Document:

Exhibit 10.2

 

RENESOLA LTD

 

American Depositary Shares, Each Representing

Two Shares, No Par Value Per Share,

 

together with

 

Warrants to Purchase Shares 

 

PLACEMENT AGENT AGREEMENT

 

September 11, 2013

Roth
Capital Partners, LLC

 

c/o Roth Capital Partners, LLC

888 San Clemente Drive

Newport Beach, California 92660

 

Ladies and Gentlemen:

 

ReneSola Ltd,
a company with limited liability organized under the laws of the British Virgin Islands (the
“Company”), proposes to issue and sell to certain purchasers, pursuant to the terms and conditions of this
Placement Agent Agreement (this “Agreement”) and a securities purchase agreement in the form of Appendix
A attached hereto (the “Securities Purchase Agreement”) to be entered into with the purchasers
identified therein (each, a “Purchaser” and together, the “Purchasers”), an aggregate
of 15,000,000 American Depositary Shares, each representing two shares, no par value per share, of the Company (each a
“Share” and each American Depositary Share, an “ADS”) together with warrants to
purchase up to 10,500,000 additional Shares (the “Warrants”). These securities will be sold together as a
bundle and will be referred to herein as the “Offered Securities.”  Each bundle will consist of one
ADS and warrant to purchase 35% of an ADS.  The Offered Securities must be purchased in minimum increments of ten (10)
ADSs (such that warrants for seven (7) Shares will be issued) as the Company will not issue fractional Warrants or Warrants
for fractional shares. The ADSs and Warrants are hereinafter referred to as the “Offered Securities.”
Unless the context otherwise requires, each reference to the ADSs and the Warrants or the Offered Securities also includes
the Shares underlying such ADSs or Shares purchasable pursuant to the exercise of such Warrants, as the case may be. The
Company hereby confirms that Roth Capital Partners, LLC (“Roth” or the “Placement
Agent”) acted as Placement Agent in the sale of the Offered Securities in accordance with the terms and conditions
of this Agreement and the Securities Purchase Agreement.

 

1.            Agreement
to Act as Placement Agent; Placement of Securities.         On
the basis of the representations, warranties and agreements of the Company contained herein, and subject to all the terms and conditions
of this Agreement:

 

(a)          The
Company hereby acknowledges that the Placement Agent acted as its sole and exclusive agent to solicit offers for the purchase of
all or part of the Offered Securities from the Company in connection with the proposed offering of the Offered Securities (the
“Offering”). Until the Closing Date (as defined in Section 6 hereof), the Company shall not, without the prior
written consent of the Placement Agent, solicit or accept offers to purchase the Offered Securities otherwise than through the
Placement Agent.

 

(b)          The
Company hereby acknowledges that the Placement Agent, as agent of the Company, will use its commercially reasonable “best
efforts” to solicit offers to purchase the Offered Securities from the Company on the terms and subject to the conditions
herein. The Placement Agent shall use commercially reasonable efforts to assist the Company in obtaining performance by each Purchaser
whose offer to purchase the Offered Securities was solicited by the Placement Agent and accepted by the Company, but the Placement
Agent shall not, except as otherwise provided in this Agreement, be obligated to disclose the identity of any potential purchaser
or have any liability to the Company in the event any such purchase is not consummated for any reason. Under no circumstances will
the Placement Agent be obligated to underwrite or purchase any Offered Securities for its own account and, in soliciting purchases
of Offered Securities, the Placement Agent acted solely as the Company's agent and not as principal. Notwithstanding the foregoing
and except as otherwise provided in this Section 1(b), it is understood and agreed that the Placement Agent (or its affiliates)
may, solely at its discretion and without any obligation to do so, purchase the Offered Securities as principal.

 

    	 

    	 

    

  

(c)          Offers
for the purchase of Offered Securities were solicited by the Placement Agent as agent for the Company at such times and in such
amounts as the Placement Agent deemed advisable. The Placement Agent communicated to the Company, orally or in writing, each reasonable
offer to purchase Offered Securities received by it as agent of the Company. The Company shall have the sole right to accept offers
to purchase the Offered Securities and may reject any such offer, in whole or in part. The Placement Agent has the right, in its
discretion, without notice to the Company, to reject any offer to purchase Offered Securities received by it, in whole or in part,
and any such rejection shall not be deemed a breach of this Agreement.

 

(d)          The
Offered Securities are being sold to the Purchasers at a price of US$4.67 per ADS and a four-year Warrant to purchase 35% of an
ADS with an exercise price of $6.04 per ADS, or $3.02 per share. The purchase of the Offered Securities by each Purchaser shall
be evidenced by the execution of the Securities Purchase Agreement by such Purchaser and the Company.

 

(e)          As
compensation for services rendered, on the Closing Date (as defined below), the Company shall pay to the Placement Agent by wire
transfer of immediately available funds to an account or accounts designated by the Placement Agent, an aggregate amount equal
to five percent (5%) of the gross proceeds received by the Company (the “Placement Fee”) from the sale of Offered
Securities. The Placement Agent may retain other brokers or dealers to act as sub-agents on its behalf in connection with the Offering,
the fees of which shall be paid out of the Placement Fee.

 

(f)          No
Offered Securities which the Company has agreed to sell pursuant to this Agreement and the Securities Purchase Agreement
shall be deemed to have been purchased and paid for, or sold by the Company, until such Offered Securities shall have been
delivered to the Purchasers thereof against payment by such Purchaser.

 

(g)          The
Company hereby acknowledges that on the Closing Date as to each Purchaser, (a) such Purchaser shall pay the aggregate purchase
price for the ADSs purchased by such Purchaser by delivery of immediately available funds to an account designated by the Company
not less than two (2) business days prior to the Closing Date, (b) the Company will deliver, or cause to be delivered, to the Placement
Agent the ADSs to be purchased by such Purchaser by authorizing the release of the ADSs to the Placement Agent’s clearing
firm via DWAC delivery prior to the release of the federal funds wire to the Company for payment of such ADSs, (c)
the Placement Agent will deliver, or cause to be delivered, to such Purchaser, the ADSs to be purchased by such Purchaser in accordance
with the instructions provided by the Purchaser on its executing broker’s account and (d) the Placement Agent will deliver,
or cause to be delivered, to the Company, the aggregate purchase price for the ADSs purchased by such Purchaser, minus applicable
fees and disbursements. The Company acknowledges and agrees that the settlement procedure described above is being provided to
the Company as an accommodation solely upon the Company’s request.

 

2.            Registration
Statement and Prospectus.         The Company has prepared and filed, in accordance
with the provisions of the Securities Act of 1933, as amended (the “Securities Act”) and the rules and regulations
promulgated thereunder (the “Rules and Regulations”), with the United States Securities and Exchange Commission
(the “Commission”) a registration statement on Form F-3 (File No. 333-189650) and such amendments to such registration
statement (including any pre-effective amendments and post-effective amendments) as may have been required prior to and as of the
date of this Agreement (the “Base Registration Statement”) and a preliminary prospectus supplement pursuant
to Rule 424(b) under the Securities Act (a “Preliminary Prospectus”), relating to the Offered Securities. The
Base Registration Statement and any post-effective amendment thereto, each in the form theretofore delivered to the Placement Agent,
have been declared effective by the Commission in such form. Such Base Registration Statement, including any post-effective amendment
thereto at such time, the exhibits and any schedules thereto at such time, the documents incorporated by reference therein pursuant
to Item 6 of Form F-3 under the Securities Act at such time, the information contained in the form of Final Prospectus (as
defined below) and deemed by virtue of Rule 430B under the Securities Act to be part of the Base Registration Statement at the
time it was declared effective and the documents and information otherwise deemed to be a part thereof or included therein by Rule
430B under the Securities Act or otherwise pursuant to the Rules and Regulations at such time, in each case as amended at the time
such part of the Base Registration Statement became effective, are herein collectively called the “Registration Statement.”
If the Company has filed or files an abbreviated registration statement pursuant to Rule 462(b) under the Securities Act (the “Rule
462 Registration Statement”), then any reference herein to the term Registration Statement shall include such Rule 462
Registration Statement.

 

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The Company is
filing with the Commission pursuant to Rule 424(b) under the Securities Act a final prospectus supplement to the Registration Statement
that relates to the Offered Securities. The form of prospectus included in the Registration Statement is hereinafter called the
“Base Prospectus,” and such final prospectus supplement as filed pursuant to Rule 424(b) under the Securities
Act, along with the Base Prospectus, is hereinafter called the “Final Prospectus.” Such Final Prospectus and
any Preliminary Prospectus (including the Base Prospectus as so supplemented) are hereinafter called a “Prospectus.”
Any reference herein to the Base Prospectus, any Preliminary Prospectus, the Final Prospectus or a Prospectus shall be deemed to
include the documents incorporated by reference therein pursuant to Item 6 of Form F-3 under the Securities Act as of the date
of the respective Prospectuses.

 

For purposes of
this Agreement, all references to the Registration Statement, any Preliminary Prospectus, the Rule 462 Registration Statement,
the Base Prospectus, the Final Prospectus, the Prospectus or any amendment or supplement to any of the foregoing shall be deemed
to include the copy filed with the Commission pursuant to its Interactive Data Electronic Applications system. All references in
this Agreement to financial statements and schedules and other information which is “described,” “contained,”
“included” or “stated” in the Registration Statement, any Preliminary Prospectus, the Rule 462 Registration
Statement, the Base Prospectus, the Final Prospectus or the Prospectus (or other references of like import) shall be deemed to
mean and include all such financial statements, pro forma financial information and schedules and other information which is incorporated
by reference in or otherwise deemed by the Rules and Regulations to be a part of or included in the Registration Statement, any
Preliminary Prospectus, the Rule 462 Registration Statement, the Base Prospectus, the Final Prospectus or the Prospectus, as the
case may be; and all references in this Agreement to amendments or supplements to the Registration Statement, any Preliminary Prospectus,
the Rule 462 Registration Statement, the Base Prospectus, the Final Prospectus or the Prospectus shall be deemed to mean and include
the subsequent filing of any document under the Securities Exchange Act of 1934, as amended (the “Exchange Act”),
that is deemed to be incorporated therein by reference therein or otherwise deemed by the Rules and Regulations to be a part thereof.

 

The Shares to be represented
by the ADSs may be evidenced by American Depositary Receipts (the “ADRs”) to be issued pursuant to the Deposit
Agreement (the “Deposit Agreement”) entered into among the Company, The Bank of New York Mellon, as depositary
(the “Depositary”), and the holders and beneficial owners from time to time of the ADRs.

 

3.            Representations
and Warranties Regarding the Offering.         The Company represents and
warrants to and agrees with the Placement Agent that:

 

(a)          At
each time of effectiveness, at the date of this Agreement and at the Closing Date, the Registration Statement and any post-effective
amendment thereto complied or will comply in all material respects with the requirements of the Securities Act and the Rules and
Regulations and did not and will not contain any untrue statement of a material fact or omit to state any material fact required
to be stated therein or necessary in order to make the statements therein, in the light of the circumstances under which they were
made, not misleading. The Time of Sale Disclosure Package (as defined below) does not, and at the time of each sale of the Offered
Securities in connection with the Offering, the Time of Sale Disclosure Package, as then amended or supplemented by the Company,
if applicable, does 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. Each written roadshow prepared
by or on behalf of the Company and used or referred to by the Company or with the Company’s express consent (the “Marketing
Materials”), when considered together with the Time of Sale Disclosure Package, does
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. The Final Prospectus, as amended or supplemented,
as of its date, at the time of filing pursuant to Rule 424(b) under the Securities Act and at each Closing Date, did not and will
not contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary
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 three immediately preceding sentences shall not apply to statements in or omissions from the Registration
Statement, the Time of Sale Disclosure Package, or any Prospectus, in reliance upon, and in conformity with, written information
furnished to the Company by the Placement Agent specifically for use in the preparation thereof, which written information is described
in Section 9(f). Other than the Registration Statement, any Preliminary Prospectus, the Rule 462 Registration Statement, the Base
Prospectus, the Final Prospectus, the Prospectus and any Issuer Free Writing Prospectus (as defined below), no other document with
respect to the Offered Securities has heretofore been filed with the Commission. No order preventing or suspending the effectiveness
or use of the Registration Statement, any post-effective amendment thereto, the Rule 462 Registration Statement, if any, or any
Prospectus has been issued or is in effect and no proceedings for such purpose have been instituted or are pending, or, to the
Company’s knowledge, are contemplated or threatened by the Commission. For purposes of this Agreement, the “Applicable
Time” is the time that trading commences on the New York Stock Exchange on the date of this Agreement.

 

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(b)          The
Company has provided a copy to the Placement Agent of each Issuer Free Writing Prospectus (as defined below) used in the sale
of the Offered Securities. Each Issuer Free Writing Prospectus listed on Exhibit A attached hereto at the Applicable
Time, as supplemented by and taken together with the Time of Sale Disclosure Package, did not contain any untrue statement of
a material fact or omit to state any 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. The representations and warranties set
forth in the immediately preceding sentence shall not apply to statements in or omissions from any Issuer Free Writing Prospectus,
the Registration Statement or any Prospectus in reliance upon, and in conformity with, written information furnished to the Company
by the Placement Agent specifically for use in the preparation thereof, which written information is described in Section 9(f).
For the purposes of this Agreement, “Time of Sale Disclosure Package” means the Base Prospectus, the Prospectus most
recently filed with the Commission before the time of this Agreement, including any Preliminary Prospectus deemed to be a part
thereof, each Issuer Free Writing Prospectus included on Exhibit A attached hereto; and “Issuer Free Writing
Prospectus” means any “issuer free writing prospectus,” as such term is
defined in Rule 433 under the Securities Act, relating to the Offered Securities that (A) is required to be filed with the Commission
by the Company, or (B) is exempt from filing pursuant to Rule 433(d)(5)(i) or (d)(8) under the Securities Act, in each case in
the form filed or required to be filed with the Commission or, if not required to be filed, in the form retained in the Company’s
records pursuant to Rule 433(g) under the Securities Act.

