Document:

Certain identified information has been excluded from the exhibit because it is
both (i) not material and (ii) would be competitively harmful if publicly disclosed.

 

 

Credit Agreement

 

 

dated as of April 4, 2019

by and between

 

 

	ExWorks Capital Fund I, L.P. (Lender)
	333 West Wacker Drive, Suite 1620, Chicago, Illinois 60606,
USA

 

and

 

	WISeCoin AG (Borrower)
	c/o WISeKey International Holding AG, General-Guisan-Strasse
6, 6300 Zug, Switzerland
	 
	(the Lender and Borrower each a Party and together the Parties)

 

 

regarding

 

USD 4,000,000 Term Facility

 

    

    

    

 

TABLE OF CONTENTS

 

	1.	Definitions and Interpretation	5
	 	1.1.	Definitions	5
	 	1.2.	Interpretation	12
	2.	The Facility	12
	3.	Purpose	12
	4.	Documents to be delivered on the Date of this Agreement	12
	5.	Conditions of Utilization	13
	6.	Utilization Request	14
	 	6.1.	Delivery of the Utilization Request	14
	 	6.2.	Completion of the Utilization Request	14
	 	6.3.	Currency and amount	14
	7.	Final Maturity	14
	8.	Repayment	14
	 	8.1.	Repayment and Prepayment of Loan	14
	 	8.2.	Reborrowing	15
	 	8.3.	Illegality	15
	 	8.4.	Voluntary Prepayment of Loan	15
	 	8.5.	Restrictions	15
	 	8.6.	Option Right	15
	9.	Interest and Fees	16
	 	9.1.	Interest Rates	16
	 	9.2.	Interest Payment Dates	16
	 	9.3.	Payment in Kind Interest	16
	 	9.4.	Default Interest	17
	 	9.5.	Computation	17
	 	9.6.	Minimum Interest Rate	17
	 	9.7.	Intent to Limit Charges to Maximum Lawful Rate	18
	 	9.8.	Success Fee	18
	10.	Representations and Warranties	18
	 	10.1.	Organization	18
	 	10.2.	Financial Statements	19
	 	10.3.	Absence of Conflicting Obligations	19
	 	10.4.	Taxes	19
	 	10.5.	Non-Bank Rules	19

 

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	 	10.6.	Absence of Material Litigation	19
	 	10.7.	Full Disclosure	20
	 	10.8.	Compliance with Applicable Laws	20
	 	10.9.	Subsidiaries	20
	11.	Negative Covenants	20
	 	11.1.	Restriction on Liens	20
	 	11.2.	Reserved Restriction on Indebtedness	20
	 	11.3.	Mergers; Consolidations; Organizational Changes	21
	 	11.4.	Contingent and Third Party Liabilities	21
	 	11.5.	Changes	21
	 	11.6.	Restricted Payments and Shareholder Loans	21
	 	11.7.	At Arm’s Length Transactions	21
	 	11.8.	Certain Debt Payments	22
	 	11.9.	Certain Agreements	22
	 	11.10.	Negative Pledge	22
	 	11.11.	Asset Transfers	22
	 	11.12.	Subsidiaries	22
	12.	Affirmative Covenants	22
	 	12.1.	Existence; Payment of Taxes and Other Liabilities	22
	 	12.2.	Transaction Security	22
	 	12.3.	Accounting System	23
	 	12.4.	Accounting Records; Reports	23
	 	12.5.	Litigation	24
	 	12.6.	Compliance with Applicable Laws	24
	 	12.7.	Further Assurances	24
	 	12.8.	Notice	25
	 	12.9.	Use of Loan	25
	 	12.10.	Non-Bank Rules	25
	 	12.11.	Broker’s Fees	25
	13.	Defaults	25
	 	13.1.	Default in Payment of Obligations Borrower fails to pay:	26
	 	13.2.	Default under Loan Documents	26
	 	13.3.	Representations or Statements False	26
	 	13.4.	Default on Other Debt	26
	 	13.5.	Judgments	26
	 	13.6.	Bankruptcy; Insolvency	27
	 	13.7.	Material Adverse Change	27
	 	13.8.	Levy or Attachment	27
	 	13.9.	Challenge to Loan Documents	27
	14.	Remedies on Occurrence of an Event of Default	27

 

    Page 3  of 38

    

    

 

	 	14.1.	Right and Remedies	27
	 	14.2.	No Waiver	27
	15.	Tax Gross-Up and Indemnities	27
	 	15.1.	Tax Gross-Up	28
	 	15.2.	Tax Indemnity	28
	16.	General Terms	28
	 	16.1.	Expenses, Fees and Costs; Indemnification; Confidentiality	28
	 	16.2.	Currency Conversions	29
	 	16.3.	Assignments and Participations	29
	 	16.4.	Right to Inspect and Audit	29
	 	16.5.	Exculpation and Indemnity	30
	 	16.6.	Remedies and Waivers	30
	 	16.7.	Amendments and Waivers	30
	 	16.8.	Counterparts	30
	 	16.9.	Notices	31
	 	16.10.	Loan Agreement Controls	31
	 	16.11.	Severability	31
	 	16.12.	Payment Mechanics	31
	 	16.13.	Set-Off	32
	 	16.14.	Patriot Act	32
	 	16.15.	Confidentiality	32
	 	16.16.	Entire Agreement of the Parties	32
	 	16.17.	Execution of the Agreement	33
	 	16.18.	Governing Law and Jurisdiction	33
	Schedule 1:          Term Sheet	35
	Schedule 2:          Documents to be delivered on the Date of this Agreement	36
	Schedule 3:          Funding Conditions	37
	Schedule 4:          Form of Utilization Request	38

 

    Page 4  of 38

    

    

 

		1.	Definitions and Interpretation

 

		1.1.	Definitions

 

In addition to the terms defined in this Agreement,
the following terms have the given definitions:

 

Affiliate means with respect to any entity,
another Person that directly or indirectly through one or more intermediaries, Controls or is Controlled by or is under common
Control with the applicable entity.

 

Agreement means this USD 4,000,000 term facility
agreement.

 

Business Day means a day on which commercial
banks are open for business in New York, New York, USA and Zurich, Switzerland, other than Saturdays and Sundays.

 

CHF means Swiss Francs, the lawful currency
of Switzerland.

 

Claims means any demand, claim, action or cause
of action, damage, liability, loss, cost, debt, expense, obligation, tax, assessment, charge, lawsuit, contract, agreement or undertaking,
of any kind or nature, whether known or unknown, fixed, actual, accrued or contingent, liquidated or unliquidated (including interest,
penalties, attorneys’ fees and other costs and expenses incident to proceedings or investigations relating to, or the defense
of, any of the foregoing), whether or not litigation has commenced.

 

Collateral means all collateral security for
the Obligations given to Lender by Borrower or the Security Grantor or a Lien on any of their property securing payment of the
Obligations.

 

Control means the possession, directly or indirectly,
of the power to direct or cause the direction of the management or policies of an entity, whether through the ability to exercise
voting power, by contract or otherwise. Controlling and Controlled have correlative meanings.

 

Confidential Information means all information
relating to Borrower or any of its Affiliates which Lender receives from Borrower or any of its Affiliates (whether prior to or
after the date hereof) with regard to the entry in and the operation of this Agreement and the other Loan Documents but does not
include information which (i) prior to delivery of such information to Lender, was already in the possession of Lender from sources
other than Borrower or its Affiliates, (ii) was or becomes generally available to the public other than as a result of disclosure
by Lender, (iii) becomes available to Lender on a non-confidential basis from a source other than Borrower or its Affiliates, provided
that Lender was not aware that such source is bound by a confidentiality agreement with, or obligation of secrecy to, Borrower
or any of its Affiliates or (iv) was or is independently developed by Lender without recourse to Confidential Information.

 

    Page 5  of 38

    

    

 

Conversion Price means the price per Token
at which the Tokens, based on the Term Sheet, have been issued by the Borrower to the initial Purchaser, converted into US dollars
using the relevant exchange rates published in the U.S. national edition of the Wall Street Journal on the Business Day immediately
preceding the date on which the Tokens have been issued.

 

Default means an event or occurrence that with
the passage of time or the giving of notice will be an Event of Default.

 

Equity Interest means, with respect to any
Person, the shares of capital stock, participations in profits or other equivalents (however designated and including any preferred
stock of the Person or similar interests that is given preference to common shares in receiving dividends or distributions made
by the Person), membership interests or units, partnership or entity units or other interests similar to capital stock.

 

Event of Default shall have the meaning ascribed
to such term in Clause 13 (Defaults).

 

Excluded Taxes mean taxes and assessments that
are imposed on Lender’s overall net income by the United States of America.

 

Expenses means all documented fees and out
of pocket disbursements reasonably incurred by Lender, including out-of-pocket fees of counsel and court costs, in any way arising
from or in connection with this Agreement, any other Loan Document, any of the Collateral, including, without limitation, (i) documented
examination costs as well as the associated travel expenses of any examiners, if applicable; (ii) all documented fees and expenses
(including recording fees and bank administration charges) of Lender and fees of counsel for Lender for the preparation, examination,
approval, negotiation, execution and delivery of, or the closing of any of the transactions contemplated by, this Agreement or
any other Loan Document; and (iii) all documented fees and out of pocket disbursements incurred by Lender, including attorneys’
fees, in any way arising from or in connection with any action taken by Lender to monitor, advise, administer, enforce or collect
any of the Obligations under this Agreement or any other Loan Document, and (iv) all documented out-of-pocket expenses and fees
(including attorneys’ fees) incurred in relation to, in connection with, in defense of or in prosecution of any litigation,
instituted by Borrower (unless Borrower prevails in all respects in such litigation, in which case Borrower will not be obligated
to pay Lender’s expenses and fees incurred with such litigation) or any third party against or involving Lender arising from,
relating to, or in connection with any of the Obligations or any Loan Document provided, however, that the fees, expenses and costs
incurred by Lender for its legal counsel in connection with establishing and negotiating the Loan Documents prior to the date hereof
shall in no event exceed CHF 30,000.

 

Facility means the term credit facility made
available under this Agreement as described in Clause 2 (The Facility).

 

    Page 6  of 38

    

    

 

Facility Amount means USD 4,000,000, to the
extent not cancelled or reduced.

 

Funding Conditions means the conditions precedent
to the funding of the Loan as set forth in Schedule 3 (Funding Conditions).

 

Funding Date means the date on which Lender
funds the Loan to Borrower in accordance with the terms and conditions of this Agreement.

 

GAAP means the general accounting principles
as per the Swiss Code of Obligations.

 

Governmental Authority means any nation or
government, and any political subdivision thereof, any entity exercising executive, legislative, judicial, regulatory or administrative
functions of or pertaining to government, and any court, tribunal or arbitrator(s) of competent jurisdiction, and any self-regulatory
organization.

 

Governmental Orders means any order, judgment,
injunction, decree, stipulation or determination issued, promulgated or entered by or with any Governmental Authority of competent
jurisdiction.

 

Guidelines means, together, guideline S-02.123
in relation to interbank loans of 22 September 1986 (Merkblatt S-02.123 vom 22 September 1986 betreffend Zinsen von Bankguthaben,
deren Gläubiger Banken sind (Interbankguthaben)), guideline S-02.132 in relation to issuance stamp duty on fixed deposits
of 1 April 1993 (Merkblatt S-02.132 vom 1. April 1993 betreffend Emissionsabgabe auf Festgeldanlagen bei inländischen Banken),
guideline S-02.130.1 in relation to accounts receivables of Swiss debtors of April 1999 (Merkblatt S-02.130.1 vom April 1999
Geldmarktpapiere und Buchforderungen inländischer Schuldner), guideline S-02.122.1 in relation to bonds of April 1999
(Merkblatt S-02.122.1 vom April 1999 betreffend Obligationen), circular letter no. 34 in relation to customer credit balances
of 26 July 2011 (Kreisschreiben Nr. 34 vom 26. Juli 2011 betreffend Kundenguthaben), guideline S-02.128 in relation to syndicated
credit facilities of January 2000 (Merkblatt S-02.128 vom Januar 2000 Steuerliche Behandlung von Konsortialdarlehen, Schuldscheindarlehen,
Wechseln und Unterbeteiligungen) and the circular letter no. 15 in relation to bonds and derivatives of 3 October 2017 (Kreisschreiben
Nr. 15 vom 3. Oktober 2017 betreffend Obligationen und derivative Finanzinstrumente als Gegenstand der direkten Bundessteuer, der
Verrechnungssteuer sowie der Stempelabgaben), all as issued, and as amended from time to time, by the Swiss Federal Tax Administration,
or as substituted or superseded and overruled by any law, statute, ordinance, court decision, regulation or the like as in force
from time to time, including the established practice of the Swiss Federal Tax Administration.

 

Insolvency Event means, with respect to any
person or entity, that such person or entity: (a) becomes insolvent; (b) is unable, or admits in writing its inability, to pay
debts as they generally mature; (c) makes a general assignment for the benefit of creditors or to an agent authorized to liquidate
any substantial amount of its property; (d) files on its behalf or consents to an Insolvency Proceeding; (e) has an Insolvency
Proceeding filed or instituted against it that is not stayed or dismissed within 60 days after it is filed or instituted; (f) applies
to a court for the appointment of a receiver, trustee or custodian for any of its assets; (g) has a receiver, trustee or custodian
appointed for any of its assets (with or without its consent); or (h) commences a self-liquidation of its assets.

 

    Page 7  of 38

    

    

 

Insolvency Proceeding means any of the following
events:

 

		(a)	any corporate action, legal proceedings or other procedure or step exists or is taken in relation to, or threatened that could
result in:

 

		(i)	bankruptcy, insolvency, suspension of payments, a moratorium of any indebtedness, winding-up, dissolution, administration or
reorganization (by way of voluntary arrangement, scheme of arrangement or otherwise) of any such Swiss entity;

 

		(ii)	a composition or assignment;

 

		(iii)	an arrangement with any creditor of such Swiss entity; or

 

		(b)	the appointment of a liquidator, receiver, administrative receiver, administrator, compulsory manager or other similar officer
in respect of any such Swiss entity or such entity’s assets.

 

Interest Payment Date shall have the meaning
ascribed to such term in Clause 9.2 (Interest Payment Dates).

 

Interest Rate shall have the meaning ascribed
to such term in Clause 9.1 (Interest Rates).

 

Investment means, as applied to any Person,
(i) any direct or indirect acquisition by the Person of any Equity Interest, other securities or other interests of, or investments
in, any other Person, or all or any substantial part of the business or assets of any other Person, and (ii) any direct or indirect
loan, gift, advance or capital contribution by such Person to any Person other than a Controlled subsidiary of Borrower.

 

Laws means any (i) federal, state, county,
local or foreign constitution, treaty, statute, law, ordinance, regulation, interpretation, rule, code or rule of common and/or
Swiss law, including all Foreign Ownership, Control or Influence and International Traffic In Arms regulations, of any Governmental
Authority, including Customs Requirements, and laws and regulations imposed by the U.S. Department of Treasury’s Office of
Foreign Assets Control (OFAC), the United Nations Security Council (UNSC), the European Union, Switzerland, Her Majesty’s
Treasury (HMT), (ii) consent or similar agreements with any Governmental Authority, and (iii) any Governmental Orders.

 

Lien means any lien, charge, mortgage, security
interest, pledge or other encumbrance on any property or interests in property of any Loan Party.

 

    Page 8  of 38

    

    

 

Loan means a loan made or to be made under
the Facility or the principal amount outstanding for the time being of that loan, but excluding – for the avoidance of doubt
– the Success Fee.

 

Loan Documents means, collectively, this Agreement,
a Security Agreement and any other agreements designated as such by a Loan Party and Lender.

 

Loan Parties means, collectively, Security
Grantor and Borrower, each a Loan Party.

 

Material Adverse Change mean a material adverse
effect on or material adverse change in, as the case may be, (i) the business, assets or financial condition of Borrower, (ii)
the ability of the Loan Parties (taken as a whole) to perform or observe the payment obligations under this Agreement or any other
Loan Document to which it is a party; or (iii) the material rights and remedies available to Lender under any Loan Document.

 

Non-Bank Rules means the Ten Non-Bank Rule
and the Twenty Non-Bank Rule. Non-Qualifying Bank means a person other than a Qualifying Bank.

 

Non-Qualifying Bank means a person other than
a Qualifying Bank.

 

Obligations means the Loan, and all other obligations
owing by Borrower to Lender for the payment of money pursuant to any Loan Document, whether direct or indirect, absolute or contingent,
due or to become due, now existing or hereafter arising, and all Expenses which Borrower is required to pay or reimburse pursuant
to the Loan Documents.

 

Participation Certificate means as the equity
securities referred to as “Participation Certificate(s)” in the Term Sheet.

 

Patriot Act means the USA Patriot Act, Title
III of Public Law 107-56 (signed October 26, 2001).

 

Permitted Liens means:

 

		(a)	Liens for taxes, assessments or governmental charges, and Liens incident to construction, which are not delinquent or are being
contested in good faith by Borrower by appropriate proceedings, which will prevent foreclosure of those Liens, and against which
adequate reserves have been provided, and upon demand, with adequate security being posted with Lender;

 

		(b)	Liens or deposits in connection with insurance or to secure customs duties, public or statutory obligations in lieu of surety,
stay or appeal bonds, or to secure performance of contracts or bids (other than contracts for the payment of money borrowed), or
deposits required by law or governmental regulations or by any court order, decree, judgment or rule as condition to the transaction
of business or the exercise of any right, privilege or license; or other Liens or deposits of a like nature made in the ordinary
course of business;

 

    Page 9  of 38

    

    

 

		(c)	Liens, charges and security interests granted in the ordinary course of business;

 

		(d)	Liens, charges and security interests arising by operation of law; and

 

		(e)	Liens, charges and security interests granted to Lender.

 

Person means any individual, trustee, sole
proprietorship, partnership (general or limited), joint venture, trust, unincorporated organization, association, corporation,
limited liability company, limited liability partnership and other entity or any Governmental Authority.

 

PIK Interest has the meaning ascribed to such
term in paragraph (a) of Clause 9.3 (Payment in Kind Interest).

 

Purchaser has the meaning ascribed to such
term in the Term Sheet.

 

Qualifying Bank means a person or entity which
(a) effectively conducts banking activities with its own infrastructure and staff as its principal purpose and (b) which has a
banking license in full force and effect issued in accordance with the banking laws in force in its jurisdiction of incorporation,
or if acting through a branch, issued in accordance with the banking laws in the jurisdiction of such branch, all in accordance
with the Guidelines.

