Document:

Exhibit 4.2

 

STRICTLY CONFIDENTIAL

EXECUTION VERSION

 

AMENDMENT TO COMMERCIAL AGREEMENT

 

THIS AMENDMENT TO COMMERCIAL AGREEMENT (this “Amendment”) is entered into on August 24, 2020 by and between Alibaba Group Holding Limited (“Recipient”), on the one hand, and 蚂蚁科技集团股份有限公司 (Ant Group Co., Ltd.) (formerly known as浙江蚂蚁小微金融服务集团股份有限公司 (Ant Small and Micro Financial Services Group Co., Ltd., and 浙江蚂蚁小微金融服务集团有限公司 (Zhejiang Ant Small and Micro Financial Services Group Co., Ltd.)) (collectively, “HoldCo”) and 支付宝(中国)网络技术有限公司 (Alipay.com Co., Ltd.) (“Provider”), on the other hand (HoldCo, Provider and Recipient are sometimes referred to herein individually as a “Party” and collectively as the “Parties”). Capitalized terms used but not defined in this Amendment shall have the meaning ascribed to them in the Commercial Agreement (as defined below).

 

RECITALS

 

WHEREAS, the Parties are parties to the Amended and Restated Commercial Agreement, dated as of February 1, 2018, as amended from time to time prior to the date hereof (the “Commercial Agreement”); and

 

WHEREAS, the Parties desire to amend certain provisions of the Commercial Agreement as provided herein.

 

NOW, THEREFORE, in consideration of the foregoing, the representations, warranties, covenants and agreements contained in the Commercial Agreement and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the Parties, intending to be legally bound, hereby agree as follows:

 

AGREEMENTS

 

1.                                      Amendments.  In accordance with Section 16.12 of the Commercial Agreement, the Commercial Agreement is hereby amended as follows:

 

1.1.                                  The following definitions shall be added to Section 1 of the Commercial Agreement:

 

“2018 Commercial Agreement” means the Amended and Restated Commercial Agreement dated as of February 1, 2018 entered into between the Parties, prior to being amended by the Second Amendment.

 

“Amendment Agreement” means the Amendment to Commercial Agreement, dated as of August 24, 2020.

 

“IPO” means an initial public offering, covering the offer and sale of securities of Provider or HoldCo.

 

1.2.                                  The phrase “NASDAQ rules or the rules of any other quotation system or exchange” shall be deleted from the last sentence of Section 15.2(e) of the Commercial Agreement and replaced with the phrase “the rules of any quotation system or exchange”.

 

1

 

1.3.                                  The address, facsimile number and email address for the Recipient specified under Section 16.14 of the Commercial Agreement shall be deleted in their entirety and replaced with the following:

 

To the Recipient

 

Alibaba Group Holding Limited

26th Floor, Tower One

Times Square

1 Matheson Street

Causeway Bay

Hong Kong

Attention:                                               General Counsel

Facsimile No.:                         +852 2215 5200

Email:                                                                  SAPANotice@list.alibaba-inc.com

 

1.4.                                  The address, facsimile number and email address for Holdco or Provider specified under Section 16.14 of the Commercial Agreement shall be deleted in their entirety and replaced with the following:

 

To Holdco or Provider

 

Ant Group Co., Ltd.

Z Space, No. 556 Xixi Road

Hangzhou 310013

People’s Republic of China

Attention:           General Counsel

Facsimile No.:    +(86571) 8656 2095

Email:                 GCnotice@antgroup.com

 

1.5.                                  The following clause shall be added as Section 17 of the Commercial Agreement:

 

“RESTORATION. Upon the earliest of (A) the date on which an IPO is definitively rejected by the relevant Governmental Authority, (B) the date on which an IPO is withdrawn prior to its consummation, or (C) in the case of (x) an A-Share IPO (as defined in the Purchase Agreement), the date that is two (2) years after the date of the related IPO Kick-Off (as defined in the Purchase Agreement) if the applicable IPO has not been completed within such two (2)-year period, or (y) an Other IPO (as defined in the Purchase Agreement), the date that is fifteen (15) months after the date of the related IPO Kick-Off if the applicable IPO has not been completed within such fifteen (15)-month period, this Agreement shall be automatically amended such that it is identical to the 2018 Commercial Agreement. Without prejudice to the foregoing, each Party agrees to take any actions necessary or desirable in order for the terms of the 2018 Commercial Agreement to be restored in their entirety upon the occurrence of one of the events described in subparagraph (A), (B) or (C), such that the rights of the Recipient and its Subsidiaries under the 2018 Commercial Agreement are restored as if the Amendment Agreement had not been entered into.”

 

2

 

1.6.                                  Section 3 of Schedule 7.1 of the Commercial Agreement is hereby deleted in its entirety and replaced with the following:

 

“3. Approved Fee Rate.  The “Approved Fee Rate” applicable to each Recipient Party during each applicable fiscal year shall be a fixed percentage determined as set forth in this Section 3 in accordance with a methodology that may take into account the Provider’s budgeted costs, including Applicable Bank Fees, of providing the Services to the applicable Recipient Party (“Budgeted Service Costs”), and other applicable factors which may include, among other things, market benchmark rates applicable to services provided by other providers that are similar to the Service, rates that provider offers to third Person customers, and appropriate discounts applicable to large volume customers.

