to, accept deposits from and engage in any transaction with the Borrower and shall be deemed as a general financial institution and not the Arrangers and (or) the Agent under this Agreement. The Arrangers and (or) the Agent may exercise the same interest that may be exercised by any Syndicated Bank under this Agreement and may generally exercise their rights as if they are not the Arrangers and (or) the Agent. The term “Syndicated Bank” here includes the Arrangers and (or) the Agent in their individual Capacity.

18.Successor Agent

The Agent may resign by giving at least 90-day prior written notice to the Banking Syndicate with copy to the Borrower and the Guarantor, and the Agent agrees to resign upon the request of the Resolution of Majority Banking Syndicates. If the Agent gives resignation notice and a successor agent is designated by Resolution of Majority Syndicated Banks within 60 days, or if the successor agent cannot be designated by Resolution of Majority Syndicated Banks within such period, the Agent shall designate a successor agent for the Banking Syndicate and the resignation of the Agent shall become effective upon the successor agent is assigned. Such successor agent shall take over the Agent’s rights, authorities and responsibilities. At the same time, the term “Agent” shall refer to the successor agent after the handover and the previous agent’s rights, authorities and responsibilities shall automatically terminate upon takeover by the successor agent. If the designated Syndicated Bank disagrees, then the Syndicated Bank with the largest credit claims under this Credit Facility (except the resigning Agent) shall be the successor agent. If there are two or more Syndicated Banks with the largest credit claims, then the Syndicated Bank whose name is listed first in Attachment 1 to this Agreement shall be the successor agent. However, the previous agent may still continue to receive agent fee and other fees that are receivable but not yet received during its term and this paragraph shall continue to be applicable to the acts of the previous agent before resignation. If the previous agent has pre-collected any agent fee, it shall be passed on to the successor agent in proportion to the actual period of its term.

19.Meeting of Syndicated Banks

Any Syndicated Bank may, whenever it deems necessary, file a written request for the Agent to hold a meeting of Syndicated Banks. Upon receipt of the above request, the Agent may directly convene the meeting of Syndicated Banks or make enquiries by letter for written opinions of each Syndicated Bank. If the Majority Syndicated Banks have replied to the Agent of their consent to convene the meeting of Syndicated Banks within a period designated by the Agent, the Agent shall convene the meeting of Syndicated Banks within a reasonable period following the expiration of the above period. If deemed necessary by the Agent, the Agent may also hold meetings of Syndicated Banks itself. The meeting of Syndicated Banks may be held by making written inquiries by the Agent to the Syndicated Banks.

Article 12    Miscellaneous

1.Assignment and Risk Sharing

This Agreement is binding on the successors, assignees or persons taking or obligations of each party in accordance with the law over the rights the Borrower, the Guarantor, the Agent and each Syndicated Bank, provided that neither Borrower nor the Guarantor shall assign any right or obligation under this Agreement to any third party.

Each Syndicated Bank may, based on the conditions of this Agreement, sign Credit Limit Assignment Agreements in the form of Attachment 13 to assign its rights and (or) obligations under this Agreement to its affiliates, other financial institutions, asset management companies or other third parties, provided that none of the other parties shall be impacted by such assignment. Such Syndicated Bank shall give written notice to the Agent, the Borrower and the Guarantor (but is not obliged to acquire the consent of the Agent, the Borrower, the Guarantor or other parties to this Agreement). If the assignment is subject to approval by the relevant government authority, a written approval from each such competent authority shall be acquired before the assignment. Also, such assignment of rights and (or) obligations shall not increase the cost or burden of the Borrower and (or) the Guarantor under this Agreement. For each assignment of all or part of the 
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rights and (or) obligations, the Syndicated Bank shall pay to the Agent an assignment processing fee of NT$500,000, except in the case of claim assignment due to merger of financial institutions. All provisions of this Agreement and any document under this Agreement shall be applicable to the Syndicated Bank and each individual successor and assignee and shall be binding on the Borrower, the Guarantor and each individual successor. The successor or assignee of the original Syndicated Bank shall directly take over the rights and obligations under this Agreement and in the participation of the syndicated credit and become a party to this Agreement and the syndicated credit without the original Syndicated Bank having to exercise any right.