 

(c)          The
Company has filed all Issuer Free Writing Prospectuses required to be so filed with the Commission, and no order preventing or
suspending the effectiveness or use of any Preliminary Prospectus or any Issuer Free Writing Prospectus is in effect and no proceedings
for such purpose have been instituted or are pending, or, to the knowledge of the Company, are contemplated or threatened by the
Commission. Each Issuer Free Writing Prospectus, at the time of filing thereof, conformed in all material respects to the requirements
of the Securities Act and the applicable Rules and Regulations.

 

(d)          The
documents incorporated by reference in the Registration Statement, the Time of Sale Disclosure Package and any Prospectus, when
they became effective or were filed with the Commission, as the case may be, conformed in all material respects to the requirements
of the Securities Act or the Exchange Act, as applicable, and the rules and regulations promulgated thereunder by the Commission
and, to the extent then applicable, the Sarbanes-Oxley Act, including in each case, the rules and regulations thereunder, were
filed on a timely basis with the Commission and none of such documents, when they were filed (or, if amendments to such documents
were filed, when such amendments were filed), contained any untrue statement of a material fact or omitted to state any
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. Any further documents so filed and incorporated by reference
in the Registration Statement, the Time of Sale Disclosure Package or any Prospectus, when such documents are filed with the Commission
or became effective, as the case may be, will conform in all material respects to the requirements of the Securities Act or Exchange
Act, as applicable, and the rules and regulations promulgated thereunder by the Commission and will not contain any untrue
statement of a material fact or omit to state any material fact required to be stated therein or necessary in order to make the
statements therein, in the light of the circumstances under which they were made, not misleading. The Company certifications required
by Rules 13a-14 and 15d-14 under the Exchange Act and Sections 302 and 906 of the Sarbanes-Oxley Act that are contained in the
documents incorporated by reference in the Registration Statement, the Time of Sale Disclosure Package and any Prospectus were
true, correct and complete at the time they were made and complied in all respects with such laws and the rules and regulations
thereunder.

 

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(e)          The
statements in the Registration Statement, the Time of Sale Disclosure Package and the Final Prospectus under the captions “Enforceability
of Civil Liabilities,” “Description of Share Capital,” “Description of American Depositary Shares,”
“Description of Warrants,” “Taxation,” and as incorporated therein by reference, “Information on
the Company,” “Directors, Senior Management and Employees” and “Major Shareholders and Related Party Transactions,”
in case of each captioned section, insofar as such statements summarize legal matters, agreements, documents or proceedings discussed
therein, are true and accurate summaries of such matters described therein in all material respects.

 

(f)          The
Company has not distributed any prospectus or other offering material in connection with the offering and sale of the Offered Securities
other than the Time of Sale Disclosure Package and the Marketing Materials.

 

(g)          The
Company is not and has not been an “ineligible issuer,” as such term is defined in Rule 405 under the Securities
Act at any time since the date of the first filing of the Base Registration Statement.

 

(h)          Each
Issuer Free Writing Prospectus satisfied, as of its issue date and at all subsequent times through the Prospectus Delivery Period
(as defined below), all other conditions as may be applicable to its use as set forth in Rules 164 and 433 under the Securities
Act, including any legend, record-keeping or other requirements.

 

(i)          The
Company had a reasonable basis for, and made in good faith, each “forward-looking statement” (within the meaning
of Section 27A of the Securities Act or Section 21E of the Exchange Act) contained or incorporated by reference in the Registration
Statement, the Time of Sale Disclosure Package, the Final Prospectus or the Marketing Materials.

 

(j)          All
statistical or market-related data included or incorporated by reference in the Registration Statement, the Time of Sale Disclosure
Package or the Final Prospectus, or included in the Marketing Materials, are based on or derived from sources that the Company
reasonably believes to be reliable and accurate, and the Company has obtained the written consent to the use of such data from
such sources, to the extent required.

 

(k)          The
ADSs are registered pursuant to Section 12(b) of the Exchange Act and are included or approved for inclusion on the New York Stock
Exchange (the “NYSE”). There is no action or proceeding pending, or to the knowledge of the Company, currently
threatened by the NYSE against the Company to delist the ADSs from the NYSE, nor has the Company received any notification that
the NYSE is contemplating termination of the listing of the ADSs. When issued, the ADSs will be, and when issued, the ADSs evidencing
the Shares issued and purchased pursuant to the Warrants and deposited with the Depositary against issuance of the ADRs will be
listed on the NYSE.

 

(l)          Neither
the Company nor any of its affiliates has taken, nor will the Company, or any affiliate, either alone or with one or more other
persons take, directly or indirectly, any action which is designed to or which has constituted or which would reasonably be expected
to cause or result in stabilization or manipulation of the price of any security of the Company to facilitate the sale or relate
of the Offered Securities.

 

(m)          The
Company is not and, after giving effect to the offering and sale of the Offered Securities and the application of the net proceeds
thereof as described in the Time of Sale Disclosure Package and the Final Prospectus, will not, be required to be registered as
an “investment company,” as such term is defined in the Investment Company Act of 1940, as amended (the “Investment
Company Act”).

 

(n)          The
Company was, has been and remains eligible to use Form F-3 under the Securities Act in accordance with General Instruction I of
Form F-3 since the date of the first filing of the Base Registration Statement.

 

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(o)          The
Company and its board of directors have taken all necessary actions, if any, in order to render inapplicable any control share
acquisition, business combination, mandatory tender offer, “poison pill” (including any distribution under a rights
agreement, dated as of August 22, 2011, by and between the Company and The Bank of New York Mellon, a New York banking corporation,
in its capacity as the rights agent (the “Rights Agreement”)) or other similar anti-takeover provision under
the Company’s constitutional documents or the laws of the British Virgin Islands that is or could reasonably be expected
to become applicable to any of the Purchasers as a result of any such Purchaser and the Company fulfilling their respective obligations
or exercising their respective rights under this Agreement, including, without limitation, the Company’s issuance, sale,
and delivery of the Offered Securities to any of the Purchasers and any of the Purchaser’s ownership of the Offered Securities.

 

(p)          Any
certificate signed by any officer of the Company and delivered to the Placement Agent or to the Placement Agent’s counsel
shall constitute a representation and warranty hereunder by the Company, as to the matters covered thereby, to the Placement Agent.

 

4.            Representations
and Warranties Regarding the Company.         The Company represents and warrants
to and agrees with the Placement Agent that:

 

(a)          The
Company has been duly incorporated and is a validly existing company limited by shares in good standing under the laws of the British
Virgin Islands, with power and authority (corporate and other) to own its properties and conduct its business in the manner presently
conducted and as described in the Registration Statement, the Time of Sale Disclosure Package and the Final Prospectus; and the
Company is duly qualified to do business as a foreign corporation in good standing in all other jurisdictions in which its ownership
or lease of property or the conduct of its business requires such qualification.

 

(b)          Each
of the subsidiaries of the Company (the “Subsidiaries”), has been duly incorporated and is existing and in good
standing (as applicable) under the laws of the jurisdiction of its incorporation, with power and authority (corporate and other)
to own its properties and conduct its business as described in the Registration Statement, the Time of Sale Disclosure Package
and the Final Prospectus; and each of the Subsidiaries is duly qualified to do business as a foreign corporation in good standing
in all other jurisdictions in which its ownership or lease of property or the conduct of its business requires such qualification,
except such as would not, individually or in the aggregate, (i) result in a material adverse effect on the condition (financial
or otherwise), results of operations, business, properties or prospects of the Company, and the Subsidiaries taken as a whole,
or (ii) prevent the consummation of the transactions contemplated hereby (the occurrence of any such effect or any such prevention
described in the foregoing clauses (i) and (ii) is referred to hereinafter as a “Material Adverse Effect”);
except as disclosed in the Registration Statement, the Time of Sale Disclosure Package and the Final Prospectus, (A) the Company
has no other subsidiaries and (B) the Company exclusively owns or controls (as such term is defined in the Securities Act), directly
or indirectly, all of the issued and outstanding capital stock or other equity interest, as applicable, in each of the Subsidiaries.
All of the issued and outstanding capital stock or other equity interest, as applicable, of each of the Subsidiaries have been
duly authorized and validly issued and is fully paid and nonassessable; the capital stock or other equity interest, as applicable,
of each Subsidiary owned by the Company, directly or through the Subsidiaries, is owned free from Liens (as defined below) and
defects; and none of the capital stock of or other equity interest in, as applicable, any Subsidiary was issued in violation of
pre-emptive or similar rights of any security holder of such Subsidiary. The memorandum and articles of association or other constitutive
or organizational documents of each of the Company and the Subsidiaries comply with the requirement of applicable law in their
respective jurisdictions of incorporation and are in full force and effect. Except as disclosed in the Registration Statement,
the Time of Sale Disclosure Package and the Final Prospectus, there are no outstanding options or other rights to acquire from
the Company or any of the Subsidiaries, or other obligation of any of the Company or the Subsidiaries to issue, any capital stock
or securities of any of the Subsidiaries. No order has been made or petition presented or resolution passed for the winding up,
liquidation or dissolution of any of the Company or the Subsidiaries and no distress, execution or other process has been levied
on any of the Company or the Subsidiaries. 

 

(c)          Except
as disclosed in the Registration Statement, the Time of Sale Disclosure Package and the Final Prospectus, the Company and the Subsidiaries
possess, and are in compliance with the terms of, all certificates, authorizations, franchises, licenses and permits (the “Licenses”)
necessary or material to the conduct of the business now conducted or proposed in the Registration Statement, the Time of Sale
Disclosure Package and the Final Prospectus to be conducted by any of them and have not received any notice of proceedings relating
to the revocation or modification of any License that, if determined adversely to the Company or any of the Subsidiaries, would
individually or in the aggregate have a Material Adverse Effect.

 

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(d)          The
Company has the requisite corporate power and has been duly authorized by all necessary corporate action on the part of the Company
to execute, deliver and perform this Agreement. All actions on the part of the Company, the Subsidiaries, their respective officers,
directors and shareholders necessary for the authorization, execution and delivery of this Agreement, the performance of all obligations
of the Company hereunder and the authorization, sale, issuance and delivery by the Company of the Offered Securities (and the underlying
Shares or Shares purchasable upon exercise thereof, as applicable) as contemplated by this Agreement have been taken or will be
taken prior to the Closing Date, and this Agreement 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 or similar laws affecting the rights
of creditors generally and subject to general principles of equity.

 

(e)          The
execution, delivery and performance of this Agreement and the Securities Purchase Agreement, the issuance and sale of the
Offered Securities, the issuance and delivery of the ADSs, the Shares upon exercise of the Warrants and the ADSs representing
such Shares, the deposit of such Shares with the Depositary against issuance of the ADRs evidencing the ADSs, and compliance
by the Company with the terms and provisions of this Agreement and the Offered Securities will not (A) result in a breach or
violation of any of the terms and provisions of, or constitute a default under, any statute, rule, regulation or order of any
governmental agency or body or any court, domestic or foreign, having jurisdiction over the Company or any of the
Subsidiaries or any of their respective properties, (B) conflict with, result in any violation or breach of, or constitute a
default (or an event that with notice or lapse of time or both would become a default) or a Debt Repayment Triggering Event
(as defined below) under, or give to others any right of termination, amendment, acceleration or cancellation (with or
without notice, lapse of time or both) of, any contract, agreement, lease, credit facility, debt, note, bond, mortgage,
indenture or other instrument (the “Contracts”) or obligation or other understanding to which the Company
or any of the Subsidiaries is a party or by which any property or asset of the Company or any of the Subsidiaries is bound or
subject, (C) result in a breach or violation of any of the terms and provisions of, or constitute a default under, the
memorandum and articles of association or any other constitutional documents of the Company or any of the Subsidiaries or (D)
result in the creation or imposition of any lien, pledge, charge, security interest or encumbrance (each,
a “Lien”) on any asset of the Company or any of the Subsidiaries; a “Debt Repayment Triggering
Event” means any event or condition that gives, or with the giving of notice or lapse of time would give, the
holder of any note, debenture, or other evidence of indebtedness (or any person acting on such holder’s behalf) the
right to require the repurchase, redemption or repayment of all or a portion of such indebtedness by the Company or any of
the Subsidiaries.

 

(f)          Complete
and correct copies of the memorandum and articles of association or other constitutional documents of the Company and the Subsidiaries
and all amendments thereto have been delivered to the Placement Agent, and except as disclosed in the Registration Statements,
the Time of Sale Disclosure Package and the Final Prospectus, no changes therein will be made subsequent to the date hereof and
prior to the Closing Date. Neither the Company nor any of the Subsidiaries is (or with the giving of notice or lapse of time would
be) (A) in violation of their respective memorandums or articles of association, charters, by-laws or other organizational documents
or (B) in violation of any law, order, rule or regulation judgment, order, writ or decree applicable to the Company or any of the
Subsidiaries of any court, stock exchange or any government, regulatory body, administrative agency or other governmental body
having jurisdiction, or (C) in default under any existing Contracts to which any of them is a party or by which any of them is
bound or to which any of the properties of any of them is subject, and solely with respect to sub-clauses (B) and (C), except such
violations and defaults that would not, individually or in the aggregate, result in a Material Adverse Effect. 

 

(g)          Except
for (i) the registration of the Offered Securities under the Securities Act and applicable state securities laws, the Financial
Industry Regulatory Authority (“FINRA”) and the NYSE in connection with the purchase and distribution of the
Offered Securities and the listing of the ADSs and the ADSs evidencing the Shares issued and purchased pursuant to the Warrants
and deposited with the Depositary against issuance of the ADRs on the NYSE and (ii) where the failure to obtain such consents,
approvals or authorizations would not be reasonably expected to have a Material Adverse Effect, no consent, approval, authorization
or order of, or filing, qualification or registration (each an “Authorization”) with, any court, governmental
or non-governmental agency or body, foreign or domestic, is required for the execution, delivery and performance of this Agreement
by the Company, the offer, sale or delivery of the Offered Securities by the Company or the consummation of the transactions contemplated
hereby.