 

For clarity, all references to “fiscal year” in this Schedule 7.1 are, unless otherwise expressly stated, to the fiscal year of Recipient.  The Approved Fee Rate shall be determined as follows:

 

(a)                                       The Approved Fee Rate applicable to each of the Recipient Parties for fiscal year beginning 2012 shall be such percentage as the Parties shall have initially agreed in writing until such time as a new Approved Fee Rate is determined pursuant to Section 3(c) of this Schedule 7.1.

 

(b)                                       [Reserved].

 

3

 

(c)                                        The Approved Fee Rate for all Services performed pursuant to this Agreement during each fiscal year of the Term after fiscal year 2012, and any changes to the Approved Fee Rate for fiscal year 2012 set forth in Section 3(a) of this Schedule 7.1, shall be determined by the unanimous agreement of the Independent Directors when Recipient’s board of directors meets to approve Recipient’s annual budget for the applicable fiscal year. Any changes to the Approved Fee Rate (i) for fiscal year 2012 set forth in Section 3(a) of this Schedule 7.1, or (ii) for each fiscal year after 2012 during the Term from the previous year’s Approved Fee Rate, shall be based on changes to Provider’s Budgeted Service Costs. The annual proposal to the Independent Directors for the Approved Fee Rate (the “Annual Proposal Process”) shall be based on the results of all audits and cost reviews relating to the immediately prior fiscal year conducted in accordance with Section 8.2 of this Agreement and/or this Section 3 of this Schedule 7.1. If any change is proposed to the Approved Fee Rate that is not based on changes to Provider’s Budgeted Service Costs, or is not proposed during the Annual Proposal Process, such change may be made upon such terms and conditions as the Independent Directors, the Recipient and the Provider may agree to be appropriate, and notwithstanding Section 16.13 (Entire Agreement) of this Agreement, the Recipient and the Provider shall have regard to any previous arrangements and discussions between them concerning adjustments to the Approved Fee Rate when considering any terms and conditions applicable to such proposed change in the Approved Fee Rate. Without prejudice to the foregoing, any change to the Approved Fee Rate may only be made with (a) the unanimous agreement of the Independent Directors, (b) the Recipient (after satisfying its internal requirements for approval to changes to related party transactions) and (c) the Provider. Provider and HoldCo shall make available to representatives of the Independent Directors and the Recipient all such budget information, market information, third party customer rate information and other financial information and documentation, including information and documentation relating to Provider’s historical costs and cost structure, including all such information and documentation that Provider or HoldCo is required to provide to Recipient pursuant to, but subject to the limitations set forth in, Section 9.2 of the Purchase Agreement, to the extent necessary for such representatives to review, determine and approve the applicable Approved Fee Rate. For clarity, an IPO shall not affect or otherwise limit Provider’s and HoldCo’s obligations to make the foregoing information and documentation available to representatives of the Independent Directors and the Recipient during the Term of this Agreement, notwithstanding any effect such IPO may have with respect to Recipient’s, HoldCo’s and Provider’s respective rights and obligations pursuant to Section 9.2 of the Purchase Agreement, except, solely with respect to such rights and obligations pursuant to Section 9.2 of the Purchase Agreement, if and to the extent required by any relevant stock exchange or Governmental Authority or for the purpose of obtaining the legal opinion that is required in connection with the submission of a compliant application for an IPO. In connection with its review of Provider’s Budgeted Service Costs, the Independent Directors may appoint an internationally recognized accounting firm (which shall initially be PricewaterhouseCoopers LLP) to review the financial and operating data used in preparing Provider’s calculation and the working papers of Provider’s auditors (if not prohibited by Provider’s auditors, provided that Provider will not withhold any consents necessary to permit Provider’s auditors to provide access to such working papers) related thereto in accordance with the Auditor’s Review Instructions. Provider acknowledges and agrees that it is responsible for controlling its overall expenses to prevent costs from exceeding the Budgeted Service Costs that were used to determine the Approved Fee Rate. Until such time as all such approvals required under this Section 3(c) have been obtained, the Approved Fee Rate for the immediately preceding year shall remain in effect. For clarity, neither the Independent Directors nor the Recipient are under any obligation to approve any annual budget or any increase in the Approved Fee Rate which they find unreasonable. Upon such approval, the Approved Fee Rate shall be adjusted retroactively to the commencement of the applicable fiscal year.

 

(d)                                       Off-Recipient Service Fees. As set forth in Section 7.1(b), in no event will any Recipient Party be required to pay any Payment Processing Fee in connection with any Off-Recipient Services, and all Total Payment Volume processed by Provider and its Subsidiaries in connection with Off-Recipient Services shall be excluded from the Base TPV for each Recipient Party.”

 

1.7.                                  Section 6 of Schedule 7.1 of the Commercial Agreement is hereby deleted in its entirety and replaced with the following:

 

“Section 6                                              [Reserved].”

 

2.                                      Effect on Commercial Agreement.  This Amendment shall not constitute a waiver, amendment or modification of any provision of the Commercial Agreement not expressly provided for herein.  Except as expressly amended hereby, the provisions of the Commercial Agreement are and shall remain in full force and effect.