For the purpose of such assignment, the Borrower and the Guarantor agree that such Syndicated Bank may disclose any information that is already provided to the Syndicated Bank to its potential or actual assignee, provided that such assignee shall only use such information for matters related to this Credit Facility and that such information shall not be disclosed to any other person or used for any other purpose without the written consent of the Borrower and the Guarantor.

Each Syndicated Bank may enter into risk sharing agreements with others without notice to the Borrower, the Guarantor or the other parties. Such person participating in the sharing of the risk shall have no voting right in this Credit Facility and such risk sharing shall not increase the cost or tax burden of the Borrower and (or) the Guarantor under this Agreement. Any costs incurred from the risk sharing agreement shall be solely borne by the relevant Syndicated Bank. When the person participating in the risk sharing exercises any right or performs any obligation under this Agreement and (or) any Security Document, it shall still do so through the relevant Syndicated Bank in the name of such Syndicated Bank, and the person participating in the risk sharing shall not make any claim against the Borrower or the Guarantor based on the risk sharing agreement or this Agreement.

If a Syndicated Bank entrusts its assets or assigns its claims for the purpose of securitization of financial assets, the Borrower and the Guarantor agree that the Syndicated Bank may make a public announcement in lieu of notice. That is, the Syndicated Bank shall not be obliged to give further notice or send proof of public announcement to the Borrower and (or) the Guarantor.

2.Revision and Exemption

Unless otherwise provided in this Agreement, the revision to any clause of this Agreement or any waiver in relation to any Event of Breach or the performance of any obligation shall be made in writing by the Majority Syndicated Bank, the Agent, the Borrower and the Guarantor. All parties shall also be bound by such revision or waiver, provided that any revision to the rights or obligations between the Agent and the Syndicated Banks or any revision that is not directly related to the Guarantor shall only require the consent of the Agent and Resolution of Majority Syndicated Banks before it is done in writing and no consent from the Borrower or Guarantor shall be required (although a written notice shall still be given by the Agent to the Borrower and the Guarantor). Any written revision or waiver shall be binding on all parties of this Agreement, provided that any revision or waiver affecting the benefits of the Agent shall be subject to the written consent of the Agent. Unless otherwise provided in this Agreement, in relation to the following is subject to the prior written consent of the full Banking Syndicate:

(1)Any increase of credit limit, extension of drawdown deadline or Credit Period (excluding the extension made pursuant to Article 2, paragraph 3, subparagraph (5) of this Agreement), change of credit purpose or change to the payment amount, payment currency or payment method, decrease of interest (fee) rate, change of due date or any other amount payable to the Syndicated Banks.

(2)Any voluntary or mandatory prepayment or prepayment in kind, except in accordance with Article 3, paragraphs 5 and 6 of this Agreement.

(3)Any in-court or out-of-court settlement or mediation with the Borrower and (or) the Guarantor for any indebtedness related to this Agreement.

(4)Return or release of any security under Article 5 of this Agreement or any changes to the details of the security, release or replacement of Guarantor, except otherwise provided in this Agreement.

(5)Amendment to the definition of “Majority Syndicated Banks” or to this paragraph.
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For any written consent to the revision or waiver that is decided by the Banking Syndicate or Resolution of Majority Syndicated Banks (subject to this Agreement) in accordance with this Agreement, the Agent may engage in all necessary acts on their behalf. The Syndicated Banks hereby authorize the Agent to sign all such revision or waiver documents in the Agent’s name and on behalf of the Syndicated Banks, including but not limited to addendums.

3.No Waiver

No delayed exercise or non-exercise of any rights or any claims for compensation by the Agent, the Arrangers or any Syndicated Bank shall constitute a waiver. No partial exercise of rights or claims by the Agent, the Arrangers or any Syndicated Bank shall prevent it from exercising any other rights or claims.

4.Notice

(1)Any notice or request in accordance with this Agreement shall be done in writing and shall be delivered to the parties in the following manner: If sent by registered mail, it shall be deemed delivered 3 days after it is sent by mail with postage prepaid; if delivered personally, upon delivery; if sent by fax, deemed delivered where no abnormal message occurred. 

(2)Email: Any notice given by the Agent in accordance with this Agreement may be sent by email, provided that (i) it shall be limited to the matters or scopes that all relevant parties agree to make by email; (ii) the notice by the Agent for its specific duties under this Agreement may be made by email; (iii) the notice or request to the Agent is allowed to be made by email only if the Agent expressively agrees to such approach. 