 

Restricted Payment means, with respect to any
Person, any one or more of the following:

 

		(a)	any payment on account of the purchase, acquisition or redemption of any Equity Interests in the Person now or hereafter outstanding,
or any other payment or distribution made in respect thereof, or other acquisition for value, directly or indirectly, or the purchase,
acquisition or redemption, of any Equity Interests in the Person now or hereafter outstanding by the Person;

 

		(b)	any payment of management, consulting, servicing or advisory fees (or other fees of a similar nature) by the Person to any
Affiliate, except for payments in the ordinary course of business;

 

		(c)	for as long as WISeCoin R&D has not guaranteed the Obligations and not provided security over its material assets pursuant
to Clause 12.2, any payments to WISeCoin R&D which are not in the ordinary course of Borrower’s business; and

 

		(d)	any payment to holders of Tokens in respect thereto;

 

provided, however, that in no event shall the issuance
of Tokens, and the conversion of Tokens into Participation Certificates, all as substantially set forth in the Term Sheet, be considered
a Restricted Payment for purposes of this Agreement.

 

    Page 10  of 38

    

    

 

In no event will any dividend, distribution, payment,
prepayment or extension of credit between, or Investment in, any Loan Party or their direct or indirect Controlled subsidiaries
be deemed to be a Restricted Payment.

 

Security Agreement means any agreement that
grants or conveys a Lien that secures the Obligations.

 

Security Grantor means, with respect to the
pledge of shares in the Borrower as specified in Schedule 2, WISeKey International Holdings AG, a stock corporation (Aktiengesellschaft)
incorporated in Switzerland and registered in the commercial register of the Canton of Zug under registration number CHE-143.782.707,
with its registered office at General-Guisan-Strasse 6, 6300 Zug, Switzerland, and any other entity that grants any Lien securing
the Obligations, based on the procurement obligation set forth in Clause 12.2.

 

Swiss Federal Tax Administration means the
tax authorities referred to in article 34 of the Swiss Withholding Tax Act.

 

Swiss Withholding Tax means taxes imposed under
the Swiss Withholding Tax Act.

 

Swiss Withholding Tax Act means the Swiss Federal
Act on the Withholding Tax of 13 October 1965 (Bundesgesetz Ober die Verrechnungssteuer), together with the related ordinances,
regulations and guidelines, all as amended and applicable from time to time.

 

Tax means any tax, levy, impost, duty or other
charge or withholding of a similar nature, including any penalty or interest payable in connection with any failure to pay or any
delay in paying any of the same or any addition or additional amount thereon imposed, assessed or collected by or under the authority
of any Governmental Authority, whether current or deferred, and whether disputed or not.

 

Tax Deduction means a deduction or withholding
for or on account of Tax from a payment under this Agreement (or any Loan Documents).

 

Ten Non-Bank Rule means the rule that the aggregate
number of creditors, other than Qualifying Banks under this Agreement must not at any time exceed ten (10), all in accordance within
the meaning of the Guidelines.

 

Token means a security token known as “WISeSecurity
Token” or “WCN Token” as may be issued by the Borrower from time to time after the date hereof, such issuance,
and the principal terms applicable to such Tokens, substantially as set forth on the Term Sheet attached hereto in Schedule
1 (the Term Sheet).

 

Twenty Non-Bank Rule means the rule that the
aggregate number of creditors, other than Qualifying Banks, of a Swiss person or entity (Inländer), under all outstanding
written debt instruments relevant for classification as a cash debenture (Kassenobligation), such as loans, notes, facilities
and/or private placements must not at any time exceed twenty (20), all in accordance within the meaning of the Guidelines.

 

    Page 11  of 38

    

    

 

USD means United States dollars, the lawful
currency of the United States of America.

 

Utilization Request means the notice substantially
in the form set out in Schedule 4 (Form of Utilization Request).

 

		1.2.	Interpretation

 

		(a)	Unless a contrary indication appears, any reference in this Agreement to:

 

		(i)	Borrower, Lender or any Party shall be construed so as to include its successors in title, permitted assigns,
and permitted transferees to, or of, its rights and/or obligations under the Loan Documents;

 

		(ii)	references to any agreement or other document are references to such agreement or document as amended, restated, novated, supplemented,
extended or replaced, from time to time, in accordance with its terms;

 

		(iii)	references to any provisions of law, act or regulation or to any act, law or regulation is a reference to that provision of
law, act or regulation or law, act or regulation as amended, supplemented or re-enacted from time to time;

 

		(iv)	references to Clauses and Schedules are references to clauses of and schedules to this Agreement;

 

		(v)	words importing the plural shall include the singular and vice-versa; and

 

		(vi)	“including” means “including without limitation”, not limiting the term(s) to which the word relates
to the example(s) thereafter mentioned.

 

		2.	The Facility

 

Subject to the terms of this Agreement, Lender will
make available to Borrower a USD term loan facility in an amount equal to the Facility Amount.

 

		3.	Purpose

 

		(a)	Borrower shall apply all amounts borrowed by it under the Facility towards its general working capital needs or for general
business development purposes.

 

		(b)	Lender is not bound to monitor or verify the application of any amount borrowed pursuant to this Agreement.

 

		4.	Documents to be delivered on the Date of this Agreement

 

On the date of this Agreement, Borrower shall deliver
to Lender all of the documents and other evidence listed in Schedule 2 (Documents to be delivered on the Date of this Agreement)
in form and substance satisfactory to Lender.

 

    Page 12  of 38

    

    

 

		5.	Conditions of Utilization

 

Notwithstanding any other terms of this Agreement,
the utilization and funding of the Loan by Lender is subject to the satisfaction of all the following conditions as of the Funding
Date of the Loan:

 

		(a)	Lender has received the Utilization Request in accordance with Clause 6 (Utilization Request);

 

		(b)	the Funding Conditions are satisfied, in form and substance satisfactory to Lender. In connection with satisfaction of the
Funding Conditions, all papers and other documents relating to the transactions contemplated by the Loan Documents (including the
granting of Liens), are in form and substance satisfactory to Lender, and where appropriate, original signatures or copies certified
by proper authorities, corporate officials and other Persons have been delivered to Lender;

 

		(c)	Borrower’s representations and warranties in this Agreement and any other Loan Document are in all respects true as of
the Funding Date of the Loan, unless the applicable representation or warranty is made as of a specific date, in which case the
representation shall have been true and correct in all material respects as of that date;

 

		(d)	no Default or Event of Default under this Agreement or any Loan Document exists;

 

		(e)	no Material Adverse Change has occurred since the earlier of (i) the date of the most recent financial statement of Borrower
provided to Lender and (ii) the date on which this Agreement is signed;

 

		(f)	the consummation of the transactions contemplated by the Loan Documents and the funding of the Loan (i) is not prohibited by,
and do not violate any Laws applicable to Borrower, (ii) is not enjoined (temporarily or permanently) under, or prohibited by or
contrary to, any injunction, order, decree, ruling or other Governmental Order, and (iii) there is no action, suit, proceeding
or investigation pending against Borrower that draws into question the validity, legality or enforceability of this Agreement or
the other Loan Documents or the consummation of the transactions contemplated hereby or thereby;

 

		(g)	each of the covenants, agreements and obligations of the Loan Parties (or any them) under the Loan Documents to be performed
or satisfied by them (or it) have been performed or satisfied by them (or it) in all material respects;

 

    Page 13  of 38

    

    

 

		(h)	Borrower has paid to Lender, in immediately available funds, all Expenses and fees due and payable under the Loan Documents;
and

 

		(i)	the Loan Parties have obtained all consents and made all public filings required to be obtained from, or filed with all Governmental
Authorities and other Persons in connection with the transactions contemplated by the Loan Documents and all applicable waiting
periods have expired.

 

		6.	Utilization Request

 

		6.1.	Delivery of the Utilization Request

 

Borrower may utilize the Facility by delivery to Lender
of a duly completed Utilization Request not later than 10 a.m. CET two (2) Business Days before the proposed Funding Date, all
in accordance with the terms and conditions of this Agreement.

 

		6.2.	Completion of the Utilization Request

 

		(a)	The Utilization Request is irrevocable and will not be regarded as having been duly completed unless:

 

		(i)	the proposed Funding Date is a Business Day; and

 

		(ii)	the currency and amount of the Utilization comply with Clause 6.3 (Currency and amount).

 

		(b)	Only one Utilization Request may be filed.

 

		6.3.	Currency and amount

 

		(a)	The currency specified in the Utilization Request must be USD.

 

		(b)	The amount of the proposed Loan must be an amount which is not more than the Facility Amount.

 

		7.	Final Maturity

 

Subject to the terms of this agreement, the final
maturity date of the Facility shall be the date falling twelve (12) months from the date of this Agreement (the Termination Date).

 

		8.	Repayment

 

		8.1.	Repayment and Prepayment of Loan

 

		(a)	Notwithstanding anything to the contrary in this Agreement, the Loan shall become due and payable and Borrower shall repay
the Loan together with accrued and unpaid interest thereon including, without limitations, any PIK Interest and all other amounts
due by it under this Agreement in full on the earlier of:

 

		(i)	the Termination Date; or

 

		(ii)	the occurrence of an Event of Default in accordance with and as set out in Clause 13 (Defaults).

 

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		8.2.	Reborrowing

 

Borrower may not reborrow the Facility (or –
for the avoidance of doubt – any part of it) which is repaid or prepaid.

 

		8.3.	Illegality

 

If, in any applicable jurisdiction, it becomes unlawful
for Lender to perform any of its obligations as contemplated by this Agreement to fund or maintain its participation in any Loan:

 

		(a)	Lender shall promptly notify Borrower upon becoming aware of that event;

 

		(b)	the Facility will be immediately cancelled and reduced; and

 

		(c)	Borrower shall repay the outstanding Loan on the date specified by Lender in the notice delivered to Borrower (being no earlier
than the last day of any applicable grace period permitted by law).

 

		8.4.	Voluntary Prepayment of Loan

 

Borrower may, if it gives Lender not less than ten
(10) Business Days’ prior notice, prepay the whole or any part of the Loan.

 

		8.5.	Restrictions

 

		(a)	Any notice of prepayment given by any Party under this Clause 8 (Repayment ) shall be irrevocable and, unless a contrary
indication appears in this Agreement, shall specify the date or dates upon which the relevant prepayment is to be made and the
amount of that prepayment.

 

		(b)	Any prepayment under this Agreement shall be made together with accrued interest on the amount prepaid (other than any interest
requested by the Borrower to be treated as PIK Interest in accordance with the terms of this Agreement), without premium or penalty.

 

		(c)	Borrower shall not repay or prepay all or any part of the Loan except in the manner expressly provided for in this Agreement.

 

		8.6.	Option Right

 

		(a)	The Loan as well as any payments of interest on the Loan and fees may be paid in either cash or, at Lender’s sole option,
in Tokens, in case of Tokens applying the Conversion Price. The maximum number of Tokens the Borrower shall be required to issue
and deliver upon exercise by the Lender of its option under this Clause 8.6(a) shall be 625,000. If Lender elects to have the Loan
and/or interest accrued under the Loan for any particular month and/or Expenses or fees paid in Tokens, the Lender shall give notice
to the Borrower at least five (5) Business Days prior to the due date of the relevant payment. For the avoidance of doubt, the
Lender may exercise the option provided in this Clause 8.6 at its full discretion in respect of all or any part of the amounts
outstanding under and/or in connection with this Agreement and the Lender may exercise such option repeatedly until any and all
amounts owed by the Borrower under and/or in connection with this Agreement have been fully discharged by the Borrower in accordance
with the terms of this Agreement.

 

    Page 15  of 38

    

    

 

		(b)	In case the Lender elects to receive Tokens, the following shall apply:

 

		(i)	the Borrower shall issue the relevant number of Tokens within five (5) Business Days after submission of such notice by the
Lender to the Borrower; the Tokens shall be credited to the “wallet” as designated by the Lender in such notice, provided,
however, that Borrower shall in no event be required to issue to Lender Tokens on any date prior to the initial issuance of any
Tokens to Purchasers, all as further set forth in the Term Sheet;

 

		(ii)	the Borrower represents as of the date of such issuance of Tokens to the Borrower that the Tokens have been validly issued,
free and clear of any encumbrance (save as described in the relevant “white paper”) and meet any of the descriptions
based on which the Tokens had been offered to Purchasers as

 

		(iii)	further set forth in the Term Sheet;

 

		(iv)	the Borrower represents as of any date on which Tokens are issued that the Tokens and their issuance by the Borrower comply
with all applicable laws and regulations.

 

		9.	Interest and Fees

 

		9.1.	Interest Rates

 

The aggregate outstanding amount of the Loan will
bear interest at a rate of [***] per year (the Interest Rate).

 

		9.2.	Interest Payment Dates

 

All interest shall be due and payable on the first
day of each month (each an Interest Payment Date), pro rata, in arrears.

 

		9.3.	Payment in Kind Interest

 

		(a)	At Borrower’s request, up to USD 80,000 in the aggregate of accrued interest may be “paid in kind” by capitalizing
such interest (the PIK Interest) and adding it to (and thereby increasing) the aggregate outstanding principal balance of
the Loan, provided that

 

    Page 16  of 38

    

    

 

		(i)	a request for an interest payment to be made as PIK Interest will be delivered by the Borrower to the Lender ten (10) Business
Days prior to the date such interest payment would become due; and

 

		(ii)	the Lender does not exercise its option rights pursuant to Clause 8.6 (Option Right) with regard to the respective interest
payment.

 

		(b)	PIK Interest shall be treated as principal and shall itself accrue interest from and after the date it was due. All PIK Interest
shall be due and payable on the Termination Date.

 

		9.4.	Default Interest

 

The aggregate outstanding amount of the Loan will
bear interest from and after the occurrence and during the continuation of an Event of Default, without constituting a waiver of
any Event of Default, at the rate of 3.0% per annum above the otherwise applicable rate.

 

		9.5.	Computation

 

All interest chargeable under the Loan Documents will
be computed on the basis of a 360 day year for the actual number of days elapsed.

 

		9.6.	Minimum Interest Rate

 

If a Tax Deduction is required by law in respect of
any interest payable by Borrower and should it be unlawful for Borrower to comply with paragraph (a) of Clause 15.1 (Tax Gross-Up)
for any reason, where this would otherwise be required by the terms of paragraph (a) of Clause 15.1 (Tax Gross-Up), then
(i) the applicable interest rate in relation to that payment shall be the rate which would have applied to that payment as provided
for by Clause 9.1 (Interest Rates) divided by one minus the rate at which the relevant Tax Deduction is required to be made
under Swiss domestic tax law and/or applicable double taxation treaties (where the rate at which the relevant Tax Deduction is
required to be made is for this purpose expressed as a fraction of one); and (ii) Borrower shall (A) pay the relevant interest
at the adjusted rate in accordance with paragraph (i) above and (B) make the Tax Deduction on the interest so recalculated, and
all references to an interest rate under this Agreement shall be construed accordingly. To the extent that an interest payable
by Borrower becomes subject to Swiss Withholding Tax, the Loan Parties shall promptly cooperate in completing any procedural formalities
(including submitting forms and documents required by the appropriate Tax authority) to the extent possible and necessary for Borrower
to obtain authorization to make interest payments without being subject to Swiss Withholding Tax and/or for Lender to get a partial
or full refund of Swiss Withholding Tax.

 

    Page 17  of 38

    

    

 

		9.7.	Intent to Limit Charges to Maximum Lawful Rate

 

In no event shall the interest rates payable under
the Loan Documents, plus any other amounts paid in connection herewith, exceed the highest rate permissible under any law that
a court of competent jurisdiction, in a final determination, deems applicable. Borrower and Lender, in executing and delivering
the Loan Documents, intend to agree upon the rate or rates of interest and manner of payment stated within the Loan Documents.
However, if the rate or rates of interest or manner of payment exceeds the maximum allowable under applicable law, then, ipso facto
as of the date of this Agreement, Borrower is and will be liable only for the payment of the maximum as allowed by law, and payments
received from Borrower in excess of the legal maximum, whenever received, shall be applied to reduce the principal balance of the
Obligations to the extent of the excess.

 

		9.8.	Success Fee

 

Borrower shall pay Lender a success fee of USD 160,000
(Success Fee) which will be fully earned and non-refundable on the Funding Date, but not payable until the sooner of (i)
termination of this Agreement, (ii) the Termination Date, (iii) payment in full of all Obligations; and (iv) the occurrence of
an Event of Default that is not cured or remedied within any cure or grace period. If Borrower voluntarily prepays the Loan prior
to the Termination Date, the Success Fee will be reduced on a pro rata basis. If Borrower prepays only part of the Loan prior to
the Termination Date, the Success Fee shall be reduced on a pro rata basis in an amount which is proportional to the amount prepaid.

 

		10.	Representations and Warranties

 

Borrower makes the representations and warranties
set out in this Clause 10 (Representations and Warranties) to Lender on and as of the date of this Agreement, the date of
any Utilization Request, as of the respective Funding Date and as of any Interest Payment Date.

 

		10.1.	Organization

 

		(a)	Borrower is a stock corporation (Aktiengesellschaft) duly formed and existing under the laws of Switzerland, and the
execution, delivery and performance of the Loan Documents to which it is a party, including this Agreement, are within its organizational
powers, have been duly authorized, are not in contravention of applicable law or its articles of association and do not require
the consent or approval of any third party, including any governmental body, agency or authority.

 

		(b)	Borrower is , to the extent required under applicable law, duly licensed or qualified to do business in all jurisdictions in
which Borrower has property or business operations, or the failure to be so licensed or qualified will not materially and adversely
affect Borrower or its property.

 

    Page 18  of 38

    

    

 

		10.2.	Financial Statements

 

Borrower’s balance sheets, the statements of
profit and loss and surplus and the cash flow statements furnished to Lender from time-to-time will be prepared in accordance with
GAAP and will fairly, in accordance with and subject to any limitations under GAAP, present Borrower’s financial condition
as of the relevant dates and the results of its operations for the applicable time periods.

 

		10.3.	Absence of Conflicting Obligations

 

The making and execution of the Loan Documents and
compliance with their terms will not

 

		(a)	result in a breach of any of the terms and conditions of any material indenture, agreement or instrument to which Borrower
is a party or its assets are subject; or

 

		(b)	result in the imposition of any Lien upon any property of Borrower pursuant to, or constituting a default under, any indenture
or other agreement or instrument to which Borrower is a party or by which it is bound, except as explicitly provided for in the
Loan Documents.