 

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(h)         The
Company has an authorized capitalization as set forth under the heading “Capitalization” in the Registration Statement,
the Time of Sale Disclosure Package Prospectus and the Final Prospectus. All of the issued and outstanding
Shares underlying the ADSs have been duly authorized and validly issued, fully paid and nonassessable, and have been issued in
compliance with all provisions of applicable securities laws and regulations, and conform to the description thereof in the Registration
Statement, the Time of Sale Disclosure Package and the Final Prospectus. Except as disclosed in the Registration Statement, the
Time of Sale Disclosure Package and the Final Prospectus, there are no issued and outstanding (A) shares of capital stock or voting
securities of the Company, (B) securities of the Company convertible into or exchange for shares of capital stock or voting securities
of the Company or (C) options or other rights to acquire from the Company, or other obligation of the Company to issue, any capital
stock, voting securities or securities convertible into or exchange for capital stock or voting securities of the Company. No adjustment
to any conversion price, exercise price or ratio or exchange rate shall occur with respect to any outstanding securities of the
Company by reason of the initial issuance of Offered Securities.

 

(i)          The
Shares underlying the ADSs to be issued and sold by the Company to the Purchasers, and the Shares to be issued upon exercise of
the Warrants, have been duly and validly authorized and, when issued, sold and delivered against payment therefor as provided herein
and in the Warrants, will be validly issued, fully paid and nonassessable and free and clear of any Lien or restrictions on transfer,
and will be free of statutory and contractual preemptive, resale, right of first refusal, registration or similar rights and will
conform to the description thereof contained in the Registration Statement, the Time of Sale Disclosure Package and the Final Prospectus.

 

(j)          Except
as disclosed in the Registration Statement, the Time of Sale Disclosure Package and the Final Prospectus, the Company maintains
a system of internal controls, including, but not limited to, disclosure controls and procedures, internal controls over accounting
matters and financial reporting, an internal audit function and legal and regulatory compliance controls (collectively, “Internal
Controls”) that comply with the Exchange Act and the rules and regulations promulgated thereunder and are sufficient
to provide reasonable assurances 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 (as defined below)
and to maintain accountability for assets, (iii) access to assets is permitted only in accordance with management’s general
or specific authorization, and (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. The Company and the Subsidiaries maintain and keep books, records
and accounts which, in reasonable detail, accurately and fairly reflect their transactions and dispositions of assets. The Internal
Controls are overseen by the Audit Committee (the “Audit Committee”) of the Board in accordance with Exchange
Act and the rules and regulations promulgated thereunder. Except as disclosed in the Registration Statement, the Time of Sale Disclosure
Package and the Final Prospectus, the Company is not aware of, and does not reasonably expect to publicly disclose or report to
the Audit Committee or the Board, a significant deficiency, material weakness, change in Internal Controls or fraud involving management
or other employees who have a significant role in Internal Controls (each, an “Internal Control Event”), any
violation of, or failure to comply with, the Securities Laws, or any matter which, if determined adversely, would have a Material
Adverse Effect.

 

(k)          A
member of the Audit Committee has confirmed to the Chief Executive Officer or Chief Financial Officer that, except as set forth
in the Registration Statement, the Time of Sale Disclosure Package and the Final Prospectus, the Audit Committee is not reviewing
or investigating, and neither the Company’s independent auditors nor its internal auditors have recommended that the Audit
Committee review or investigate, (i) adding to, deleting, changing the application of, or changing the Company’s disclosure
with respect to, any of the Company’s material accounting policies; (ii) any matter which could result in a restatement of
the Company’s financial statements for any annual or interim period during the current or prior three fiscal years; or (iii)
any Internal Control Event.

 

    	8

    	 

    

  

(l)          Neither
the Company, any of the Subsidiaries nor, to the best knowledge of the Company after due inquiry, any employee or agent of the
Company or any of the Subsidiaries has made any payment of funds of the Company or any of the Subsidiaries or received or retained
any funds in violation of any law, rule or regulation, which payment, receipt or retention of funds is of a character required
to be disclosed in the Registration Statement, the Time of Sale Disclosure Package or the Final Prospectus.

 

(m)         The
financial statements, together with the related notes, included or incorporated by reference in the Registration Statement, the
Time of Sale Disclosure Package and the Final Prospectus comply in all material respects to the requirements of the Securities
Act and the Exchange Act and the rules and regulations promulgated thereunder and fairly present the financial position and the
results of operations and changes in financial position of the Company and its consolidated Subsidiaries at the respective dates
or for the respective periods therein specified. Such statements and related notes have been prepared in accordance with the generally
accepted accounting principles in the United States (“GAAP”) applied on a consistent basis throughout the periods
involved except as may be set forth in the accompanying notes. No other financial statements or supporting schedules or exhibits
are required by Regulation S-X to be described, included or incorporated by reference in the Registration Statements, the Time
of Sale Disclosure Package or the Final Prospectus. There is no pro forma or as adjusted financial information which is required
to be included in the Registration Statements, the Time of Sale Disclosure Package, and the Final Prospectus or a document incorporated
by reference therein in accordance with Regulation S-X which has not been included or incorporated as so required. The summary
and selected financial data included or incorporated by reference in the Registration Statement, the Time of Sale Disclosure Package
and the Final Prospectus truly, accurately and fairly present the information shown therein as at the respective dates and for
the respective periods specified and are derived from the consolidated financial statements set forth incorporated by reference
in the Registration Statement, the Time of Sale Disclosure Package and the Final Prospectus and other financial information. All
information contained in the Registration Statements, the Time of Sale Disclosure Package and the Final Prospectus regarding “non-GAAP
financial measures” (as defined in Regulation G of the Exchange Act) complies with Regulation G and Item 10 of Regulations
S-K of the Exchange Act, to the extent applicable. To the best knowledge of the Company after due inquiry, Deloitte Touche Tohmatsu
CPA Ltd. who has certified certain financial statements included or incorporated by reference in the Registration Statements, the
Time of Sale Disclosure Package and the Final Prospectus, and Deloitte Touche Tohmatsu CPA Ltd., who has audited the Company’s
internal control over financial reporting and management’s assessment thereof, is an independent registered public accounting
firm within the meaning of Article 2-01 of Regulation S-X and the Public Company Accounting Oversight Board (United States) (the
“PCAOB”). The interactive data in eXtensible Business Reporting Language included
or incorporated by reference in the Registration Statement, the Time of Sale Disclosure Package and the Final Prospectus truly,
accurately and fairly presents the information called for in all material respects and has been prepared in accordance with the
Commission’s rules and guidelines applicable thereto.

 

(n)          There
are no relationships or related-party transactions involving the Company, any Subsidiary, or any other person that are required
to be described in the Registration Statement, the Time of Sale Disclosure Package and the Final Prospectus or a document incorporated
by reference therein which have not been described as required.

 

(o)          Each
of the Company and the Subsidiaries has filed all returns (as hereinafter defined) required to be filed with taxing authorities
prior to the date hereof or has duly obtained extensions of time for the filing thereof. Each of the Company and the Subsidiaries
has paid all taxes (as hereinafter defined) shown as due on such returns that were filed and has paid all taxes imposed on or assessed
against the Company or such respective Subsidiary and the Company has no knowledge after due inquiry of any tax deficiency which
might be assessed against the Company or any of the Subsidiaries, except as would not have a Material Adverse Effect.

 

(p)          The
Company was not a “passive foreign investment company” (“PFIC”) as defined in Section 1297 of the
United States Internal Revenue Code of 1986, as amended (the “Code”), for its most recently completed taxable
year and, based on the Company’s current projected income, assets and activities, the Company does not expect to be classified
as a PFIC for the current taxable year or any subsequent taxable year. The Company has no plan or intention to take any action
that would result in the Company becoming a PFIC in the future under current laws and regulations.

 

    	9

    	 

    

  

(q)          Under
current laws and regulations of the British Virgin Islands and any political subdivision thereof, as each such law and regulation
is in effect as of the date of this Agreement, all dividends and other distributions declared and payable on the Shares or ADSs
issuable upon depositing such Shares with the Depositary paid by the Company to holders thereof who are non-residents of the British
Virgin Islands will not be subject to income, withholding or other taxes under laws and regulations of the British Virgin Islands
or any political subdivision or taxing authority thereof or therein and will otherwise be free and clear of any other tax, duty,
withholding or deduction in the British Virgin Islands or any political subdivision or taxing authority thereof or therein and
without the necessity of obtaining any governmental authorization in the British Virgin Islands or any political subdivision or
taxing authority thereof or therein.

 

(r)          Since
the respective dates as of which information is given in the Registration Statement, the Time of Sale Disclosure Package and the
Final Prospectus, except as described in the Registration Statement, the Time of Sale Disclosure Package and the Final Prospectus,
(a) neither the Company nor any of the Subsidiaries has incurred any material liabilities or obligations, direct or contingent,
or entered into any material transactions other than in the ordinary course of business, (b) the Company has not declared or paid
any dividends or made any distribution of any kind with respect to its capital stock, (c) there has not been any material change
in the capital stock or equity interest, as the case may be, of the Company or any of the Subsidiaries (other than a change in
the number of outstanding Shares due to the issuance of Shares upon the exercise of outstanding options or warrants
or the issuance of restricted stock awards or restricted stock units under the Company’s existing stock awards plan,
or any new grants thereof in the ordinary course of the Company’s business), (d) there has not been any material change in
the Company’s long-term or short-term debt, and (e) there has not been the occurrence of any Material Adverse Effect.

 

(s)          There
are no pending actions, suits or proceedings (including any inquiries or investigations by any court or governmental agency or
body, domestic or foreign) against or affecting the Company and any of the Subsidiaries or any of their respective properties that,
if determined adversely to the Company or any of the Subsidiaries, would individually or in the aggregate have a Material Adverse
Effect, or would materially and adversely affect the ability of the Company to perform its obligations under this Agreement, or
which are otherwise material in the context of the sale of the Offered Securities; and, to the Company’s knowledge after
due inquiry, no such actions, suits or proceedings (including any inquiries or investigations by any court or governmental agency
or body, domestic or foreign) are threatened or contemplated.

 

(t)          Except
as disclosed in the Registration Statement, the Time of Sale Disclosure Package and the Final Prospectus, each of the Company and
the Subsidiaries has good and marketable title to all real properties and all other properties and assets owned by them, in each
case free from and clear of all Liens, defects, claims, options or restrictions that would materially affect the value thereof
or materially interfere with the use made or to be made thereof by them; and the Company and the Subsidiaries hold any leased real
or personal property under valid and enforceable leases, which leases are in full force and effect with no terms or provisions
that would materially interfere with the use made or to be made thereof by them.

 

(u)          The
Company and each of the Subsidiaries owns or possesses or has valid right to use all patents, patent applications, trademarks,
service marks, trade names, trademark registrations, service mark registrations, copyrights, licenses, inventions, trade secrets
and similar rights (“Intellectual Property”) necessary for the conduct of the business of the Company and the
Subsidiaries as currently carried on and as described in the Registration Statement, the Time of Sale Disclosure Package and the
Final Prospectus. To the knowledge of the Company and except as disclosed in the Registration Statement, the Time of Disclosure
Package or the Final Prospectus, no action or use by the Company or any of the Subsidiaries will involve or give rise to any infringement
of, or license or similar fees for, any Intellectual Property of others, except where such action, use, license or fee is not reasonably
likely to result in a Material Adverse Effect. Neither the Company nor any of the Subsidiaries has received any notice alleging
any such infringement or fee.

 

(v)         Neither
the Company nor any of the Subsidiaries is in violation of any statute, rule, regulation, decision or order of any governmental
agency or body or any court, domestic or foreign, relating to the use, disposal or release of hazardous or toxic substances or
relating to the protection or restoration of the environment or human exposure to hazardous or toxic substances (collectively,
“environmental laws”), owns or operates any real property contaminated with any substance that is subject to
any environmental laws, is liable for any offsite disposal or contamination pursuant to any environmental laws, or is subject to
any claim relating to any environmental laws, which violation, contamination, liability or claim would individually or in the aggregate
have a Material Adverse Effect; and the Company is not aware of any pending investigation which might lead to such a claim.

 

    	10

    	 

    

  

(w)          The
operations of the Company and the Subsidiaries are and have been conducted at all times in compliance with, to the extent applicable,
financial recordkeeping and reporting requirements of the Currency and Foreign Transactions Reporting Act of 1970, as amended (including
by Title III of the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism
Act of 2001 or the U.S. PATRIOT Act), the money laundering statutes of all applicable jurisdictions, the rules and regulations
thereunder and any related or similar rules, regulations or guidelines, issued, administered or enforced by any governmental agency
(collectively, the “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 of any of the Subsidiaries with respect to the Money Laundering
Laws is pending or, to the knowledge of the Company, threatened.

 

(x)          Solely
to the extent that Sarbanes-Oxley and the rules and regulations promulgated by the Commission and the NYSE thereunder have been
and are applicable to the Company, there is and has been no failure on the part of the Company to comply in all material respects
with any provision of Sarbanes-Oxley and the rules and regulations promulgated by the Commission and the NYSE thereunder.

 

(y)          Neither
the Company nor any of the Subsidiaries nor, to the knowledge of the Company, any director, officer, agent, employee or affiliate
of the Company or any of the Subsidiaries (i) is aware of or has taken any action, directly or indirectly, that would result in
a violation by such persons of the Foreign Corrupt Practices Act of 1977, as amended, and the rules and regulations thereunder,
the UK Bribery Act (2010), and any other applicable anti-bribery or anti-corruption rules or regulations; (ii) has used any corporate
funds for any unlawful contribution, gift, entertainment or other unlawful expense relating to political activity; (iii) has made,
promised to make, or authorized to make any direct or indirect unlawful payment from corporate funds to any foreign or domestic
(a) government official, (b) government employee or employee of government-owned or controlled entity or of a public international
organization, (c) political party or official of any political party or any candidate for any political office, to influence official
action or secure an improper advantage; or (iv) has paid, promised to pay or authorized to pay, any bribe, rebate, pay-off, influence
payment, kick-back or other unlawful payment. The Company, the Subsidiaries and, to the knowledge of the Company, its affiliates
have conducted their businesses in compliance with all applicable anti-corruption and anti-bribery laws and have instituted and
maintain policies and procedures designed to ensure, and which are expected to continue to ensure, continued compliance therewith.