The email message shall be in a readable form and shall be deemed delivered in absence of any failure deliver message from the receiver.

(3)The contact details of each party are those listed in Attachment 1-1 of this Agreement or as last notified in writing. All contact, notice or request between the Borrower and (or) the Guarantor and each Syndicated Bank shall be done through the Agent. In case of any changes to the contact details of the Borrower, the Guarantor or Syndicated Banks, a swift written notice shall be given to the Agent. If such notice is not given, the Agent may give notice of relevant documents in the manner provided in this paragraph based on the contact details listed in this Agreement or last known to the Agent and such notice shall be deemed delivered after the period provided in this paragraph.

5.Exchange Rate

Unless otherwise provided in this Agreement, if any provision of the Agreement involves exchange-rate calculation, the calculation shall be made based on the Agent’s closing listed spot mid-price rate 2 Business Days before the date of exchange.

6.Conflict

In case of conflict between any provision of this Agreement and the provision of any attachment to this Agreement or any other relevant document, the provisions of this Agreement shall prevail.

7.Severability

If any clause of this Agreement is adjudicated as invalid by any judicial authority or competent authority, such clause shall be automatically adjusted to meet the requirements starting from the time when such adjudication is confirmed. The adjusted clause shall be deemed an original clause of this Agreement. If any invalid clause cannot be adjusted in such manner due to its nature, such clause shall be deleted and shall be deemed excluded from this Agreement from the very beginning, provided that, in all circumstances, the other clauses of this Agreement shall continue to be valid and their legality and enforceability shall not be impacted.

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8.Place of Performance

Unless otherwise provided in this Agreement, the place of performance of this Agreement is the place of business designated by the Agent.

9.Governing Law and Jurisdiction

The interpretation and application of this Agreement are governed by the laws of the Republic of China (Taiwan). The parties agree that any litigation related to this Agreement shall be subject to the first-instance jurisdiction of the Taiwan Taipei District Court, except for exclusive jurisdiction provided by the law.

10.Application of Applicable Laws and Charters

In addition to the agreed terms and conditions under this Agreement, applicable laws and all existing and future charters of the Syndicated Banks and the Bankers Association of the Republic of China are deemed integral parts of this Agreement, which shall be complied with by the Borrower and the Guarantor.

11.    Money Laundering Prevention and Counter-Terrorist Financing Clause

In response to and to comply with regulations of the Agent, the Arrangers and (or) the Syndicated Banks and the competent authorities about money laundering and counter-terrorist financing, the Borrower understands and agrees to the following:

(1)The Borrower and its representative and beneficial owners, senior managers, account parties of interest (such as agents, representatives, authorized persons, etc.) and transaction counterparties are referred to collectively as “Parties of Interest” in this paragraph.

(2)If the Agent, the Arrangers and (or) the Syndicated Banks deem that there may be a breach of applicable laws (including but not limited to money laundering prevention, counter-terrorism financing, economic or trade sanction related laws) based on their reasonable judgment, other than the requirements under applicable laws, none of the Agent, the Arrangers or the Syndicated Banks is obliged to undertake or not undertake any action. The Borrower shall comply with the relevant money laundering and counter-terrorism financing and sanction laws and shall provide relevant information required for the Syndicated Banks’ response to and compliance with any country’s money laundering, counter-terrorism financing, economic or trade sanction related laws pursuant to the request of the Syndicated Banks. The Borrower also agrees that the Agent, the Arrangers and (or) the Syndicated Banks may disclose such information to the relevant government competent authority or court of any country or in accordance with the requirement of the applicable laws of any country, on the condition that there shall be no breach of the laws of the Republic of China (Taiwan).

(3)The Borrower confirms and agrees that it is neither a target or subject of sanction regulations, nor a known or chased money laundering group or terrorist group, and does not involve in any money laundering, terrorism financing or other unlawful activities. If the Borrower or any of its Persons of Interest becomes an individual, corporate entity or organization subject to designated sanctions under the Counter-Terrorism Financing Act or terrorist or terrorist group determined or pursued by any foreign government or international organization, the Agent and (or) the Syndicated Banks may refuse business dealings or may terminate business relationship forthwith or restrict the Borrower’s transactions related to this Credit Facility.

