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SECURITIES PURCHASE AGREEMENT

This Securities Purchase Agreement (this “Agreement”) is dated as of December 22, 2017, between Biotricity Inc., a Nevada corporation (the “Company”), and each purchaser identified on the signature pages hereto (each, including its successors and assigns, a “Purchaser” and collectively the “Purchasers”).

WHEREAS, subject to the terms and conditions set forth in this Agreement and pursuant to an effective registration statement under the Securities Act of 1933, as amended (the “Securities Act”), the Company desires to issue and sell to each Purchaser, and each Purchaser, severally and not jointly, desires to purchase from the Company, securities of the Company as more fully described in this Agreement.

NOW, THEREFORE, IN CONSIDERATION of the mutual covenants contained in this Agreement, and for other good and valuable consideration the receipt and adequacy of which are hereby acknowledged, the Company and each Purchaser agree as follows:

ARTICLE I.

DEFINITIONS

1.1

 Definitions.  In addition to the terms defined elsewhere in this Agreement, for all purposes of this Agreement, the following terms have the meanings set forth in this Section 1.1:

“Acquiring Person” shall have the meaning ascribed to such term in Section 4.5.

“Action” shall have the meaning ascribed to such term in Section 3.1(j).

“Affiliate” means any Person that, directly or indirectly through one or more intermediaries, controls or is controlled by or is under common control with a Person as such terms are used in and construed under Rule 405 under the Securities Act.  

“Board of Directors” means the board of directors of the Company.

“Business Day” means any day except any Saturday, any Sunday, any day which is a federal legal holiday in the United States or any day on which banking institutions in the State of New York are authorized or required by law or other governmental action to close.

“Closing” means the closing of the purchase and sale of the Securities pursuant to Section 2.1.

“Closing Date” means the Trading Day on which all of the Transaction Documents have been executed and delivered by the applicable parties thereto, and all conditions precedent to (i) the Purchasers’ obligations to pay the Subscription Amount and (ii) the Company’s obligations to deliver the Securities, in each case, have been satisfied or waived, but in no event later than the third Trading Day following the date hereof.

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 “Closing Statement” means the Closing Statement in the form on Annex A attached hereto.

 “Commission” means the United States Securities and Exchange Commission.

“Common Stock” means the common stock of the Company, par value $0.001 per share, and any other class of securities into which such securities may hereafter be reclassified or changed. 

“Common Stock Equivalents” means any securities of the Company or the Subsidiaries which would entitle the holder thereof to acquire at any time Common Stock, including, without limitation, any debt, preferred stock, right, option, warrant or other instrument that is at any time convertible into or exercisable or exchangeable for, or otherwise entitles the holder thereof to receive, Common Stock.

“Company Counsel” means Sichenzia Ross Ference Kesner LLP, with offices located at 1185 Avenue of the Americas, New York, New York 10036. 

“Disclosure Schedules” means the Disclosure Schedules of the Company delivered concurrently herewith.

 “Evaluation Date” shall have the meaning ascribed to such term in Section 3.1(s). 

“Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.

 “FCPA” means the Foreign Corrupt Practices Act of 1977, as amended.

 “GAAP” shall have the meaning ascribed to such term in Section 3.1(h).

“Indebtedness” shall have the meaning ascribed to such term in Section 3.1(aa).

“Intellectual Property Rights” shall have the meaning ascribed to such term in Section 3.1(p).

“Liens” means a lien, charge, pledge, security interest, encumbrance, right of first refusal, preemptive right or other restriction.

“Material Adverse Effect” shall have the meaning assigned to such term in Section 3.1(b).

“Material Permits” shall have the meaning ascribed to such term in Section 3.1(n).

 “Per Share Purchase Price” equals $5.50, subject to adjustment for reverse and forward stock splits, stock dividends, stock combinations and other similar transactions of the Common Stock that occur after the date of this Agreement.

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“Person” means an individual or corporation, partnership, trust, incorporated or unincorporated association, joint venture, limited liability company, joint stock company, government (or an agency or subdivision thereof) or other entity of any kind.

  “Proceeding” means an action, claim, suit, investigation or proceeding (including, without limitation, an informal investigation or partial proceeding, such as a deposition), whether commenced or threatened.

“Prospectus” means the final prospectus filed for the Registration Statement.

“Prospectus Supplement” means the supplement to the Prospectus complying with Rule 424(b) of the Securities Act that is filed with the Commission and delivered by the Company to each Purchaser at the Closing.

“Purchaser Party” shall have the meaning ascribed to such term in Section 4.8.

“Registration Statement” means the effective registration statement with Commission file No. 333-222065 which registers the sale of the Shares to the Purchasers.

“Required Approvals” shall have the meaning ascribed to such term in Section 3.1(e).

“Rule 144” means Rule 144 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended or interpreted from time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same purpose and effect as such Rule. 

“Rule 424” means Rule 424 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended or interpreted from time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same purpose and effect as such Rule.

 “SEC Reports” shall have the meaning ascribed to such term in Section 3.1(h).

“Securities” means the Shares.

“Securities Act” means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.

“Shares” means the shares of Common Stock issued or issuable to each Purchaser pursuant to this Agreement.

“Short Sales” means all “short sales” as defined in Rule 200 of Regulation SHO under the Exchange Act (but shall not be deemed to include the location and/or reservation of borrowable shares of Common Stock). 

 “Subscription Amount” means, as to each Purchaser, the aggregate amount to be paid for Shares purchased hereunder as specified below such Purchaser’s name on the 

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signature page of this Agreement and next to the heading “Subscription Amount,” in United States dollars and in immediately available funds.

 “Subsidiary” means any subsidiary of the Company as set forth on Schedule 3.1(a), and shall, where applicable, also include any direct or indirect subsidiary of the Company formed or acquired after the date hereof.

“Trading Day” means a day on which the principal Trading Market is open for trading.

“Trading Market” means any of the following markets or exchanges on which the Common Stock is listed or quoted for trading on the date in question: the NYSE American, the Nasdaq Capital Market, the Nasdaq Global Market, the Nasdaq Global Select Market, the New York Stock Exchange, OTCQB or OTCQX (or any successors to any of the foregoing).

“Transaction Documents” means this Agreement and any other documents or agreements executed in connection with the transactions contemplated hereunder.

“Transfer Agent” means Action Stock Transfer Corporation, the current transfer agent of the Company, with a mailing address of 2469 E. Fort Union Blvd, Suite 214, Salt Lake City, Utah 84121 and a facsimile number of (801) 274-1088, and any successor transfer agent of the Company.

“Variable Rate Transaction” shall have the meaning ascribed to such term in Section 4.12(b).

ARTICLE II.

PURCHASE AND SALE

2.1

Closing.  On the Closing Date, upon the terms and subject to the conditions set forth herein, substantially concurrent with the execution and delivery of this Agreement by the parties hereto, the Company agrees to sell, and the Purchasers, severally and not jointly,  agree to purchase, up to an aggregate of $2,500,000 of Shares.  Each Purchaser shall deliver to the Company, via wire transfer, immediately available funds equal to such Purchaser’s Subscription Amount as set forth on the signature page hereto executed by such Purchaser and the Company shall deliver to each Purchaser its respective Shares as determined pursuant to Section 2.2(a), and the Company and each Purchaser shall deliver the other items set forth in Section 2.2 deliverable at the Closing.  Upon satisfaction of the covenants and conditions set forth in Sections 2.2 and 2.3, the Closing shall occur at the offices of Company Counsel or such other location as the parties shall mutually agree.

2.2

Deliveries.

(a)

On or prior to the Closing Date, the Company shall deliver or cause to be delivered to each Purchaser the following:

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(i)

this Agreement duly executed by the Company;

(ii)

a copy of the irrevocable instructions to the Transfer Agent instructing the Transfer Agent to deliver on an expedited basis certificates ]representing Shares equal to such Purchaser’s Subscription Amount divided by the Per Share Purchase Price, registered in the name of such Purchaser; and

(iii)

the Prospectus and Prospectus Supplement (which may be delivered in accordance with Rule 172 under the Securities Act).

(b)

On or prior to the Closing Date, each Purchaser shall deliver or cause to be delivered to the Company the following:

(i)

this Agreement duly executed by such Purchaser; and

(ii)

such Purchaser’s Subscription Amount by wire transfer to the account specified in writing by the Company.

2.3

Closing Conditions. 

(a)

The obligations of the Company hereunder in connection with the Closing are subject to the following conditions being met:

(i)

the accuracy in all material respects (or, to the extent representations or warranties are qualified by materiality or Material Adverse Effect, in all respects) on the Closing Date of the representations and warranties of the Purchasers contained herein (unless as of a specific date therein in which case they shall be accurate as of such date); 

(ii)

all obligations, covenants and agreements of each Purchaser required to be performed at or prior to the Closing Date shall have been performed; and

(iii)

the delivery by each Purchaser of the items set forth in Section 2.2(b) of this Agreement.