 

(z)          The
application of the net proceeds from the offering and sale of the Offered Securities, as described in the Registration Statement,
the Time of Sale Disclosure Package and the Final Prospectus, will not contravene any provision of any current and applicable laws
or the current constituent documents of the Company or any of the Subsidiaries or contravene the terms or provisions of, or constitute
a default under, any indenture, mortgage, deed of trust, loan agreement, note, lease or other agreement or instrument currently
binding upon the Company or any of the Subsidiaries or any governmental authorization applicable to any of the Company or any of
the Subsidiaries. The proceeds to the Company from the offering of the Offered Securities will not be used to purchase or carry
any security.

 

    	11

    	 

    

 

(aa)         Neither
the Company nor any of the Subsidiaries nor, to the knowledge of the Company, any director, officer, agent, employee or affiliate
of the Company or any of the Subsidiaries (A) is currently subject to (i) any U.S. sanctions administered by the Office of Foreign
Assets Control of the U.S. Treasury Department; (ii) any sanction or requirements imposed by, or based upon the obligations or
authorizations set forth in, the U.S. Trading With the Enemy Act, the U.S. International Emergency Economic Powers Act, the U.S.
United Nations Participation Act or the U.S. Syria Accountability and Lebanese Sovereignty Act, all as amended, or any foreign
assets control regulations of the U.S. Department of the Treasury (including but not limited to 31 CFR, Subtitle B, Chapter V,
as amended and the U.S. Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010 and the implementing regulations)
or any enabling legislation or executive order relating thereto; or (iii) any sanctions or measures imposed by the United Nations,
Her Majesty’s Treasury or European Union or any other applicable jurisdictions (laws and regulations referred to in (i),
(ii) and (iii) collectively, the “Sanction Laws and Regulations”) or (B) is an individual or entity that is,
or is owned or controlled by, (x) any individual or entity on any list of restricted individuals, entities and/or organizations
published by the Office of Foreign Assets Control of the U.S. Treasury Department, Her Majesty’s Treasury, the European Union,
the United Nations, and (y) any other individual or entity that, because of its, his or her location, residency, domicile, nationality,
place of incorporation, ownership or activities, is targeted under or the subject of any of the Sanctions Laws and Regulations
(each of the individuals or entities referred to in (x) and (y) a “Sanctions Target”). None of the Company or
any of the Subsidiaries, nor, to the knowledge of the Company, any director, officer, agent, employee or affiliate of the Company
or any of the Subsidiaries, has or is engaged in any activities which would result in a violation of any provision of any of the
Sanctions Laws and Regulations. The Company and the Subsidiaries will not directly or indirectly use the proceeds of the offering,
or lend, contribute or otherwise make available such proceeds to any subsidiary, joint venture partner or other person or entity,
for the purpose of financing the activities of any person that is currently a Sanctions Target or otherwise resulting in a violation
of any provision of any of the Sanction Laws and Regulations. The Company and the Subsidiaries will maintain all necessary and
appropriate safeguards to ensure their compliance with this undertaking.

 

(bb)        The
Company and the Subsidiaries carry, or are covered by, insurance in such amounts and covering such risks as is adequate for the
conduct of their respective businesses and the value of their respective properties, if applicable, and as is customary for companies
engaged in similar businesses.

 

(cc)         Except
as disclosed in the Registration Statement, the Time of Sale Disclosure Package and the Final Prospectus, there is (A) no unfair
labor practice complaint pending against the Company, or any of the Subsidiaries, nor to the best knowledge of the Company after
due inquiry, threatened against it or any of the Subsidiaries, before any state or local labor relation board or any foreign labor
relations board or any applicable governmental entities, and no significant grievance or significant arbitration proceeding arising
out of or under any collective bargaining agreement is so pending against the Company or any of the Subsidiaries, or, to the best
knowledge of the Company after due inquiry, threatened against it and (B) no labor disturbance by the employees of the Company
or any of the Subsidiaries exists or, to the best knowledge of the Company after due inquiry, is imminent, and the Company is not
aware of any existing or imminent labor disturbance by the employees of the Company or any of the Subsidiaries or any of its principal
suppliers, manufacturers, customers or contractors, that could reasonably be expected, singularly or in the aggregate, to have
a Material Adverse Effect. The Company is not aware that any employee material to the business of the Company or any of the Subsidiaries
or significant group of employees of the Company or any of the Subsidiaries plans to terminate employment with the Company or any
such Subsidiary. There has been no violation of any federal, state, local or foreign law relating to discrimination in the hiring,
promotion or pay of employees, any applicable wage or hour laws or any other applicable law or regulation concerning the employees
of the Company or any of the Subsidiaries.

 

(dd)         Except
as disclosed in the Registration Statement, the Time of Sale Disclosure Package and the Final Prospectus, neither the Company nor
any of the Subsidiaries has any material customer or supplier which contributes revenues or receive payments in excess of US$50
million per annum. To the best knowledge of the Company after due inquiry, each business partner of the Company or any of the Subsidiaries
and each supplier to the Company or any of the Subsidiaries, in each case, that are material to the business of the Company and
the Subsidiaries, individually or taken as a whole, can in all material respects provide sufficient and timely supplies of goods,
materials, equipment, and services in order to meet the requirements of the business of the Company and the Subsidiaries consistent
with prior practice. Neither the Company nor any of the Subsidiaries has experienced or been notified of any shortage in goods,
materials, equipment or services provided by any of its suppliers or other providers or any material delay in goods, materials,
equipment or services provided by its suppliers or other providers and has no reason to believe that any of its suppliers, business
partners or other providers would not continue to provide to, or purchase from, or cooperate with, respectively, or that any of
them would otherwise alter its business relationship with, the Company or any of the Subsidiaries at any time after the Closing
Date on terms substantially similar to those in effect on the date of this Agreement, except where such shortages, delays, stoppage
or alternation would not have, individually or in the aggregate a Material Adverse Effect.

 

    	12

    	 

    

 

(ee)         No
“prohibited transaction” (as defined in Section 406 of the Employee Retirement Income Security Act of 1974,
as amended, including the regulations and published interpretations thereunder (“ERISA”), or Section 4975 of
the Internal Revenue Code of 1986, as amended from time to time (the “Code”)) or “accumulated funding
deficiency” (as defined in Section 302 of ERISA) or any of the events set forth in Section 4043(b) of ERISA (other than
events with respect to which the thirty (30)-day notice requirement under Section 4043 of ERISA has been waived) has occurred or
could reasonably be expected to occur with respect to any employee benefit plan of the Company or any of the Subsidiaries which
could, singularly or in the aggregate, have a Material Adverse Effect. Each employee benefit plan of the Company or any of the
Subsidiaries is in compliance in all material respects with applicable law, including ERISA and the Code. The Company and the Subsidiaries
have not incurred and could not reasonably be expected to incur liability under Title IV of ERISA with respect to the termination
of, or withdrawal from, any pension plan (as defined in ERISA). Each pension plan for which the Company or any of the Subsidiaries
would have any liability 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 could, singularly or in the aggregate, cause the loss of such qualification.

 

(ff)         There
are no claims, payments, issuances, arrangements or understandings for services in the nature of a finder’s, consulting or
origination fee with respect to the introduction of the Company to the Placement Agent or any of the Purchasers or the sale of
the Shares hereunder or any other arrangements, agreements, understandings, payments or issuances with respect to the Company that
may affect the Placement Agent’s compensation, as determined by FINRA.

 

(gg)        Except
as disclosed to the Placement Agent in writing, the Company has not made any direct or indirect payments (in cash, securities or
otherwise) to (i) any person, as a finder’s fee, investing fee or otherwise, in consideration of such person raising capital
for the Company or introducing to the Company persons who provided capital to the Company, (ii) any FINRA member, or (iii) any
person or entity that has any direct or indirect affiliation or association with any FINRA member within the 12-month period prior
to the date on which the Registration Statement was filed with the Commission (“Filing Date”) or thereafter.

 

(hh)        None
of the net proceeds of the offering will be paid by the Company to any participating FINRA member or any affiliate or associate
of any participating FINRA member, except as specifically authorized herein.

 

(ii)          To
the best knowledge of the Company after due inquiry, no (i) officer or director of the Company or the Subsidiaries, (ii) owner
of 5% or more of the Company’s unregistered securities or that of the Subsidiaries or (iii) owner of any amount of the Company’s
unregistered securities acquired within the 180-day period prior to the Filing Date, has any direct or indirect affiliation or
association with any FINRA member. The Company will advise the Placement Agent and its counsel if it becomes aware that any officer,
director or stockholder of the Company or the Subsidiaries is or becomes an affiliate or associated person of a FINRA member participating
in the offering.

 

(jj)          Other
than the Placement Agent, no person has the right to act as placement agent, underwriter or as a financial advisor to the Company
in connection with the transactions contemplated hereby.

 

(kk)        If
applicable, all of the information provided to the Placement Agent or to counsel for the Placement Agent by the Company, 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 letters, filings or other supplemental information provided to FINRA pursuant to FINRA Rules 5110, 5190 or 5121 is true, correct,
accurate, complete and not misleading in all respects.

 

(ll)          Neither
the Company nor any of its affiliates (within the meaning of FINRA Rule 5121(f)(1)) directly or indirectly controls, is controlled
by, or is under common control with, or is an associated person (within the meaning of Article I, Section 1(rr) of the By-laws
of FINRA) of, any member firm of FINRA.

 

(mm)      There
are no contracts, agreements or understandings between the Company and any person that would give rise to a valid claim against
the Company or any Purchaser for a brokerage commission, finder’s fee or other like payment in connection with this offering.

 

(nn)        Neither
the Company nor any of the Subsidiaries nor any agent thereof acting on their behalf has taken, and none of them will take, any
action that could cause this Agreement or the issuance or sale of the Offered Securities to violate Regulation T, Regulation U
or Regulation X of the Board of Governors of the Federal Reserve System.

 

    	13

    	 

    

  

(oo)         The
Company is a “foreign private issuer” within the meaning of Rule 405 under the Securities Act.

 

(pp)         This
Agreement is in proper form to be enforceable against the Company in the British Virgin Islands in accordance with its terms; to
ensure the legality, validity, enforceability or admissibility into evidence in the British Virgin Islands of this Agreement, it
is not necessary that this Agreement be filed or recorded with any court or other authority in the British Virgin Islands or that
any stamp or similar tax in the British Virgin Islands be paid on or in respect of this Agreement or any other documents to be
furnished hereunder.

 

(qq)         As
of the date hereof, there were no outstanding personal loans made, directly or indirectly, by the Company to any director or executive
officer (including his/her spouse, children or any company or undertaking in which he/she holds a controlling interest) of the
Company; and there are no relationships or related-party transactions involving the Company, any of the Subsidiaries, or any other
person required to be described in the Registration Statement, the Time of Sale Disclosure Package and the Final Prospectus which
have not been described as required.

 

5.            Representations
and Warranties Regarding the PRC. The Company represents and warrants to and agrees with the Placement Agent that each
of the representations and warranties as set forth below is true, correct, accurate, complete and not misleading as of the date
of this Agreement and will continue to be true, correct, accurate, complete and not misleading on each day up to and including
the Closing Date (as defined below) as if repeated on each such day by reference to the facts and circumstances subsisting at that
date and on the basis that any reference in the representations and warranties, whether express or implied, to the date of this
Agreement is substituted by a reference to that date, except as otherwise indicated:

 

(a)          Except
as disclosed in the Registration Statement, the Time of Sale Disclosure Package or the Final Prospectus, no PRC Entity is currently
prohibited, directly or indirectly, from paying any dividends to the Company (or the Subsidiary that holds the outstanding equity
interest of such PRC Entity). No PRC Entity is prohibited, directly or indirectly, from making any other distribution on such PRC
Entity’s equity capital, or from repaying to the Company any loans or advances to such PRC Entity provided by the Company
or any of the Subsidiaries.

 

(b)          The
choice of the laws of the State of California as the governing law of this Agreement is a valid choice of law under the laws of
the PRC and will be honored by courts in the PRC.

 

(c)          None
of the PRC Entities nor any of their properties, assets or revenues are entitled to any right of immunity on the grounds of sovereignty
from any legal action, suit or proceeding, from set-off or counterclaim, from the jurisdiction of any court, from services of process,
from attachment prior to or in aid of execution of judgment, or from any other legal process or proceeding for the giving of any
relief or for the enforcement of any judgment.

 

(d)          With
respect to employment and labor matters, each PRC Entity has complied in all material respects with all applicable PRC laws and
regulations, including laws and regulations pertaining to the use of temporary or contract workers, welfare funds, social benefits,
medical benefits, insurance, retirement benefits, pensions and the like.

 

(e)          The
Company has taken all necessary steps to comply with, and to ensure compliance by all of the Company’s direct or indirect
shareholders and option holders who are PRC residents with, any applicable rules and regulations of the PRC State Administration
of Foreign Exchange of the PRC (the “SAFE Rules and Regulations”), including, without limitation, requiring
each shareholder and option holder that is, or is directly or indirectly owned or controlled by, a PRC resident to complete any
registration and other procedures required under applicable SAFE Rules and Regulations.