 

		10.4.	Taxes

 

Borrower has no outstanding unpaid Tax liabilities
(except for Taxes which are currently accruing from its current operations and ownership of property, and which are not delinquent),
and no Tax deficiencies have been proposed or assessed against Borrower. There have been no audits of Borrower’s federal
income tax returns, which have resulted in or are likely to result in the assessment of any material Tax liability against Borrower
that has not been paid.

 

		10.5.	Non-Bank Rules

 

Borrower is and will remain in compliance with the
Non-Bank Rules during the term of this Agreement. Lender confirms as of the date of this Agreement that it is considered as one
(1) creditor only for the purposes of the Non-Bank Rules. There is no breach of this representation if the violation of the Non-Bank
Rules results from (i) an incorrect confirmation given by a Lender under this Clause with respect to its status or (ii) from a
Lender having violated its duties under paragraph (c) of Clause 16.3 (Assignments and Participations). For the purposes
of its compliance with the Twenty Non-Bank Rule under this Clause 10.5 (Non- Bank Rules), the number of creditors under
this Agreement which are not Qualifying Banks shall be deemed to be five (5), irrespective of whether or not there are, at any
time, any such creditors.

 

		10.6.	Absence of Material Litigation

 

Borrower is not a party to any litigation or administrative
proceeding, nor so far as is known by Borrower is any litigation or administrative proceeding threatened against it, which in either
case, is likely to be adversely determined and, if so determined, would cause any Material Adverse Change, except as disclosed
in writing to Lender.

 

    Page 19  of 38

    

    

 

		10.7.	Full Disclosure

 

The written materials delivered by Borrower to Lender
in connection with the transactions contemplated by this Agreement do not contain any statement that is false or misleading as
to any material fact and do not omit to state any material fact necessary in order to make the statements therein not false or
misleading. There are no additional facts that Borrower is aware of that have not been disclosed in writing to Lender that materially
affect adversely or, so far as Borrower can reasonably foresee, will materially affect adversely Borrower’s financial condition
or business prospects.

 

		10.8.	Compliance with Applicable Laws

 

Borrower is in compliance in all material respect
with all applicable Laws. Borrower has all licenses, permits, orders and approvals that are required under any Governmental Authority
in connection with Borrower’s business and properties (Permits), it being understood that any future issuance of Tokens
may require further Permits for such issuance to become effective. No notice of any violation has been received with respect of
any Permits and no proceeding is pending or, to the best of Borrower’s knowledge, threatened to terminate, revoke or limit
any Permits that would cause a Material Adverse Change.

 

		10.9.	Subsidiaries

 

The Borrower does not hold shares or quotas in any
subsidiaries other than WISeCoin R&D Lab. France SAS, a French company with its principal place of business at Arteparc Bachasson,
Rue de la Carrière de Bachasson, 13590 Meyreuille, France (WISeCoin R&D).

 

		11.	Negative Covenants

 

While any of the Obligations remain unpaid, Borrower
must not agree (and shall procure that each of its Controlled subsidiaries will not agree) to and must not (and shall procure that
each of its Controlled subsidiaries will not) (without Lender’s prior written consent):

 

		11.1.	Restriction on Liens

 

Except for Permitted Liens, create or permit to be
created or allow to exist any Lien upon on any property or assets now owned or acquired in the future by Borrower or its Controlled
subsidiaries.

 

		11.2.	Reserved Restriction on Indebtedness

 

Create, incur, assume, or have outstanding any indebtedness
for borrowed money except:

 

		(a)	The Obligations;

 

		(b)	Indebtedness incurred in the ordinary course of Borrower’s business;

 

    Page 20  of 38

    

    

 

		(c)	Indebtedness to repay the Loan in full;

 

		(d)	Indebtedness in an amount up to CHF 150,000; and

 

		(e)	Indebtedness for Permitted Liens.

 

		11.3.	Mergers; Consolidations; Organizational Changes

 

Merge with or into or consolidate with or into any
other corporation or entity; or change the country of its incorporation, formation or organization, except a merger or consolidation
with an Affiliate.

 

		11.4.	Contingent and Third Party Liabilities

 

Guarantee or provide a surety (Bürgschaft)
or become otherwise contingently liable for any obligations of others, or assume or become obligated for any obligations of others,
except (i) in the ordinary course of business or (ii) up to an aggregate amount of CHF 100,000.

 

		11.5.	Changes

 

Make any substantial change in the nature of its business
from that engaged in or already contemplated and disclosed to Lender on the date of this Agreement, engage in any other businesses
other than those engaged in or already contemplated and disclosed to Lender on the date of this Agreement,

 

take any action (including as a result of any change
to the Term Sheet) that would be materially detrimental to Lender’s security interest securing the Obligations, or cease
a material portion of its operations.

 

		11.6.	Restricted Payments and Shareholder Loans

 

		(a)	Make any Restricted Payments.

 

		(b)	Grant a loan to any of its shareholders.

 

		11.7.	At Arm’s Length Transactions

 

Enter into, or permit or suffer to exist, any transaction
or arrangement with any shareholder, employee, director, officer, or member of management, except on terms that are reasonably
comparable to what Borrower could obtain in arm’s-length transactions, with persons who have no relationship with Borrower.

 

    Page 21  of 38

    

    

 

		11.8.	Certain Debt Payments

 

Make any payments with respect to any of its indebtedness
in violation of any subordination or similar agreement executed in favor of Lender.

 

		11.9.	Certain Agreements

 

Enter into any agreement containing any provisions
which would be violated or breached by any Loan Party’s performance of its obligations under any Loan Document.

 

		11.10.	Negative Pledge

 

Grant or allow any Liens, or allow any of its Controlled
subsidiaries to grant or allow any Liens on any of their assets or properties other than Permitted Liens.

 

		11.11.	Asset Transfers

 

Other than sales of assets in the ordinary course
of business (including, for the avoidance of doubt, the issuance of Tokens and the conversion of the Tokens in Participation Certificates,
as contemplated under the Term Sheet) or the sale of

 

obsolete assets, transfer, sell, assign, or convey,
or allow any of its Controlled subsidiaries to transfer, sell, assign or convey, any assets or properties, except for fixed assets
in the aggregate amount of CHF 200,000 per fiscal year.

 

		11.12.	Subsidiaries

 

Hold or acquire shares and/or quotas in another Person,
other than WISeCoin R&D.

 

		12.	Affirmative Covenants

 

While any of the Obligations remain unpaid, Borrower
must at all times:

 

		12.1.	Existence; Payment of Taxes and Other Liabilities

 

Maintain (and cause each of its Controlled subsidiaries
to maintain) its corporate existence and pay all taxes, assessments and other governmental charges against it or its property,
and all of its other liabilities, before they become delinquent and before penalties accrue on these debts and obligations, except
to the extent and so long as they are being contested in good faith by appropriate proceedings in a manner as not to cause any
material adverse effect upon its financial condition, with adequate reserves provided for such payments, and, upon demand by Lender,
posting with Lender of adequate security to protect Lender.

 

		12.2.	Transaction Security

 

		(a)	Provide or procure for the providing of first ranking security interests on all material assets and personal property of every
kind and nature of Borrower (including the security agreements listed in Schedule 2), whether existing on the date of this Agreement
or thereafter organized or acquired, in each case securing the Obligations, as required by Lender.

 

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		(b)	Upon first request of the Lender, the Borrower will promptly grant security over its IP rights. The Lender may request such
security, (a) (to the extent legally permissible) if an Even of Default has occurred; and/or (b) if the Borrower holds IP rights
which have been registered in a public and/or official register. The Borrower shall inform the Lender of such a registration within
5 (five) Business Days of the filing of the IP right to the register.

 

		(c)	Upon first request of the Lender, the Borrower shall promptly grant security over its shares in WISeCoin R&D, procure that
WISeCoin R&D provides a guarantee for the Obligations and grants security over its material assets for the benefit of the Lender.
The Lender may request this additional security, (a) (to the extent legally permissible) if an Even of Default has occurred; and/or
(b) if the value of WISeCoin R&D`s assets is more than 10% of Borrower`s assets (on a consolidated basis) and/or (c) the EBITDA
of WISeCoin R&D is more than 10% of Borrower`s EBITDA (on a consolidated basis). The Borrower shall inform the Lender promptly
upon the occurrence of one of the above ((a), (b) or (c)) events.

 

		(d)	Upon first request of the Lender, the Borrower will procure that WISeCoin R&D promptly grants security over its IP rights.
The Lender may request such security, (a) (to the extent legally permissible) if an Even of Default has occurred; and/or (b) if
WISeCoin R&D holds IP rights which have been registered in a public and/or official register. The Borrower shall inform the
Lender of such a registration within 5 (five) Business Days of the filing of the IP right to the register.

 

		12.3.	Accounting System

 

Maintain (and cause its Controlled subsidiaries to
maintain) a standard and modern system of accounting that enables Borrower to produce financial statements in accordance with GAAP.

 

		12.4.	Accounting Records; Reports

 

Borrower will provide to Lender the following in form
satisfactory to Lender in its discretion:

 

		(a)	Quarterly Reports

 

Within 60 calendar days after the end of each quarter,
a standalone balance sheet for Borrower as of the close of the calendar quarter, a standalone statement of cash flow of Borrower
as of the close of the calendar quarter, standalone statements of income and surplus for the calendar month for Borrower, and a
standalone summary schedule of cash positions and accounts payable and accounts receivable aging of Borrower.

 

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		(b)	Annual Reports

 

As soon as available and in any event within 150 calendar
days after the close of Borrower’s fiscal year, a copy of Borrower’s standalone and consolidating financial statements,
audited by Borrower`s statutory auditor.

 

		(c)	Additional Information

 

Borrower promptly will provide to Lender additional
information concerning Borrower, the Collateral, the operation of Borrower and Borrower’s financial condition, as Lender
may reasonably request from Borrower. Lender shall in particular have the right to conduct periodic due diligence to assess the
on-going collateral value of the Borrower’s accounts receivable and other Collateral. For as long as no Default or Event
of Default has occurred, the Lender (i) will not conduct more than three such examinations per year and (ii) will until the Termination
Date not incur costs and expenses of more than USD 20,000.

 

		(d)	Electronic Reporting

 

At Lender’s option, information and reports required
to be submitted by Borrower, to the extent practicable, will be transmitted by electronic mail and will be in a record layout format
designated by Lender from time-to-time. All information sent by electronic mail will be deemed an authenticated record sent by
the individual and entity whose electronic mail address is provided thereon as “sender” or initiating party.

 

		(e)	Accounting Standards

 

All financial statements to be provided to Lender under
this Agreement must be prepared according to GAAP.

 

		12.5.	Litigation

 

Promptly furnish Lender, in writing, the details of
all material litigation, legal or administrative proceedings, or other actions of any nature materially adversely affecting Borrower
or any Controlled subsidiary, including, without limitation, any notices of violation, citation, commencement of administrative
proceeding or similar notice, commenced after the date hereof, in which more than USD 200,000 is at issue.

 

		12.6.	Compliance with Applicable Laws

 

Comply in all material respects with all applicable
material Laws and not permit the proceeds of any Loan or any other financial accommodation extended by Lender to be used in any
way that violates any foreign asset control regulations of or other similar laws.

 

		12.7.	Further Assurances

 

At Lender’s reasonable request, promptly execute
or cause to be executed and delivered to Lender all documents, instruments and agreements deemed necessary or appropriate to facilitate
the collection of any of the Collateral, or otherwise to give effect to or carry out the terms, conditions or intent of this Agreement
or any other Loan Document.

 

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		12.8.	Notice

 

Promptly provide Lender written notice of the occurrence
of any of the following events, including reasonable particularity as to the relevant facts and circumstances:

 

		(a)	Any Material Adverse Change.

 

		(b)	The occurrence of an Event of Default.

 

		12.9.	Use of Loan

 

Use the proceeds of the Loan only as provided for
in paragraph (a) of Clause 3 (Purpose).

 

		12.10.	Non-Bank Rules

 

Borrower will remain in compliance with the Non-Bank
Rules during the term of this Agreement. Lender confirms as of the date of this Agreement that it is considered as one (1) creditor
only for the purposes of the Non-Bank Rules. There is no breach of this covenant if the violation of the Non-Bank Rules results
from (i) an incorrect confirmation given by a Lender under this Clause with respect to its status or (ii) from a Lender having
violated its duties under paragraph (c) of Clause 16.3 (Assignments and Participations). For the purposes of its compliance
with the Twenty Non-Bank Rule under this Clause 12.10 (Non-

 

Bank Rules), the number of creditors under
this Agreement which are not Qualifying Banks shall be deemed to be five (5), irrespective of whether or not there are, at any
time, any such creditors.

 

		12.11.	Broker’s Fees

 

Pay all broker’s, finder’s or similar
fees payable to any persons or entities in connection with this Agreement and to defend and hold Lender harmless against any and
all such fees.

 

		13.	Defaults

 

If any one or more of the following events (each an
Event of Default) occurs (subject to any stated cure periods), then at Lender’s option as communicated to Borrower,
the Loan together with accrued and unpaid interest thereon and all other amounts due by it under this Agreement in full will immediately
become due and payable, without further notice of any kind, notwithstanding anything contained to the contrary in this Agreement
or in any other agreement, note or document:

 

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		13.1.	Default in Payment of Obligations

Borrower fails to pay:

 

		(a)	interest within three (3) Business Days or, if the failure to pay is caused by administrative or technical error, five (5)
Business Days of the Interest Payment Date; and

 

		(b)	Expenses within three (3) Business Days or, if the failure to pay is caused by administrative or technical error, five (5)
Business Days of the date due (Expenses will be due ten (10) Business Days after Lender provides an invoice to Borrower or a written
request for payment of the amount due and documents evidencing the Expenses).

 

		13.2.	Default under Loan Documents

 

		(a)	A default in the performance or observance of any term, condition or covenant in this Agreement made or given by Borrower to
Lender required to be observed or performed by Borrower that is not cured within fifteen (15) Business Days of the earlier of (i)
Lender giving notice to Borrower or (ii) Borrower becoming aware of the non-performance or non-observance; provided that the default
is a curable default.

 

		(b)	A default in the performance or observance of any term, condition, or covenant in any Loan Document required to be observed
or performed by Borrower that is not cured after any applicable cure period provided under that Loan Document, or if no cure period
exists in the applicable Loan Document, then within fifteen (15) Business Days of the earlier of (i) Lender giving notice to Borrower
or (ii) Borrower becoming aware of the non-performance or non-observance.

 

		13.3.	Representations or Statements False

 

Any representation or warranty made by Borrower in
a Loan Document or any other document delivered in accordance with the Loan Agreements, or any financial statement delivered to
Lender, proves to have been false as of the time when made or given.

 

		13.4.	Default on Other Debt

 

Borrower fails to pay all or any financial indebtedness
in excess of USD 200,000 as and when due and payable, whether at maturity, by acceleration or otherwise, and the default is not
cured within the period of grace, if any, specified in the documents(s) evidencing the indebtedness.

 

		13.5.	Judgments

 

A judgment (to the extent not covered by insurance)
is entered against Borrower which exceeds in the aggregate USD 200,000 and remains outstanding and unsatisfied, unbonded or unstayed
for until the judgment creditor is permitted to commence enforcement actions under applicable law.

 

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		13.6.	Bankruptcy; Insolvency

 

An Insolvency Event occurs with respect to a Loan
Party.

 

		13.7.	Material Adverse Change

 

The occurrence of a Material Adverse Change.

 

		13.8.	Levy or Attachment

 

Any Loan Party’s assets having a value in excess
of USD 200,000 in the aggregate are attached, seized, subjected to a writ or distress warrant, or are levied upon, or come into
the possession of any judicial officer.

 

		13.9.	Challenge to Loan Documents

 

		(a)	Any challenge by or on behalf of any Loan Party to the validity of any Loan Document or the applicability or enforceability
of any Loan Document strictly in accordance with the Loan Document’s terms or which seeks to void, avoid, limit, or otherwise
adversely affect any Lien created by or in any Loan Document or any payment made pursuant thereto.

 

		(b)	Any final determination by any court or any other judicial or government authority that any Loan Document is not enforceable
strictly in accordance with the Loan Document’s terms or which voids, avoids, limits, or otherwise adversely affects any
Lien created by any Loan Document or any material payment made pursuant thereto.

 

		14.	Remedies on Occurrence of an Event of Default

 

		14.1.	Right and Remedies

 

Upon the occurrence and during the continuation of
an Event of Default after any applicable cure period or grace period, Lender will have all rights and remedies provided by law,
under this Agreement or under any of the other Loan Documents. All rights and remedies are cumulative.

 

		14.2.	No Waiver

 

No delay on the part of Lender in exercising any right,
power or privilege under this Agreement or any Loan Document will operate as a waiver, nor will any single or partial exercise
of any right, power or privilege under this Agreement or otherwise, preclude other or further exercise of the right, power or privilege
or the exercise of any other right, power or privilege.

 

		15.	Tax Gross-Up and Indemnities

 

    Page 27  of 38

    

    

 

		15.1.	Tax Gross-Up

 

		(a)	All payments by the Loan Parties under the Loan Documents must be made free and clear of and without deduction for any and
all present or future taxes, levies, imposts, deductions, charges or withholdings, and all liabilities with respect thereto, excluding
any Excluded Taxes.

 

		(b)	If any Loan Party is required by law to deduct any non-excluded taxes from any sum payable by such Loan Party (i) the amount
payable will be increased as may be necessary so that after the Loan Party and Lender have made all required deductions (including
deductions applicable to additional sums payable under this paragraph (b)) Lender receives an amount equal to the sum it would
have received had no such deductions been made, and (ii) the Loan Party will pay the full amount deducted to the relevant taxation
authority or other authority in accordance with Applicable Law. Excluding Lender’s obligations for Excluded Taxes, Loan Parties
will indemnify Lender for and hold it harmless against the full amount of taxes of any kind imposed by any jurisdiction, imposed
on or paid by Lender and any liability (including penalties, additions to tax, interest and expenses) arising therefrom or with
respect thereto. This indemnification shall be made within ten (10) Business Days from the date Lender makes written demand therefor.