(b)

The respective obligations of the Purchasers hereunder in connection with the Closing are subject to the following conditions being met:

(i)

the accuracy in all material respects (or, to the extent representations or warranties are qualified by materiality or Material Adverse Effect, in all respects) when made and on the Closing Date of the representations and warranties of the Company contained herein (unless as of a specific date therein, in which case they shall be accurate as of such date);

(ii)

all obligations, covenants and agreements of the Company required to be performed at or prior to the Closing Date shall have been performed; 

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(iii)

the delivery by the Company of the items set forth in Section 2.2(a) of this Agreement; 

(iv)

there shall have been no Material Adverse Effect with respect to the Company since the date hereof; and

(v)

from the date hereof to the Closing Date, trading in the Common Stock shall not have been suspended by the Commission or the Company’s principal Trading Market, and, at any time prior to the Closing Date, trading in securities generally as reported by Bloomberg L.P. shall not have been suspended or limited, or minimum prices shall not have been established on securities whose trades are reported by such service, or on any Trading Market, nor shall a banking moratorium have been declared either by the United States or New York State authorities nor shall there have occurred any material outbreak or escalation of hostilities or other national or international calamity of such magnitude in its effect on, or any material adverse change in, any financial market which, in each case, in the reasonable judgment of such Purchaser, makes it impracticable or inadvisable to purchase the Securities at the Closing.

ARTICLE III.

REPRESENTATIONS AND WARRANTIES

3.1

Representations and Warranties of the Company.  Except as set forth in the Disclosure Schedules, which Disclosure Schedules shall be deemed a part hereof and shall qualify any representation or otherwise made herein to the extent of the disclosure contained in the corresponding section of the Disclosure Schedules, the Company hereby makes the following representations and warranties to each Purchaser:

(a)

Subsidiaries.  All of the direct and indirect subsidiaries of the Company are set forth on Schedule 3.1(a).  The Company owns, directly or indirectly, all of the capital stock or other equity interests of each Subsidiary free and clear of any Liens, and all of the issued and outstanding shares of capital stock of each Subsidiary are validly issued and are fully paid, non-assessable and free of preemptive and similar rights to subscribe for or purchase securities.  If the Company has no subsidiaries, all other references to the Subsidiaries or any of them in the Transaction Documents shall be disregarded.

(b)

Organization and Qualification.  The Company and each of the Subsidiaries is an entity duly incorporated or otherwise organized, validly existing and in good standing under the laws of the jurisdiction of its incorporation or organization, with the requisite power and authority to own and use its properties and assets and to carry on its business as currently conducted.  Neither the Company nor any Subsidiary is in violation nor default of any of the provisions of its respective certificate or articles of incorporation, bylaws or other organizational or charter documents.  Each of the Company and the Subsidiaries is duly qualified to conduct business and is in good standing as a foreign corporation or other entity in each jurisdiction in which the nature of the business conducted or property owned by it makes such qualification necessary, 

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except where the failure to be so qualified or in good standing, as the case may be, could not have or reasonably be expected to result in: (i) a material adverse effect on the legality, validity or enforceability of any Transaction Document, (ii) a material adverse effect on the results of operations, assets, business, prospects or condition (financial or otherwise) of the Company and the Subsidiaries, taken as a whole, or (iii) a material adverse effect on the Company’s ability to perform in any material respect on a timely basis its obligations under any Transaction Document (any of (i), (ii) or (iii), a “Material Adverse Effect”) and no Proceeding has been instituted in any such jurisdiction revoking, limiting or curtailing or seeking to revoke, limit or curtail such power and authority or qualification.

(c)

Authorization; Enforcement.  The Company has the requisite corporate power and authority to enter into and to consummate the transactions contemplated by this Agreement and each of the other Transaction Documents and otherwise to carry out its obligations hereunder and thereunder.  The execution and delivery of this Agreement and each of the other Transaction Documents by the Company and the consummation by it of the transactions contemplated hereby and thereby have been duly authorized by all necessary action on the part of the Company and no further action is required by the Company, the Board of Directors or the Company’s stockholders in connection herewith or therewith other than in connection with the Required Approvals.  This Agreement and each other Transaction Document to which it is a party has been (or upon delivery will have been) duly executed by the Company and, when delivered in accordance with the terms hereof and thereof, will constitute the valid and binding obligation of the Company enforceable against the Company in accordance with its terms, except (i) as limited by general equitable principles and applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting enforcement of creditors’ rights generally, (ii) as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies and (iii) insofar as indemnification and contribution provisions may be limited by applicable law.

(d)

No Conflicts.  The execution, delivery and performance by the Company of this Agreement and the other Transaction Documents to which it is a party, the issuance and sale of the Securities and the consummation by it of the transactions contemplated hereby and thereby do not and will not (i) conflict with or violate any provision of the Company’s or any Subsidiary’s certificate or articles of incorporation, bylaws or other organizational or charter documents, or (ii) conflict with, or constitute a default (or an event that with notice or lapse of time or both would become a default) under, result in the creation of any Lien upon any of the properties or assets of the Company or any Subsidiary, or give to others any rights of termination, amendment, acceleration or cancellation (with or without notice, lapse of time or both) of, any agreement, credit facility, debt or other instrument (evidencing a Company or Subsidiary debt or otherwise) or other understanding to which the Company or any Subsidiary is a party or by which any property or asset of the Company or any Subsidiary is bound or affected, or (iii) subject to the Required Approvals, conflict with or result in a violation of any law, rule, regulation, order, judgment, injunction, decree or other restriction of any court or governmental authority to which the Company or a Subsidiary is subject (including federal and state securities laws and regulations), or by which any property or 

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asset of the Company or a Subsidiary is bound or affected; except in the case of each of clauses (ii) and (iii), such as could not have or reasonably be expected to result in a Material Adverse Effect.

(e)

Filings, Consents and Approvals.  The Company is not required to obtain any consent, waiver, authorization or order of, give any notice to, or make any filing or registration with, any court or other federal, state, local or other governmental authority or other Person in connection with the execution, delivery and performance by the Company of the Transaction Documents, other than: (i) the filings required pursuant to Section 4.4 of this Agreement, (ii) the filing with the Commission of the Prospectus Supplement, (iii) application(s) to each applicable Trading Market for the listing of the Shares for trading thereon in the time and manner required thereby and (iv) such filings as are required to be made under applicable state securities laws (collectively, the “Required Approvals”).

(f)

Issuance of the Securities; Registration.  The Securities are duly authorized and, when issued and paid for in accordance with the applicable Transaction Documents, will be duly and validly issued, fully paid and nonassessable, free and clear of all Liens imposed by the Company. The Company has reserved from its duly authorized capital stock the maximum number of shares of Common Stock issuable pursuant to this Agreement. The Company has prepared and filed the Registration Statement in conformity with the requirements of the Securities Act, which became effective on December 19, 2017 (the “Effective Date”), including the Prospectus, and such amendments and supplements thereto as may have been required to the date of this Agreement.  The Registration Statement is effective under the Securities Act and no stop order preventing or suspending the effectiveness of the Registration Statement or suspending or preventing the use of the Prospectus has been issued by the Commission and no proceedings for that purpose have been instituted or, to the knowledge of the Company, are threatened by the Commission.  The Company, if required by the rules and regulations of the Commission, shall file the Prospectus with the Commission pursuant to Rule 424(b).  At the time the Registration Statement and any amendments thereto became effective, at the date of this Agreement and at the Closing Date, the Registration Statement and any amendments thereto conformed and will conform in all material respects to the requirements of the Securities Act and did not and will not contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein not misleading; and the Prospectus and any amendments or supplements thereto, at time the Prospectus or any amendment or supplement thereto was issued and at the Closing Date, conformed and will conform in all material respects to the requirements of the Securities Act and did not and will not contain an untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading.