 

    	14

    	 

    

 

(f)          The
Company is aware of, and has been advised as to, the content of the Rules on Mergers and Acquisitions of Domestic Enterprises by
Foreign Investors jointly promulgated on August 8, 2006 by the PRC Ministry of Commerce, the PRC State Assets Supervision and Administration
Commission, the PRC State Administration of Taxation, the PRC State Administration of Industry and Commerce, the China Securities
Regulatory Commission (“CSRC”) and the PRC State Administration of Foreign Exchange of the PRC and amended Rules
on Mergers and Acquisitions of Domestic Enterprises by Foreign Investors promulgated on June 22, 2009 by the PRC Ministry of Commerce
(the “M&A Rules”), in particular the relevant provisions thereof that purport to require offshore special
purpose vehicles controlled directly or indirectly by PRC-incorporated companies or PRC residents and established for the purpose
of obtaining a stock exchange listing outside of the PRC to obtain the approval of the CSRC prior to the listing and trading of
their securities on any stock exchange located outside of the PRC. The Company has received legal advice specifically with respect
to the M&A Rules from its PRC counsel and the Company understands such legal advice. In addition, the Company has communicated
such legal advice in full to each of its directors that signed the Registration Statements and each such director has confirmed
that he or she understands such legal advice.

 

(g)          The
issuance and sale of the Offered Securities, the issuance and sale by the Company to the holders of the Warrants of Shares upon
exercise of the Warrants and the listing and trading of the ADSs and ADSs representing Shares issued and purchased pursuant to
the Warrants and deposited with the Depositary against issuance of the ADRs are not and will not be, as of the date hereof and
on the Closing Date, prohibited or otherwise affected by the M&A Rules or any official clarifications, guidance, interpretations
or implementation rules in connection with or related to the M&A Rules, including the guidance and notices issued by the CSRC
on September 8 and September 21, 2006 (together with the M&A Rules, the “M&A Rules and Related Clarifications”).

 

(h)          The
Company has taken all necessary steps to ensure compliance by each of its shareholders, option holders, directors, officers and
employees that is, or is directly or indirectly owned or controlled by, a PRC resident or citizen with any applicable rules and
regulations of the relevant PRC government agencies (including but not limited to the PRC Ministry of Commerce, the PRC National
Development and Reform Commission and the PRC State Administration of Foreign Exchange) relating to overseas investment by PRC
residents and citizens (the “PRC Overseas Investment and Listing Regulations”), including, requesting each shareholder,
option holder, director, officer, employee and participant that is, or is directly or indirectly owned or controlled by, a PRC
resident or citizen to complete any registration and other procedures required under applicable PRC Overseas Investment and Listing
Regulations.

 

(i)          Each
of the PRC Entities is in compliance with all requirements under all applicable PRC laws and regulations to qualify for their exemptions
from enterprise income tax or other income tax benefits (the “Tax Benefits”) as described in the Registration
Statement, the Time of Sale Disclosure Package and the Prospectus, and the actual operations and business activities of each such
PRC Entity are sufficient to meet the qualifications for the Tax Benefits. No submissions made to any PRC government authority
in connection with obtaining the Tax Benefits contained any misstatement or omission that would have affected the granting of the
Tax Benefits. No PRC Entity has received notice of any deficiency in its respective applications for the Tax Benefits, and the
Company is not aware of any reason why any such PRC Entity might not qualify for, or be in compliance with the requirements for,
the Tax Benefits.

 

(j)          All
local and national PRC governmental tax holidays, exemptions, waivers, financial subsidies, and other local and national PRC tax
relief, concessions and preferential treatment enjoyed by any PRC Entity as described in the Registration Statement, the Time of
Sale Disclosure Package and the Final Prospectus are valid, binding and enforceable and do not violate any laws, regulations, rules,
orders, decrees, guidelines, judicial interpretations, notices or other legislation of the PRC.

 

6.            Closing.
The time and date of closing and delivery of the documents required to be delivered to the Placement Agent pursuant to Section
8 hereof shall be at 7:00 A.M., Shanghai time, on September 16, 2013 (the “Closing Date”) at the offices of
Morrison & Foerster LLP, Morrison & Foerster LLP, Suite 3501-3502, Bund Center, No. 222, Yan An Road East, Shanghai 200002,
P.R.C.

 

7.            Covenants.         The
Company covenants and agrees with the Placement Agent as follows:

 

(a)          Prior
to amending or supplementing the Registration Statement, including any Rule 462 Registration Statement, the Time of Sale Disclosure
Package or the Prospectus, the Company shall furnish to the Placement Agent for review and comment a copy of each such proposed
amendment or supplement, and the Company shall not file any such proposed amendment or supplement to which the Placement Agent
reasonably objects.

 

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(b)          If
the Company elects to rely upon Rule 462(b), the Company shall file a Rule 462 Registration Statement with the Commission in compliance
with the Rule 462(b) by 8:00 a.m. New York time, on the date of this Agreement, and the Company shall at the time of filing either
pay to the Commission the filing fee for Rule 462 Registration Statement or give irrevocable instructions for the payment of such
fee pursuant to Rule 111 under the Securities Act.

 

(c)          The
Company shall promptly advise the Placement Agent in writing (A) of the receipt of any comments of, or requests for additional
or supplemental information from, the Commission, (B) of the time and date of any filing of any post-effective amendment to the
Registration Statement or any amendment or supplement to the Time of Sale Disclosure Package, the Prospectus or any Issuer Free
Writing Prospectus, (C) of the time and date that any post-effective amendment to the Registration Statement becomes effective
and (D) of the issuance by the Commission of any stop order suspending the effectiveness of the Registration Statement or of any
order preventing or suspending its use or the use of the Time of Sale Disclosure Package or any Issuer Free Writing Prospectus,
or of any proceedings to remove, suspend or terminate from listing or quotation of the ADSs from any securities exchange upon which
it is listed for trading or included or designated for quotation, or of the threatening or initiation of any proceedings for any
of such purposes. If the Commission shall enter any such stop order, the Company shall use its best efforts to obtain the lifting
of such order at the earliest possible moment. Additionally, the Company agrees that it shall comply with the provisions of Rules
424(b), 430A and 430B, as applicable, under the Securities Act and will use its reasonable efforts to confirm that any filings
made by the Company under Rule 424(b) or Rule 433 were received in a timely manner by the Commission (without reliance on Rule
424(b)(8) or 164(b) of the Securities Act).

 

(d)          (A)
The Company will comply with all requirements imposed upon it by the Securities Act, as now and hereafter amended, and by the Rules
and Regulations, as from time to time in force, and by the Exchange Act, as now and hereafter amended, so far as necessary to permit
the sales of the Offered Securities as contemplated by the provisions hereof, the Time of Sale Disclosure Package, the Registration
Statement and the Prospectus. If at any time when a prospectus relating to the Offered Securities is required to be delivered,
any event occurs the result of which the Prospectus (or if the Prospectus is not yet available to prospective purchasers, the Time
of Sale Disclosure Package ) 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
or appropriate in the opinion of the Company or its counsel or the Placement Agent or its counsel to amend the Registration Statement
or supplement the Prospectus (or if the Prospectus is not yet available to prospective purchasers, the Time of Sale Disclosure
Package ) to comply with the Securities Act or to file under the Exchange Act any document that would be deemed to be incorporated
by reference in the Prospectus in order to comply with the Securities Act or the Exchange Act or the rules and regulations promulgated
thereunder, then the Company will promptly notify the Placement Agent, allow the Placement Agent the opportunity to provide reasonable
comments on such amendment, prospectus supplement or document, and will amend the Registration Statement or supplement the Prospectus
(or if the Prospectus is not yet available to prospective purchasers, the Time of Sale Disclosure Package) or file such document
(at the expense of the Company) so as to correct such statement or omission or effect such compliance. (B) If at any time following
the issuance of an Issuer Free Writing Prospectus there occurred or occurs an event or development the result of which such Issuer
Free Writing Prospectus conflicted or would conflict with the information contained in the Registration Statement or any Prospectus
or included or would include an untrue statement of a material fact or omitted or would omit to state a material fact necessary
in order to make the statements therein, in the light of the circumstances prevailing at that subsequent time, not misleading,
the Company has promptly notified or promptly will notify the Placement Agent and has promptly amended or will promptly amend or
supplement, at its own expense, such Issuer Free Writing Prospectus to correct such conflict, untrue statement or omission.

 

(e)          The
Company shall take or cause to be taken all necessary action to qualify the Offered Securities for sale under the securities laws
of such jurisdictions as the Placement Agent reasonably designates and to continue such qualifications in effect so long as required
for the distribution of the Offered Securities, except that the Company shall not be required in connection therewith to qualify
as a foreign corporation or as a dealer in securities in any jurisdiction in which it is not so qualified, to execute a general
consent to service of process in any state or to subject itself to taxation in respect of doing business in any jurisdiction in
which it is not otherwise subject.

 

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(f)          The
Company will furnish to the Placement Agent and counsel for the Placement Agent copies of the Registration Statement, each Prospectus,
any Issuer Free Writing Prospectus, and all amendments and supplements to such documents, in each case as soon as available and
in such quantities as the Placement Agent may from time to time reasonably request.

 

(g)          The
Company will make generally available to its security holders 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 (which need not be audited) covering a 12-month
period that shall satisfy the provisions of Section 11(a) of the Securities Act and Rule 158 of the Rules and Regulations.

 

(h)          The
Company, whether or not the transactions contemplated hereunder are consummated or this Agreement is terminated, will pay or cause
to be paid (A) all expenses (including transfer taxes allocated to the respective transferees) incurred in connection with the
delivery to the Purchasers of the Offered Securities, (B) all expenses and fees (including, without limitation, fees and expenses
of the Company’s counsel) in connection with the preparation, printing, filing, delivery, and shipping of the Registration
Statement (including the financial statements therein and all amendments, schedules, and exhibits thereto), the ADSs, the Time
of Sale Disclosure Package, the Prospectus, any Issuer Free Writing Prospectus and any amendment thereof or supplement thereto,
(C) the fees and expenses of any transfer agent or registrar, (D) listing fees, if any, and (E) all other costs and expenses incident
to the performance of its obligations hereunder that are not otherwise specifically provided for herein.

 

(i)          The
Company intends to apply the net proceeds from the sale of the Shares to be sold by it hereunder for the purposes set forth in
the Registration Statement, Time of Sale Disclosure Package and the Final Prospectus.

 

(j)          The
Company has not taken and will take, directly or indirectly, during the Prospectus Delivery Period, any action designed to or which
might reasonably be expected to cause or result in, or that has constituted, the stabilization or manipulation of the price of
any security of the Company to facilitate the sale or resale of the Shares.

 

(k)          The
Company represents and agrees that, unless it obtains the prior written consent of the Placement Agent, and the Placement Agent
represents and agrees that, unless it obtains the prior written consent of the Company, it has not made and will not make any offer
relating to the Offered Securities that would constitute an Issuer Free Writing Prospectus; provided that the prior written consent
of the parties hereto shall be deemed to have been given in respect of the free writing prospectuses included in Exhibit A attached
hereto. Any such free writing prospectus consented to by the Company and the Placement Agent is hereinafter referred to as a “Permitted
Free Writing Prospectus.” The Company represents that it has treated or agrees that it will treat each Permitted Free
Writing Prospectus as an “issuer free writing prospectus,” as defined in Rule 433, and has complied or
will comply with the requirements of Rule 433 applicable to any Permitted Free Writing Prospectus, including timely Commission
filing where required, legending and record-keeping.

 

(l)          The
Company hereby agrees that, without the prior written consent of the Placement Agent, it will not, during the period ending 90
days after the date hereof (“Lock-Up Period”), (i) offer, pledge, issue, sell, contract to sell, purchase, contract
to purchase, lend, or otherwise transfer or dispose of, directly or indirectly, any shares of ADSs (or Shares underlying such ADSs)
or any securities convertible into or exercisable or exchangeable for ADSs (or Shares underlying such ADSs); or (ii) enter
into any swap or other arrangement that transfers to another, in whole or in part, any of the economic consequences of ownership
of the ADSs (or Shares underlying such ADSs), whether any such transaction described in clause
(i) or (ii) above is to be settled by delivery of ADSs (or Shares underlying such ADSs) or such other securities, in cash or otherwise;
or (iii) file any registration statement with the Commission relating to the offering of any shares of ADSs (or Shares underlying
such ADSs) or any securities convertible into or exercisable or exchangeable for ADSs (or Shares underlying such ADSs). The restrictions
contained in the preceding sentence shall not apply to (1) the Offered Securities to be sold hereunder, including Shares and ADSs
issuable upon exercise of the Warrants, (2) the issuance of ADSs (or Shares underlying such ADSs) upon the exercise, conversion
or exchange of any securities for ADS disclosed as outstanding in the Registration Statement (excluding exhibits thereto) or the
Prospectus, or (3) the issuance of employee stock options not exercisable during the Lock-Up Period and the grant of restricted
stock awards or restricted stock units pursuant to equity incentive plans described in the Registration Statement (excluding exhibits
thereto) and the Prospectus. Notwithstanding the foregoing, if (x) the Company issues an earnings release or material news, or
a material event relating to the Company occurs, during the last 18 days of the Lock-Up Period, or (y) prior to the expiration
of the Lock-Up Period, the Company announces that it will release earnings results during the 16-day period beginning on the last
day of the Lock-Up Period, the restrictions imposed by this clause shall continue to apply until the expiration of the 18-day period
beginning on the issuance of the earnings release or the occurrence of the material news or material event, unless the Placement
Agent waives such extension in writing.

 

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(m)          The
Company shall use its best efforts to effect and maintain the listing of the ADSs on the NYSE and to file with the NYSE all documents
and notices required by the NYSE of companies that are traded on the NYSE and quotations for which are reported by the NYSE.