 

		(c)	No additional amounts under this paragraph will be due with respect to a specific Lender if the violation of the Non-Bank Rules
results from (i) an incorrect confirmation given by such Lender under Clause 10.5 (Non-Bank Rules) or Clause 12.10 (Non-Bank
Rules) with respect to its status as one (1) creditor only for the purposes of the Non-Bank Rules or (ii) from this Lender
having violated its duties under paragraph (c) of Clause 16.3 (Assignments and Participations).

 

		15.2.	Tax Indemnity

 

Borrower will (i) pay all present or future stamp,
documentary, excise, property, transfer and other similar taxes (together in each case with interest and penalties, if any) payable
or determined to be payable in connection with the execution and delivery of this Agreement, any payment made hereunder or any
Loan Document and (ii) hold Lender harmless from and against any and all liabilities with respect to or resulting from any delay
in paying, or omission to pay, taxes any Loan Party is obligated to pay under this Agreement or otherwise.

 

		16.	General Terms

 

		16.1.	Expenses, Fees and Costs; Indemnification; Confidentiality

 

		(a)	Borrower shall pay all Expenses.

 

		(b)	Borrower agrees to indemnify, defend and hold Lender harmless from and against any and all Claims that may be imposed on, incurred
by or asserted against Lender in connection with this Agreement or any Loan Document or transaction contemplated hereby or thereby,
except for Claims arising from Lender’s willful misconduct or gross negligence.

 

    Page 28  of 38

    

    

 

		(c)	Borrower’s obligation to pay the Expenses and all of the reimbursement and indemnification obligations provided for in
this Clause 16.1 (Expenses, Fees and Costs; Indemnification; Confidentiality) form, for the avoidance of doubt, part of
the Obligations and shall be secured by all Collateral and Guaranties, as the case may be.

 

		16.2.	Currency Conversions

 

The Loan and payments due to Lender under any Loan
Document shall be made in USD, unless otherwise provided in the relevant Loan Document. Any other references in any Loan Document
to a local currency will be converted to the USD equivalent using the exchange rates published in the U.S. national edition of
the Wall Street Journal for the last Business Day of the month prior to the month in which the currency conversion is to be made.

 

		16.3.	Assignments and Participations

 

		(a)	Borrower may not assign and/or transfer any of its rights and/or obligations under the Loan Documents without the prior written
consent of Lender.

 

		(b)	Subject to paragraph (c) of this Clause 16.3 (Assignments and Participations) , Lender may not assign and/or transfer
any of its rights and/or obligations under the Loan Documents without the prior written consent of Borrower, which shall not be
unreasonably withheld

 

(whereby any non-compliance with the Non-Bank Rules
and non-acceptability of any Non-Qualifying Bank shall constitute, without prejudice to any other reasons, legitimate reasons to
withhold consent); provided that Borrower’s confirmation by consent and acceptance will not be required if an Event of Default
has occurred and is continuing.

 

		(c)	Sub-participations may be made by Lender to Non-Qualifying Banks provided that Borrower has confirmed by consent that after
completion of such sub-participation to a permissible Non-Qualifying Bank, Borrower is still and will remain in compliance with
the Non-Bank Rules and that such Non-Qualifying Bank is acceptable to Borrower, which confirmation by consent and acceptance will
not be unreasonably withheld or delayed; provided that Borrower’s confirmation by consent and acceptance will not be required
if an Event of Default has occurred and is continuing. In connection with the sale of a participation or an assignment of any interest
in the Obligations, Lender will be free to provide the participant or assignee, on a confidential basis, any financial or other
information in its possession or control related to Borrower and/or any Controlled subsidiary.

 

		16.4.	Right to Inspect and Audit

 

Lender, through any of its officers, employees or
agents and at Borrower’s sole cost and expense, will have the right at any time or times during business hours, or during
the usual business hours of any third party having control over any of Borrower’s Business Records (to the extent that Borrower
has such right), to inspect and audit the Business Records in order to verify compliance with Borrower’s obligations under
the Loan Documents, subject to applicable Law, but for as long as no Default or Event of Default has occurred, not more than three
times in a year. Borrower will reimburse Lender for all reasonable and documented out of pocket costs and expenses incurred by
Lender for the referenced inspections, examinations and audits, but for costs and/or expenses incurred while no Default or Event
of Default is continuing and before the Termination Date, up to an amount of USD 20,000.

 

    Page 29  of 38

    

    

 

		16.5.	Exculpation and Indemnity

 

		(a)	Lender shall not be liable for any loss or damage suffered by Borrower by reason of Lender taking any action permitted by this
Agreement, except in case of wilful misconduct (Absicht) or gross negligence (grobe Fahrlässigkeit) on the part
of Lender (or any officer, employee, agent or delegate of, or appointed by, Lender for which it is responsible pursuant to mandatory
applicable law) as determined by a court of competent jurisdiction by final and non-appealable judgement.

 

		(b)	Borrower shall fully release, discharge and indemnify Lender and any delegate and auxiliary person of Lender and keep them
fully harmless for any claims raised or brought against them in connection with this Agreement, save in respect of loss or damage
suffered as a result of the wilful misconduct (Absicht) or gross negligence (grobe Fahrlässigkeit) on the part
of Lender (or any officer, employee, agent or delegate of, or appointed by, Lender for it is responsible pursuant to mandatory
applicable law) as determined by a court of competent jurisdiction by final and non-appealable judgement.

 

		16.6.	Remedies and Waivers

 

No failure to exercise, nor any delay in exercising,
on the part of Lender, any right, or remedy under a Loan Document shall operate as a waiver of any such right or remedy or constitute
an election to affirm any of the Loan Documents. No election to affirm any Loan Document on the part of Lender shall be effective
unless it is in writing. No single or partial exercise of any right or remedy shall prevent any further or other exercise or the
exercise of any other right or remedy. The rights and remedies provided in each Loan Document are cumulative and not exclusive
of any rights or remedies provided by law.

 

		16.7.	Amendments and Waivers

 

Any amendment or waiver of this Agreement and any
other Loan Document or any provision of this Agreement or any other Loan Document (including this Clause 16.7 (Amendments and
Waivers)) shall only be binding if agreed in writing by the Parties.

 

		16.8.	Counterparts

 

This Agreement may be signed in any number of counterparts
with the same effect as if all signatures were upon the same instrument.

 

    Page 30  of 38

    

    

 

		16.9.	Notices

 

		(a)	All communications or notices that are required or may be given under this Agreement will be made in writing (including telecommunications)
and,

 

		(i)	if to Borrower, addressed to the address set forth at the beginning of this Agreement, with a copy to David Oser, Homburger
AG, Hardstrasse 201, CH-8005 Zurich, Switzerland, fax +41 43 222 1015, david.oser@homburger.ch, and

 

		(ii)	if to Lender, addressed to it at the address specified at the beginning of this Agreement, and a copy to Alex Nikitine, Walder
Wyss AG, Seefeldstrasse 123, CH-8008 Zurich, Switzerland, fax +41 58 658 59 59, alex.nikitine@walderwyss.com

 

and delivered by any of the following means: (i) hand
delivery

(ii) Federal Express or other recognized overnight courier service, or

(iii) facsimile transmission with request for assurance of receipt in a manner typical with respect to communications of that type,
with a paper copy of the electronic communication sent immediately thereafter by Federal Express or other recognized overnight
courier service.

 

		16.10.	Loan Agreement Controls

 

Anything contained in any other agreement referred
to in this Agreement or in any other agreement now existing between Lender and Borrower to the contrary notwithstanding, in the
event of any express conflict between the terms and provisions of such other agreement and those contained in this Agreement, the
terms of this Agreement will govern and control.

 

		16.11.	Severability

 

If any provision
of this Agreement is or becomes illegal, invalid or unenforceable in any jurisdiction, such illegality, invalidity or unenforceability
shall not affect:

 

		(a)	the legality, validity or enforceability in that jurisdiction of any other provision of this Agreement; or

 

		(b)	the legality, validity or enforceability in any other jurisdiction of that provision or of any other provision of this Agreement;
and the parties to this Agreement shall negotiate in good faith a provision to replace the relevant provision which reflects as
closely as possible the original intention and the purpose of this Agreement.

 

		16.12.	Payment Mechanics

 

		(a)	On each date on which Borrower is required to make a payment under a Loan Document, Borrower shall make the same available
to Lender for value on the due date at the time and in such funds specified by Lender as being customary at the time for settlement
of transactions in the relevant currency in the place of payment.

 

    Page 31  of 38

    

    

 

		(b)	Any payment which is due to be made on a day that is not a Business Day shall be made (i) on the next Business Day in the same
calendar month, if there is one, or (ii) if there is not, on the immediately preceding Business Day.

 

		(c)	During any extension of the due date for payment of any principal under this Agreement interest is payable on the principal
at the rate payable on the original due date.

 

		16.13.	Set-Off

 

		(a)	All payments to be made by Borrower under the Loan Documents shall be calculated and be made without (and free and clear of
any deduction for) set-off or counterclaim and Borrower hereby waives its set-off right. For the avoidance of doubt, this waiver
of set-off shall also be valid in the bankruptcy of Borrower and Lender.

 

		(b)	Lender may set-off any matured obligation due from Borrower under the Loan Documents against any matured obligation owed by
Lender to Borrower, regardless of the place of payment, booking branch, or currency of either obligation. If the obligations are
in different currencies, Lender may convert either obligation at a market rate of exchange in its usual course of business for
the purpose of the set-off.

 

		16.14.	Patriot Act

 

Lender may be subject to the requirements of the Patriot
Act and hereby notifies Borrower that pursuant to the requirements of the Patriot Act, it may be required to obtain, verify and
record information that identifies Borrower,

 

which information includes the name and address of
Borrower and other information that will allow Lender to identify Borrower in accordance with the Patriot Act.

 

		16.15.	Confidentiality

 

Lender agrees to keep all Confidential Information
confidential and not to disclose it to anyone other than its agents, Affiliates, and counsel, as it remains non-public, save to
the extent required by law, regulation, administrative or court order.

 

		16.16.	Entire Agreement of the Parties

 

This Agreement, including all agreements referred
to or incorporated into this Agreement and the other Loan Documents when duly executed and delivered, constitute the entire agreement
between the parties relating to the subject matter of this Agreement. This Agreement supersedes all prior agreements, commitments
and understandings between the parties relating to the subject matter of this Agreement and cannot be changed or terminated orally,
and will be deemed effective as of the date noted above.

 

    Page 32  of 38

    

    

 

		16.17.	Execution of the Agreement

 

This Agreement may be executed and delivered by each
party in separate counterparts, each of which when so executed and delivered shall be deemed an original and all of which taken
together shall constitute one and the same Agreement. This Agreement and any other transaction document relating to this Agreement,
and any amendments hereto or thereto, to the extent signed and delivered by means of a facsimile machine or other electronic transmission
(e.g., email delivery in .pdf format or similar format), shall be treated in all manner and respects as an original contract and
shall be considered to have the same binding legal effects as if it were the original signed version thereof delivered in person.

 

		16.18.	Governing Law and Jurisdiction

 

		(a)	This Agreement shall in all respects be governed by and construed in accordance with the substantive laws of Switzerland (to
the exclusion of conflict of law rules).

 

		(b)	Each Party submits to the exclusive jurisdiction of the competent courts of the city of Zurich, Switzerland.

 

[Signature page follows]

 

    Page 33  of 38

    

    

 

Signatures

 

 

	ExWorks Capital Fund I L.P.	 	 	 	 
	 	 	 	 	 	 
	/s/ Andy Hall	 	 	 
	Name: 	Andy Hall	 	Name: 	 	 
	Title:	CCO	 	Title:	 	 
	 	 	 	 	 	 
	WISEeCoin AG	 	 	 	 
	 	 	 	 	 	 
	/s/ Carlos Moreira 	 	/s/ Peter Ward	 
	Name:	Carlos Moreira	 	Name:	Peter Ward	 
	Title:	CEO	 	Title:	CFO	 

 

 

Signature Page

 

Credit Agreement (USD 4m loan to W1SeCoin
AG)

 

    Page 34  of 38

    

    

 

Schedule
1: Term Sheet

 

 

 

 

 

 

 

    Page 35  of 38

    

    

 

TERMS FOR PRIVATE PLACEMENT OF SECURITY
TOKENS OF

WISECOIN LTD

 

March, 2019

 

The following is a summary of the principal
terms with respect to the proposed Security Token Offering of WISeCoin AG, a Switzerland corporation (the “Company”).
THIS SUMMARY OF TERMS DOES NOT CONSTITUTE A LEGALLY BINDING OBLIGATION. The parties intend to enter into a legally binding obligation
only pursuant to definitive agreements to be negotiated and executed by the parties.

 

Offering Terms

 

	Capitalization	The Company is a company limited by shares with its registered seat in Zug, Switzerland (registered under registration number CHE-410.898.50 with the Commercial Register of the Canton of Zug). with a share capital of CHF 100,000 divided into 10,000,000 fully paid-up registered (nominal) shares.
	 	 
	Securities to

Issue:	
        Security Tokens of the Company, known as “WISeSecurity
        Token” or “WCN Token” (the “Security Tokens”). Any Purchaser in possession of 10,000
        or more Security Tokens may convert their holding at a rate of 100 Security Tokens (WCN Tokens) for 1 Participation Certificate
        after a 12 month lock up period. Participation Certificate give holders the same rights as if they would hold the non-voting shares
        at nominal value of CHF 1.00 including the right to an equivalent share of profits made by the Company.

         

        2,500,000 Security Tokens will be created. If WISeCoin
        AG issues a dividend, WCN token holders have the right to receive dividends on a pro-rata basis of the equity capital subject to
        the annual general assembly’s decision.

         

	Aggregate

Proceeds:	CHF 23,294,880 in aggregate, although the Company may increase or decrease this amount in its sole discretion.
	 	 
	Purchasers:	“Accredited Investors” within the meaning of Regulation D under the Securities Act of 1933, as approved by the Company (the “Purchasers”).
	 	 
	Price Per Token:	The Price per Security Token will be CHF 12,42 (the “Purchase Price”).
	 	 
	Payment of Purchase Price	The Purchasers may make payment for the Security Tokens in a currency of his or her choice from a list of pre-defined currencies (ETH, BTC, CHF).
	 	 
	Minimum Investment	CHF 1,000,000 (may be waived the Company in its sole discretion).
	 	 
	Restrictions on Sale:	The Security Tokens and any converted Participation Certificate are restricted, meaning that they may only be resold under limited circumstances. Investors must be willing to hold the Security Tokens and any converted Participation Certificate indefinitely. They are being acquired for investment purposes only. Each Purchaser has had the opportunity to consult with his or her own tax advisor regarding the Security Tokens and any converted Participation Certificate.

 

    

    

    

 

	Voting Rights:	The Security Tokens do not grant any voting rights except as set forth below in Financial Information. Participation Certificates do not carry any voting rights under Swiss law.
	 	 
	Subscription

Procedure:	To purchase the Security Tokens, the Purchasers must execute the Company’s subscription agreement. The Company may accept or reject any subscription in its sole discretion.
	 	 
	Financial

Information:	Purchasers who have purchased at least 80,500 (eighty thousand and five hundred) Security Tokens will receive standard information and inspection rights.
	 	 
	KYC/AML:	Subject to the Company’s discretion, the Purchasers may be reviewed by the Company to comply with applicable Know Your Customer (“KYC”) and Anti-Money Laundering (“AML”) rules.
	 	 
	Legal Fees and Expenses:	Each party shall bear their own legal fees and expenses. 
	 	 
	Information	The Company will provide additional information upon request.

 

THE FOREGOING SUMMARY DOES NOT PURPORT
TO BE A COMPLETE SUMMARY OF THE SECURITY TOKENS. EACH PURCHASER SHOULD READ THE SUBSCRIPTION AGREEMENT AND INFORMATION REGARDING
THE SECURITY TOKENS. IN ADDITION, PURCHASERS SHOULD CONSULT THEIR TAX AND LEGAL ADVISORS AS TO THE IMPLICATIONS OF AN INVESTMENT
IN THE SECURITY TOKENS.

 

Each of the undersigned has executed this term sheet as of the
date first set forth above.

 

	 	COMPANY:

 

WISECOIN LTD

	
 

	 	 	 	 
	 	By:	 	 
	 	Name:	 	 
	 	Title:	 	 

  

INVESTOR:

 

	By:	 	 	 	 
	Name:  	 	 	 	 

 

INVESTMENT PLEDGE

 

I intend to invest _______________ in the Offering,
subject to verification of my “Accredited Investor” status within the meaning of Regulation D under the
Securities Act of 1933 and the execution of other definitive investment documents.

 

    

    

    

 

Schedule
2: Documents to be delivered on the Date of this Agreement

 

	No.	Document
	1.       	A certified excerpt of the commercial register and a copy of the articles of association of Borrower, in each case dated not more than five (5) Business Days prior to the date of this Agreement.
	2.       	A copy of a resolution of the board of directors of Borrower (i) approving the terms of, and the transactions contemplated by, the Loan Documents to which it is a party and resolving that it execute, deliver and perform the Loan Documents to which it is a party, (ii) authorizing a specified person or persons to execute the Loan Documents to which it is a party on its behalf and (ii) authorizing a specified person or persons, on its behalf, to sign and/or dispatch all documents and notices to be signed and/or dispatched by it under or in connection with the Loan Documents to which it is a party.
	3.       	A copy of a specimen of the signature of each person authorized by the resolution referred to in CP no. 2 above or otherwise in accordance with applicable law in relation to the Loan Documents and related documents.
	4.       	A copy of a certificate of two authorized signatories of Borrower certifying that each copy document relating to it specified above is correct, complete and in full force and effect and has not been amended or superseded as at a date no earlier than the date of this Agreement.
	5.       	Audited financial statements of Borrower for the financial year 2018 (and if the audited financial statements for the year 2018 are not available, the unaudited financial statements for 2018).
	6.       	Duly executed version of this Agreement.
	7.       	Duly executed Swiss law pledge agreement regarding the pledge of shares in the Borrower between WISeKey International Holding AG as pledgor and Lender as pledgee, including any deliverables identified therein.
	8.       	Duly executed Swiss law governed assignment agreement regarding the assignment of bank account claims of Borrower between Borrower as assignor and Lender as assignee, including any deliverables identified therein.
	9.       	Duly executed version of a Swiss law assignment agreement regarding the assignment of certain receivables, intra-group receivables, trade receivables and insurance claims of Borrower between Borrower as assignor and Lender as assignee, including any deliverables identified therein.
	10.   	A legal opinion of Borrower’s Swiss counsel relating to the capacity of Borrower and Security Grantor to enter into and the validity and enforceability of this Agreement and of any Swiss law governed Security Agreement listed in this Schedule 2 (Documents to be delivered on the Date of this Agreement).