 

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3.                                      Miscellaneous.  Section 1, 9, 13, 15 and 16 of the Commercial Agreement are hereby incorporated herein by reference and shall apply mutatis mutandis to this Amendment.

 

[Remainder of Page Intentionally Left Blank]

 

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The Parties have caused this Amendment to be signed by their respective officers thereunto duly authorized as of the date first written above.

 

 

	
 
    	
ALIBABA GROUP HOLDING LIMITED
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Maggie Wei Wu
    
	
 
    	
Name:
    	
Maggie Wei Wu
    
	
 
    	
Title:
    	
Chief   Financial Officer
    

 

[Signature Page to Amendment to Commercial Agreement]

 

 

The Parties have caused this Amendment to be signed by their respective officers thereunto duly authorized as of the date first written above.

 

 

	
 
    	
蚂蚁科技集团股份有限公司 (Ant Group   Co., Ltd.)
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ 井贤栋
    
	
 
    	
Name:
    	
井贤栋
    
	
 
    	
Title:
    	
Legal Representative
    

 

[Signature Page to Amendment to Commercial Agreement]

 

 

The Parties have caused this Amendment to be signed by their respective officers thereunto duly authorized as of the date first written above.

 

 

	
 
    	
支付宝(中国)网络技术有限公司 (Alipay.com   Co., Ltd.)
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ 井贤栋
    
	
 
    	
Name:
    	
井贤栋
    
	
 
    	
Title:
    	
Legal Representative
    

 

[Signature Page to Amendment to Commercial Agreement]Exhibit
10.1

 

SECURITIES
PURCHASE AGREEMENT

 

This
SECURITIES PURCHASE AGREEMENT, dated as of August 19, 2020 (the “Agreement”), by and between mPhase
Technologies, Inc., a New Jersey corporation with headquarters located at 9841 Washingtonian Boulevard #390, Gaithersburg,
Maryland 20878 (the “Company”), and [___] with its address at [___] (the “Investor”).

 

WHEREAS:

 

A.
The Company and the Investor are executing and delivering this Agreement in reliance upon the exemption from securities registration
afforded by the rules and regulations as promulgated by the United States Securities and Exchange Commission (the “SEC”)
under the Securities Act of 1933, as amended (the “Securities Act”);

 

B.
Investor desires to purchase and the Company desires to issue and sell, upon the terms and conditions set forth in this Agreement,
a 8% convertible promissory note of the Company, in the form attached hereto as Exhibit A, in the aggregate principal
amount of Ninety-Nine Thousand, Two Hundred Twenty-Five U.S. Dollars and Zero Cents ($99,225.00) (the “Principal Amount”)
due and payable on August 19, 2021, together with any note(s) issued in replacement thereof or as a dividend thereon or otherwise
with respect thereto in accordance with the terms thereof (the “Note”) which shall contain a Four Thousand,
Seven Hundred Twenty-Five U.S. Dollars and Zero Cents ($4,725.00) Original Issue Discount (“OID”) such that
the purchase price of the Note shall be Ninety-Four Thousand, Five Hundred U.S. Dollars and Zero Cents ($94,500.00) (the “Purchase
Price”), convertible into shares of common stock, $0.01 par value per share, of the Company (the “Common Stock”),
upon the terms and subject to the limitations and conditions set forth in such Note; and

 

C.
The Investor wishes to purchase, upon the terms and conditions stated in this Agreement, the Note.

 

NOW
THEREFORE, the Company and the Investor severally (and not jointly) hereby agree as follows:

 

1.
Purchase and Sale of Note.

 

a.
Purchase of Note. On the Closing Date (as defined below), the Company shall issue and sell to the Investor and the Investor
agrees to purchase from the Company the Note

 

 

Company
Initials

 

     

     

    

 

b.
Form of Payment. On the Closing Date (as defined below), (i) the Investor shall pay the Purchase Price for the Note to
be issued and sold to it at the Closing (as defined below) by wire transfer of immediately available funds to the Company, in
accordance with the Company’s written wiring instructions, against delivery of the Note in the Principal Amount, and (ii)
the Company shall deliver such duly executed Note on behalf of the Company, to the Investor, against delivery of such Purchase
Price.

 

c.
Closing Date. The date and time of the first issuance and sale of the Note pursuant to this Agreement (the “Closing
Date”) shall be on or about August 19, 2020, or such other mutually agreed upon time. The closing of the transactions
contemplated by this Agreement (the “Closing”) shall occur on the Closing Date at such location as may be agreed
to by the parties.

 

2.
Investor’s Representations and Warranties. The Investor represents and warrants to the Company that:

 

a.
Investment Purpose. As of the date hereof, the Investor is purchasing the Note and the shares of Common Stock issuable
upon conversion of or otherwise pursuant to the Note (such shares of Common Stock being collectively referred to herein as the
“Conversion Shares” and, collectively with the Note, the “Securities”) for its own account
and not with a present view towards the public sale or distribution thereof, except pursuant to sales registered or exempted from
registration under the Securities Act; provided, however, that by making the representations herein, the Investor
does not agree to hold any of the Securities for any minimum or other specific term and reserves the right to dispose of the Securities
at any time in accordance with or pursuant to a registration statement or an exemption under the Securities Act.

 

b.
Accredited Investor Status. The Investor is an “accredited investor” as that term is defined under the Securities
Act (an “Accredited Investor”).