 

(n)          The
Company will not be or become, within one year of the time of purchase, an “investment company” as defined in
the Investment Company Act

 

8.            Conditions
of Placement Agent’s Obligations.         The obligations of
the Placement Agent hereunder are subject to the accuracy, as of the date hereof and at the Closing Date (as if made at such Closing
Date), of and compliance with all representations, warranties and agreements of the Company contained herein, the performance by
the Company of its respective obligations hereunder and the following additional conditions:

 

(a)          If
filing of the Prospectus, or any amendment or supplement thereto, or any Issuer Free Writing Prospectus, is required under the
Securities Act or the Rules and Regulations, the Company shall have filed the Prospectus (or such amendment or supplement) or such
Issuer Free Writing Prospectus with the Commission in the manner and within the time period so required (without reliance on Rule
424(b)(8) or 164(b) under the Securities Act); the Registration Statement shall remain effective; no stop order suspending the
effectiveness of the Registration Statement or any part thereof, any Rule 462 Registration Statement, or any amendment thereof,
nor suspending or preventing the use of the Time of Sale Disclosure Package, the Prospectus or any Issuer Free Writing Prospectus
shall have been issued; no proceedings for the issuance of such an order shall have been initiated or threatened; any request of
the Commission or the Placement Agent for additional information (to be included in the Registration Statement, the Time of Sale
Disclosure Package, the Prospectus, any Issuer Free Writing Prospectus or otherwise) shall have been complied with to the Placement
Agent’s satisfaction.

 

(b)          The
ADS shall be qualified for listing on the NYSE.

 

(c)          The
Company shall have entered into the  Securities Purchase Agreement with each of the Purchasers and such agreement shall be in
full force and effect.

 

(d)          FINRA
shall have raised no objection to the fairness and reasonableness of the underwriting terms and arrangements.

 

(e)          The
Placement Agent shall not have determined or advised the Company
that the Registration Statement, the Time of Sale Disclosure Package or the Prospectus, or any amendment thereof or supplement
thereto, or any Issuer Free Writing Prospectus, contains an untrue statement of fact which, in the Placement
Agent’s reasonable opinion, is material, or omits to state a fact which, in the Placement
Agent’s reasonable opinion, is material and is required to be stated therein or necessary to make the statements therein
not misleading.

 

(f)          On
or after the date hereof (i) no downgrading shall have occurred in the rating accorded any of the Company’s securities by
any “nationally recognized statistical rating organization,” as that term is defined by the Commission for purposes
of Rule 436(g)(2) under the Securities Act, and (ii) no such organization shall have publicly announced that it has under surveillance
or review, with possible negative implications, its rating of any of the Company’s securities.

 

(g)          The
Company shall cause to be furnished to the Placement Agent on the Closing Date, an opinion of an opinion of Kirkland & Ellis,
United States counsel for the Company, addressed to the Placement Agent and dated the Closing Date, in form and substance reasonably
satisfactory to the Placement Agent.

 

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(h)          The
Company shall cause to be furnished to the Placement Agent on the Closing Date, an opinion of Harney Westwood & Riegels LLP,
British Virgin Islands counsel for the Company, addressed to the Placement Agent and dated the Closing Date, in form and substance
reasonably satisfactory to the Placement Agent.

 

(i)          The
Company shall cause to be furnished to the Placement Agent on the Closing Date, an opinion of Haiwen Partners, PRC counsel for
the Company, addressed to the Placement Agent and dated the Closing Date, in form and substance reasonably satisfactory to the
Placement Agent.

 

(j)          On
the Closing Date, there shall have been furnished to the Placement Agent the favorable opinion of Morrison & Foerster
LLP, United States counsel for the Placement Agent, addressed to the Placement Agent and dated the Closing Date, in form and
substance reasonably satisfactory to the Placement Agent.

 

(k)          On
the Closing Date, there shall have been furnished to the Placement Agent the favorable opinion of Han Kun Law Offices, PRC
counsel for the Placement Agent, addressed to the Placement Agent and dated the Closing Date, in form and substance
reasonably satisfactory to the Placement Agent.

 

(l)          The
Placement Agent shall have received a letter of Deloitte Touche Tohmatsu CPA Ltd., on the date hereof and on the Closing Date addressed
to the Placement Agent, in form and substance reasonably satisfactory to the Placement Agent, confirming that they are independent
public accountants within the meaning of the Securities Act and are in compliance with the applicable requirements relating to
the qualifications of accountants under Rule 2-01 of Regulation S-X of the Commission, and confirming, as of the date of each such
letter (or, with respect to matters involving changes or developments since the respective dates as of which specified financial
information is given in the Time of Sale Disclosure Package, as of a date not prior to the date hereof or more than five days prior
to the date of such letter), the conclusions and findings of said firm with respect to the financial information and other matters
required by the Placement Agent.

 

(m)        On
the Closing Date, there shall have been furnished to the Placement Agent a certificate, dated such Closing Date and addressed to
the Placement Agent, signed by the chief executive officer and the chief financial officer of the Company, in their capacity as
officers of the Company, to the effect that:

 

(i)          The
representations and warranties made by the Company in this Agreement shall be true and correct and not misleading when made and
on each Closing Date, and the Company shall have complied with all the agreements and satisfied all the conditions on its part
to be performed or satisfied at or prior to the Closing Date;

 

(ii)         No
stop order or other order (A) suspending the effectiveness of the Registration Statement or any part thereof or any amendment thereof,
or (B) suspending or preventing the use of the Time of Sale Disclosure Package, the Prospectus or any Issuer Free Writing Prospectus,
has been issued, and no proceeding for that purpose has been instituted or, to their knowledge, is contemplated by the Commission
or any state or regulatory body; and

 

(iii)        There
has been no occurrence of any event resulting or reasonably likely to result in a Material Adverse Effect during the period from
and after the date of this Agreement and prior to the Closing Date.

 

(n)          On
or before the date hereof, the Placement Agent shall have received duly executed “lock-up” agreements, in a form acceptable
to the Placement Agent, between the Placement Agent and each of the Company’s directors and Henry Wang.

 

If any condition
specified in this Section 8 shall not have been fulfilled when and as required to be fulfilled, this Agreement may be terminated
by the Placement Agent by notice to the Company at any time at or prior to the Closing Date and such termination shall be without
liability of any party to any other party, except that Section 1(e), Section 9 and Section 10 shall survive any such termination
and remain in full force and effect.

 

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9.            Indemnification
and Contribution.

 

(a)          The
Company agrees to indemnify, defend and hold harmless the Placement Agent, its affiliates, directors and officers and employees,
and each person, if any, who controls the Placement Agent within the meaning of Section 15 of the Securities Act or Section 20
of the Exchange Act (each, an “Indemnified Party”), from and against any losses, claims, damages or liabilities
(including in settlement of any litigation if such settlement is effected with the prior written consent of the Company), arising
out of (i) an untrue statement or alleged untrue statement of a material fact contained in the Registration Statement, including
the information deemed to be a part of the Registration Statement at the time of effectiveness and at any subsequent time pursuant
to Rules 430A and 430B of the Rules and Regulations, or arise out of or are based upon the omission from the Registration Statement,
or alleged omission to state therein, a material fact required to be stated therein or necessary to make the statements therein
not misleading or (ii) an untrue statement or alleged untrue statement of a material fact contained in the Time of Sale Disclosure
Package, the Prospectus, or any amendment or supplement thereto (including any documents filed under the Exchange Act and deemed
to be incorporated by reference into the Registration Statement or the Prospectus), any Issuer Free Writing Prospectus or the Marketing
Materials or in any other materials used in connection with the offering of the Shares, or arise out of or are based upon the omission
or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein,
in light of the circumstances under which they were made, not misleading, and will reimburse such Indemnified Party for any legal
or other expenses reasonably incurred by it in connection with evaluating, investigating or defending against such loss, claim,
damage, liability or action; provided, however, that the Company shall not be liable in any such case to the extent that
any such loss, claim, damage, liability or action arises out of or is based upon an untrue statement or alleged untrue statement
or omission or alleged omission made in the Registration Statement, the Time of Sale Disclosure Package, the Prospectus, or any
amendment or supplement thereto, any Marketing Materials or any Issuer Free Writing Prospectus, in reliance upon and in conformity
with written information furnished to the Company by the Placement Agent specifically for use in the preparation thereof, which
written information is described in Section9(f).

 

(b)          The
Placement Agent will indemnify, defend and hold harmless the Company, its affiliates, directors, officers and employees, and each
person, if any, who controls the Company within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange
Act (each, an “Placement Agent Indemnified Party”), from and against any losses, claims, damages or liabilities
to which such Placement Agent Indemnified Party may become subject, under the Securities Act or otherwise (including in settlement
of any litigation, if such settlement is effected with the written consent of such Placement Agent), insofar as such losses, claims,
damages or liabilities (or actions in respect thereof) arise out of or are based upon an untrue statement or alleged untrue statement
of a material fact contained in the Registration Statement, the Time of Sale Disclosure Package, the Prospectus, or any amendment
or supplement thereto, any Marketing Materials or any Issuer Free Writing Prospectus, or arise out of or are based upon the omission
or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein
not misleading, in each case to the extent, but only to the extent, that such untrue statement or alleged untrue statement or omission
or alleged omission was made in the Registration Statement, the Time of Sale Disclosure Package, the Prospectus, or any amendment
or supplement thereto, any Marketing Materials or any Issuer Free Writing Prospectus in reliance upon and in conformity with written
information furnished to the Company by the Placement Agent specifically for use in the preparation thereof, which written information
is described in Section 9(f), and will reimburse such Placement Agent Indemnified Party for any legal or other expenses reasonably
incurred by it in connection with defending against any such loss, claim, damage, liability or action.

 

(c)          Promptly
after receipt by an indemnified party under subsection (a) or (b) above of notice of the commencement of any action, such
indemnified party shall, if a claim in respect thereof is to be made against the indemnifying party under such subsection, notify
the indemnifying party in writing of the commencement thereof; but the failure to notify the indemnifying party shall not relieve
the indemnifying party from any liability that it may have to any indemnified party except to the extent such indemnifying party
has been materially prejudiced by such failure. In case any such action shall be brought against any indemnified party, and it
shall notify the indemnifying party of the commencement thereof, the indemnifying party shall be entitled to participate in, and,
to the extent that it shall wish, jointly with any other indemnifying party similarly notified, to assume the defense thereof,
with counsel reasonably satisfactory to such indemnified party, and after notice from the indemnifying party to such indemnified
party of the indemnifying party’s election so to assume the defense thereof, the indemnifying party shall not be liable to
such indemnified party under such subsection for any legal or other expenses subsequently incurred by such indemnified party in
connection with the defense thereof; provided, however, that if (i) 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, (ii) 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 (iii) the indemnifying party has not in fact employed
counsel reasonably satisfactory to the indemnified party to assume the defense of such action within a reasonable time after receiving
notice of the commencement of the action, the indemnified party shall have the right to employ a single counsel to represent it
in any claim in respect of which indemnity may be sought under subsection (a) or (b) of this Section 9, in which event the
reasonable fees and expenses of such separate counsel shall be borne by the indemnifying party or parties and reimbursed to the
indemnified party as incurred.

 

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The indemnifying
party under this Section 9 shall not be liable for any settlement of any proceeding effected without its written consent, but if
settled with such consent or if there be a final judgment for the plaintiff, the indemnifying party agrees to indemnify the indemnified
party against any loss, claim, damage, liability or expense by reason of such settlement or judgment. No indemnifying party shall,
without the prior written consent of the indemnified party, effect any settlement, compromise or consent to the entry of judgment
in any pending or threatened action, suit or proceeding in respect of which any indemnified party is a party or could be named
and indemnity was or would be sought hereunder by such indemnified party, unless such settlement, compromise or consent (a) includes
an unconditional release of such indemnified party from all liability for claims that are the subject matter of such action, suit
or proceeding and (b) does not include a statement as to or an admission of fault, culpability or a failure to act by or on behalf
of any indemnified party.

 

(d)          If
the indemnification provided for in this Section 9 is unavailable or insufficient to hold harmless an indemnified party under subsection (a)
or (b) above, then the indemnifying party shall contribute to the amount paid or payable by such indemnified party as a result
of the losses, claims, damages or liabilities referred to in subsection (a) or (b) above, (i) in such proportion as is
appropriate to reflect the relative benefits received by the Company on the one hand and the Placement Agent on the other hand
from the offering and sale of the Offered Securities or (ii) if the allocation provided by clause (i) above is not permitted
by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above
but also the relative fault of the Company on the one hand and the Placement Agent on the other hand in connection with the statements
or omissions that resulted in such losses, claims, damages or liabilities, as well as any other relevant equitable considerations.
The relative benefits received by the Company on the one hand and the Placement Agent on the other hand shall be deemed to be in
the same proportion as the total net proceeds from the offering (before deducting expenses) received by the Company bear to the
total underwriting discounts and commissions received by the Placement Agent, in each case as set forth in the table on the cover
page of the Final Prospectus. The relative fault shall be determined by reference to, among other things, whether the untrue or
alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information
supplied by the Company or the Placement Agent and the parties’ relevant intent, knowledge, access to information and opportunity
to correct or prevent such untrue statement or omission. The Company and the Placement Agent agree that it would not be just and
equitable if contributions pursuant to this subsection (d) were to be determined by pro rata allocation or by any other method
of allocation that does not take account of the equitable considerations referred to in the first sentence of this subsection (d).
The amount paid by an indemnified party as a result of the losses, claims, damages or liabilities referred to in the first sentence
of this subsection (d) shall be deemed to include any legal or other expenses reasonably incurred by such indemnified party
in connection with investigating or defending against any action or claim that is the subject of this subsection (d). Notwithstanding
the provisions of this subsection (d), the Placement Agent shall not be required to contribute any amount in excess of the
amount of the Placement Agent’s commissions referenced in Section 1(e) actually received by the Placement Agent pursuant
to this Agreement. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act)
shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation.

 

(e)          For
purposes of this Agreement, the Placement Agent confirms, and the Company acknowledges, that there is no information concerning
the Placement Agent furnished in writing to the Company by the Placement Agent specifically for preparation of or inclusion in
the Registration Statement, the Time of Sale Disclosure Package, the Prospectus or any Issuer Free Writing Prospectus, other than
the statements set forth in the last paragraph on the cover page of the Prospectus and the statements concerning the Placement
Agent set forth in the “Plan of Distribution” section of the Prospectus and Time of Sale Disclosure Package.