(4)The Borrower shall not utilize the products, services or trades (or funds) of the Syndicated Banks in any sanction targets or subjects, or for their benefits, and shall not utilize the products, services or trades (or funds) of the Syndicated Banks in a way causing the Borrower or Syndicated Banks in violation of any sanction, or making them become sanction targets or subjects.

(5)When the Agent and (or) the Syndicated Banks perform review or post-loan activities regularly or from time to time in accordance with applicable regulations, if the Borrower refuses to cooperate with the review and provide explanations about the nature and purpose of the transaction or the source of funds, or refuses to provide information about the Persons of 
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Interest or the persons exercising control over the Borrower or any other relevant information, or if deemed necessary by the Agent (such as to control risk, suspected money laundering transaction or involvement in unlawful activities), or if the Agent becomes aware or reasonably doubts the Borrower’s funds being from corruption or abuse of public assets , the Agent and the (or) the Syndicated Banks may temporarily suspend transaction or suspend or terminate the business relationship.

(6)The Borrower shall not seek compensation from the Agent and (or) the Syndicated Banks for any damage or loss incurred due to the above events.

12.    Copies

This Agreement is signed in 13 original copies. Each of the Borrower, the Guarantor, each Syndicated Bank and the Agent shall hold one copy. There may be multiple duplicate copies.

The parties hereby declare that they have reviewed all the above terms and conditions during a reasonable period and have signed this Agreement through their respective authorized persons or representatives on the date first indicated above.

(no text after this line)

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Borrower:
Gogoro Energy Network (Cayman), Taiwan Branch
Representative: Pang, Jiing-Luen

			
	/s/ Pang, Jiing-Luen

	Pang, Jiing-Luen

	Representative

Gogoro Network
Representative: Director Hok-Sum Horace Luke

			
	/s/ Hok-Sum Horace Luke

	Hok-Sum Horace Luke

	Director

Guarantor:
Gogoro Inc.
Representative: Director Hok-Sum Horace Luke

			
	/s/ Hok-Sum Horace Luke

	Hok-Sum Horace Luke

	Director

Arranger, Agent and Syndicated Bank:
Mega International Commercial Bank Co., Ltd.
Authorized Signatory:

			
	/s/ Mega International Commercial Bank Co., Ltd.

	Mega International Commercial Bank Co., Ltd.

	Authorized Representative

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Co-Arranger and Syndicated Bank:
Agricultural Bank of Taiwan Co., Ltd.
Authorized Signatory:

			
	/s/ Agricultural Bank of Taiwan Co., Ltd.

	Agricultural Bank of Taiwan Co., Ltd.

	Authorized Representative

Co-Arranger and Syndicated Bank:
Bank of Taiwan Co., Ltd.
Authorized Signatory:

			
	/s/ Bank of Taiwan Co., Ltd.

	Bank of Taiwan Co., Ltd.

	Authorized Representative

Syndicated Bank:
First Commercial Bank Co., Ltd.
Authorized Signatory:

			
	/s/ First Commercial Bank Co., Ltd.

	First Commercial Bank Co., Ltd.

	Authorized Representative

Syndicated Bank:
Taiwan Cooperative Bank Ltd.
Authorized Signatory:

			
	/s/ Taiwan Cooperative Bank Ltd.

	Taiwan Cooperative Bank Ltd.

	Authorized Representative

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Syndicated Bank:
EnTie Commercial Bank
Authorized Signatory:

			
	/s/ EnTie Commercial Bank

	EnTie Commercial Bank

	Authorized Representative

Syndicated Bank:
Chang Hwa Commercial Bank, Ltd.
Authorized Signatory:

			
	/s/ Chang Hwa Commercial Bank, Ltd.

	Chang Hwa Commercial Bank, Ltd.

	Authorized Representative

Syndicated Bank:
Taiwan Business Bank, Ltd.
Authorized Signatory:

			
	/s/ Taiwan Business Bank, Ltd.

	Taiwan Business Bank, Ltd.

	Authorized Representative

Syndicated Bank:
Taipei Fubon Commercial Bank Co., Ltd.
Authorized Signatory:

			
	/s/ Taipei Fubon Commercial Bank Co., Ltd.

	Taipei Fubon Commercial Bank Co., Ltd.

	Authorized Representative

Syndicated Bank:
Taishin International Bank Co., Ltd.
Authorized Signatory:

			
	/s/ Taishin International Bank Co., Ltd.

	Taishin International Bank Co., Ltd.

	Authorized Representative

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