 

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

 

d.
Information. The Investor and its advisors, if any, have been, and for so long as the Note remains outstanding will continue
to be furnished with all materials relating to the business, finances and operations of the Company and materials relating to
the offer and sale of the Securities which have been requested by the Investor or its advisors. The Investor and its advisors,
if any, have been, and for so long as the Note remains outstanding will continue to be afforded the opportunity to ask questions
of the Company. Notwithstanding the foregoing, the Company has not disclosed to the Investor any material nonpublic information
and will not disclose such information unless such information is disclosed to the public prior to or promptly following such
disclosure to the Investor. Neither such inquiries nor any other due diligence investigation conducted by Investor or any of its
advisors or representatives shall modify, amend or affect Investor’s right to rely on the Company’s representations
and warranties contained in Section 3 below. The Investor understands that its investment in the Securities involves a significant
degree of risk. The Investor is not aware of any facts that may constitute a breach of any of the Company’s representations
and warranties made herein.

 

    	2

     

    

 

e.
Governmental Review. The Investor understands that neither the SEC nor any state securities agency or any other government
or governmental agency has passed upon or made any recommendation or endorsement of the Securities.

 

f.
Transfer or Re-sale. The Investor understands that (i) the sale or re-sale of the Securities has not been and is not being
registered under the Securities Act or any applicable state securities laws, and the Securities may not be transferred unless
(a) the Securities are sold pursuant to an effective registration statement under the Securities Act, (b) the Investor shall have
delivered to the Company, at the cost of the Investor, an opinion of counsel that shall be in form, substance and scope customary
for opinions of counsel in comparable transactions to the effect that the Securities to be sold or transferred may be sold or
transferred pursuant to an exemption from such registration, which opinion shall be accepted by the Company, (c) the Securities
are sold or transferred to an “affiliate” (as defined in Rule 144 promulgated under the Securities Act (or a successor
rule) (“Rule 144”)) of the Investor who agrees to sell or otherwise transfer the Securities only in accordance
with this Section 2(f) and who is an Accredited Investor, (d) the Securities are sold pursuant to Rule 144 or other available
exemption from the registration requirements of the Securities Act, or (e) the Securities are sold pursuant to Regulation S under
the Securities Act (or a successor rule) (“Regulation S”), and the Investor shall have delivered to the Company,
at the cost of the Investor, an opinion of counsel that shall be in form, substance and scope customary for opinions of counsel
in corporate transactions, which opinion shall be accepted by the Company; (ii) any sale of such Securities made in reliance on
Rule 144 may be made only in accordance with the terms of said Rule and further, if said Rule is not applicable, any re-sale of
such Securities under circumstances in which the seller (or the person through whom the sale is made) may be deemed to be an “underwriter”
(as that term is defined by Section 2(a)(11) of the Securities Act) may require compliance with some other exemption under the
Securities Act or the rules and regulations of the SEC thereunder; and (iii) neither the Company nor any other person is under
any obligation to register such Securities under the Securities Act or any state securities laws or to comply with the terms and
conditions of any exemption thereunder (in each case). Notwithstanding the foregoing or anything else contained herein to the
contrary, the Securities may be pledged as collateral in connection with a bona fide margin account or other lending arrangement.

 

    	3

     

    

 

g.
Legends. The Investor understands that the Note and, until such time as the Conversion Shares have been registered under
the Securities Act or may be sold pursuant to Rule 144 or Regulation S without any restriction as to the number of securities
as of a particular date that can then be immediately sold, the Conversion Shares shall bear a restrictive legend in substantially
the following form (and a stop-transfer order may be placed against transfer of the certificates for such Securities):

 

“NEITHER
THE ISSUANCE AND SALE OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE EXERCISABLE
HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT
BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES
UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL (WHICH COUNSEL SHALL BE SELECTED BY THE HOLDER), IN
A GENERALLY ACCEPTABLE FORM, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD PURSUANT TO RULE 144 OR RULE
144A UNDER SAID ACT. NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT
OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THE SECURITIES.”

 

The
legend set forth above shall be removed and the Company shall direct its transfer agent to issue a certificate without such
legend to the holder of any Security upon which it is stamped, if, unless otherwise required by applicable state securities
laws, (a) such Security is registered for resale under an effective registration statement filed under the Securities Act or
otherwise may be sold pursuant to Rule 144 or Regulation S without any restriction as to the number of securities as of a
particular date that can then be immediately sold, or (b) such holder provides the Company with an opinion of counsel, in
form, substance and scope customary for opinions of counsel in comparable transactions, to the effect that a public resale or
transfer of such Security may be made without registration under the Securities Act, which opinion shall be accepted by the
Company so that the sale or transfer is effected. The Investor agrees to sell all Securities, including those represented by
a certificate(s) from which the legend has been removed, in compliance with applicable prospectus delivery requirements, if
any. In the event that the Company does not accept the opinion of counsel provided by the Investor with respect to the
transfer of Securities pursuant to an exemption from registration, such as Rule 144 or Regulation S, within 2 business days,
it will be considered an Event of Default under the Note.

 

    	4

     

    

 

h.
Authorization; Enforcement. This Agreement has been duly and validly authorized. This Agreement has been duly executed
and delivered on behalf of the Investor, and this Agreement constitutes a valid and binding agreement of the Investor enforceable
in accordance with its terms.