(g)

Capitalization.  The capitalization of the Company is as set forth on Schedule 3.1(g).  The Company has not issued any capital stock since its most recently filed periodic report under the Exchange Act, other than pursuant to the exercise of employee stock options under the Company’s stock option plans, the issuance of shares 

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of Common Stock to employees pursuant to the Company’s employee stock purchase plans and pursuant to the conversion and/or exercise of Common Stock Equivalents outstanding as of the date of the most recently filed periodic report under the Exchange Act.  Except as set forth on Schedule 3.1(g), no Person has any right of first refusal, preemptive right, right of participation, or any similar right to participate in the transactions contemplated by the Transaction Documents.  Except as set forth in the SEC Reports, the issuance and sale of the Securities will not obligate the Company or any Subsidiary to issue shares of Common Stock or other securities to any Person (other than the Purchasers) and will not result in a right of any holder of Company securities to adjust the exercise, conversion, exchange or reset price under any of such securities. Other than as set forth in the SEC Reports, there are no outstanding securities or instruments of the Company or any Subsidiary that contain any redemption or similar provisions, and there are no contracts, commitments, understandings or arrangements by which the Company or any Subsidiary is or may become bound to redeem a security of the Company or such Subsidiary. The Company does not have any stock appreciation rights or “phantom stock” plans or agreements or any similar plan or agreement. All of the outstanding shares of capital stock of the Company are duly authorized, validly issued, fully paid and nonassessable, have been issued in compliance with all federal and state securities laws, and none of such outstanding shares was issued in violation of any preemptive rights or similar rights to subscribe for or purchase securities.  No further approval or authorization of any stockholder, the Board of Directors or others is required for the issuance and sale of the Securities.  Except as set forth in the SEC Reports, there are no stockholders agreements, voting agreements or other similar agreements with respect to the Company’s capital stock to which the Company is a party or, to the knowledge of the Company, between or among any of the Company’s stockholders.

(h)

SEC Reports; Financial Statements.  The Company has filed all reports, schedules, forms, statements and other documents required to be filed by the Company under the Securities Act and the Exchange Act, including pursuant to 15(d) thereof, for the two years preceding the date hereof (or such shorter period as the Company was required by law or regulation to file such material) (the foregoing materials, including the exhibits thereto and documents incorporated by reference therein, together with the Prospectus and the Prospectus Supplement, being collectively referred to herein as the “SEC Reports”) on a timely basis or has received a valid extension of such time of filing and has filed any such SEC Reports prior to the expiration of any such extension.  As of their respective dates, the SEC Reports complied in all material respects with the requirements of the Securities Act and the Exchange Act, as applicable, and none of the SEC Reports, when filed, contained any untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading. The financial statements of the Company included in the SEC Reports comply in all material respects with applicable accounting requirements and the rules and regulations of the Commission with respect thereto as in effect at the time of filing.  Such financial statements have been prepared in accordance with United States generally accepted accounting principles applied on a consistent basis during the periods involved (“GAAP”), except as may be otherwise specified in such financial statements or the notes thereto and except that unaudited financial statements may not contain all footnotes 

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required by GAAP, and fairly present in all material respects the financial position of the Company and its consolidated Subsidiaries as of and for the dates thereof and the results of operations and cash flows for the periods then ended, subject, in the case of unaudited statements, to normal, immaterial, year-end audit adjustments.

(i)

Material Changes; Undisclosed Events, Liabilities or Developments.  Since the date of the latest audited financial statements included within the SEC Reports, except as specifically disclosed in a subsequent SEC Report filed prior to the date hereof, (i) there has been no event, occurrence or development that has had or that could reasonably be expected to result in a Material Adverse Effect, (ii) the Company has not incurred any liabilities (contingent or otherwise) other than (A) trade payables and accrued expenses incurred in the ordinary course of business consistent with past practice and (B) liabilities not required to be reflected in the Company’s financial statements pursuant to GAAP or disclosed in filings made with the Commission, (iii) the Company has not altered its method of accounting, (iv) the Company has not declared or made any dividend or distribution of cash or other property to its stockholders or purchased, redeemed or made any agreements to purchase or redeem any shares of its capital stock and (v) the Company has not issued any equity securities to any officer, director or Affiliate, except pursuant to existing Company stock option plans.  The Company does not have pending before the Commission any request for confidential treatment of information.  Except for the issuance of the Securities contemplated by this Agreement or as set forth on Schedule 3.1(i), no event, liability, fact, circumstance, occurrence or development has occurred or exists or is reasonably expected to occur or exist with respect to the Company or its Subsidiaries or their respective businesses, prospects, properties, operations, assets or financial condition that would be required to be disclosed by the Company under applicable securities laws at the time this representation is made or deemed made that has not been publicly disclosed at least 1 Trading Day prior to the date that this representation is made.

(j)

Litigation.  There is no material  action, suit, inquiry, notice of violation, proceeding or investigation pending or, to the knowledge of the Company, threatened against or affecting the Company, any Subsidiary or any of their respective properties before or by any court, arbitrator, governmental or administrative agency or regulatory authority (federal, state, county, local or foreign) (collectively, an “Action”) which (i) adversely affects or challenges the legality, validity or enforceability of any of the Transaction Documents or the Securities or (ii) could, if there were an unfavorable decision, have or reasonably be expected to result in a Material Adverse Effect.  Neither the Company nor any Subsidiary, nor any director or officer thereof, is or has been the subject of any Action involving a claim of violation of or liability under federal or state securities laws or a claim of breach of fiduciary duty.  There has not been, and to the knowledge of the Company, there is not pending or contemplated, any investigation by the Commission involving the Company or any current or former director or officer of the Company.  The Commission has not issued any stop order or other order suspending the effectiveness of any registration statement filed by the Company or any Subsidiary under the Exchange Act or the Securities Act.  

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(k)

Labor Relations.  No material labor dispute exists or, to the knowledge of the Company, is imminent with respect to any of the employees of the Company, which could reasonably be expected to result in a Material Adverse Effect.  None of the Company’s or its Subsidiaries’ employees is a member of a union that relates to such employee’s relationship with the Company or such Subsidiary, and neither the Company nor any of its Subsidiaries is a party to a collective bargaining agreement, and the Company and its Subsidiaries believe that their relationships with their employees are good.  To the knowledge of the Company, no executive officer of the Company or any Subsidiary, is, or is now expected to be, in violation of any material term of any employment contract, confidentiality, disclosure or proprietary information agreement or non-competition agreement, or any other contract or agreement or any restrictive covenant in favor of any third party, and the continued employment of each such executive officer does not subject the Company or any of its Subsidiaries to any liability with respect to any of the foregoing matters.  The Company and its Subsidiaries are in compliance with all U.S. federal, state, local and foreign laws and regulations relating to employment and employment practices, terms and conditions of employment and wages and hours, except where the failure to be in compliance could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

(l)

Compliance.  Neither the Company nor any Subsidiary: (i) is in default under or in violation of (and no event has occurred that has not been waived that, with notice or lapse of time or both, would result in a default by the Company or any Subsidiary under), nor has the Company or any Subsidiary received notice of a claim that it is in default under or that it is in violation of, any indenture, loan or credit agreement or any other agreement or instrument to which it is a party or by which it or any of its properties is bound (whether or not such default or violation has been waived), (ii) is in violation of any judgment, decree or order of any court, arbitrator or other governmental authority or (iii) is or has been in violation of any statute, rule, ordinance or regulation of any governmental authority, including without limitation all foreign, federal, state and local laws relating to taxes, environmental protection, occupational health and safety, product quality and safety and employment and labor matters, except in each case as could not have or reasonably be expected to result in a Material Adverse Effect.

(m)

Environmental Laws.

The Company and its Subsidiaries (i) are in compliance with all federal, state, local and foreign laws relating to pollution or protection of human health or the environment (including ambient air, surface water, groundwater, land surface or subsurface strata), including laws relating to emissions, discharges, releases or threatened releases of chemicals, pollutants, contaminants, or toxic or hazardous substances or wastes (collectively, “Hazardous Materials”) into the environment, or otherwise relating to the manufacture, processing, distribution, use, treatment, storage, disposal, transport or handling of Hazardous Materials, as well as all authorizations, codes, decrees, demands, or demand letters, injunctions, judgments, licenses, notices or notice letters, orders, permits, plans or regulations, issued, entered, promulgated or approved thereunder (“Environmental Laws”); (ii) have received all permits licenses or other approvals required of them under applicable Environmental Laws to conduct their respective businesses; and (iii) are in compliance with all terms and conditions of any such permit, license or approval where in each clause (i), (ii) and (iii), 

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the failure to so comply could be reasonably expected to have, individually or in the aggregate, a Material Adverse Effect.

(n)

Regulatory Permits.  The Company and the Subsidiaries possess all certificates, authorizations and permits issued by the appropriate federal, state, local or foreign regulatory authorities necessary to conduct their respective businesses as described in the SEC Reports, except where the failure to possess such permits could not reasonably be expected to result in a Material Adverse Effect (“Material Permits”), and neither the Company nor any Subsidiary has received any notice of proceedings relating to the revocation or modification of any Material Permit.