 

    Page 36  of 38

    

    

 

Schedule 3: Funding Conditions

 

	CP No. Condition precedent
	Corporate Documents
	11.   	A copy of a certificate of two authorized signatories of Borrower certifying
    that subject to CP no. 12 below, each document relating to Borrower referenced in Schedule 2 (Documents to be delivered
    on the Date of this Agreement) is correct, complete and in full force and effect and has not been amended or superseded
    as at a date no earlier than the Funding Date.
	12.   	Any necessary updates or amendments to the corporate documents of Borrower referenced in the Schedule 2 (Documents
    to be delivered on the Date of this Agreement), including, but not limited to, a resolution of the board of directors
    of Borrower (i) approving the terms of, and the transactions contemplated by, the documents representing Funding Conditions
    and resolving that it execute, deliver and perform all documents representing Funding Conditions to which it is a party, (ii)
    authorizing a specified person or persons to execute the documents representing Funding Conditions to which it is a party
    on its behalf and (iii) authorizing a specified person or persons, on its behalf, to sign and/or dispatch all documents and
    notices to be signed and/or dispatched by it under or in connection with the documents representing Funding Conditions to
    which it is a party.

 

    Page 37  of 38

    

    

 

Schedule
4: Form of Utilization Request

 

To: ExWorks Capital Fund I, L.P.
as Lender, 333 West Wacker Drive, Suite 1620, Chicago, Illinois 60606, USA

 

From: WISeCoin AG as Borrower, /o
WISeKey International Holding AG, General-Guisan-Strasse 6, 6300 Zug, Switzerland

 

Place/Date: [...], [...]

 

Dear Madam, dear Sir

 

We refer to the USD 4,000,000 Term Facility
Agreement dated [...] 2019 between WISeCoin AG as Borrower and ExWorks Capital Fund I, L.P. as Lender (each as defined therein,
the Agreement).

 

		1.	This is the Utilization Request. Terms defined in the Agreement have the same meaning in this Utilization
Request unless given a different meaning in this Utilization Request.

 

		2.	We wish to borrow a Loan on the following terms:

 

			Borrower:	WISeCoin AG

			Proposed Funding Date:	[...]

			Currency:	USD

			Amount of Loan:	4,000,000

			Payable to account:	[...]

 

		3.	We confirm that (i) no Default is continuing or would result from the proposed Loan and (ii) all
representations and warranties made under the Loan Documents are true and correct as of the date of this Utilization Request and
as of the Funding Date.

 

		4.	We confirm that each condition specified in Clause 5 (Conditions of Utilization) of the
Agreement is satisfied on the date of this Utilization Request and the Funding Date.

 

		5.	This Utilization Request is irrevocable.

 

Yours faithfully

 

	WISEeCoin
                                         AG:	 	 	 	 
	 	 	 	 	 	 
		 		 
	Name:		 	Name:		 
	Title:		 	Title:		 

 

Page 38 of 38Certain identified information has been excluded from the exhibit because it is
both (i) not material and (ii) would be competitively harmful if publicly disclosed.

 

Convertible
Term Loan Facility Agreement

 

	dated as of December 16, 2019
	 
	 
	by and between
	 
	 
	
        Long State Investment Limited (hereinafter the
        Lender)

         

        Room 508, 5th Floor Wing
        on House, 71 Des Voeux Road Cen-tral, Central, Hong Kong

         

	and
	 
	 
	WISeKey International Holding Ltd (hereinafter the Company) 

        General-Guisan-Strasse 6, 6300 Zug, Switzerland

	 
	 
	(the Lender and the Company each a Party and collectively the Parties)

 

regarding a
CHF 30,000,000 Convertible Term Loan Facility

 

    

    
	Convertible Term Loan Facility Agreement	 2 of 29

    

 

Table
of Contents

 

	1.	Definitions and Interpretations	4
	2.	The Facility	4
	3.	Purpose	4
	4.	Drawdown	4
	5.	Documents to be Delivered on or Promptly Following the Effective Date	4
	6.	Conditions of Utilization	4
	7.	Conversion	5
	8.	Repayment	7
	 	8.1	Repayment and Prepayment of Loan	7
	 	8.2	Re-borrowing	7
	 	8.3	Voluntary Repayment of Loan	7
	9.	Interest and Fees	7
	 	9.2	Default Interest	8
	 	9.3	Computation	8
	 	9.4	Minimum interest Rate	8
	10.	Representations	 	8
	 	10.1	Representations of the Company	8
	 	 	10.1.1	Organization	8
	 	 	10.1.2	Conversion Shares, Security Shares and Fee Shares	9
	 	 	10.1.3	Financial Statements	9
	 	 	10.1.4	Absence of Conflicting Obligations	9
	 	 	10.1.5	Non-Bank Rules	9
	 	 	10.1.6	Absence of Material Litigation	9
	 	 	10.1.7	Compliance with Applicable Laws	9
	 	 	10.1.8	Full Disclosure	9
	 	10.2	Representations of the Lender	10
	11.	Covenants	 	10
	12.	Fee	 	11
	13.	Security Shares	12
	14.	Defaults	 	12
	15.	Remedies on Occurrence of an Event of Default	13
	 	15.1	Right and Remedies	13
	 	15.2	No Waiver	13
	 	15.3	No Set-off	13
	16.	Tax Gross-Up and Indemnities	14
	 	16.1	Tax Gross-Up	14
	 	16.2	Tax Indemnity	14
	17.	Trading Limitations Disclosure of Trading Activities	14
	18.	General Term	15
	 	18.1	Expenses; Confidentiality	15
	 	18.2	Assignments and Transfers	15

 

    

    
	Convertible Term Loan Facility Agreement	 3 of 29

    

 

	 	 	 	 	 
	 	18.3	Exposure Transfers	15
	 	18.4	Exculpation and Indemnity	15
	 	18.5	Remedies and Waivers	16
	 	18.6	Amendments and Waivers	16
	 	18.7	Counterparts; Electronic Transmission	16
	 	18.8	Notices	16
	 	18.9	Severability	17
	 	18.10	Payment Mechanics	17
	 	18.11	Confidentiality	17
	 	18.12	Governing Law and Jurisdiction	18

  

    

    
	Convertible Term Loan Facility Agreement	 4 of 29

    

 

WHEREAS

 

		(A)	The Lender intends to provide the Company a convertible term loan facility pursuant to which the Company may, subject to the
terms and conditions of this Agreement, make drawdowns in separate tranches in an amount of up to CHF 30,000,000 in the aggregate.

 

		(B)	The Lender shall have the right and the obligation to convert any drawdown tranche into Shares, subject to the terms and conditions
of this Agreement;

 

		(C)	This Agreement documents the terms and conditions upon which the Lender is willing to extend to the Company, and the Company
is willing to accept from the Lender, the convertible term loan facility.

 

Now, therefore, the Parties agree as follows:

 

		1.	Definitions and Interpretations

 

Capitalised terms used in this
Agreement shall have the meaning assigned to them in Schedule 1 For purposes of this Agreement, the interpretational
rules as set forth in Schedule 1 shall apply.

 

		2.	The Facility

 

Subject to the terms and conditions
of this Agreement, the Lender will make available to the Company term loans (each a Loan and collectively the Loans)
of up to a maximum amount of CHF 30,000,000 (the Maximum Commitment) over the course of a period of 24 (twenty-four)
months starting from the Effective Date (the Commitment Period).

 

		3.	Purpose

 

The purpose of the Facility is
to fund and support the Company's and its Affiliates' business matters, in particular with respect to the Company's and its Affiliates'
expansion in Asia.

 

		4.	Drawdown

 

		(a)	The Company may, on any Trading Day during the Commitment Period, except during a Drawdown Restriction
Period, require the Lender to lend to the Company an amount up to the Drawdown Amount (each such amount, a Drawdown) under
this Facility by delivering a Drawdown Notice to the Lender (the Trading Day on which the Drawdown Notice is delivered, subject
to Section 2.8(b), the Drawdown Notice Date). Any Drawdown Notice shall be irrevocable, absent consent of the Lender that
the Drawdown Notice may be revoked.

 

		(b)	Subject to Section 6, the Lender must transfer the Drawdown Amount, less the Drawdown Reduction,
if any, and the Commission, to the Company in clear funds in Swiss francs on the second Trading Day immediately following the end
of the Initial Conversion Period (or the Subsequent Conversion Period, as applicable) (such date, the Drawdown Date).

 

		5.	Documents to be Delivered on or Promptly Following the Effective Date

 

On or promptly following the
Effective Date (but in no event later than 7 (seven) Trading Days after the Effective Date), the Company shall deliver to the Lender
all of the documents and other evidence listed in Schedule 5 in form and substance satisfactory to the Lender

 

		6.	Conditions of Utilization

 

Notwithstanding
any other terms of this Agreement, provided that the Company has prior to the first Drawdown under this Agreement performed its
delivery obligations pursuant to Section 5 (such requirement to qualify as a condition to the first Drawdown), each Drawdown shall
be subject to the satisfaction of the following conditions as of the relevant Drawdown Notice Date and Drawdown Date:

 

    

    
	Convertible Term Loan Facility Agreement	 5 of 29

    

 

		(a)	The Drawdown Notice has been submitted outside a Drawdown Restriction Period and in any case in
compliance with this Agreement;

 

		(b)	The Company's representations in this Agreement are in all material respects true as of the Drawdown
Date (save any qualification agreed in writing by the Lender), unless the applicable representation is made as of a specific date,
in which case the representation shall have been true and correct in all material respects as of such specific date;

 

		(c)	(i)(x) The Treasury Shares (if any) to be delivered or (y) the Conditional Shares (if any) to be
issued as Conversion Shares are admitted to listing and trading on the SIX, or (ii) with respect to Authorized Shares or Conditional
Shares (with respect to which no self-executing listing prospectus exemption applies based on applicable Laws) to be issued as
Conversion Shares, a listing application has been filed with the competent listing authority, which can reasonably be expected
to be approved (to the extent necessary) on or before the date of the delivery of a Conversion Notice by the Lender under the terms
of this Agreement;

 

		(d)	No obstacle can be reasonably expected that the Class B Shares issuable or deliverable upon the
delivery of a Conversion Notice by the Lender will be listed and become tradable without any restrictions on the Principal Market;

 

		(e)	The Company has not received any notice by the Principal Market threatening the continued trading
of the Class B Shares on the Principal Market;

 

		(f)	The Company has not requested that the Principal Market on which the Shares to be delivered or
issued are listed and traded discontinue listing and/or trading of the Shares on the Principal Market,

 

		(g)	No Default or Event of Default under this Agreement has occurred and continues uncured under the
terms of this Agreement;

 

		(h)	The consummation of the transactions contemplated by this Agreement and the funding of the Loan
(i) are not prohibited by, and do not violate, any Laws applicable to the Company, (ii) are not enjoined (temporarily or permanently)
under, or prohibited by or contrary to, any injunction, order, decree, ruling or other Governmental Order, and (iii) there is no
action, suit, proceeding or investigation pending against the Company that could reasonably likely have the effect that this Agreement
or the consummation of the transactions contemplated under this Agreement is considered invalid, illegal and/or unenforceable;

 

		(i)	There has not been a Material Adverse Effect; and

 

		(j)	The Company has satisfied its Top-up Obligation (if any).

 

		7.	Conversion

 

		(a)	The Lender may, by delivering to the Company a Conversion Notice, request Conversion of a portion
or all of the relevant Drawdown Amount, less the Drawdown Reduction, if any, into fully paid registered Shares at any time on or
before the expiry of the Initial Conversion Period (or the Subsequent Conversion Period, as applicable) (any Shares issuable or
deliverable upon Conversion pursuant to any provisions of this Section 7(a) and Section 7(b), the Conversion Shares).

 

		(b)	To the extent that the Lender has not requested Conversion of a portion or all of the Draw-down
Amounts during the respective Initial Conversion Period, the Lender shall be deemed to have requested Conversion of any Loan that
continues to be outstanding, including any interest accrued thereon and not yet repaid, on the commencement of the Subsequent Conversion
Period.

 

		(c)	In case of an actual or deemed
                                         Conversion Notice by the Lender, the Lender shall, no later than on the close of the
                                         second Trading Day immediately after the Initial Conversion Period or, as the case may
                                         be, the Subsequent Conversion Period, deliver to the Company via facsimile or email notice
                                         a calculation sheet evidencing the calculation of the Conversion Price and the number
                                         of Conversion Shares issuable or deliverable to the Lender, such notice accompanied by
                                         screenshots of the relevant Bloomberg screens for the Principal Market. The Company shall
                                         review such calculation promptly upon receipt and shall notify the Lender no later than
                                         on the close of the third Trading Day immediately after the end of the Initial Conversion
                                         Period or, as the case may be, the Subsequent Conversion Period, by 5:00 p.m. (Geneva
                                         time), of any objections (which shall include a brief explanation of the objection(s))
                                         (the Objections) it may have. Both Parties agree to settle any Objections in good
                                         faith and promptly.

 

    

    
	Convertible Term Loan Facility Agreement	 6 of 29

    

 

		(d)	In case of an actual or deemed Conversion Notice by the Lender, the Company shall (or cause its
agent or bank to) deliver on the close of the third Trading Day immediately after the end of the Initial Conversion Period or,
as the case may be, the Subsequent Conversion Period, by 5:00 p.m. (Geneva time) or, in case of Objections, promptly upon settlement
by the Parties of the Objections (each a Conversion Closing Date), the Conversion Shares to the Lender in the form of Class
B Shares (whereby the relevant number of Class B Shares shall be determined on the basis of the Conversion Price) by crediting
the depository account of the Lender (as designated by the Lender no later than on the date of the expiry of the Initial Conversion
Period or the Subsequent Conversion Period, as applicable) and register the Lender or its designee (provided the Company has given
its prior written consent in accordance with Section 2.2first sentence), subject to applicable general limitations in the Company's
articles of association as in effect from time to time, in the Company's share register for the relevant number of Conversion Shares.

 

		(e)	The Company hereby confirms and undertakes that any Conversion Shares issued to the Lender under
this Agreement will, no later than 2 (two) Trading Days after the date on which the Conversion Shares have been delivered, be listed
on the Principal Market and become tradable without any restrictions on the Principal Market.

 

		(f)	The Company further covenants that upon delivery of the Conversion Shares.

 

		(i)	shall be credited as fully paid;

 

		(ii)	rank equally in all respects with all other issued Class B Shares;

 

		(iii)	not be subject to any security interest created by the Company; and

 

		(iv)	be entitled to dividends declared subsequent to the date of issue unless any Share price used for
purposes of calculating the Conversion Price with respect to the relevant Initial Conversion Period or Subsequent Conversion Period
is quoted ex dividend.

 

		(g)	The Company's covenants with respect to the Conversion Shares shall apply mutatis mutandis to
the Fee Shares, it being understood that the Fee Shares shall be subject to the limitations pursuant to Section 11(b)

 

		(h)	Any obligation, representation, covenant or other statement by the Company under this Section 7
relating to the Conversion Shares shall apply mutatis mutandis if the Lender uses Security Shares as a substitute to the
delivery of the Conversion Shares as per the terms of Section 12 (in which case the relevant Security Shares become Substituted
Conversion Shares).

 

		(i)	For the avoidance of doubt, the Parties agree that a Conversion into ADSs will not be available
to the Lender, except upon specific request by the Lender and subject to the availability of ADSs under the terms of the deposit
agreement for the issuance of ADSs and the written consent of the Company. Without limitation to the Company's right to withhold
consent at its discretion, any Conversion into ADSs is only permissible if the Company concludes in its discretion that the Conversion
Shares (in the form of ADSs), at the time of Conversion, are not "Restricted Securities" (as such is defined under the
U.S. Securities Act of 1933, as amended (the Securities Act).

 

		(j)	The Lender acknowledges and understands that any Conversion Shares, any Fee Shares and any Security
Shares acquired by it under the terms of this Agreement (for purposes of this Section 7(j) the Relevant Shares) may be issued
as "Restricted Securities" as defined in Rule 144(a)(3) under the Securities Act, and agrees that so long as any Relevant
Shares are "Restricted Securities" as defined in Rule 144(a)(3) under the Securities Act, it will segregate any Relevant
Shares from any other shares that it holds that are not "Restricted Securities", will not deposit any Relevant Shares
in an unrestricted depositary receipt facility (including the Company's ADSs facility in the United States) and will only transfer
any Relevant Shares as further set forth below in this Section 7(j). The Lender acknowledges and understands that any Relevant
Shares are being offered and sold to it pursuant to an exemption from registration under the Securities Act, or a transaction not
subject to. the registration requirements of the Securities Act in a transaction not involving a public offering of securities
in the United States and that any Relevant Shares have not been and will not be registered under the Securities Act or with any
state or other jurisdiction of the United States. The Lender agrees and covenants that so long as any Relevant Shares are "Restricted
Securities" as defined in Rule 144(a)(3) under the Securities Act, they may not be reoffered, resold, pledged or otherwise
transferred except (i) outside the United States in an offshore transaction in accordance with Rule 903 or 904 of Regulation S
under the Securities Act or (b) pursuant to Rule 144 under the Securities Act (if available) or pursuant to another available exemption,
if any, from registration under the Securities Act, and that, in each case, such offer, sale, pledge or transfer must be made in
accordance with all applicable securities Laws of each state of the United States and the securities Laws of any other relevant
jurisdiction, as then in effect. The Investor agrees to notify any transferee to whom it subsequently reoffers, resells, pledges
or otherwise transfers the Relevant Shares of the restrictions set forth herein. In addition, prior to any such subsequent reoffer,
resell, pledge or otherwise transfer the Relevant Shares, the Investor will obtain from such transferee a written undertaking to
comply with the transfer restrictions set forth herein.

 

    

    
	Convertible Term Loan Facility Agreement	 7 of 29

    

 

		8.	Repayment

 

		8.1	Repayment and Prepayment of Loan

 

Notwithstanding
anything to the contrary in this Agreement, any principal of any Loan outstanding hereunder not Converted in accordance with any
of the provisions of Section 7(a) shall become due and payable and the Company shall repay the Lender any such outstanding principal,
together with accrued and unpaid interest thereon as required to be paid pursuant to the terms of this Agreement, including, without
limitations, all other amounts due by it under this Agreement, upon the occurrence of an Event of Default in accordance with and
as set out in Section 13.