 

i.
Residency. The Investor is a resident of or domiciled in the jurisdiction set forth immediately below the Investor’s
name on the signature pages hereto.

 

3.
Representations and Warranties of the Company. The Company represents and warrants to the Investor that:

 

a.
Organization and Qualification. The Company and each of its subsidiaries, if any, is a corporation duly organized, validly
existing and in good standing under the laws of the jurisdiction in which it is incorporated, with full power and authority (corporate
and other) to own, lease, use and operate its properties and to carry on its business as and where now owned, leased, used, operated
and conducted.

 

b.
Authorization; Enforcement. (i) The Company has all requisite corporate power and authority to enter into and perform this
Agreement, the Note and to consummate the transactions contemplated hereby and thereby and to issue the Securities, in accordance
with the terms hereof and thereof, (ii) the execution and delivery of this Agreement, the Note by the Company and the consummation
by it of the transactions contemplated hereby and thereby (including without limitation, the issuance of the Note and the issuance
and reservation for issuance of the Conversion Shares issuable upon conversion or exercise thereof) and the performance of its
obligations thereunder have been duly authorized by the Company’s Board of Directors and no further consent or authorization
of the Company, its Board of Directors, or its shareholders is required, (iii) this Agreement has been duly executed and delivered
by the Company by its authorized representative, and such authorized representative is the true and official representative with
authority to sign this Agreement and the other documents executed in connection herewith and bind the Company accordingly, and
(iv) this Agreement constitutes, and upon execution and delivery by the Company of the Note, each of such instruments will constitute,
a legal, valid and binding obligation of the Company enforceable against the Company in accordance with its terms.

 

c.
Issuance of Shares. The Conversion Shares are duly authorized and reserved for issuance and, upon conversion of the Note
in accordance with its respective terms, will be validly issued, fully paid and non-assessable, and free from all taxes, liens,
claims and encumbrances with respect to the issue thereof and shall not be subject to preemptive rights or other similar rights
of shareholders of the Company and will not impose personal liability upon the holder thereof.

 

d.
Acknowledgment of Dilution. The Company understands and acknowledges the potentially dilutive effect to the outstanding
Common Stock upon the issuance of the Conversion Shares upon conversion of the Note. The Company further acknowledges that its
obligation to issue Conversion Shares upon conversion of the Note in accordance with this Agreement, the Note is absolute and
unconditional regardless of the dilutive effect that such issuance may have on the ownership interests of other shareholders of
the Company.

 

    	5

     

    

 

e.
No Conflicts. The execution, delivery and performance of this Agreement, the Note by the Company and the consummation by
the Company of the transactions contemplated hereby and thereby (including, without limitation, the issuance and reservation for
issuance of the Conversion Shares) will not (i) conflict with or result in a violation of any provision of the Certificate of
Incorporation or By-laws, or (ii) violate or conflict with, or result in a breach of any provision of, or constitute a default
(or an event which with notice or lapse of time or both could become a default) under, or give to others any rights of termination,
amendment, acceleration or cancellation of, any agreement, indenture, patent, patent license or instrument to which the Company
or any of its subsidiaries is a party, or (iii) result in a violation of any law, rule, regulation, order, judgment or decree
(including federal and state securities laws and regulations and regulations of any self-regulatory organizations to which the
Company or its securities are subject) applicable to the Company or any of its subsidiaries or by which any property or asset
of the Company or any of its subsidiaries is bound or affected (except for such conflicts, defaults, terminations, amendments,
accelerations, cancellations and violations as would not, individually or in the aggregate, have a material adverse effect). All
consents, authorizations, orders, filings and registrations which the Company is required to obtain pursuant to the preceding
sentence have been obtained or effected on or prior to the date hereof. The Company is not in violation of the listing requirements
of the Over-the-Counter Quotations Bureau (the “OTCQB”) and does not reasonably anticipate that the Common Stock will
be delisted by the OTCQB in the foreseeable future, nor are the Company’s securities “chilled” by DTC. The Company
and its subsidiaries are unaware of any facts or circumstances, which might give rise to any of the foregoing.

 

f.
Absence of Litigation. Except as disclosed in the Company’s public filings, there is no action, suit, claim, proceeding,
inquiry or investigation before or by any court, public board, government agency, self-regulatory organization or body pending
or, to the knowledge of the Company or any of its subsidiaries, threatened against or affecting the Company or any of its subsidiaries,
or their officers or directors in their capacity as such, that could have a material adverse effect. The Company and its subsidiaries
are unaware of any facts or circumstances, which might give rise to any of the foregoing. As used herein, “knowledge”
or any other similar knowledge qualification, means the actual or constructive knowledge of any director or officer of the Company,
after due inquiry.

 

g.
Acknowledgment Regarding Investor’ Purchase of Securities. The Company acknowledges and agrees that the Investor
is acting solely in the capacity of arm’s length purchasers with respect to this Agreement and the transactions contemplated
hereby. The Company further acknowledges that the Investor is not acting as a financial advisor or fiduciary of the Company (or
in any similar capacity) with respect to this Agreement and the transactions contemplated hereby and any statement made by the
Investor or any of its respective representatives or agents in connection with this Agreement and the transactions contemplated
hereby is not advice or a recommendation and is merely incidental to the Investor’ purchase of the Securities. The Company
further represents to the Investor that the Company’s decision to enter into this Agreement has been based solely on the
independent evaluation of the Company and its representatives.