(o)

Title to Assets.  The Company and the Subsidiaries have good and marketable title in fee simple to all real property owned by them and good and marketable title in all personal property owned by them that is material to the business of the Company and the Subsidiaries, in each case free and clear of all Liens, except for (i) Liens as do not materially affect the value of such property and do not materially interfere with the use made and proposed to be made of such property by the Company and the Subsidiaries and (ii) Liens for the payment of federal, state or other taxes, for which appropriate reserves have been made therefor in accordance with GAAP and, the payment of which is neither delinquent nor subject to penalties.  Any real property and facilities held under lease by the Company and the Subsidiaries are held by them under valid, subsisting and enforceable leases with which the Company and the Subsidiaries are in compliance.

(p)

Intellectual Property.  The Company and the Subsidiaries have, or have rights to use, all patents, patent applications, trademarks, trademark applications, service marks, trade names, trade secrets, inventions, copyrights, licenses and other intellectual property rights and similar rights necessary or required for use in connection with their respective businesses as described in the SEC Reports and which the failure to so have could have a Material Adverse Effect (collectively, the “Intellectual Property Rights”).  None of, and neither the Company nor any Subsidiary has received a notice (written or otherwise) that any of, the Intellectual Property Rights has expired, terminated or been abandoned, or is expected to expire or terminate or be abandoned, within two (2) years from the date of this Agreement, except with respect to possible expirations of existing granted patents.  Neither the Company nor any Subsidiary has received, since the date of the latest audited financial statements included within the SEC Reports, a written notice of a claim or otherwise has any knowledge that the Intellectual Property Rights violate or infringe upon the rights of any Person, except as could not have or reasonably be expected to not have a Material Adverse Effect.  To the knowledge of the Company, all such Intellectual Property Rights are enforceable and there is no existing infringement by another Person of any of the Intellectual Property Rights.  The Company and its Subsidiaries have taken reasonable security measures to protect the secrecy, confidentiality and value of all of their intellectual properties, except where failure to do so could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

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(q)

Insurance.  The Company and the Subsidiaries are insured by insurers of recognized financial responsibility against such losses and risks and in such amounts as are prudent and customary in the businesses in which the Company and the Subsidiaries are engaged, including, but not limited to, directors and officers insurance coverage at least equal to $5,000,000.  Neither the Company nor any Subsidiary has any reason to believe that it will not be able to renew its existing insurance coverage as and when such coverage expires or to obtain similar coverage from similar insurers as may be necessary to continue its business without a significant increase in cost.

(r)

Transactions With Affiliates and Employees.  Except as set forth in the SEC Reports, none of the officers or directors of the Company or any Subsidiary and, to the knowledge of the Company, none of the employees of the Company or any Subsidiary is presently a party to any transaction with the Company or any Subsidiary (other than for services as employees, officers and directors), including any contract, agreement or other arrangement providing for the furnishing of services to or by, providing for rental of real or personal property to or from, providing for the borrowing of money from or lending of money to or otherwise requiring payments to or from any officer, director or such employee or, to the knowledge of the Company, any entity in which any officer, director, or any such employee has a substantial interest or is an officer, director, trustee, stockholder, member or partner, in each case in excess of $120,000 other than for (i) payment of salary or consulting fees for services rendered, (ii) reimbursement for expenses incurred on behalf of the Company and (iii) other employee benefits, including stock option agreements under any stock option plan of the Company.

(s)

Sarbanes-Oxley; Internal Accounting Controls.  The Company and the Subsidiaries are in compliance with any and all applicable requirements of the Sarbanes-Oxley Act of 2002 that are effective as of the date hereof, and any and all applicable rules and regulations promulgated by the Commission thereunder that are effective as of the date hereof and as of the Closing Date.  Except as disclosed in the SEC Reports, the Company and the Subsidiaries maintain a system of internal accounting controls sufficient to provide reasonable assurance that: (i) transactions are executed in accordance with management’s general or specific authorizations, (ii) transactions are recorded as necessary to permit preparation of financial statements in conformity with GAAP and to maintain asset accountability, (iii) access to assets is permitted only in accordance with management’s general or specific authorization, and (iv) the recorded accountability for assets is compared with the existing assets at reasonable intervals and appropriate action is taken with respect to any differences. Except as disclosed in the SEC Reports, tthe Company and the Subsidiaries have established disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the Company and the Subsidiaries and designed such disclosure controls and procedures to ensure that information required to be disclosed by the Company in the reports it files or submits under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the Commission’s rules and forms.  The Company’s certifying officers have evaluated the effectiveness of the disclosure controls and procedures of the Company and the Subsidiaries as of the end of the period covered by the Company’s  most recently filed periodic report under the Exchange Act (such date, the “Evaluation Date”).  The Company presented in its most recently filed periodic report under the 

13

Exchange Act the conclusions of the certifying officers about the effectiveness of the disclosure controls and procedures based on their evaluations as of the Evaluation Date.  Since the Evaluation Date, there have been no changes in the internal control over financial reporting (as such term is defined in the Exchange Act) of the Company and its Subsidiaries that have materially affected, or is reasonably likely to materially affect, the internal control over financial reporting of the Company and its Subsidiaries.

(t)

Certain Fees.  Except as set forth in the Prospectus Supplement, no brokerage or finder’s fees or commissions are or will be payable by the Company or any Subsidiary to any broker, financial advisor or consultant, finder, placement agent, investment banker, bank or other Person with respect to the transactions contemplated by the Transaction Documents.  The Purchasers shall have no obligation with respect to any fees or with respect to any claims made by or on behalf of other Persons for fees of a type contemplated in this Section that may be due in connection with the transactions contemplated by the Transaction Documents.

(u)

Investment Company. The Company is not, and is not an Affiliate of, and immediately after receipt of payment for the Securities, will not be or be an Affiliate of, an “investment company” within the meaning of the Investment Company Act of 1940, as amended.  The Company shall conduct its business in a manner so that it will not become an “investment company” subject to registration under the Investment Company Act of 1940, as amended.

(v)

Registration Rights.  Except as set forth in schedule 3.1(v), no Person has any right to cause the Company or any Subsidiary to effect the registration under the Securities Act of any securities of the Company or any Subsidiary.

(w)

Listing and Maintenance Requirements.   The Company has not, in the 12 months preceding the date hereof, received notice from any Trading Market on which the Common Stock is or has been listed or quoted to the effect that the Company is not in compliance with the listing or maintenance requirements of such Trading Market. The Company is, and has no reason to believe that it will not in the foreseeable future continue to be, in compliance with all such listing and maintenance requirements. 

(x)

Reserved.   

(y)

Disclosure.  Except with respect to the material terms and conditions of the transactions contemplated by the Transaction Documents, the Company confirms that neither it nor any other Person acting on its behalf has provided any of the Purchasers or their agents or counsel with any information that it believes constitutes or might constitute material, non-public information which is not otherwise disclosed in the Prospectus Supplement.   The Company understands and confirms that the Purchasers will rely on the foregoing representation in effecting transactions in securities of the Company.  All of the disclosure furnished by or on behalf of the Company to the Purchasers regarding the Company and its Subsidiaries, their respective businesses and the transactions contemplated hereby, including the Disclosure Schedules to this Agreement, is true and correct and does not contain any untrue statement of a material 

14

fact or omit to state any material fact necessary in order to make the statements made therein, in light of the circumstances under which they were made, not misleading. The press releases disseminated by the Company during the twelve months preceding the date of this Agreement taken as a whole do not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary in order to make the statements therein, in light of the circumstances under which they were made and when made, not misleading.  The Company acknowledges and agrees that no Purchaser makes or has made any representations or warranties with respect to the transactions contemplated hereby other than those specifically set forth in Section 3.2 hereof.

(z)

No Integrated Offering. Assuming the accuracy of the Purchasers’ representations and warranties set forth in Section 3.2, neither the Company, nor any of its Affiliates, nor any Person acting on its or their behalf has, directly or indirectly, made any offers or sales of any security or solicited any offers to buy any security, under circumstances that would cause this offering of the Securities to be integrated with prior offerings by the Company for purposes of any applicable shareholder approval provisions of any Trading Market on which any of the securities of the Company are listed or designated.