 

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10.         Representations
and Agreements to Survive Delivery.  All representations, warranties, and agreements of the Company and the Placement
Agent herein or in certificates delivered pursuant hereto, including, but not limited to, the agreements of the Placement Agent
and the Company contained in Section 7 hereof, shall remain operative and in full force and effect regardless of any investigation
made by or on behalf of the Placement Agent or any controlling person thereof, the Company or any of its officers, directors
or controlling persons, and shall survive delivery of, and payment for, the Offered Securities to and by the Placement Agent hereunder.

 

11.         Termination
of this Agreement.

 

(a)          The
Placement Agent shall have the right to terminate this Agreement by giving notice to the Company as hereinafter specified
at any time at or prior to the Closing Date, if in the discretion of the Placement Agent, (i) there has occurred any material adverse
change in the securities markets or any event, act or occurrence that has materially disrupted, or in the opinion of the Placement
Agent, will in the future materially disrupt, the securities markets or there shall be such a material adverse change in general
financial, political or economic conditions or the effect of international conditions on the financial markets in the United States
or the PRC is such as to make it, in the judgment of the Placement Agent, inadvisable or impracticable to market the Offered Securities
or enforce contracts for the sale of the Offered Securities (ii) trading in the Company’s ADSs shall have been suspended
by the Commission or the NYSE or trading in securities generally on the NASDAQ Global Market, NYSE or NYSE Amex shall have been
suspended, (iii) minimum or maximum prices for trading shall have been fixed, or maximum ranges for prices for securities shall
have been required, on the NASDAQ Global Market, NYSE or NYSE Amex, by such exchange or by order of the Commission or any other
governmental authority having jurisdiction, (iv) a banking moratorium shall have been declared by United States federal or state
or the PRC authorities, (v) there shall have occurred any attack on, outbreak or escalation of hostilities or act of terrorism
involving the United States or the PRC, any declaration by the United States or the PRC of a national emergency or war, any substantial
change or development involving a prospective substantial change in United States or the PRC or other international political,
financial or economic conditions or any other calamity or crisis, or (vi) the Company suffers any loss by strike, fire, flood,
earthquake, accident or other calamity, whether or not covered by insurance, or (vii) in the judgment of the Placement Agent, there
has been, since the time of execution of this Agreement or since the respective dates as of which information is given in the Prospectus,
any material adverse change in the assets, properties, condition, financial or otherwise, or in the results of operations, business
affairs or business prospects of the Company and the Subsidiaries considered as a whole, whether or not arising in the ordinary
course of business. Any such termination shall be without liability of any party to any other party except that the provisions
of Section 1(e) and Section 9 hereof shall at all times be effective and shall survive such termination; provided, however, that
if the Offered Securities are not delivered by or on behalf of the Company as provided in this Agreement as a result of the Company’s
default, the Company shall reimburse the Placement Agent for all out-of-pocket expenses, including fees and disbursements of counsel,
reasonably incurred by the Placement Agent in connection with this Agreement and the Offering, but the Company shall then be under
no further liability to the Placement Agent except as provided Section 1(e) and Section 9 hereof.

 

(b)          If
the Placement Agent elects to terminate this Agreement as provided in this Section, the Company shall be notified promptly by the
Placement Agent by telephone, confirmed by letter.

 

12.         Notices.
Except as otherwise provided herein, all communications hereunder shall be in writing and, if to the Placement Agent, shall be
mailed, delivered or telecopied to Roth Capital Partners, LLC, 24 Corporate Plaza, Newport Beach, CA 92660, telecopy number: (949)
720-7227, Attention: Managing Director, with a copy mailed, delivered or telecopied to Christopher M. Forrester, Morrison &
Foerster LLP, 755 Page Mill Road, Palo Alto, CA 94304-1018; if to the Company, shall be mailed, delivered or telecopied to it at
ReneSola Ltd, No. 8, Baoqun Road, Yaozhuang Town, Jiashan County, Zhejiang Province 314117, PRC, telecopy number: +86 (21) 62805600,
Attention: Henry Wang, with a copy mailed, delivered or telecopied to David Zhang and Benjamin Su, Kirkland & Ellis, 26th Floor,
Gloucester Tower, The Landmark, 15 Queen’s Road Central, Hong Kong; or in each case to such other address as the person to
be notified may have requested in writing. Any party to this Agreement may change such address for notices by sending to the parties
to this Agreement written notice of a new address for such purpose.

 

    	22

    	 

    

  

13.         Persons
Entitled to Benefit of Agreement. This Agreement shall inure to the benefit of and be binding upon the parties hereto and
their respective successors and assigns, to the extent of Section 9 and the controlling persons, officers and directors referred
to in Section 9. Nothing in this Agreement is intended or shall be construed to give to any other person, firm or corporation any
legal or equitable remedy or claim under or in respect of this Agreement or any provision herein contained. The term “successors
and assigns” as herein used shall not include any purchaser of any of the Shares from the Placement Agent.

 

14.         Absence
of Fiduciary Relationship. The Company acknowledges and agrees that: (a) the Placement Agent has been retained solely to
act as placement agent in connection with the sale of the Offered Securities and that no fiduciary, advisory or agency relationship
between the Company and the Placement Agent has been created in respect of any of the transactions contemplated by this Agreement,
irrespective of whether the Placement Agent has advised or is advising the Company on other matters; (b) the price and other terms
of the Offered Securities set forth in this Agreement were established by the Company following discussions and arms-length
negotiations with the Placement Agent and 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) it has been advised that the Placement Agent
and its affiliates are engaged in a broad range of transactions that may involve interests that differ from those of the Company
and that the Placement Agent has no obligation to disclose such interest and transactions to the Company by virtue of any fiduciary,
advisory or agency relationship; (d) it has been advised that the Placement Agent is acting, in respect of the transactions contemplated
by this Agreement, solely for the benefit of the Placement Agent, and not on behalf of the Company.

 

15.         Amendments
and Waivers. No supplement, modification or waiver of this Agreement shall be binding unless executed in writing by the
party to be bound thereby. The failure of a party to exercise any right or remedy shall not be deemed or constitute a waiver of
such right or remedy in the future. No waiver of any of the provisions of this Agreement shall be deemed or shall constitute a
waiver of any other provision hereof (regardless of whether similar), nor shall any such waiver be deemed or constitute a continuing
waiver unless otherwise expressly provided.

 

16.         Partial
Unenforceability. The invalidity or unenforceability of any section, paragraph, clause or provision of this Agreement shall
not affect the validity or enforceability of any other section, paragraph, clause or provision.

 

17.         Governing
Law. This Agreement shall be governed by and construed in accordance with the laws of the State of New York.

 

18.         Submission
to Jurisdiction.

 

(a)          The
Company irrevocably (a) submits to the jurisdiction of any court of the State of New York located in the county of New York for
the purpose of any suit, action, or other proceeding arising out of this Agreement, or any of the agreements or transactions contemplated
by this Agreement (each a “Proceeding”), (b) agrees that all claims in respect of any Proceeding may be heard
and determined in any such court, (c) waives, to the fullest extent permitted by law, any immunity from jurisdiction of any such
court or from any legal process therein, (d) agrees not to commence any Proceeding other than in such courts, and (e) waives, to
the fullest extent permitted by law, any claim that such Proceeding is brought in an inconvenient forum. EACH OF THE PARTIES HERETO
(ON BEHALF OF ITSELF AND, TO THE FULLEST EXTENT PERMITTED BY LAW, ON BEHALF OF ITS RESPECTIVE EQUITY HOLDERS AND CREDITORS), HEREBY
WAIVES ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY CLAIM BASED UPON, ARISING OUT OF OR IN CONNECTION WITH THIS AGREEMENT
AND THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT, THE REGISTRATION STATEMENT, AND THE PROSPECTUS.

 

    	23

    	 

    

 

(b)          The
Company have appointed CT Corporation System, located at 111 Eighth Avenue, New York, New York 10011 (the “Authorized
Agent”) as its authorized agent upon whom process may be served in any such legal suit, action or proceeding. Such appointment
shall be irrevocable. The Authorized Agent has agreed to act as said agent for service of process and the Company agrees to take
any and all action, including the filing of any and all documents and instruments and the payment of any further fees, that may
be necessary to continue such appointment in full force and effect as aforesaid. The Company further agrees that service of process
upon the Authorized Agent and written notice of said service to the Company shall be deemed in every respect effective service
of process upon the Company in any such legal suit, action or proceeding. Nothing herein shall affect the right of the Placement
Agent or any person controlling the Placement Agent to serve process in any other manner permitted by law. The provisions of this
Section 18 are intended to be effective upon the execution of this Agreement without any further action by the Company and the
introduction of a true copy of this Agreement into evidence shall be conclusive and final evidence as to such matters. The Company
further agrees to take any and all action as may be necessary to maintain such designation and appointment of such agent in full
force and effect for a period of seven years from the date of this Agreement.

 

19.         Counterparts.
This Agreement may be executed in one or more counterparts and, if executed in more than one counterpart, the executed counterparts
shall each be deemed to be an original and all such counterparts shall together constitute one and the same instrument.

  

    	24

    	 

    

  

Please sign and return to the Company the
enclosed duplicates of this letter whereupon this letter will become a binding agreement between the Company and the Placement
Agent in accordance with its terms.

 

	 	 	 	Very truly yours,
	 	 	 	 
	 	 	 	RENESOLA LTD
	 	 	 	 	 
	 	 	 	By:	 
	 	 	 	 	Name:
	 	 	 	 	Title:
	 	 	 	 	 
	Confirmed and accepted as of the date first above written:	 	 	 
	 	 	 	 	 
	ROTH CAPITAL PARTNERS, LLC	 	 	 
	 	 	 	 	 
	By:	 	 	 	 
	 	Name:	 	 	 
	 	Title:	 	 	 

  

    	 

    	 

    

 

APPENDIX A

 

FORM OF
SECURITIES PURCHASE AGREEMENT

 

    	 

    	 

    

 

EXHIBIT A

 

FREE WRITING PROSPECTUS

 

[None]THIS
NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS, AND MAY NOT BE TRANSFERRED
UNLESS THE COMPANY HAS RECEIVED A WRITTEN OPINION FROM COUNSEL IN FORM AND SUBSTANCE SATISFACTORY TO THE COMPANY STATING THAT SUCH
TRANSFER IS BEING MADE IN COMPLIANCE WITH ALL APPLICABLE FEDERAL AND STATE SECURITIES LAWS.

 

FIFTH
AMENDED AND RESTATED

PROMISSORY NOTE

 

	Frederick, Maryland	$1,574,155.87
	July 31, 2013	Due: December 31, 2013

 

For
value received, the undersigned, Vaccinogen, Inc., a Maryland corporation (“Maker”), promises to pay
to the order of The Abell Foundation, Inc., a Maryland corporation (“Payee”), at such place as the holder
of this Note may from time to time designate the principal sum of One Million Five Hundred Seventy-Four Thousand One Hundred Fifty-Five
and 87/100 Dollars ($1,574,155.87), together with the interest thereon at the rate hereinafter specified and any and all other
sums which may be due and owing to the holder of this Note in accordance with the following terms:

 

1.           Note
Issuance. This non-negotiable promissory note (this “Note”) is issued pursuant to the Note and Warrant
Purchase Agreement dated as of October 26, 2011, between Maker and Payee, as amended by that certain Amendment No. 1 to Note and
Warrant Purchase Agreement February 16, 2012, between Maker and Payee, as further amended by that certain Amendment No. 2 to Note
and Warrant Purchase Agreement dated January 16, 2013, by and between Maker and Payee, as further amended by that certain Amendment
No. 3 to Note and Warrant Purchase Agreement dated April 18, 2013, by and between Maker and Payee, as further amended by that certain
Amendment No. 4 to Note and Warrant Purchase Agreement dated as of May 31, 2013, by and between Maker and Payee, and as further
amended by that certain Amendment No. 5 to Note and Warrant Purchase Agreement of even date herewith, by and between Maker and
Payee (as amended, and as the same may be further amended, supplemented or otherwise modified from time to time, the “Note
and Warrant Purchase Agreement”), and Payee is subject to the terms and entitled to the benefits of this Note and
the Note and Warrant Purchase Agreement and may enforce the agreements of Maker contained herein and therein and exercise the remedies
provided for hereby and thereby or otherwise available in respect hereto and thereto. Capitalized terms used herein without definition
have the meaning assigned thereto in the Note and Warrant Purchase Agreement.

 

    	 

    	 

    

 

2.           Payment:
Interest Rate. Subject to the further provisions of this Section 2 and of Section 4, the principal amount under this Note shall
be due and payable on December 31, 2013 (the “Maturity Date”). Simple interest shall accrue from and
after the date of this Note on the principal amount outstanding from time to time at a rate of eight percent (8%) per annum and,
together with all accrued interest under the Existing Note (as hereinafter defined), shall be due and payable on the Maturity Date.
Notwithstanding the foregoing, to the extent necessary to repay the principal amount of this Note in full and all accrued interest
thereon, this Note shall be paid concurrently with the closing of each issuance or sale of additional shares of capital stock,
or securities directly or indirectly convertible or exchangeable for capital stock, of the Company (each an “Equity Issuance”)
occurring after July 31, 2013 in an amount equal to (a) twenty percent (20%) of the first $2,640,271 of gross proceeds of such
Equity Issuance(s), (b) twenty-five percent (25%) of the next $6,000,000 of gross proceeds of such Equity Issuance(s), and (c)
one hundred percent (100%) of the net proceeds of all Equity Issuance(s) thereafter.

 

3.           Calculation
of Interest. Interest on this Note shall be calculated on the basis of a 360 day per year factor applied to the actual days
on which there exists an unpaid principal balance due under this Note.

 

4.           Application
of Payments. All payments made hereunder shall be applied first to late penalties, costs of collection or other sums owing
the holder, then to accrued interest (including accrued interest under the Existing Note) and last to payment of the principal
amount of this Note.