 

		8.2	Re-borrowing

 

The Company may not re-borrow
the Facility or any Loan or any part thereof available under such Facility which is repaid or prepaid.

 

		8.3	Voluntary Repayment of Loan

 

		(a)	The Company shall be entitled to elect, at its full discretion, repayment in cash of the
whole or any part of the Loan, together with any interest accrued thereon (the Voluntary Cash Repayment.

 

		(b)	The Company may make an election of a Voluntary Cash Repayment pursuant to Section 8.3(a) with
respect to any Loan outstanding, including any interest thereon not yet paid, at any time during the Commitment Period until the
Prepayment End Date, except on a Drawdown Notice Date and the related Initial Conversion Period, provided that any such election
is made prior to the Lender submitting to the Company a Conversion Notice or prior to the date on which the Conversion Notice is
deemed to have been given by the Lender pursuant to Section 7(b).

 

		(c)	Any Voluntary Cash Repayment notice given by the Company under this Section 8.3 shall be irrevocable
and shall specify the date or dates upon which the relevant prepayment is to be made and the amount of that prepayment.

 

		(d)	Any prepayment under this Agreement shall be made together with accrued interest on the amount
prepaid and may be made without premium or penalty.

 

		9.	Interest and Fees

 

	9.1	Interest Rate

 

    

    
	Convertible Term Loan Facility Agreement	 8 of 29

    

 

		(a)	The aggregate outstanding principal will bear interest at a rate of [***] per annum, compounded
daily (the Interest Rate).

 

		(b)	All interest shall be due and payable in cash on 31 December and 30 June of the relevant year during
the Commitment Period (each an Interest Payment Date) (or, if any such Interest Payment Date is not a Trading Day, on the
next Trading Day). At the request of the Lender, such request to be submitted to the Lender 10 (ten) Trading Days prior to the
relevant Interest Payment Date, may be "paid in kind" by capitalizing such interest (the PIK Interest) and adding
it to (and thereby increasing) the aggregate principal balance of the Loan(s) outstanding.

 

		9.2	Default Interest

 

The aggregate outstanding amount
of the Loans will bear interest from and after the occurrence and during the continuation of an Event of Default, without constituting
a waiver of any Event of Default, at the rate of 2.5% per annum above the otherwise applicable rate.

 

		9.3	Computation

 

All interest chargeable under
the Agreement will be computed on the basis of a 360-day year for the actual number of days elapsed.

 

		9.4	Minimum interest Rate

 

If
a Tax Deduction is required by law in respect of any interest payable by the Company and should it be unlawful for the Company
to comply with Section 16.1(a) for any reason, where this would otherwise be required by the terms of Section 16.1(a), then (i)
the applicable interest rate in relation to that payment shall be the rate which would have applied to that payment as provided
for by Section 9 divided by one minus the rate at which the relevant Tax Deduction is required to be made under Swiss domestic
tax law and/or applicable double taxation treaties (where the rate at which the relevant Tax Deduction is required to be made is
for this purpose expressed as a fraction of one); and (ii) the Company shall (A) pay the relevant interest at the adjusted rate
in accordance with paragraph (i) above and (B) make the Tax Deduction on the interest so recalculated, and all references to an
interest rate under this Agreement shall be construed accordingly. To the extent that an interest payable by the Company becomes
subject to Swiss Withholding Tax, the Parties shall promptly cooperate in completing any procedural formalities (including submitting
forms and documents required by the appropriate Tax authority) to the extent possible and necessary for the Company to obtain authorization
to make interest payments without being subject to Swiss Withholding Tax and/or for Lender to get a partial or full refund of Swiss
Withholding Tax.

 

		10.	Representations

 

The
Company and the Lender each make the representations as set out in this Section 10.1 and Section 10.2, respectively, to the Lender
and the Company, respectively, on and as of the Effective Date, any Drawdown Notice Date, any Conversion Closing Date and as of
any Interest Payment Date.

 

		10.1	Representations of the Company

 

		10.1.1	Organization

 

		(a)	The Company is a stock corporation (Aktiengesellschaft) duly formed and existing under the
laws of Switzerland, and the execution and performance of this Agreement are within its organizational powers, have been duly authorized,
are not in contravention of applicable law or its articles of association and do not require the consent or approval of any third
party, including any Governmental Authority (except as so provided under this Agreement).

 

		(b)	The Company is, to the extent legally required under applicable Law, duly licensed or qualified
to do business in all jurisdictions in which the Company has property or business operations, or the failure to be so licensed
or qualified will not materially and adversely affect the Company or its property.

 

    

    
	Convertible Term Loan Facility Agreement	 9 of 29

    

 

		10.1.2	Conversion Shares, Security Shares and Fee Shares

 

All Conversion Shares issuable
or deliverable hereunder, upon submission by the Lender of a Conversion Notice and payment by Lender to the Company's designated
account of the relevant Drawdown Amount (or the relevant portion thereof), will be duly authorized, validly issued, fully paid
and non-assessable upon their issuance. The Security Shares and the Fee Shares (if any) have been be duly authorized, validly issued,
fully paid and are non-assessable.

 

		10.1.3	Financial Statements

 

The
Company's audited financial statements (standalone and consolidated) for the financial year ended on 31 December 2018 and any subsequent
financial year thereafter and falling within the term of this Agreement, has been, or will have been, prepared in accordance with
the applicable accounting standards and fairly present, or will fairly present, in accordance with and subject to the applicable
accounting standards, the Company's (or the group's, as applicable) financial condition as of the relevant financial year end and
the results of operation for the period then ended or ending.

 

		10.1.4	Absence of Conflicting Obligations

 

The
making and execution of the Agreement and compliance with its terms will not

 

		(a)	result in a breach of any of the terms and conditions of any indenture, agreement or instrument
to which the Company party or their assets are subject; or

 

		(b)	result in the imposition of any Lien upon any property of the Company pursuant to, or constituting
a default under, any indenture or other agreement or instrument to which the Company is party or by which they are bound.

 

		10.1.5	Non-Bank Rules

 

The
Company is and will remain in compliance with the Non Bank Rules during the term of this Agreement. The Lender confirms as of the
date of this Agreement and as of the Effective Date that it is considered as 1 (one) creditor only for the purposes of the Non-Bank
Rules. There is no breach of this representation if the violation of the Non-Bank Rules results from an incorrect confirmation
given by a Lender under this Section with respect to its status. For the purposes of its compliance with the Twenty Non-Bank Rule
under this Section 10.1.5, the number of creditors under this Agreement which are not Qualifying Banks shall be deemed to
be 5 (five), irrespective of whether or not there are, at any time, any such creditors.

 

		10.1.6	Absence of Material Litigation

 

The
Company is not party to any litigation or administrative proceeding involving an amount in dispute exceeding CHF 500,000, nor is
any litigation or administrative proceeding threatened against the Company in writing, which in either case, is likely to be adversely
determined and, if so determined, would cause any Material Adverse Change, except as disclosed in writing to the Lender.

 

		10.1.7	Compliance with Applicable Laws

 

The
Company is in compliance with applicable Laws in all material respects. The Company has all material licenses, permits, orders
and approvals that are required under any Governmental Authority in connection with their business and properties (the Permits).
No notice of any violation has been received with respect of any Permits and no proceeding is pending or has been threatened
in writing to terminate, revoke or limit any Permits that would cause a Material Adverse Change.

 

		10.1.8	Full Disclosure

 

The written material delivered
by the Company to the Lender in connection with the transactions contemplated by this Agreement, including the documents as per
Section 5, do not contain any statement that is false or misleading as to any material fact and do not omit to state any material
fact necessary in order to make the statements therein not false or misleading. As per the initial Drawdown Notice Date, there
are no additional facts that Company is aware of that has not been disclosed to the Lender that materially and adversely affects
or, so far as Company can reasonably foresee, will materially and adversely affect the Company's financial condition.

 

    

    
	Convertible Term Loan Facility Agreement	 10 of 29

    

 

		10.2	Representations of the Lender

 

		(a)	The Lender is a "Qualified Institutional Buyer" within the meaning of Rule 144A under
the Securities Act.

 

		(b)	The Conversion Shares are being acquired by the Lender in the Lender's own name and for its own
account for its own investment purposes;

 

		(c)	The Lender has not made a decision to make available Loans to the Company and will not make any
decision to request any Conversion based on any non-public information that is subject to applicable insider Laws pursuant to the
Swiss Financial Markets Infrastructure Act and the ordinances promulgated thereunder or any equivalent laws of any other jurisdiction,
including the United States.

 

		11.	Covenants

 

The Company covenants and agrees,
in respect of the period from the Effective Date and as long as any of the Obligations remain unpaid:

 

		(a)	It shall at all times have authorized and reserved a number of Shares as conditional share capital
(bedingtes Aktienkapital) (Shares issued out of conditional share capital hereinafter the Conditional Shares) or
as authorized share capital (genehmigtes Akttenkapital) (Shares issued out of authorized share capital hereinafter the Authorized
Shares) or Shares held in treasury (the Treasury Shares) that is sufficient to effect a Conversion of the relevant Drawdown
Amount.

 

		(b)	It shall take all action as may be necessary or appropriate, and the Lender shall cooperate as
reasonably necessary and appropriate, to ensure that any Conversion Shares are issued or delivered as provided herein on the basis
of one of the sources of Shares referred to in Section 11(a).

 

		(c)	It shall comply in all material respects with all applicable Laws and not permit the proceeds of
any Loan or any other financial accommodation extended by the Lender to be used in any way that violates any foreign asset control
regulations of or other similar laws.

 

		(d)	It shall provide the Lender with written notice of the occurrence (as well as the reasonably likely
occurrence) of any of the following events, including reasonable particularity as to the relevant facts and circumstances:

 

		(i)	Any unforeseen event which limits the Company's ability to issue Conversion Shares in accordance
with this Agreement;

 

		(ii)	Any Material Adverse Change; and

 

		(iii)	any Event of Default.

 

		(e)	It will promptly provide to Lender with any information regarding the Company, its operation and
its financial condition as Lender may reasonably request from the Company, subject to applicable Law prohibiting such disclosure
to the Lender or to the Lender only.

 

		(f)	It shall remain in compliance with the Non-Bank Rules during the term of this Agreement. The Lender
confirms as of the date of this Agreement and as of the Effective Date that it is considered as one (1) creditor only for the purposes
of the Non-Bank Rules. There is no breach of this covenant if the violation of the Non-Bank Rules results from an incorrect confirmation
given by the Lender under this Section with respect to its status. For the purposes of its compliance with the Twenty Non-Bank
Rule under this Section 11(f), the number of creditors under this Agreement which are not Qualifying Banks shall be deemed to be
five (5), irrespective of whether or not there are, at any time, any such creditors

 

    

    
	Convertible Term Loan Facility Agreement	 11 of 29

    

 

		(g)	The Company will, and the Company will cause the other Group Companies to:

 

		(i)	use the proceeds of the Loan only as provided for in Section 3.

 

		(ii)	do all reasonable things necessary to preserve and keep in full force and effect their corporate
existences; and

 

		(iii)	refrain from disclosing, and shall cause its officers, directors, employees, advisors and agents
to refrain from disclosing, any material non-public information to the Lender without also disseminating such information to the
public.

 

		12.	Fee

 

		(a)	As consideration for the grant of this Facility and as consideration for the Lender providing
                                                                 services and advice to the Company and its subsidiaries on strategic initiatives in China and other Asian markets, such as
                                                                 (i) through the identification and introduction of, and the arrangement of meetings with, potential partners with expertise,
                                                                 experience and a good reputation in cybersecurity product development, marketing and distribution for potential partnership,
                                                                 licensing, joint venture and strategic investments in the Company or (ii) through the introduction of financial investors in
                                                                 Asia, the Company shall pay to the Lender a fee in the amount of the CHF equivalent of [***] Class B Shares (determined on
                                                                 the basis of the VVVAP on the SIX during the [***] Trading Days immediately preceding the date of this Agreement) (the Fee),
                                                                 such fee at the election of the Company payable in cash or through the issuance or delivery of [***] Class B Shares (such
                                                                 Shares the Fee Shares) in accordance with Section 5 and Section 11(b

 

		(b)	If the Company elects to deliver or issue Fee Shares to satisfy its obligation to pay the Fee,
the Company shall transfer immediately after the date hereof the total number of Fee Shares to a depository account as designated
by the Lender (the Fee Share Account). In order to ease downwards pressure on the price of the Shares in view of the current
limited trading volume of the Shares on the Principal Market, the Lender undertakes that:

 

		(i)	in each month during the Commitment
                                         Period it will engage in trading activities only with respect to 1/24th of
                                         the total number of Fee Shares, whereby it shall be agreed between the Parties that any
                                         1/24th of the total number of Fee Shares (or any portion thereof, including
                                         any fractions of Fee Shares, the aggregate of which amounts to a full number of Fee Shares)
                                         with respect to which trading activities by the Lender in a particular month during the
                                         Commitment Period would have been permissible but with respect to which the Lender has
                                         not engaged in trading activities (any such portion of Fee Shares not used by the Lender
                                         for trading activities permissible hereunder during a month the Carry Over Fee Shares),
                                         the Lender shall be entitled to use any such Carry Over Fee Shares during any of
                                         the subsequent months during the Commitment Period cumulatively to the 1/24th
                                         of the total number of Fee Shares otherwise reserved to any such subsequent month, provided,
                                         however, that in no event shall the Lender engage in any trading activities with
                                         respect to more than 1/8th of the total number of Fee Shares; and

 

		(ii)	promptly upon engaging in any such trading activities, it will disclose to the Company particulars
of such trading activity. The Parties agree that if the trading volume in the Shares on the Principal Market should significantly
increase as compared to the date hereof, the Parties shall discuss in good faith a reasonable increase in the number of Shares
to be sellable by the Lender.

 

		(c)	The Fee (or the related number of Fee Shares to be delivered) will be reduced accordingly for
any Legal Fee, before VAT, paid by the Company exceeding CHF 25,000.

 

    

    
	Convertible Term Loan Facility Agreement	 12 of 29

    

 

		13.	Security Shares

 

		(a)	Prior to the initial Drawdown, the Company must have delivered to the Lender and the Lender must
have received (by crediting the depository account of the Lender (as designated by the Lender) 300,000 Shares admitted to listing
and trading in accordance with the applicable Admission Regulations (the Security Shares) for purposes of this Section 12

 

		(b)	Subject to Section 12(c)and Section 12(d) no later than two (2) Business Days after the end of
the Commitment Period, the Lender must transfer the full number of Security Shares (but, to the extent the Lender has used Security
Shares for trading, subject to and in compliance with the applicable Trading Limitations, not necessarily the identical Security
Shares as received under Section 12(a) to the Company or the Company's designee, upon the transfer of which the Lender shall be
deemed to have fulfilled all its obligations to the Company in relation to the Security Shares.

 

		(c)	Whenever the Company is obliged to issue or deliver Conversion Shares to the Lender under
the terms of this Agreement, the Company may by mutual agreement with the Lender:

 

		(i)	not issue or deliver an agreed number of Conversion Shares (the Agreed Number) to the Lender;

 

		(ii)	reduce the number of Security Shares by the Agreed Number; and

 

		(iii)	provided that such Security Shares to be used as Conversion Shares are otherwise equal in any respects
to Conversion Shares, be deemed to have satisfied the obligation to issue a number of Conversion Shares equal to the Agreed Number
to the Lender for the purposes of Conversion pursuant to the terms of this Agreement (any Security Shares so used hereinafter the
Mutually Agreed Substituted Conversion Shares).

 

		(d)	Whenever the Company is obliged to issue or deliver Conversion Shares to the Lender under
the terms of this Agreement, and fails to do so when due, the Lender may, by written notice
to the Company (the Substitution Notice), reduce the number of Security Shares by a number of Security Shares less than
or equal to the number of Conversion Shares that the Company has failed to issue or deliver when due, and upon the Lender doing
so, the Company, to the extent such Security Shares to be used as Conversion Shares (hereinafter the Default Substituted Conversion
Shares, and together with the Mutually Agreed Substituted Conversion Shares, the Substituted Conversion Shares) are
otherwise equal in any respects to Conversion Shares, will be deemed to have satisfied the obligation to issue or deliver the Conversion
Shares for the purposes of Conversion pursuant to the terms of this Agreement to the extent of the number of Security Shares specified
in the aforementioned written notice of the Lender.

 

		(e)	If the Lender at any time uses Substituted Conversion Shares for Conversion purposes in accordance
and compliance with the terms and conditions of Section 13(c) and Section 13(d), respectively, the Company shall be required to
deliver (the Top-up Obligation) to the Lender (by crediting the depository account designated by the Lender), within 15
(fifteen) Trading Days after (i), in case of Mutually Agreed Substituted Conversion Shares, the mutual agreement between the Parties
as per Section 12(c), and (ii) in case of Default Substituted Conversion Shares, after receipt by the Company of the Substitution
Notice, such number of Shares qualifying as Security Shares, subject to the terms and conditions of this Section 13, as is necessary
to make up any difference between (x) 300.000 and (y) the number of Substituted Conversion Shares used by the Lender Shares for
Conversion purposes in accordance and compliance with the terms and conditions of Section 13(c) and Section 12(d), respectively.

 

		14.	Defaults

 

If
any one or more of the following events (each an Event of Default) occurs (subject to any stated cure periods), then at
the Lender's option as communicated to the Company, any Loan outstanding, together with accrued and unpaid interest thereon (as
required to be paid) under this Agreement, will immediately become due and payable in full, without further notice of any kind,
notwithstanding anything contained to the contrary in this Agreement or in any other agreement, note or document:

 

    

    
	Convertible Term Loan Facility Agreement	 13 of 29

    

 

		(a)	The Company fails to pay:

 

		(i)	interest owed pursuant to the terms of this Agreement within five (5) Business Days or, if the
failure to pay is caused by administrative or technical error, seven (7) Business Days of the interest Payment Date; and

 

		(ii)	Expenses within five (5) Business Days or, if the failure to pay is caused by administrative or
technical error, seven (7) Business Days of the date due. Expenses shall be due fifteen (15) Business Days after the Lender provides
an invoice to the Company or a written request for payment of the amount due and documents evidencing the Expenses

 

		(b)	A default in the performance or observance of any term, condition or covenant in this Agreement
made or given by the Company to Lender required to be observed or performed by the Company that is not cured within twenty (20)
Business Days of the earlier of (i) the Lender giving notice to the Company or (ii) the Company becoming aware of the non-performance
or non-observance.