(aa)

Solvency.  Based on the consolidated financial condition of the Company as of the Closing Date, after giving effect to the receipt by the Company of the proceeds from the sale of the Securities hereunder, (i) the fair saleable value of the Company’s assets exceeds the amount that will be required to be paid on or in respect of the Company’s existing debts and other liabilities (including known contingent liabilities) as they mature, (ii) the Company’s assets do not constitute unreasonably small capital to carry on its business as now conducted and as proposed to be conducted including its capital needs taking into account the particular capital requirements of the business conducted by the Company, consolidated and projected capital requirements and capital availability thereof, and (iii) the current cash flow of the Company, together with the proceeds the Company would receive, were it to liquidate all of its assets, after taking into account all anticipated uses of the cash, would be sufficient to pay all amounts on or in respect of its liabilities when such amounts are required to be paid.  The Company does not intend to incur debts beyond its ability to pay such debts as they mature (taking into account the timing and amounts of cash to be payable on or in respect of its debt).  The Company has no knowledge of any facts or circumstances which lead it to believe that it will file for reorganization or liquidation under the bankruptcy or reorganization laws of any jurisdiction within one year from the Closing Date.  Schedule 3.1(aa) sets forth as of the date hereof all outstanding secured and unsecured Indebtedness of the Company or any Subsidiary, or for which the Company or any Subsidiary has commitments.  For the purposes of this Agreement, “Indebtedness” means (x) any liabilities for borrowed money or amounts owed in excess of $250,000 (other than trade accounts payable incurred in the ordinary course of business), (y) all guaranties, endorsements and other contingent obligations in respect of indebtedness of others, whether or not the same are or should be reflected in the Company’s consolidated balance sheet (or the notes thereto), except guaranties by endorsement of negotiable instruments for deposit or collection or similar transactions in the ordinary course of business; and (z) the present value of any lease payments in excess of $250,000 due under leases required 

15

to be capitalized in accordance with GAAP.  Neither the Company nor any Subsidiary is in default with respect to any Indebtedness.

(bb)

Tax Status.  Except for matters that would not, individually or in the aggregate, have or reasonably be expected to result in a Material Adverse Effect, the Company and its Subsidiaries each (i) has made or filed all United States federal, state and local income and all foreign income and franchise tax returns, reports and declarations required by any jurisdiction to which it is subject, (ii) has paid all taxes and other governmental assessments and charges that are material in amount, shown or determined to be due on such returns, reports and declarations and (iii) has set aside on its books provision reasonably adequate for the payment of all material taxes for periods subsequent to the periods to which such returns, reports or declarations apply.  There are no unpaid taxes in any material amount claimed to be due by the taxing authority of any jurisdiction, and the officers of the Company or of any Subsidiary know of no basis for any such claim.

(cc)

Foreign Corrupt Practices.  Neither the Company nor any Subsidiary, nor to the knowledge of the Company or any Subsidiary, any agent or other person acting on behalf of the Company or any Subsidiary, has (i) directly or indirectly, used any funds for unlawful contributions, gifts, entertainment or other unlawful expenses related to foreign or domestic political activity, (ii) made any unlawful payment to foreign or domestic government officials or employees or to any foreign or domestic political parties or campaigns from corporate funds, (iii) failed to disclose fully any contribution made by the Company or any Subsidiary (or made by any person acting on its behalf of which the Company is aware) which is in violation of law, or (iv) violated in any material respect any provision of FCPA.

(dd)

Accountants.  The Company’s accounting firm is set forth on Schedule 3.1(dd) of the Disclosure Schedules.  To the knowledge and belief of the Company, such accounting firm (i) is a registered public accounting firm as required by the Exchange Act and (ii) shall express its opinion with respect to the financial statements to be included in the Company’s Annual Report for the fiscal year ending March 31, 2017.  

(ee)

 Acknowledgment Regarding Purchasers’ Purchase of Securities.  The Company acknowledges and agrees that each of the Purchasers is acting solely in the capacity of an arm’s length purchaser with respect to the Transaction Documents and the transactions contemplated thereby.  The Company further acknowledges that no Purchaser is acting as a financial advisor or fiduciary of the Company (or in any similar capacity) with respect to the Transaction Documents and the transactions contemplated thereby and any advice given by any Purchaser or any of their respective representatives or agents in connection with the Transaction Documents and the transactions contemplated thereby is merely incidental to the Purchasers’ purchase of the Securities.  The Company further represents to each Purchaser that the Company’s decision to enter into this Agreement and the other Transaction Documents has been based solely on the independent evaluation of the transactions contemplated hereby by the Company and its representatives.

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(ff)

Acknowledgement Regarding Purchaser’s Trading Activity

..  Except as set forth in this Agreement, it is understood and acknowledged by the Company that: (i) none of the Purchasers has been asked by the Company to agree, nor has any Purchaser agreed, to desist from purchasing or selling, long and/or short, securities of the Company, or “derivative” securities based on securities issued by the Company or to hold the Securities for any specified term; (ii) past or future open market or other transactions by any Purchaser, specifically including, without limitation, Short Sales or “derivative” transactions, before or after the closing of this or future private placement transactions, may negatively impact the market price of the Company’s publicly-traded securities; (iii) any Purchaser, and counter-parties in “derivative” transactions to which any such Purchaser is a party, directly or indirectly, presently may have a “short” position in the Common Stock, and (iv) each Purchaser shall not be deemed to have any affiliation with or control over any arm’s length counter-party in any “derivative” transaction.  

The Company further understands and acknowledges that except as prohibited by this Agreement (y) one or more Purchasers may engage in hedging activities at various times during the period that the Securities are outstanding, and (z) such hedging activities (if any) could reduce the value of the existing stockholders' equity interests in the Company at and after the time that the hedging activities are being conducted.  The Company acknowledges that such aforementioned hedging activities do not constitute a breach of any of the Transaction Documents.

(gg)

Regulation M Compliance.  The Company has not, and to its knowledge no one acting on its behalf has, (i) taken, directly or indirectly, any action designed to cause or to result in the stabilization or manipulation of the price of any security of the Company to facilitate the sale or resale of any of the Securities, (ii) sold, bid for, purchased, or, paid any compensation for soliciting purchases of, any of the Securities, or (iii) paid or agreed to pay to any Person any compensation for soliciting another to purchase any other securities of the Company, other than, in the case of clauses (ii) and (iii), compensation paid to the Company’s placement agent in connection with the placement of the Securities.

(hh)

Office of Foreign Assets Control.  Neither the Company nor any Subsidiary nor, to the Company's knowledge, any director, officer, agent, employee or affiliate of the Company  or any Subsidiary is currently subject to any U.S. sanctions administered by the Office of Foreign Assets Control of the U.S. Treasury Department (“OFAC”).

(ii)

U.S. Real Property Holding Corporation.  The Company is not and has never been a U.S. real property holding corporation within the meaning of Section 897 of the Internal Revenue Code of 1986, as amended, and the Company shall so certify upon Purchaser’s request.

(jj)

Bank Holding Company Act.  Neither the Company nor any of its Subsidiaries or Affiliates is subject to the Bank Holding Company Act of 1956, as amended (the “BHCA”) and to regulation by the Board of Governors of the Federal Reserve System (the “Federal Reserve”).  Neither the Company nor any of its Subsidiaries or Affiliates owns or controls, directly or indirectly, five percent (5%) or more of the outstanding shares of any class of voting securities or twenty-five percent or more of the total equity of a bank or any 

17

entity that is subject to the BHCA and to regulation by the Federal Reserve.  Neither the Company nor any of its Subsidiaries or Affiliates exercises a controlling influence over the management or policies of a bank or any entity that is subject to the BHCA and to regulation by the Federal Reserve.

(kk)

Money Laundering.  The operations of the Company and its Subsidiaries are and have been conducted at all times in compliance with applicable financial record-keeping and reporting requirements of the Currency and Foreign Transactions Reporting Act of 1970, as amended, applicable money laundering statutes and applicable rules and regulations thereunder (collectively, the “Money Laundering Laws”), and no Action or Proceeding by or before any court or governmental agency, authority or body or any arbitrator involving the Company or any Subsidiary with respect to the Money Laundering Laws is pending or, to the knowledge of the Company or any Subsidiary, threatened.

3.2

Representations and Warranties of the Purchasers.  Each Purchaser, for itself and for no other Purchaser, hereby represents and warrants as of the date hereof and as of the Closing Date to the Company as follows (unless as of a specific date therein):

(a)

Organization; Authority.  Such Purchaser is either an individual or an entity duly incorporated or formed, validly existing and in good standing under the laws of the jurisdiction of its incorporation or formation with full right, corporate, partnership, limited liability company or similar power and authority to enter into and to consummate the transactions contemplated by this Agreement and otherwise to carry out its obligations hereunder and thereunder. The execution and delivery of this Agreement and performance by such Purchaser of the transactions contemplated by this Agreement have been duly authorized by all necessary corporate, partnership, limited liability company or similar action, as applicable, on the part of such Purchaser.  Each Transaction Document to which it is a party has been duly executed by such Purchaser, and when delivered by such Purchaser in accordance with the terms hereof, will constitute the valid and legally binding obligation of such Purchaser, enforceable against it in accordance with its terms, except: (i) as limited by general equitable principles and applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting enforcement of creditors’ rights generally, (ii) as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies and (iii) insofar as indemnification and contribution provisions may be limited by applicable law.