 

5.           Prepayment.
Maker may prepay this Note in whole or in part at any time or from time to time without penalty or additional interest, provided
that payments are applied as provided in Section 4 above. Amounts repaid hereunder may not be reborrowed.

 

6.           Use
of Proceeds. The purpose of this Note is to fund the working capital needs of Maker, and, by its execution and delivery of
this Note, Maker covenants and agrees that the proceeds of this Note shall be used solely for such purpose. Without limitation
of the foregoing, no proceeds of this Note will be used to purchase or carry any margin stock (within the meaning of Regulation
U issued by the Board of Governors of the Federal Reserve System) or to extend credit to others for the purpose of purchasing or
carrying any margin stock.

 

7.           Events
of Default. The occurrence of any one or more of the following events (the “Events of Default”) shall
constitute an Event of Default hereunder:

 

(a)          any
failure by Maker to pay any principal, interest or other amount due under this Note at or prior to the time when it is due and
payable;

 

(b)          any
failure of Maker to duly perform, comply with or observe any of the other terms, conditions or covenants contained in this Note
or in any of the other Transaction Documents, if such failure remains uncured for a period of five (5) business days after written
notice of such failure is delivered by Payee;

 

(c)          any
representation or warranty made by Maker herein or in any of the other Transaction Documents or in connection therewith, or any
information provided by or on behalf of Maker pursuant hereto or pursuant to any of the other Transaction Documents or in connection
therewith, being or becoming false, misleading, incomplete or incorrect in any material respect;

 

    	-2-

    	 

    

 

(d)          Maker
(i) defaults in any payment of principal of or interest on any of its Debt (as defined below) (other than this Note), beyond the
period of grace, if any, provided in the instrument or promissory note under which such Debt was created; or (ii) defaults in the
observance or performance of any other agreement or condition relating to any such Debt or contained in any instrument or agreement
relating thereto, or any other event occurs or condition exists, the effect of which default or other event or condition is to
cause, or to permit the holder(s] of such Debt to cause, with the giving of notice if required, such Debt to become due prior to
its stated maturity;

 

(e)          any
judgment against Maker or any attachment or levy against the property of Maker with respect to a claim remains unpaid, unstayed,
on appeal, undischarged, unbonded or undismissed for a period of thirty (30) days;

 

(f)          Maker generally does not pay its debts as such debts become
due, or admits in writing its inability to pay its debts generally; or a petition for relief in a bankruptcy court is filed by
Maker; or Maker applies for, consents to or acquiesces in the appointment of a trustee, custodian or receiver for Maker or any
of tis assets or property or makes a general assignment for the benefit of creditors or, in the absence of such application, consent
or acquiescence, a trustee, custodian or receiver is appointed for Maker or for a substantial part of its assets or property and
is not discharged within thirty (30) days hereafter; or any bankruptcy or insolvency law or any dissolution or liquidation proceeding
is instituted against Maker and if instituted against Maker is consented to or acquiesced in by Maker or remains undismissed for
sixty (60) days thereafter; or Maker takes any action to authorize any of the actions described in this subsection; or

 

(g)          any demand by a holder of any of the Current Payables (as
defined below) to make payment in excess of $30,000 on any Current Payable which remains unsatisfied by Maker for a period of ten
(10) days.

 

“Debt”
of any person means, without duplication, (a) all indebtedness of such person for borrowed money, (b) all obligations of such
person to pay the deferred purchase price of property or services, except trade accounts payable arising in the ordinary course
of business, (c) all obligations of such person evidenced by notes, bonds, debentures or other similar instruments, (d) all obligations
of such person created or arising under any conditional sale or other title retention agreement or arrangement with respect to
property acquired by such person, (e) all obligations of such person as lessee under leases that have been or should be, in accordance
with generally accepted accounting principles, recorded as capital leases, (f) all obligations, contingent or otherwise, of such
person in respect of acceptances, letters of credit or similar extensions of credit, (g) all Debt of others guaranteed directly
or indirectly in any manner by such person, and (h) all Debt of others secured by a lien or other encumbrance on any asset of
such person, whether or not such person has assumed or become liable for the payment of such Debt. Notwithstanding the foregoing,
the term “Debt” shall not include payables of the Maker which are outstanding prior to the date of this
Note (whether or not past due) (the “Current Payables”) including, but not limited to, the amounts
owing to Organon Teknika Corporation and Organon BioSciences International B.V. (and their successors) pursuant to that certain
letter agreement dated October 31, 2007. 

 

    	-3-

    	 

    

 

8.           Default
Interest Rate. Upon the occurrence of an Event of Default until this Note is paid in full, the interest rate applicable to
the then outstanding balance shall be increased to ten percent (10%) upon written notice to Maker by Payee of such Event of Default.

 

9.           Rights
and Remedies. If any one or more Events of Default shall occur, then in each and every such case, Payee at its option may at
any time thereafter exercise and/or enforce any or all of the following rights and remedies:

 

(a)          declare
upon notice to Maker all of the amounts payable hereunder to be immediately due and payable, whereupon same shall become due and
payable, together with accrued and unpaid interest thereon and all other sums due hereunder, immediately without presentment, demand
or protest, all of which Maker hereby waives, provided that upon the occurrence of an Event of Default described in Section 7(f),
all amounts shall automatically be and become due and payable immediately without any declaration; and

 

(b)          bring
suit for payment and exercise any other rights and remedies available to Payee pursuant to this Note, any of the other Transaction
Documents or applicable law.

 

CONFESSION
OF JUDGMENT. IF THIS NOTE IS NOT PAID WHEN DUE, MAKER HEREBY IRREVOCABLY AUTHORIZES AND EMPOWERS PAYEE, BY ITS ATTORNEY,
OR BY THE PRONOTHARY OR CLERK OF ANY COURT OF RECORD IN THE STATE OF MARYLAND OR IN ANY JURISDICTION WHERE PERMITTED BY LAW TO
BE MAKER’S TRUE AND LAWFUL ATTORNEY-IN-FACT, AND IN MAKER’S NAME AND STEAD, TO APPEAR FOR MAKER AND CONFESS AND ENTER
JUDGMENT AGAINST IT IN FAVOR OF PAYEE IN ANY JURISDICTION IN WHICH MAKER OR ANY OF ITS PROPERTY IS LOCATED FOR: (i) THE ENTIRE
UNPAID PRINCIPAL AMOUNT OF THIS NOTE THEN REMAINING UNPAID, (ii) INTEREST THEREON THEN ACCRUED AND UNPAID, (iii) ATTORNEYS’
FEES IN THE AMOUNT OF $10,000, AND (iv) COURT COSTS, WITH OR WITHOUT DECLARATION, WITHOUT STAY OF EXECUTION AND WITH RELEASE OF
ALL ERRORS AND THE RIGHT TO ISSUE EXECUTION FORTHWITH, AND FOR DOING SO THIS NOTE OR A COPY VERIFIED BY AFFIDAVIT SHALL BE A SUFFICIENT
WARRANT. MAKER HEREBY WAIVES AND RELEASES ALL RELIEF FROM ANY AND ALL APPRAISEMENT, STAY OR EXEMPTION LAW OF ANY STATE NOW IN
FORCE OR HEREAFTER ENACTED. THIS AUTHORITY AND POWER SHALL NOT BE EXHAUSTED BY THE EXERCISE THEREOF, AND SHALL CONTINUE UNTIL
THE OBLIGATIONS ARE FULLY PAID, PERFORMED, DISCHARGED AND SATISFIED. IT IS THE INTENTION OF THE PARTIES HERETO THAT THE PROVISONS
OF THIS NOTE RELATING TO THE PAYMENT OF ATTORNEYS FEES SHALL NOT MERGE INTO ANY JUDGMENT ENTERED IN CONNECTION HEREWITH, AND PAYEE
SHALL RETAIN THE RIGHT TO RECOVER FROM MAKER FEES INCURRED IN THE COLLECTION HEREOF WHICH ARE INCURRED AFTER THE ENTRY OF FINAL
JUDGMENT ON THIS NOTE.

 

    	-4-

    	 

    

 

Notwithstanding
the amount of attorneys’ fees for which judgment may be confessed hereunder, by its acceptance hereof Payee agrees to use
reasonable efforts to retain counsel who will charge Payee only for time and expenses at standard hourly rates, and Payee will
not enforce the attorney’s fee portion of any confessed judgment for an amount in excess of the actual fees and expenses
charged to Payee by its counsel in connection with confessing judgment against Maker and collecting on such judgment. (This provision
shall not limit the obligation of Maker to pay all reasonable attorneys’ fees incurred by Payee in connection with this Note.)

 

Each
right, power and remedy of Payee specified herein or available at law or in equity or by statute shall be cumulative and concurrent
and shall be in addition to every other right, power or remedy provided for in this Note or available at law or in equity and the
exercise or beginning of the exercise by Payee of any one or more of such rights, powers or remedies shall not preclude the simultaneous
or later exercise by Payee of any or all other rights, powers or remedies.

 

10.         Costs
of Collection. If at any time the indebtedness evidenced by this Note is collected through legal proceedings or this Note is
placed in the hands of an attorney or attorneys for collection, Maker hereby agrees to pay all costs and expenses (including attorneys’
fees) incurred by the holder of this Note in enforcing its rights and collecting or attempting to collect all amounts due hereunder
and under any related documents.

 

11.         Extensions
or Modifications. Maker agrees that the maturity of this Note or any payment due hereunder may be extended by Payee at any
time or from time to time, this Note may be modified by Payee, and any defaults hereunder may be waived by Payee without releasing,
discharging or affecting the liability of Maker. No modification or waiver of any provision of this Note, and no consent by Payee
to any failure of Maker to comply with any provision of this Note, shall in any event be effective unless the same shall be in
writing signed by Payee.

 

12.         Choice
of Law; Jurisdiction; Severability. This Note shall be governed, construed and enforced in strict accordance with the laws
of the State of Maryland, without reference to principles of conflict of laws. Maker agrees that any suit, action or proceeding
instituted by Payee with respect to any of the obligations of Maker hereunder may be brought in any State or federal court located
in the State of Maryland (in addition to such other courts in which jurisdiction and venue may be appropriate), and Maker consents
to the in personam jurisdiction of such courts. If any provision of this Note shall for any reason be invalid or
unenforceable, such invalidity or unenforceability shall not affect any other provision.

 

13.         Waiver
of Defenses. In the event the holder of this Note transfers this Note for value, Maker agrees that none of such subsequent
holders of this Note shall be subject to any claims or defenses which Maker may have against the prior holder, all of which are
waived as to the subsequent holders and all subsequent holders shall have the rights of a holder in due course with respect to
Maker even though the subsequent holder might not qualify under applicable law absent this paragraph as a holder in due course.

 

    	-5-

    	 

    

 

14.         Waivers.
Maker hereby waives (a) presentment, protest and demand and notice of protest, demand, dishonor and nonpayment of this
Note; (b) all claims and causes of action of Maker against Payee for punitive, exemplary or other non-compensatory damages;
and (c) diligence in the enforcement or collection of all of the obligations of Maker hereunder. EACH OF PAYEE AND MAKER
AGREES THAT ANY ACTION, SUIT OR PROCEEDING INVOLVING ANY CLAIM, COUNTERCLAIM OR CROSS-CLAIM ARISING OUT OF OR IN ANY WAY
RELATING, DIRECTLY OR INDIRECTLY, TO ANY OF THE OBLIGATIONS OF MAKER HEREUNDER SHALL BE TRIED BY A COURT AND NOT BY A JURY,
EACH OF PAYEE AND MAKER HEREBY WAIVING ANY RIGHT TO TRIAL BY JURY IN ANY SUCH ACTION, SUIT OR PROCEEDING AND HEREBY AGREEING
THAT THIS WAIVER OF TRIAL BY JURY IS A MATERIAL ASPECT OF THEIR AGREEMENTS.

 

15.         No
Waiver; No assignment. The delay or failure of any holder to exercise its rights hereunder shall not be deemed a waiver thereof.
No waiver of any rights of holder shall be effective unless in writing and signed by the holder and any waiver of any right shall
not apply to any other right or to such right in any subsequent event or circumstance not specifically included in such waiver.
Maker may not assign its rights or obligations under this Note.

 

16.         Headings.
The headings used in this Note are used for convenience only and are not to be considered in construing or interpreting this Note.

 

17.         Replacement
Note. This Note is given pursuant to the terms of that certain Amendment No. 5 to Note and Warrant Purchase Agreement of even
date herewith by and between Maker and Payee in replacement of the “Note” as defined in the Note and Warrant Purchase
Agreement immediately prior to the date hereof (the “Existing Note”). The execution of this Note and
the replacement of the Existing Note hereby shall not constitute or act as a novation, satisfaction or extinguishment of the indebtedness
evidenced by the Existing Note, and all accrued and unpaid interest under the Existing Note shall be due and payable on the Maturity
Date unless required to be paid prior thereto pursuant to the terms hereof. This Note shall for all purposes be the “Note”
as defined in the Note and Warrant Purchase Agreement and in that certain Security Agreement dated October 26, 2011, by and between
Maker and Payee (the “Security Agreement”), the terms of which are incorporated herein and made a part hereof as if
fully set forth herein. This Note is one of the “Transaction Documents” as defined in the Note and Warrant Purchase
Agreement, and the obligations of Maker hereunder are part of the “Obligations” as defined in the Security Agreement.

 

[THE
NEXT PAGE IS THE SIGNATURE PAGE]

 

    	-6-

    	 

    

 

IN
WITNESS WHEREOF, Maker has caused this Note to be executed on its behalf by its duly authorized officer as of the day and
year first above written.

 

	 	VACCINOGEN, INC.
	 	 
	 	By:	/s/ Michael G. Hanna
	 	Name: 	Michael G. Hanna, Jr., Ph.D.
	 	Title: 	Chairman and Chief Executive Officer
	 	 
	 	By:	/s/ Andrew L. Tussing
	 	Name: 	Andrew L. Tussing
	 	Title: 	President and Chief Operating Officer

 

    	-7-

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