 

		(c)	Any representation made by the Company in the Agreement proves to have been materially inaccurate
as at the time when made or given.

 

		(d)	Any material intentional misstatement in the Drawdown Notice;

 

		(e)	An Insolvency Event occurs with respect to the Company;

 

		(f)	A suspension from trading of the Shares on the Principal Market for a period of twenty (20) consecutive
Trading Days or for more than an aggregate of twenty (20) Trading Days other than due to factors solely within the control or due
to acts of the Lender,

 

		(g)	The delisting of the Shares on the Principal Market or the announcement of the intent or the filing
of an application to delist the Shares by the Company on the Principal Market (except if the Company, at the time of the delisting,
lists or has already listed its Shares on another stock exchange, provided however that all the transactions under this Agreement
may still be legally performed at such other venue without there being any restrictions beyond those existing in Switzerland or
the United States); or

 

		(h)	A Material Adverse Event has occurred.

 

		15.	Remedies on Occurrence of an Event of Default

 

		15.1	Right and Remedies

 

Upon the occurrence and during
the continuation of an Event of Default after any applicable cure period or grace period has lapsed, the Lender shall have all
rights and remedies provided by law and under this Agreement. All rights and remedies are cumulative.

 

		15.2	No Waiver

 

No delay on the part of Lender
in exercising any right, power or privilege under this Agreement will operate as a waiver, nor will any single or partial exercise
of any right, power or privilege under this Agreement or otherwise, preclude other or further exercise of the right, power or privilege
or the exercise of any other right, power or privilege.

 

		15.3	No Set-off

 

Except as expressly stated otherwise
herein, including, for the avoidance of doubt, as part of a Conversion, none of the Parties shall be entitled to set off any of
its claims it may have against the other Party against, or otherwise withhold the proper payment
of, any amount payable by it hereunder, regardless of whether such claim or such right to withhold payment has arisen under or
in connection with this Agreement or otherwise; provided, however, that the Lender has the right, without prior written
notice to the Company (any required notice being expressly waived by the Company to the extent permitted by applicable law) upon
the occurrence of any Event of Default and so long as an Event of Default is continuing, to set off and apply against any obligations,
whether matured or unmatured, of the Company to the Lender, any amount owing by the Lender to the Company, provided, further,
however, that in no event may the Lender declare a set off with respect to a particular Drawdown Amount if it has elected to
give a Conversion Notice with respect to such particular Drawdown Amount.

 

    

    
	Convertible Term Loan Facility Agreement	 14 of 29

    

 

		16.	Tax Gross-Up and Indemnities

 

		16.1	Tax Gross-Up

 

		(a)	All payments by the Company must be made free and clear of and without deduction for any and all
present or future taxes, levies, imposts. deductions, charges or withholdings, and all liabilities with respect thereto.

 

		(b)	If any Party is required by law to deduct any non-excluded taxes from any sum payable by such Party
(i) the amount payable will be increased as may be necessary so that after the Party and the Lender have made all required deductions
(including deductions applicable to additional sums payable under this Section 16.1(b)) the Lender receives an amount equal to
the sum it would have received had no such deductions been made, and (ii) the Party will pay the full amount deducted to the relevant
taxation authority or other authority in accordance with applicable law. The Company will indemnify the Lender for and hold it
harmless against the full amount of taxes of any kind imposed by any jurisdiction, imposed on or paid by Lender and any liability
(including penalties, additions to tax, interest and expenses) arising therefrom or with respect thereto. This indemnification
shall be made within 10 (ten) Trading Days from the date the Lender makes written demand therefor.

 

		(c)	A payment shall not be increased under paragraph (b) above by reason of Swiss Withholding Tax with
respect to the Lender, if an Event of Default has not occurred or is continuing and the Non-Bank Rules would not have been violated
if.

 

		(i)	such Lender, in relation to which the Company makes the payment, was a Qualifying Bank but on that
date that Lender is not or has ceased to be a Qualifying Bank other than as a result of any change of law after the date it became
a Lender under the Agreement;

 

		(ii)	such Lender, in relation to which the Company makes the payment, would be considered as one (1)
creditor only for the purposes of the Non-Bank Rules but on that date that Lender is not or has ceased to be classified as one
creditor only for the purposes of the Non-Bank Rules other than as a result of any change of law after the date it became a Lender
under the Agreement; or

 

		(iii)	such Lender, in relation to which the Company makes the payment, had complied with its obligations
in accordance with Section 18.2; or

 

		(iv)	the Lenders would have complied with their obligations in accordance with Section 18.2 and the
Lender, in relation to which the Swiss Company makes the payment, became a Lender as a result of such breach of Section 18.2.

 

		16.2	Tax Indemnity

 

The Company will (i) pay all
present or future stamp, documentary, excise, property, transfer and other similar taxes (together in each case with interest and
penalties, if any) payable or determined to be payable in connection with the execution and delivery of this Agreement and any
payment made hereunder and (ii) hold Lender harmless from and against any and all liabilities with respect to or resulting from
any delay in paying, or omission to pay, taxes any Party is obligated to pay under this Agreement or otherwise.

 

		17.	Trading Limitations Disclosure of Trading Activities

 

		(a)	With respect to the Security Shares, the Lender undertakes that it will not trade any of such Security
Shares, except during an Initial Conversion Period or the Subsequent Conversion Period, during which the Lender shall be free to
trade in any Security Shares, in each case without prejudice to the Lender's obligations pursuant to Section 13(b) and in compliance
with any limitations applicable to the Lender, including as a result of the Conversion Shares constituting "Restricted Securities"
(as such term is defined under the Securities Act.

 

    

    
	Convertible Term Loan Facility Agreement	 15 of 29

    

 

		(b)	At the request of the Company, the Lender must disclose to the Company any of its trading activities
in the Shares.

 

		18.	General Term

 

		18.1	Expenses; Confidentiality

 

		(a)	The Company shall pay the Expenses

 

		(b)	The Company's obligation to pay the Expenses provided for in this Section 17 (Expenses; Confidentiality)
form part of the Obligations.

 

		18.2	Assignments and Transfers

 

Neither Party may assign and/or
transfer any of its rights and/or obligations under the Agreement or the Agreement without the prior written consent of the other
Party. The Company will withhold its consent if, following such assignment or transfer, either the Ten Non-Bank Rule or the Twenty
Non-Bank Rule would be violated.

 

		18.3	Exposure Transfers

 

Subject to Section 18.2, no Lender
shall enter into any arrangement with another person under which such Lender substantially transfers its exposure under this Agreement
to that other person, unless under such arrangement throughout the life of such arrangement:

 

		(a)	the relationship between the Lender and that other person is that of a debtor and creditor (including
in the bankruptcy or similar event of the Lender or an Obligor);

 

		(b)	the other person will have no proprietary interest in the benefit of this Agreement or in any monies
received by the Lender under or in relation to this Agreement; and

 

		(c)	the other person will under no circumstances (other than permitted transfers and assignments under
Section 18.2) (y) be subrogated to, or substituted in respect of, the Lender's claims under this Agreement; and (z) have otherwise
any contractual relationship with, or rights against, the Company under or in relation to this Agreement.

 

		18.4	Exculpation and Indemnity

 

		(a)	The Lender shall not be liable for any loss or damage suffered by the Company by reason of Lender
taking any action permitted by this Agreement, except in case of a breach by the Lender of any of its obligations hereunder by
willful misconduct (Absicht) or gross negligence (grobe Fahriassigkeit) on the part of Lender (or any officer, employee,
agent or delegate of, or appointed by, Lender for which it is responsible pursuant to mandatory applicable law) as determined by
a court of competent jurisdiction by final and non-appealable judgement.

 

		(b)	The Company shall fully release, discharge and indemnify the Lender and any delegate and auxiliary
person of the Lender and keep each of them fully harmless for any claims raised or brought against them in connection with this
Agreement, save in respect of loss or damage suffered as a result of any breach by the Lender of any of the obligations hereunder
or the willful misconduct (Absicht) or gross negligence (grobe Fahrlassigkeit) on the part of Lender (or any officer,
employee, agent or delegate of, or appointed by, the Lender for it is responsible pursuant to mandatory applicable law) as determined
by a court of competent jurisdiction by final and non-appealable judgement.

 

    

    
	Convertible Term Loan Facility Agreement	 16 of 29

    

 

		18.5	Remedies and Waivers

 

No
failure to exercise, nor any delay in exercising, on the part of a Party, any right, or remedy under the Agreement shall operate
as a waiver of any such right or remedy or constitute an election to affirm the Agreement. No single or partial exercise of any
right or remedy shall prevent any further or other exercise or the exercise of any other right or remedy. The rights and remedies
provided in the Agreement are cumulative and not exclusive of any rights or remedies provided by law.

 

		18.6	Amendments and Waivers

 

Any amendment or waiver of this
Agreement or any provision of this Agreement (including this Section 18.6) shall only be binding if agreed in writing by the Parties.

 

		18.7	Counterparts; Electronic Transmission

 

This Agreement may be executed
and delivered by each Party in separate counterparts, each of which when so executed and delivered shall be deemed an original
and all of which taken together shall constitute one and the same Agreement. This Agreement and any other transaction document
relating to this Agreement, and any amendments hereto or thereto, to the extent signed and delivered by means of a facsimile machine,
electronic signature or e-signature (irrespective of whether the relevant electronic signature or e-signature has been issued by
a provider recognized or accredited under applicable Law or not) or other electronic transmission (e.g., email delivery in .pdf
format or similar format), shall be treated in all manner and respects as an original contract and shall be considered to have
the same binding legal effects as if it were the original signed version thereof delivered in person.

 

		18.8	Notices

 

		(a)	All notices or other communications to be given under or in connection with this Agreement, including
but not limited to any Drawdown Notice or any Conversion Notice, shall be in writing and delivered by hand or sent (postage prepaid)
by registered, certified or express post (return receipt requested), courier, facsimile or by electronic transmission in pdf format
or similar format as follows:

 

	
        if to the Company:

         

         

         

         

         

        with a copy to:

         
	
        WISeKey International Holding Ltd

        Attn.: Peter Ward, Chief Financial Officer

        General-Guisan-Strasse 6, CH-6300 Zug, Switzerland

        Email: pward@wisekey.com

        Fax: +41 22 594 3001

         

        Homburger AG

        Attn.: David Oser

        Prime Tower

        Hardstrasse 201, CH-8005 Zurich, Switzerland

        Email: david.oser@homburgerch

        Fax:
+41 43 222 15 00

	 	 
	if to the Lender	Long State Investment Limited
	 	Attn.: Philip Ho, Mike Holland and Jessie Chen
	 	 
	If by courier:	157 Columbus Avenue, 4th Floor, New York,
	 	NY 10023, USA
	 	Email: philip@longstateinvestment.com, 
	 	mhollandglongstateinvestment.corn and 
	 	jchen@longstate.com
	 	Fax: +1-801-659-3309

 

    

    
	Convertible Term Loan Facility Agreement	 17 of 29

    

 

	with a copy to:	Walder Wyss AG
	 	Attn.: Alex Nikitine
	 	Seefeldstrasse 123, CH-8008 Zurich, Switzerland
	 	Email: alex.nikitine@walderwyss.com
	 	Fax. +41 58 658 59 59

  

		(b)	Notices delivered by hand shall be deemed delivered when actually delivered. Notices given by post
or courier shall be deemed delivered on the second (2nd) Business Day after posting or couriering them or in the case
of airmail/air-courier on the fifth (5th) Business Day after posting or couriering them (except if delivery is promised by the
post or the courier at a later date, then such notices shall be deemed delivered on the date that delivery is promised). Notices
given by facsimile shall be deemed given on the date of receipt (if a Business Day), otherwise the first Business Day following
receipt. Notices given by electronic submission shall be deemed to be received at the time confirmation that the electronic submission
has been received by the recipient is received by the sender. Irrespective of the foregoing, with respect to any Drawdown Notice,
such Drawdown Notice shall be deemed delivered on the applicable Business Day if and to the extent it is received (actually or,
if by electronic submission, as confirmed to the Company) by the Lender on such Business Day prior to or at 9 a.m. New York time,
and if received (actually or, if by electronic submission, as confirmed to the Company) by the Lender after 9 a.m. New York time,
on the next Business Day.

 

		18.9	Severability

 

If
any part or provision of this Agreement or the application of any such part or provision to any Person or circumstance shall be
held to be invalid, illegal or unenforceable in any respect by any competent arbitral tribunal, court, governmental or administrative
authority, (a) such invalidity, illegality or unenforceability shall not affect any other part or provision of this Agreement or
the application of such part or provision to any other Persons or circumstances, and (b) the Parties shall endeavour to negotiate
a substitute provision that best reflects the economic intentions of the Parties without being invalid, illegal or unenforceable,
and shall execute all agreements and documents required in this connection. For the avoidance of doubt, this Section 18.9 is not
intended to modify or abrogate the authority of the competent court to replace an invalid provision of this Agreement in accordance
with Swiss Law

 

		18.10	Payment Mechanics

 

		(a)	On each date on which a Party is required to make a payment under this Agreement, such Party shall
make the same available for value on the due date at the time and in such funds specified by other Party as being customary at
the time for settlement of transactions in the relevant currency in the place of payment.

 

		(b)	Any payment which is due to be made on a day that is not a Business Day shall be made (i) on the
next Business Day in the same calendar month, if there is one, or (ii) if there is not, on the immediately preceding Business Day.

 

		(c)	During any extension of the due date for payment of any principal under th s Agreement interest
is payable on the principal at the rate payable on the original due date_

 

		18.11	Confidentiality

 

The Lender agrees to keep all
Confidential Information confidential and not to disclose it to anyone other than its agents, Affiliates, and counsel, as it remains
non-public, save to the extent required by law, regulation, administrative or court order.

 

    

    
	Convertible Term Loan Facility Agreement	 18 of 29

    

 

		18.12	Governing Law and Jurisdiction

 

		(a)	This Agreement shall in all respects be governed by and construed in accordance with the substantive
laws of Switzerland, to the exclusion of conflict of law rules that would cause the application of a law other than Swiss law.

 

		(b)	Each Party submits to the exclusive jurisdiction of the competent courts of the city of Zurich,
Switzerland.

 

[signatures
on the next page]

 

    

    
	Convertible Term Loan Facility Agreement	 19 of 29

    

 

Executed as of the date written on the cover page to this Agreement.

 

	Long State Investment Limited	 	 	 	 
	 	 	 	 	 	 
	/s/ Jessie Chen	 	/s/ Philip Ho	 
	Name: 	Jessie Chen	 	Name: 	Philip Ho	 
	Title:	Director – LSI Advisors Ltd.	 	Title:	Director – LSI Advisors Ltd.	 
	 	On behalf of Long State Investment Ltd.	 	 	On behalf of Long State Investment Ltd.	 

 

    

    
	Convertible Term Loan Facility Agreement	 20 of 29

    

 

Executed as of the date
written on the cover page to this Agreement.

 

	WISeKey International Holding Ltd	 	 	 	 
	 	 	 	 	 	 
	/s/ Carlos Moreira	 	/s/ Peter Ward	 
	Name: 	Carlos Moreira	 	Name: 	Peter Ward	 
	Title:	Chief Executive Officer	 	Title:	Chief Financial Officer	 

 

    

    
	Convertible Term Loan Facility Agreement	 21 of 29

    

 

Schedule
1 I Definitions and Interpretation

 

		1.	Definitions

 

		a.	Terms in capital letters used in this Agreement shall have the meaning assigned to such term on
the page referenced below:

 

	Agreed Number	15	 	interest Rate	9
	Authorized Shares	13	 	Lender	1
	Carry Over Fee Shares	14	 	Loan	4
	Class B Shares	32	 	Loans	4
	Commitment Period	4	 	Maximum Commitment	4
	Company	1	 	Maximum Drawdown Amount	28
	Conditional Shares	13	 	Mutually Agreed Substituted Conversion
	Conversion Closing Date	7	 	Shares	15
	Conversion Shares	6	 	Objections	6
	Converted Amount	36	 	Parties	1
	Convertible Instrument	36	 	Party	1
	Default Substituted Conversion 		 	Permits	12
	Shares	16	 	PIK Interest	9
	Drawdown	4	 	Relevant Shares	8
	Drawdown Date	5	 	Securities Act	8
	Drawdown Notice Date	4	 	Security Shares	15
	Event of Default	16	 	Substituted Conversion Shares	16
	Fee	14	 	Substitution Notice	16
	Fee Share Account	14	 	Top-up Obligation	16
	Fee Shares	14	 	Treasury Shares	13
	Interest Payment Date	9	 	Voluntary Cash Repayment	9

 

		b.	The following capitalized terms shall have the following meaning throughout this Agreement:

 

Admission Regulations shall
mean the applicable laws and regulations, including as promulgated by the Principal Market, regarding admission to listing and
trading of Conversion Shares.

 

ADS
shall mean American Depositary Shares representing the Class B Shares.

 

Affiliate means with respect
to any entity, another Person that directly or indirectly through one or more intermediaries, Controls or is Controlled by or is
under common Control with the applicable entity.

 

Agreement means this Credit
Facility Agreement, as amended from time to time, including its Schedules and Annexes.

 

Business Day means a day
when banks in Switzerland are open for general banking business (other than over the internet only):

 

CHF
means Swiss francs, the lawful currency of Switzerland.

 

Claims means any demand,
claim, action or cause of action, damage, liability, loss, cost, debt, expense, obligation, tax, assessment, charge, lawsuit, contract,
agreement or undertaking, of any kind or nature, whether known or unknown, fixed, actual, accrued or contingent, liquidated or
unliquidated (including interest, penalties, attorneys' fees and other costs and expenses incident to proceedings or investigations
relating to, or the defense of, any of the foregoing), whether or not litigation has commenced.

 

Closing Bid Price shall
mean, with respect to Shares as of any date, the last closing bid price for such Shares on the Principal Market as reported by
Bloomberg.

 

    

    
	Convertible Term Loan Facility Agreement	 22 of 29

    

 

Commission shall mean an
amount equal to 2.5% of the Drawdown.

 

Commitment Period shall have the meaning set forth in Section 2.

 

Control
means the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of
an entity, whether through the ability to exercise voting power, by contract or otherwise. Controlling and Controlled have correlative
meanings.