(b)

Understandings or Arrangements.  Such Purchaser is acquiring the Securities as principal for its own account and has no direct or indirect arrangement or understandings with any other persons to distribute or regarding the distribution of such Securities (this representation and warranty not limiting such Purchaser’s right to sell the Securities pursuant to the Registration Statement or otherwise in compliance with applicable federal and state securities laws).  Such Purchaser is acquiring the Securities hereunder in the ordinary course of its business.

(c)

Purchaser Status.  At the time such Purchaser was offered the Securities, it was, and as of the date hereof is either: (i) an “accredited investor” as defined in Rule 

18

501(a)(1), (a)(2), (a)(3), (a)(7) or (a)(8) under the Securities Act or (ii) a “qualified institutional buyer” as defined in Rule 144A(a) under the Securities Act.  

(d)

Experience of Such Purchaser.  Such Purchaser, either alone or together with its representatives, has such knowledge, sophistication and experience in business and financial matters so as to be capable of evaluating the merits and risks of the prospective investment in the Securities, and has so evaluated the merits and risks of such investment.  Such Purchaser is able to bear the economic risk of an investment in the Securities and, at the present time, is able to afford a complete loss of such investment.

(e)

Access to Information. Such Purchaser acknowledges that it has had the opportunity to review the Transaction Documents (including all exhibits and schedules thereto) and the SEC Reports and has been afforded, (i) the opportunity to ask such questions as it has deemed necessary of, and to receive answers from, representatives of the Company concerning the terms and conditions of the offering of the Securities and the merits and risks of investing in the Securities; (ii) access to information about the Company and its financial condition, results of operations, business, properties, management and prospects sufficient to enable it to evaluate its investment; and (iii) the opportunity to obtain such additional information that the Company possesses or can acquire without unreasonable effort or expense that is necessary to make an informed investment decision with respect to the investment.  Such Purchaser acknowledges and agrees that neither the Company nor any Affiliate of the Company has provided such Purchaser with any information or advice with respect to the Securities nor is such information or advice necessary or desired.  

(f)

Certain Transactions and Confidentiality.  Other than consummating the transactions contemplated hereunder, such Purchaser has not, nor has any Person acting on behalf of or pursuant to any understanding with such Purchaser, directly or indirectly executed any purchases or sales, including Short Sales, of the securities of the Company during the period commencing as of the time that such Purchaser first received a term sheet (written or oral) from the Company or any other Person representing the Company setting forth the material pricing terms of the transactions contemplated hereunder and ending immediately prior to the execution hereof.  Notwithstanding the foregoing, in the case of a Purchaser that is a multi-managed investment vehicle whereby separate portfolio managers manage separate portions of such Purchaser’s assets and the portfolio managers have no direct knowledge of the investment decisions made by the portfolio managers managing other portions of such Purchaser’s assets, the representation set forth above shall only apply with respect to the portion of assets managed by the portfolio manager that made the investment decision to purchase the Securities covered by this Agreement.  Other than to other Persons party to this Agreement or to such Purchaser’s representatives, including, without limitation, its officers, directors, partners, legal and other advisors, employees, agents and Affiliates, such Purchaser has maintained the confidentiality of all disclosures made to it in connection with this transaction (including the existence and terms of this transaction). Notwithstanding the foregoing, for avoidance of doubt, nothing contained herein shall constitute a representation or warranty, or preclude any actions, with respect to the identification of the availability of, or securing of, available shares to borrow in order to effect Short Sales or similar transactions in the future.

19

The Company acknowledges and agrees that the representations contained in this Section 3.2 shall not modify, amend or affect such Purchaser’s right to rely on the Company’s representations and warranties contained in this Agreement or any representations and warranties contained in any other Transaction Document or any other document or instrument executed and/or delivered in connection with this Agreement or the consummation of the transaction contemplated hereby.

ARTICLE IV.

OTHER AGREEMENTS OF THE PARTIES

4.1

Furnishing of Information.  Until the earliest of the time that (i) no Purchaser owns Securities or the Company covenants to timely file (or obtain extensions in respect thereof and file within the applicable grace period) all reports required to be filed by the Company after the date hereof pursuant to the Exchange Act even if the Company is not then subject to the reporting requirements of the Exchange Act.  

4.2

Integration.  The Company shall not sell, offer for sale or solicit offers to buy or otherwise negotiate in respect of any security (as defined in Section 2 of the Securities Act) that would be integrated with the offer or sale of the Securities for purposes of the rules and regulations of any Trading Market such that it would require shareholder approval prior to the closing of such other transaction unless shareholder approval is obtained before the closing of such subsequent transaction. 

4.3

Securities Laws Disclosure; Publicity.  Th Company shall (a) by 9:00 a.m. (New York City time) on the Trading Day immediately following the date hereof, issue a press release disclosing the material terms of the transactions contemplated hereby, and (b) file a Current Report on Form 8-K, including the Transaction Documents as exhibits thereto, with the Commission within the time required by the Exchange Act.  From and after the issuance of such press release, the Company represents to the Purchasers that it shall have publicly disclosed all material, non-public information delivered to any of the Purchasers by the Company or any of its Subsidiaries, or any of their respective officers, directors, employees or agents in connection with the transactions contemplated by the Transaction Documents.  In addition, effective upon the issuance of such press release, the Company acknowledges and agrees that any and all confidentiality or similar obligations under any agreement, whether written or oral, between the Company, any of its Subsidiaries or any of their respective officers, directors, agents, employees or Affiliates on the one hand, and any of the Purchasers or any of their Affiliates on the other hand, shall terminate. The Company and each Purchaser shall consult with each other in issuing any other press releases with respect to the transactions contemplated hereby, and neither the Company nor any Purchaser shall issue any such press release nor otherwise make any such public statement without the prior consent of the Company, with respect to any press release of any Purchaser, or without the prior consent of each Purchaser, with respect to any press release of the Company, which consent shall not unreasonably be withheld or delayed, except if such disclosure is required by law, in which case the disclosing party shall promptly provide the other party with prior notice of such public statement or communication.  Notwithstanding the foregoing, the Company shall not publicly disclose the name of any Purchaser, or include the name of any Purchaser in any filing with the Commission or any regulatory agency or Trading Market, without the prior written consent of such Purchaser, except (a) as required by federal 

20

securities law in connection with the filing of final Transaction Documents with the Commission and (b) to the extent such disclosure is required by law or Trading Market regulations, in which case the Company shall provide the Purchasers with prior notice of such disclosure permitted under this clause (b).

4.4

Shareholder Rights Plan.  No claim will be made or enforced by the Company or, with the consent of the Company, any other Person, that any Purchaser is an “Acquiring Person” under any control share acquisition, business combination, poison pill (including any distribution under a rights agreement) or similar anti-takeover plan or arrangement in effect or hereafter adopted by the Company, or that any Purchaser could be deemed to trigger the provisions of any such plan or arrangement, by virtue of receiving Securities under the Transaction Documents or under any other agreement between the Company and the Purchasers.

4.5

Non-Public Information.   Except with respect to the material terms and conditions of the transactions contemplated by the Transaction Documents, which shall be disclosed pursuant to Section 4.4, the Company covenants and agrees that neither it, nor any other Person acting on its behalf will provide any Purchaser or its agents or counsel with any information that constitutes, or the Company reasonably believes constitutes, material non-public information, unless prior thereto such Purchaser shall have consented to the receipt of such information and agreed with the Company to keep such information confidential.  The Company understands and confirms that each Purchaser shall be relying on the foregoing covenant in effecting transactions in securities of the Company.  To the extent that the Company delivers any material, non-public information to a Purchaser without such Purchaser’s consent, the Company hereby covenants and agrees that such Purchaser shall not have any duty of confidentiality to the Company, any of its Subsidiaries, or any of their respective officers, directors, agents, employees or Affiliates, or a duty to the Company, any of its Subsidiaries or any of their respective officers, directors, agents, employees or Affiliates not to trade on the basis of, such material, non-public information, provided that the Purchaser shall remain subject to applicable law. To the extent that any notice provided pursuant to any Transaction Document constitutes, or contains, material, non-public information regarding the Company or any Subsidiaries, the Company shall simultaneously file such notice with the Commission pursuant to a Current Report on Form 8-K.  The Company understands and confirms that each Purchaser shall be relying on the foregoing covenant in effecting transactions in securities of the Company.

4.6

Use of Proceeds.  The Company shall use the net proceeds from the sale of the Securities hereunder for working capital purposes.