 

    	6

     

    

 

h.
No Integrated Offering. Neither the Company, nor any of its affiliates, nor any person acting on its or their behalf, has
directly or indirectly made any offers or sales in any security or solicited any offers to buy any security under circumstances
that would require registration under the Securities Act of the issuance of the Securities to the Investor. The issuance of the
Securities to the Investor will not be integrated with any other issuance of the Company’s securities (past, current or
future) for purposes of any shareholder approval provisions applicable to the Company or its securities.

 

i.
Title to Property. Except as disclosed in the Company’s public filings, the Company and its subsidiaries have good
and marketable title in fee simple to all real property and good and marketable title to all personal property owned by them which
is material to the business of the Company and its subsidiaries, in each case free and clear of all liens, encumbrances and defects
or such as would not have a material adverse effect. Any real property and facilities held under lease by the Company and its
subsidiaries are held by them under valid, subsisting and enforceable leases with such exceptions as would not have a material
adverse effect.

 

j.
Bad Actor. None of the Company, or any its predecessors or any affiliate issuer, any director, executive officer or other
officer of the Company, any beneficial owner (as that term is defined in Rule 13d-3 under the Exchange Act) of 20% or more of
the Company’s outstanding voting equity securities, calculated on the basis of voting power, nor any promoter (as that term
is defined in Rule 405 under the Securities Act) connected with the Company in any capacity at the time of sale of any securities
(each, an “ Covered Person” and, collectively, “Covered Persons”) is subject to any of the “Bad
Actor” disqualifications described in Rule 506(d)(1)(i) to (viii) under the Securities Act (a “Disqualification Event”),
except for a Disqualification Event covered by Rule 506(d)(2) or (d)(3) under the Securities Act. The Company has exercised reasonable
care to determine (i) the identity of each person that is a Covered Person; and (ii) whether any Covered Person is subject to
a Disqualification Event.

 

k.
Breach of Representations and Warranties by the Company. If the Company breaches any of the representations or warranties
set forth in this Section 3, and in addition to any other remedies available to the Investor pursuant to this Agreement, it will
be considered an Event of default under the Note.

 

l.
Absent a final adjudication from a court of competent jurisdiction stating otherwise, so long as any amount on this Note, Commitment
Shares, or warrant connected herewith is outstanding, the Company shall not to any person, institution, or entity, state, claim,
allege, or in any way assert, that Holder is currently, or ever has been, a broker-dealer under the Securities Exchange Act of
1934.

 

    	7

     

    

 

4.
Covenants.

 

a. Expenses.
At the Closing, the Company shall reimburse Investor for expenses incurred by them in connection with the negotiation,
preparation, execution, delivery and performance of this Agreement and the other agreements to be executed in connection
herewith (“Documents”), including, without limitation, reasonable attorneys’ and consultants’
fees and expenses, transfer agent fees, fees for stock quotation services, fees relating to any amendments or modifications
of the Documents or any consents or waivers of provisions in the Documents, fees for the preparation of opinions of counsel,
escrow fees, and costs of restructuring the transactions contemplated by the Documents. When possible, the Company must pay
these fees directly, otherwise the Company must make immediate payment for reimbursement to the Investor for all fees and
expenses immediately upon written notice by the Investor or the submission of an invoice by the Investor. The Company’s
obligation with respect to this transaction is to reimburse Investor’s expenses shall be $4,500 in legal fees, which
shall be deducted from the Note when funded.

 

b.
Listing. The Company shall promptly secure the listing of the Conversion Shares upon each national securities exchange
or automated quotation system, if any, upon which shares of Common Stock are then listed (subject to official notice of issuance)
and, so long as the Investor owns any of the Securities, shall maintain, so long as any other shares of Common Stock shall be
so listed, such listing of all Conversion Shares from time to time issuable upon conversion of the Note. The Company will obtain
and, so long as the Investor owns any of the Securities, maintain the listing and trading of its Common Stock on the OTCQB or
any equivalent replacement exchange, the Nasdaq National Market (“Nasdaq”), the Nasdaq SmallCap Market (“Nasdaq
SmallCap”), the New York Stock Exchange (“NYSE”), or the American Stock Exchange (“AMEX”)
and will comply in all respects with the Company’s reporting, filing and other obligations under the bylaws or rules of
the Financial Industry Regulatory Authority (“FINRA”) and such exchanges, as applicable. The Company shall
promptly provide to the Investor copies of any notices it receives from the OTCQB and any other exchanges or quotation systems
on which the Common Stock is then listed regarding the continued eligibility of the Common Stock for listing on such exchanges
and quotation systems.

 

c.
Corporate Existence. So long as the Investor beneficially owns any Note, the Company shall maintain its corporate existence
and shall not sell all or substantially all of the Company’s assets, except in the event of a merger or consolidation or
sale of all or substantially all of the Company’s assets, where the surviving or successor entity in such transaction (i)
assumes the Company’s obligations hereunder and under the agreements and instruments entered into in connection herewith
and (ii) is a publicly traded corporation whose Common Stock is listed for trading on the OTCQB, Nasdaq, Nasdaq SmallCap, NYSE
or AMEX.