 

Confidential Information means
all information relating to the Company or any of its Affiliates which Lender receives from the Company or any of its Affiliates
(whether prior to or after the date hereof) but does not include information which (i) prior to delivery of such information to
the Lender was already in the possession of Lender from sources other than the Company or its Affiliates without confidentiality
undertaking on the part of the Lender or the source from which the Lender has received such information, (ii) was or becomes generally
available to the public other than as a result of disclosure by the Lender, (iii) becomes available to the Lender on a non-confidential
basis from a source other than the Company or its Affiliates, provided that Lender was not aware that such source is bound by a
confidentiality agreement with, or obligation of secrecy to, the Company or any of its Affiliates or (iv) was or is independently
developed by Lender without recourse to Confidential Information.

 

Conversion shall mean the
conversion of (i) a Drawdown Amount, (ii) a portion thereof or (iii) any Loan, including interest accrued thereon, that remains
outstanding after the Initial Conversion Period and is not being repaid by the Company in accordance with Section 8.3, into Shares
at the Conversion Price, in each case in accordance with the relevant provision in Section 7.

 

Conversion
Notice shall refer to the notice in the form as set out in Schedule 7(a)

 

Conversion Price shall be 95% of
the higher of (i) the Market Price and (ii) the Minimum Conversion Price.

 

Default means an event or
occurrence that with the passage of time or the giving of notice will be an Event of Default.

 

Drawdown Amount shall mean
any amount in CHF up to CHF 500,000, as specified by the Company in its sole and exclusive discretion; provided, however, that
subject to the prior written consent of the Lender, the Drawdown Amount may be up to CHF 2,500,000 (the Maximum Drawdown Amount),
and provided, further, that in no event shall the Drawdown Amounts pursuant to Drawdown Notices delivered to the Lender during
the Drawdown Period when aggregated with each other exceed the Maximum Commitment.

 

Drawdown Notice means the
notice substantially in the form as set out in Schedule 4(a), specifying the Drawdown Amount (subject to the Maximum Drawdown Amount
(unless otherwise agreed between the Parties)) and the Minimum Conversion Price if the Conversion Price is below CHF 1.80.

 

Drawdown Reduction shall
mean, in the event of a Conversion Notice, as elected by the Lender, a reduction of the Drawdown Amount by up to 5% for each Trading
Day during the Initial Conversion Period or the Subsequent Conversion Period on which (1) the Share is subject to trading halt
or suspension in the Principal Market, or (ii) the VVVAP is equal to or below the Minimum Conversion Price, except in the event
that the Company indicates to the Lender and the Lender agrees on or before the end of the Initial Conversion Period or the Subsequent
Conversion Period that it waives the Minimum Conversion Price.

 

Drawdown
Restriction Period shall mean:

 

		(a)	any time when any Conversion Shares to be issued or delivered to the Lender pursuant to Section
7 have not been admitted to listing and trading in accordance with the applicable Admission Regulations;

 

		(b)	any time when a prior Conversion Notice has been delivered by the Lender to the Company and any
Conversion Shares that may be required to be issued or delivered to the Lender pursuant to the Conversion Notice and in accordance
with this Agreement have not been received by the Lender and not been admitted to listing and trading in accordance with the applicable
Admission Regulations;

 

    

    
	Convertible Term Loan Facility Agreement	 23 of 29

    

 

		(c)	any time during which Conversion into Conversion Shares is prohibited under applicable regulatory
restrictions, including based on insider laws and regulations;

 

		(d)	any time during an Initial Conversion Period or the Subsequent Conversion Period.

 

Effective Date means the
date on which the Parties have agreed on, and executed, a binding agreement to the effect that the Lender or one of its Affiliates
will invest approximately USD 1,000,000 in the Company against issuance of new Class B Shares at an issue price of USD 2.64 per
Class B Share for purposes of funding an Asian joint venture business of the Company.

 

Expenses means the non-accountable
expense allowance payable by the Company to the Lender in the amount of CHF 10,000.

 

Facility means the convertible
term loan facility made available under this Agreement as described in Section 2.

 

Governmental Authority means
any nation or government, and any political subdivision thereof, any entity exercising executive, legislative, judicial, regulatory
or administrative functions of or pertaining to government, and any court, tribunal or arbitrator(s) of competent jurisdiction.

 

Governmental Orders means
any order, judgment, injunction, decree, stipulation or determination issued, promulgated or entered by or with any Governmental
Authority of competent jurisdiction.

 

Guidelines
means, together, guideline S-02.123 in relation to interbank loans of 22 September 1986 (Merkblatt S-02.123 vom 22 September
1986 betreffend Zinsen von Bankguthaben, deren Glaubiger Banken rind (Interbankguthaben)), guideline S 02.132 in relation to
issuance stamp duty on fixed deposits of 1 April 1993 (Merkblatt S-02.132 vom 1. April 1993 betreffend Emissionsabgabe auf Festgeldanlagen
bei inlandischen Banken), guideline S-02.130.1 in relation to accounts receivables of Swiss debtors of April 1999 (Merkblatt
S-02.130.1 vom April 1999 Geldmarktpapiere und Buchforderungen inlandischer Schuidner), circular letter no. 34 in relation
to customer credit balances of 26 July 2011 (Kreisschreiben Nr. 34 vom 26. Juli 2011 betreffend Kundenguthaben), and the
circular letter no. 15 in relation to bonds and derivatives of 3 October 2017 (Kreis-schreiben Nr. 15 vom 3. Oktober 2017 betreffend
Obligationen und derivative Finanzin-strumente als Gegenstand der direkten Bundessteuer, der Verrechnungssteuer sowie der Stempelabgaben),
circular letter No. 46 of 24 July 2019 (1-046-DVS-2019) in relation to syndicated credit facilities (Kreisschreiben Nr.
46 betreffend steuerliche Behandlung von Konsortialdarlehen, Schuldscheindarlehen, Wechseln und Unterbeteiligungen vom 24. Juli
2019) and circular letter No. 47 of 25 July 2019 (1 -047-DVS-2019) in relation to bonds (Kreisschreiben Nr. 47 betreffend
Obligationen vom 25. Juli 2019), all as issued, and as amended from time to time, by the Swiss Federal Tax Administration,
or as substituted or superseded and overruled by any law, statute, ordinance, court decision, regulation or the like as in force
from time to time, including the established practice of the Swiss Federal Tax Administration.

 

Indebtedness
means any indebtedness for or in respect of

 

		(a)	any monies borrowed pursuant to one or more credit facility agreements or the issue of bonds, notes,
debentures, loan stock or any similar instrument;

 

		(b)	the amount of any liability in respect of any guarantee for any of the items referred to in paragraph
(a) above,

 

    

    
	Convertible Term Loan Facility Agreement	 24 of 29

    

 

it being understood that any amount
calculated under this definition may only be counted once, even if an item may qualify under various paragraphs.

 

Initial Conversion Period shall
mean the period commencing on the Trading Day following the Drawdown Notice Date and ending on the date that is the 21st
Trading Days after the Drawdown Notice Date.

 

Insolvency Event means,
with respect to any Person, that such Person. (a) becomes insolvent; (b) is unable, or admits in writing its inability, to pay
debts as they generally mature; (c) makes a general assignment for the benefit of creditors or to an agent authorized to liquidate
any substantial amount of its property; (d) files on its behalf or consents to an Insolvency Proceeding; (e) has an Insolvency
Proceeding filed or instituted against it that is not stayed or dismissed within 60 days after it is filed or instituted, (f) applies
to a court for the appointment of a receiver, trustee or custodian for any of its assets; (g) has a receiver, trustee or custodian
appointed for any of its assets (with or without its consent), or (h) commences a self-liquidation of its assets.

 

Insolvency
Proceeding means any of the following events:

 

		(a)	any corporate action, legal proceedings or other procedure or step exists or is taken in relation
to, or threatened that could result in:

 

		(i)	bankruptcy, insolvency, suspension of payments, a moratorium of any indebtedness, winding-up, dissolution,
administration or reorganization (by way of voluntary arrangement, scheme of arrangement or otherwise) of any such Swiss entity;

 

		(ii)	a composition or assignment;

 

		(iii)	an arrangement with any creditor of such Swiss entity. or

 

		(b)	the appointment of a liquidator, receiver, administrative receiver, administrator, compulsory manager
or other similar officer in respect of any such Swiss entity or such entity's assets.

 

Law shall mean any statute,
law, subordinate legislation, constitutional provision, code, regulation, ordinance, instrument, bylaw, rule, judgment, decision,
order, writ, injunction, decree, permit, concession, grant, directive, binding guideline or policy, requirement of, or other governmental
restriction of or determination by, any Governmental Authority or any official interpretation of any of the foregoing by any Governmental
Authority.

 

Legal Fees means the fees,
expenses and costs incurred by Lender for its legal counsel in connection with establishing and negotiating this Agreement.

 

Lien means any lien, charge,
mortgage, security interest, pledge or other encumbrance on any property or interests in property of the Company.

 

Market Price shall mean
the average of the [***] VWAP of the Shares during, in the case of Section 7(a), the Initial Conversion Period or, in
the event of Section 7(b), the Subsequent Conversion Period.

 

Material Adverse Change shall
mean an event, change or occurrence of a fact that has a material adverse effect on (i) the business, assets or financial condition
of the Company, (ii) the ability of the Company to perform or observe the obligations under this Agreement, or (iii) the material
rights and remedies available to the Lender under this Agreement.

 

Minimum
Conversion Price shall be [***].

 

Non-Bank
Rules means the Ten Non-Bank Rule and the Twenty Non-Bank Rule.

 

Non-Qualifying
Bank means a person other than a Qualifying Bank.

 

Obligations means all obligations
owing by the Company to the Lender for the payment of monies pursuant to the Agreement, whether direct or indirect, absolute or
contingent, due or to become due, now existing or hereafter arising, including all Expenses which the Company is required to pay
or reimburse pursuant to the Agreement.

 

    

    
	Convertible Term Loan Facility Agreement	 25 of 29

    

 

Person means any individual,
trustee, sole proprietorship, partnership (general or limited), joint venture, trust, unincorporated organization, association,
corporation, limited liability

 

company,
limited liability partnership and other entity or any Governmental Authority.

 

Prepayment End Date shall
mean the date that is twenty-one (21) Trading Days prior to the end of the Commitment Period

 

Principal
Market means the International Reporting Standard of the SIX or any other

 

stock
exchange on which the Shares are listed, registered, or traded, as applicable.

 

Qualifying Bank means a
Person which (a) effectively conducts banking activities with its own infrastructure and staff as its principal purpose and (b)
which has a banking license in full force and effect issued in accordance with the banking laws in force in its jurisdiction of
incorporation, or if acting through a branch, issued in accordance with the banking laws in the jurisdiction of such branch, all
in accordance with the Guidelines.

 

Shares shall mean the registered
shares of the Company, par value of CHF 0.05 each (the Class B Shares).

 

SIX shall mean SIX Swiss
Exchange Ltd and the stock exchange operated by it. If, at any time in the future, the Securities are primarily listed on a stock
exchange other than SIX, any provision making reference to SIX shall be read as making reference to such other stock exchange,
provided however that all the transactions under this Agreement may still be legally performed without there being any restrictions
beyond those existing in Switzerland.

 

Subsequent Conversion Period
shall mean the period commencing twenty (20) Trading Days prior to the end of the Commitment Period.

 

Swiss Federal Tax Administration
means the tax authorities referred to in article 34 of the Swiss Withholding Tax Act.

 

Swiss Withholding Tax means
taxes imposed under the Swiss Withholding Tax Act.

 

Swiss Withholding Tax Act means
the Swiss Federal Act on the Withholding Tax of 13 October 1965 (Bundesgesetz Ober die Verrechnungssteuer), together with
the related or dinances, regulations and guidelines, all as amended and applicable from time to time.

 

Tax means any tax, levy,
impost, duty or other charge or withholding of a similar nature, including any penalty or interest payable in connection with any
failure to pay or any delay in paying any of the same or any addition or additional amount thereon imposed, assessed or collected
by or under the authority of any Governmental Authority, whether current or deferred, and whether disputed or not.

 

Tax Deduction means a deduction
or withholding for or on account of Tax from a payment under this Agreement.

 

Ten Non-Bank Rule means
the rule that the aggregate number of creditors, other than Qualifying Banks under this Agreement must not at any time exceed ten
(10), all in accordance within the meaning of the Guidelines.

 

Trading Day means any day
during which the Principal Market is open for business. Trading Limitations means the trading limitations referred to in
Section 17.

 

Twenty Non-Bank Rule means
the rule that the aggregate number of creditors, other than Qualifying Banks, of the Company, under all outstanding written debt
instruments relevant for classification as a cash debenture (Kassenobligation), such as loans, notes, facilities and/or
private placements must not at any time exceed twenty (20), all in accordance within the meaning of the Guidelines

 

    

    
	Convertible Term Loan Facility Agreement	 26 of 29

    

 

VWAP means, as of any date,
the daily CHF volume-weighted average price per Share, as reported by Bloomberg displayed under the ticker symbol "WINN SW",
through its "Historical Price Table Screen (HP)" with "Market: Weighted Ave" function selected, provided that
a comparable publication may be agreed between the Parties in the event that Bloomberg ceases publication of such price during
the term of this Agreement.

 

Interpretation

 

		c.	The words "hereof", "herein" and
"hereunder," and words of similar import, when used bn this Agreement shall refer to this Agreement as a whole and not
to any particular provision of this Agreement, and Article, Section, Schedule and Annex references are to this Agreement unless
otherwise specified.

 

		(i)	The meanings given to terms defined herein shall be equally applicable to both the singular and
plural forms of such terms.

 

		(ii)	All Annexes and Schedules annexed hereto or referred to herein are hereby incorporated in and made
a part of this Agreement, as if set forth in full herein

 

		(iii)	Any capitalized term used in any Annex or Schedule hereto, but not defined therein, shall have
the meaning assigned to it in this Agreement.

 

		(iv)	Whenever the words "include," "includes", "including" or "in
particular" are used in this Agreement, they shall be deemed to be followed by the words "without limitation."

 

		(v)	References to "or" shall be deemed to be disjunctive but not necessarily exclusive (i.e.,
unless the context dictates otherwise, "or" shall be interpreted to mean "and/or" rather than "either/or").
The words "other" and "otherwise" are not to be construed as being limited by any words preceding them.

 

		(vi)	If a period of time is specified and dates from a given day or the day of an act or event, it shall
(unless expressly otherwise stated in this Agreement), be calculated excluding that day and a reference to a time of day is (unless
this Agreement expressly states otherwise) a reference to the time in Switzerland.

 

		(vii)	If provisions in this Agreement include English terms after which either in the same provision
or elsewhere in this Agreement German terms have been inserted in brackets and/or italics, the respective German terms alone and
not the English terms shall be authoritative for the interpretation of the respective provisions.

 

    

    
	Convertible Term Loan Facility Agreement	 27 of 29

    

 

Schedule
4(a): Form of Drawdown Notice

 

[Drawdown Notice Date] 

 

To:

 

[■]

 

Drawdown Notice

 

Ladies and Gentlemen:

 

This is a Drawdown Notice
given pursuant to Section 4(a) of the Credit Facility Agreement.

 

Details of the Drawdown:

Amount- CHF

 

Minimum Conversion Price
in the Event of a Conversion by the Lender:

 

	CHF	 	 	 	 

 

Thank you for your attention
to this matter.

 

Yours sincerely,

 

WISeKey International
Holding Ltd

 

	 	 	 	 
	Name: 	 	 	 	 
	Title:	 	 	 	 

 

    

    
	Convertible Term Loan Facility Agreement	 28 of 29

    

 

Schedule
5 |  Documents to be Delivered on the Date of the Initial Drawdown

 

		1.	A copy of a resolution of the board of directors of the Company (a) approving the terms of the
Agreement and resolving that the Company executes, delivers and performs the Agreement and (b) authorizing a specified person or
persons to execute the Agreement on behalf of the Company;

 

		2.	A copy of the ad hoc announcement of the Company regarding the entry into this Agreement by the
Company;

 

		3.	Audited consolidated financial statements of the Company and its group for the financial year 2018;

 

		4.	A counterpart copy of this Agreement, duly executed by an authorized signatory of the Company;

 

		5.	A signature specimen of the persons authorized to execute this Agreement, any Drawdown Notice and
any other notification under the terms of this Agreement;

 

		6.	A certified copy of the articles of association of the Company dating back no more than ten (10)
Business Days before the date of execution of this Agreement;

 

		7.	Evidence as to the effective payment to the Lender of the Legal Fees and Expenses;

 

		8.	Evidence as to the payment of the Fee (at the election of the Company, by payment in cash or through
delivery of the Fee Shares, subject to the terms and conditions of Section 12), it being understood that any payment by the Company
of Legal Fees in excess of CHF 25,000 shall entitle the Company to reduce the Fee accordingly; and

 

		9.	Evidence that the Fee Shares (if any) have been admitted to trading and listing pursuant to the
Admission Regulations.

 

    

    
	Convertible Term Loan Facility Agreement	 29 of 29

    

 

Schedule
7(a) | Form of Conversion Notice

 

To:

 

WISeKey International Holding
Ltd (by email)

 

Copy to: [name of relevant
bank]

 

Date: [■]

 

Conversion Request
/ Exercise Notice

 

Ladies and Gentlemen:

 

The undersigned is the holder of a convertible
instrument (the Convertible Instrument) granted to it by the Lender on [■],
2019 pursuant to the terms of the Credit Facility Agreement (the Agreement), such Convertible Instrument representing the
right of the Lender to purchase and receive from the Company, and the obligation of the Company to issue to the Lender, a specified
number of registered shares, par value CHF 0.05 (the Class B Shares), at an issue price per Class B Share corresponding
to the Conversion Price of CHF by way of payment in the form of a wire-transfer of the Drawdown Amount (or the portion thereof
designated by the Lender to be Converted) corresponding to CHF [■]. A copy of the Convertible Instrument as included
in the Agreement is attached hereto as Annex A.

 

Capitalized terms shall
have the meaning set forth in the Agreement.

 

[We refer to the conditional share capital
of the Company pursuant to article 4b of the Articles of Association of the Company and hereby exercise the right to Conversion
pursuant to Section 7 of the Agreement in respect of [a portion of] the Drawdown Amount, corresponding to CHF (the Converted
Amount).]

 

The
newly issued Class B Shares shall be delivered to the following depository account of the Lender: ________________

 

Yours sincerely

 

Long State Investment
Limited

 

___________________________

Name:

Title:

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