4.7

Indemnification of Purchasers.   Subject to the provisions of this Section 4.8, the Company will indemnify and hold each Purchaser and its directors, officers, shareholders, members, partners, employees and agents (and any other Persons with a functionally equivalent role of a Person holding such titles notwithstanding a lack of such title or any other title), each Person who controls such Purchaser (within the meaning of Section 15 of the Securities Act and Section 20 of the Exchange Act), and the directors, officers, shareholders, agents, members, partners or employees (and any other Persons with a functionally equivalent role of a Person holding such titles notwithstanding a lack of such title or any other title) of such controlling persons (each, a “Purchaser Party”) harmless from any and all losses, liabilities, obligations, claims, contingencies, damages, costs and expenses, including all judgments, amounts paid in 

21

settlements, court costs and reasonable attorneys’ fees and costs of investigation that any such Purchaser Party may suffer or incur as a result of or relating to (a) any breach of any of the representations, warranties, covenants or agreements made by the Company in this Agreement or in the other Transaction Documents or (b) any action instituted against the Purchaser Parties in any capacity, or any of them or their respective Affiliates, by any stockholder of the Company who is not an Affiliate of such Purchaser Party, with respect to any of the transactions contemplated by the Transaction Documents (unless such action is based upon a breach of such Purchaser Party’s representations, warranties or covenants under the Transaction Documents or any agreements or understandings such Purchaser Party may have with any such stockholder or any violations by such Purchaser Party of state or federal securities laws or any conduct by such Purchaser Party which constitutes fraud, gross negligence, willful misconduct or malfeasance).  If any action shall be brought against any Purchaser Party in respect of which indemnity may be sought pursuant to this Agreement, such Purchaser Party shall promptly notify the Company in writing, and the Company shall have the right to assume the defense thereof with counsel of its own choosing reasonably acceptable to the Purchaser Party.  Any Purchaser Party shall have the right to employ separate counsel in any such action and participate in the defense thereof, but the fees and expenses of such counsel shall be at the expense of such Purchaser Party except to the extent that (i) the employment thereof has been specifically authorized by the Company in writing, (ii) the Company has failed after a reasonable period of time to assume such defense and to employ counsel or (iii) in such action there is, in the reasonable opinion of counsel, a material conflict on any material issue between the position of the Company and the position of such Purchaser Party, in which case the Company shall be responsible for the reasonable fees and expenses of no more than one such separate counsel.  The Company will not be liable to any Purchaser Party under this Agreement (y) for any settlement by a Purchaser Party effected without the Company’s prior written consent, which shall not be unreasonably withheld or delayed; or (z) to the extent, but only to the extent that a loss, claim, damage or liability is attributable to any Purchaser Party’s breach of any of the representations, warranties, covenants or agreements made by such Purchaser Party in this Agreement or in the other Transaction Documents. The indemnification required by this Section 4.8 shall be made by periodic payments of the amount thereof during the course of the investigation or defense, as and when bills are received or are incurred. The indemnity agreements contained herein shall be in addition to any cause of action or similar right of any Purchaser Party against the Company or others and any liabilities the Company may be subject to pursuant to law.

4.8

Reservation of Common Stock. As of the date hereof, the Company has reserved and the Company shall continue to reserve and keep available at all times, free of preemptive rights, a sufficient number of shares of Common Stock for the purpose of enabling the Company to issue Shares pursuant to this Agreement.   

4.9

Listing of Common Stock. The Company hereby agrees to use best efforts to maintain the listing or quotation of the Common Stock on a  Trading Market, t. The Company further agrees, if the Company applies to have the Common Stock traded on any other Trading Market, it will then include in such application all of the Shares, and will take such other action as is necessary to cause all of the Shares to be listed or quoted on such other Trading Market as promptly as possible.  The Company will then take all action reasonably necessary to continue the listing and trading of its Common Stock on a Trading Market and will comply in all respects 

22

with the Company’s reporting, filing and other obligations under the bylaws or rules of the Trading Market.  

4.10

Reserved.  

4.11

Equal Treatment of Purchasers.  No consideration (including any modification of any Transaction Document) shall be offered or paid to any Person to amend or consent to a waiver or modification of any provision of this Agreement unless the same consideration is also offered to all of the parties to this Agreement.  For clarification purposes, this provision constitutes a separate right granted to each Purchaser by the Company and negotiated separately by each Purchaser, and is intended for the Company to treat the Purchasers as a class and shall not in any way be construed as the Purchasers acting in concert or as a group with respect to the purchase, disposition or voting of Securities or otherwise.

4.12

Certain Transactions and Confidentiality. Each Purchaser, severally and not jointly with the other Purchasers, covenants that neither it nor any Affiliate acting on its behalf or pursuant to any understanding with it will execute any purchases or sales, including Short Sales of any of the Company’s securities during the period commencing with the execution of this Agreement and ending at such time that the transactions contemplated by this Agreement are first publicly announced pursuant to the initial press release as described in Section 4.4.  Each Purchaser, severally and not jointly with the other Purchasers, covenants that until such time as the transactions contemplated by this Agreement are publicly disclosed by the Company pursuant to the initial press release as described in Section 4.4, such Purchaser will maintain the confidentiality of the existence and terms of this transaction and the information included in the Disclosure Schedules.  Notwithstanding the foregoing and notwithstanding anything contained in this Agreement to the contrary, the Company expressly acknowledges and agrees that (i) no Purchaser makes any representation, warranty or covenant hereby that it will not engage in effecting transactions in any securities of the Company after the time that the transactions contemplated by this Agreement are first publicly announced pursuant to the initial press release as described in Section 4.4, (ii) no Purchaser shall be restricted or prohibited from effecting any transactions in any securities of the Company in accordance with applicable securities laws from and after the time that the transactions contemplated by this Agreement are first publicly announced pursuant to the initial press release as described in Section 4.4 and (iii) no Purchaser shall have any duty of confidentiality or duty not to trade in the securities of the Company to the Company or its Subsidiaries after the issuance of the initial press release as described in Section 4.4.  Notwithstanding the foregoing, in the case of a Purchaser that is a multi-managed investment vehicle whereby separate portfolio managers manage separate portions of such Purchaser’s assets and the portfolio managers have no direct knowledge of the investment decisions made by the portfolio managers managing other portions of such Purchaser’s assets, the covenant set forth above shall only apply with respect to the portion of assets managed by the portfolio manager that made the investment decision to purchase the Securities covered by this Agreement.

4.13

Capital Changes.  Until the 60 days after the Closing Date, the Company shall not undertake a reverse or forward stock split or reclassification of the Common Stock without the prior written consent of the Purchasers holding a majority in interest of the Shares.

23

4.14

Short Sales. From the date hereof until six months from the date hereof the Purchasers shall not engage in any Short Sales of any of the Company’s Securities. 

ARTICLE V.

MISCELLANEOUS

5.1

Termination.  This Agreement may be terminated by any Purchaser, as to such Purchaser’s obligations hereunder only and without any effect whatsoever on the obligations between the Company and the other Purchasers, by written notice to the other parties, if the Closing has not been consummated on or before January 15, 2018; provided, however, that no such termination will affect the right of any party to sue for any breach by any other party (or parties).

5.2

Fees and Expenses.  The Company shall deliver to each Purchaser, prior to the Closing, a completed and executed copy of the Closing Statement, attached hereto as Annex A.  Except as expressly set forth in the Transaction Documents to the contrary, each party shall pay the fees and expenses of its advisers, counsel, accountants and other experts, if any, and all other expenses incurred by such party incident to the negotiation, preparation, execution, delivery and performance of this Agreement.  The Company shall pay all Transfer Agent fees (including, without limitation, any fees required for same-day processing of any instruction letter delivered by the Company and any exercise notice delivered by a Purchaser), stamp taxes and other taxes and duties levied in connection with the delivery of any Securities to the Purchasers.

5.3

Entire Agreement.  The Transaction Documents, together with the exhibits and schedules thereto, the Prospectus and the Prospectus Supplement, contain the entire understanding of the parties with respect to the subject matter hereof and thereof and supersede all prior agreements and understandings, oral or written, with respect to such matters, which the parties acknowledge have been merged into such documents, exhibits and schedules.

5.4

Notices.  Any and all notices or other communications or deliveries required or permitted to be provided hereunder shall be in writing and shall be deemed given and effective on the earliest of: (a) the date of transmission, if such notice or communication is delivered via facsimile or email attachment at the facsimile number or email address as set forth on the signature pages attached hereto at or prior to 5:30 p.m. (New York City time) on a Trading Day, (b) the next Trading Day after the date of transmission, if such notice or communication is delivered via facsimile or email attachment at the facsimile number or email address as set forth on the signature pages attached hereto on a day that is not a Trading Day or later than 5:30 p.m. (New York City time) on any Trading Day, (c) the second (2nd) Trading Day following the date of mailing, if sent by U.S. nationally recognized overnight courier service or (d) upon actual receipt by the party to whom such notice is required to be given.  The address for such notices and communications shall be as set forth on the signature pages attached hereto. To the extent that any notice provided pursuant to any Transaction Document constitutes, or contains, material, non-public information regarding the Company or any Subsidiaries, the Company shall simultaneously file such notice with the Commission pursuant to a Current Report on Form 8-K.