 

    	8

     

    

 

d.
No Integration. The Company shall not make any offers or sales of any security (other than the Securities) under circumstances
that would require registration of the Securities being offered or sold hereunder under the Securities Act or cause the offering
of the Securities to be integrated with any other offering of securities by the Company for the purpose of any stockholder approval
provision applicable to the Company or its securities.

 

e.
Right of First Refusal. The Company hereby grants the Investor the exclusive “right of first refusal” on any
variable debt/financing instrument opportunities for sixty (60) days from the Closing Date. The terms of such funding opportunity
shall be provided to the Investor in writing, whereby the Investor shall have the exclusive option to either fund on those terms
or allow the Company to accept the terms from another party. Investor must accept or reject the proposed term sheet within 48
business hours, and it will not be unreasonably be withheld.

 

f.
Breach of Covenants. If the Company breaches any of the covenants set forth in this Section 4, and in addition to any other
remedies available to the Investor pursuant to this Agreement, it will be considered an event of default under the Note.

 

5.
Governing Law; Miscellaneous.

 

a.
Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of New York without
regard to principles of conflicts of laws. Any action brought by either party against the other concerning the transactions contemplated
by this Agreement shall be brought only in the state courts of New York or in the federal courts located in the state and county
of New York. The parties to this Agreement hereby irrevocably waive any objection to jurisdiction and venue of any action instituted
hereunder and shall not assert any defense based on lack of jurisdiction or venue or based upon forum non conveniens. The
Company and Investor waive trial by jury. The prevailing party shall be entitled to recover from the other party its reasonable
attorney’s fees and costs. In the event that any provision of this Agreement or any other agreement delivered in connection
herewith is invalid or unenforceable under any applicable statute or rule of law, then such provision shall be deemed inoperative
to the extent that it may conflict therewith and shall be deemed modified to conform with such statute or rule of law. Any such
provision, which may prove invalid or unenforceable under any law, shall not affect the validity or enforceability of any other
provision of any agreement. Each party hereby irrevocably waives personal service of process and consents to process being served
in any suit, action or proceeding in connection with this Agreement or any other Transaction Document by mailing a copy thereof
via registered or certified mail or overnight delivery (with evidence of delivery) to such party at the address in effect for
notices to it under this Agreement and agrees that such service shall constitute good and sufficient service of process and notice
thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any other manner permitted
by law.

 

    	9

     

    

 

b.
Counterparts; Signatures by Facsimile. This Agreement may be executed in one or more counterparts, each of which shall
be deemed an original but all of which shall constitute one and the same agreement and shall become effective when counterparts
have been signed by each party and delivered to the other party. This Agreement, once executed by a party, may be delivered to
the other party hereto by facsimile transmission of a copy of this Agreement bearing the signature of the party so delivering
this Agreement.

 

c.
Headings. The headings of this Agreement are for convenience of reference only and shall not form part of, or affect the
interpretation of, this Agreement.

 

d.
Severability. In the event that any provision of this Agreement is invalid or unenforceable under any applicable statute
or rule of law, then such provision shall be deemed inoperative to the extent that it may conflict therewith and shall be deemed
modified to conform with such statute or rule of law. Any provision hereof which may prove invalid or unenforceable under any
law shall not affect the validity or enforceability of any other provision hereof.

 

e.
Entire Agreement; Amendments. This Agreement and the instruments referenced herein contain the entire understanding of
the parties with respect to the matters covered herein and therein and, except as specifically set forth herein or therein, neither
the Company nor the Investor makes any representation, warranty, covenant or undertaking with respect to such matters. No provision
of this Agreement may be waived or amended other than by an instrument in writing signed by the majority in interest of the Investor.

 

f.
Notices. All notices, demands, requests, consents, approvals, and other communications required or permitted hereunder
shall be in writing and, unless otherwise specified herein, shall be (i) personally served, (ii) deposited in the mail, registered
or certified, return receipt requested, postage prepaid, (iii) delivered by reputable air courier service with charges prepaid,
or (iv) transmitted by hand delivery, telegram, or facsimile, addressed as set forth below or to such other address as such party
shall have specified most recently by written notice. Any notice or other communication required or permitted to be given hereunder
shall be deemed effective (a) upon hand delivery or delivery by facsimile, with accurate confirmation generated by the transmitting
facsimile machine, at the address or number designated below (if delivered on a business day during normal business hours where
such notice is to be received), or the first business day following such delivery (if delivered other than on a business day during
normal business hours where such notice is to be received) or (b) on the second business day following the date of mailing by
express courier service, fully prepaid, addressed to such address, or upon actual receipt of such mailing, whichever shall first
occur. The addresses for such communications shall be:

 

    	10

     

    

 

If
to the Company, to:

 

mPhase
Technologies, Inc.

9841
Washingtonian Boulevard, Suite 390

Gaithersburg,
Maryland 20878

Attn: Anshu Bhatnagar, CEO

 

If
to the Investor:

 

[___]

Attn:
[___]

 

Each
party shall provide notice to the other party of any change in address.

 

g.
Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their successors
and assigns. Neither the Company nor the Investor shall assign this Agreement or any rights or obligations hereunder without the
prior written consent of the other. Notwithstanding the foregoing, the Investor may assign its rights hereunder to any person
that purchases Securities in a private transaction from the Investor or to any of its “affiliates,” as that term is
defined under the 1934 Act, without the consent of the Company.

 

h.
Third Party Beneficiaries. This Agreement is intended for the benefit of the parties hereto and their respective permitted
successors and assigns, and is not for the benefit of, nor may any provision hereof be enforced by, any other person.

 

i.
Survival. The representations and warranties of the Company and the agreements and covenants set forth in this Agreement
shall survive the closing hereunder notwithstanding any due diligence investigation conducted by or on behalf of the Investor.
The Company agrees to indemnify and hold harmless the Investor and all their officers, directors, employees and agents for loss
or damage arising as a result of or related to any breach or alleged breach by the Company of any of its representations, warranties
and covenants set forth in this Agreement or any of its covenants and obligations under this Agreement, including advancement
of expenses as they are incurred.

 

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

 

    	11

     

    

 

k.
No Strict Construction. The language used in this Agreement will be deemed to be the language chosen by the parties to
express their mutual intent, and no rules of strict construction will be applied against any party.

 

l.
Remedies. The Company acknowledges that a breach by it of its obligations hereunder will cause irreparable harm to the
Investor by vitiating the intent and purpose of the transaction contemplated hereby. Accordingly, the Company acknowledges that
the remedy at law for a breach of its obligations under this Agreement will be inadequate and agrees, in the event of a breach
or threatened breach by the Company of the provisions of this Agreement, that the Investor shall be entitled, in addition to all
other available remedies at law or in equity, and in addition to the penalties assessable herein, to an injunction or injunctions
restraining, preventing or curing any breach of this Agreement and to enforce specifically the terms and provisions hereof, without
the necessity of showing economic loss and without any bond or other security being required.

 

m.
Usury. To the extent it may lawfully do so, the Company hereby agrees not to insist upon or plead or in any manner whatsoever
claim, and will resist any and all efforts to be compelled to take the benefit or advantage of, usury laws wherever enacted, now
or at any time hereafter in force, in connection with any action or proceeding that may be brought by the Investor in order to
enforce any right or remedy under this Agreement, the Note and any document, agreement or instrument contemplated thereby. Notwithstanding
any provision to the contrary contained in this Agreement, the Note and any document, agreement or instrument contemplated thereby,
it is expressly agreed and provided that the total liability of the Company under this Agreement, the Note or any document, agreement
or instrument contemplated thereby for payments which under applicable law are in the nature of interest shall not exceed the
maximum lawful rate authorized under applicable law (the “Maximum Rate”), and, without limiting the foregoing, in
no event shall any rate of interest or default interest, or both of them, when aggregated with any other sums which under applicable
law in the nature of interest that the Company may be obligated to pay under this Agreement, the Note and any document, agreement
or instrument contemplated thereby exceed such Maximum Rate. It is agreed that if the maximum contract rate of interest allowed
by law applicable to this Agreement, the Note and any document, agreement or instrument contemplated thereby is increased or decreased
by statute or any official governmental action subsequent to the date hereof, the new maximum contract rate of interest allowed
by law will be the Maximum Rate applicable to this Agreement, the Note and any document, agreement or instrument contemplated
thereby from the effective date thereof forward, unless such application is precluded by applicable law. If under any circumstances
whatsoever, interest in excess of the Maximum Rate is paid by the Company to the Investor with respect to indebtedness evidenced
by this Agreement, the Note and any document, agreement or instrument contemplated thereby, such excess shall be applied by the
Investor to the unpaid principal balance of any such indebtedness or be refunded to the Company, the manner of handling such excess
to be at the Investor’s election.

 

    	12

     

    

 

n.
Most-Favored Nation. While the Note or any principal amount, interest or fees or expenses due thereunder remain outstanding
and unpaid, the Company shall not enter into any public or private offering of its securities (including securities convertible
into shares of Common Stock) with any individual or entity (an “Other Investor”) that has the effect of establishing
rights or otherwise benefiting such Other Investor in a manner more favorable in any material respect to such Other Investor than
the rights and benefits established in favor of the Buyer by this Agreement or the Note unless, in any such case, the Buyer has
been provided with such rights and benefits pursuant to a definitive written agreement or agreements between the Company and the
Buyer. In the event the Company enters into an offering with an Other Investor, and the terms thereof are more favorable to the
Other Investor and the Company fails to notify Buyer, the terms of this Agreement and the Note shall automatically be amended
to give the Buyer the more favorable term, without the need for further consent from the Company.

 

[SIGNATURE
PAGE FOLLOWS]

 

    	13

     

    

 

IN
WITNESS WHEREOF, the undersigned Investor and the Company have caused this Agreement to be duly executed as of the date first
above written.

 

	Company:	MPHASE
    TECHNOLOGIES, INC.
	 	 	 
	 	By:	 
	 	Name:	Anshu
    Bhatnagar
	 	Title:	Chief
    Executive Officer
	 	 	 
	Investor:	[___]
	 	 	 
	 	By:	 
	 	Name:	[___]
	 	Title:	[___]

 

    	14

     

    

 

EXHIBIT
A

 

[$99,225.00
8% Convertible Promissory Note, less $4,725 OID and $4,500 for legal expenses]

 

    	15

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