5.5

Amendments; Waivers.  No provision of this Agreement may be waived, modified, supplemented or amended except in a written instrument signed, in the case of an 

24

amendment, by the Company and the Purchasers who purchased at least 67% in interest of the Shares based on the initial Subscription Amounts hereunder or, in the case of a waiver, by the party against whom enforcement of any such waived provision is sought; provided, that if any amendment, modification or waiver disproportionately and adversely impacts a Purchaser (or group of Purchasers), the consent of such disproportionately impacted Purchaser (or group of Purchasers) shall also be required.  No waiver of any default with respect to any provision, condition or requirement of this Agreement shall be deemed to be a continuing waiver in the future or a waiver of any subsequent default or a waiver of any other provision, condition or requirement hereof, nor shall any delay or omission of any party to exercise any right hereunder in any manner impair the exercise of any such right. Any proposed amendment or waiver that disproportionately, materially and adversely affects the rights and obligations of any Purchaser relative to the comparable rights and obligations of the other Purchasers shall require the prior written consent of such adversely affected Purchaser, Any amendment effected in accordance with accordance with this Section 5.5 shall be binding upon each Purchaser and holder of Securities and the Company.

5.6

Headings.  The headings herein are for convenience only, do not constitute a part of this Agreement and shall not be deemed to limit or affect any of the provisions hereof.

5.7

Successors and Assigns.  This Agreement shall be binding upon and inure to the benefit of the parties and their successors and permitted assigns.  The Company may not assign this Agreement or any rights or obligations hereunder without the prior written consent of each Purchaser (other than by merger).  Any Purchaser may assign any or all of its rights under this Agreement to any Person to whom such Purchaser assigns or transfers any Securities, provided that such transferee agrees in writing to be bound, with respect to the transferred Securities, by the provisions of the Transaction Documents that apply to the “Purchasers.”

5.8

No Third-Party Beneficiaries.  This Agreement is intended for the benefit of the parties hereto and their respective successors and permitted assigns and is not for the benefit of, nor may any provision hereof be enforced by, any other Person, except as otherwise set forth in Section 4.8 and this Section 5.8.

5.9

Governing Law.  All questions concerning the construction, validity, enforcement and interpretation of the Transaction Documents shall be governed by and construed and enforced in accordance with the internal laws of the State of New York, without regard to the principles of conflicts of law thereof.  Each party agrees that all legal Proceedings concerning the interpretations, enforcement and defense of the transactions contemplated by this Agreement and any other Transaction Documents (whether brought against a party hereto or its respective affiliates, directors, officers, shareholders, partners, members, employees or agents) shall be commenced exclusively in the state and federal courts sitting in the City of New York.  Each party hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting in the City of New York, Borough of Manhattan for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein (including with respect to the enforcement of any of the Transaction Documents), and hereby irrevocably waives, and agrees not to assert in any Action or Proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such Action or Proceeding is improper or is an inconvenient venue for such Proceeding.  Each party hereby irrevocably 

25

waives personal service of process and consents to process being served in any such Action or Proceeding by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under this Agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof.  Nothing contained herein shall be deemed to limit in any way any right to serve process in any other manner permitted by law.   If any party shall commence an Action or Proceeding to enforce any provisions of the Transaction Documents, then, in addition to the obligations of the Company under Section 4.8, the prevailing party in such Action or Proceeding shall be reimbursed by the non-prevailing party for its reasonable attorneys’ fees and other costs and expenses incurred with the investigation, preparation and prosecution of such Action or Proceeding.

5.10

Survival.  The representations and warranties contained herein shall survive the Closing and the delivery of the Securities.

5.11

Execution.  This Agreement may be executed in two or more counterparts, all of which when taken together shall be considered one and the same agreement and shall become effective when counterparts have been signed by each party and delivered to each other party, it being understood that the parties need not sign the same counterpart.  In the event that any signature is delivered by facsimile transmission or by e-mail delivery of a “.pdf” format data file, such signature shall create a valid and binding obligation of the party executing (or on whose behalf such signature is executed) with the same force and effect as if such facsimile or “.pdf” signature page were an original thereof.

5.12

Severability.  If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction to be invalid, illegal, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions set forth herein shall remain in full force and effect and shall in no way be affected, impaired or invalidated, and the parties hereto shall use their commercially reasonable efforts to find and employ an alternative means to achieve the same or substantially the same result as that contemplated by such term, provision, covenant or restriction. It is hereby stipulated and declared to be the intention of the parties that they would have executed the remaining terms, provisions, covenants and restrictions without including any of such that may be hereafter declared invalid, illegal, void or unenforceable.

5.13

Rescission and Withdrawal Right.  Notwithstanding anything to the contrary contained in (and without limiting any similar provisions of) any of the other Transaction Documents, whenever any Purchaser exercises a right, election, demand or option under a Transaction Document and the Company does not timely perform its related obligations within the periods therein provided, then such Purchaser may rescind or withdraw, in its sole discretion from time to time upon written notice to the Company, any relevant notice, demand or election in whole or in part without prejudice to its future actions and rights.

5.14

Replacement of Securities.  If any certificate or instrument evidencing any Securities is mutilated, lost, stolen or destroyed, the Company shall issue or cause to be issued in exchange and substitution for and upon cancellation thereof (in the case of mutilation), or in lieu of and substitution therefor, a new certificate or instrument, but only upon receipt of evidence reasonably satisfactory to the Company of such loss, theft or destruction.  The applicant for a 

26

new certificate or instrument under such circumstances shall also pay any reasonable third-party costs (including customary indemnity) associated with the issuance of such replacement Securities.

5.15

Remedies.  In addition to being entitled to exercise all rights provided herein or granted by law, including recovery of damages, each of the Purchasers and the Company will be entitled to specific performance under the Transaction Documents.  The parties agree that monetary damages may not be adequate compensation for any loss incurred by reason of any breach of obligations contained in the Transaction Documents and hereby agree to waive and not to assert in any Action for specific performance of any such obligation the defense that a remedy at law would be adequate.

5.16

Payment Set Aside.  To the extent that the Company makes a payment or payments to any Purchaser pursuant to any Transaction Document or a Purchaser enforces or exercises its rights thereunder, and such payment or payments or the proceeds of such enforcement or exercise or any part thereof are subsequently invalidated, declared to be fraudulent or preferential, set aside, recovered from, disgorged by or are required to be refunded, repaid or otherwise restored to the Company, a trustee, receiver or any other Person under any law (including, without limitation, any bankruptcy law, state or federal law, common law or equitable cause of action), then to the extent of any such restoration the obligation or part thereof originally intended to be satisfied shall be revived and continued in full force and effect as if such payment had not been made or such enforcement or setoff had not occurred.

5.17

Independent Nature of Purchasers’ Obligations and Rights.  The obligations of each Purchaser under any Transaction Document are several and not joint with the obligations of any other Purchaser, and no Purchaser shall be responsible in any way for the performance or non-performance of the obligations of any other Purchaser under any Transaction Document.  Nothing contained herein or in any other Transaction Document, and no action taken by any Purchaser pursuant hereto or thereto, shall be deemed to constitute the Purchasers as a partnership, an association, a joint venture or any other kind of entity, or create a presumption that the Purchasers are in any way acting in concert or as a group with respect to such obligations or the transactions contemplated by the Transaction Documents.  Each Purchaser shall be entitled to independently protect and enforce its rights including, without limitation, the rights arising out of this Agreement or out of the other Transaction Documents, and it shall not be necessary for any other Purchaser to be joined as an additional party in any Proceeding for such purpose.  Each Purchaser has been represented by its own separate legal counsel in its review and negotiation of the Transaction Documents.  The Company has elected to provide all Purchasers with the same terms and Transaction Documents for the convenience of the Company and not because it was required or requested to do so by any of the Purchasers.  It is expressly understood and agreed that each provision contained in this Agreement and in each other Transaction Document is between the Company and a Purchaser, solely, and not between the Company and the Purchasers collectively and not between and among the Purchasers.

5.18

Liquidated Damages.  The Company’s obligations to pay any partial liquidated damages or other amounts owing under the Transaction Documents is a continuing obligation of the Company and shall not terminate until all unpaid partial liquidated damages and other amounts have been paid notwithstanding the fact that the instrument or security pursuant to 

27

which such partial liquidated damages or other amounts are due and payable shall have been canceled.

5.19

Saturdays, Sundays, Holidays, etc.

If the last or appointed day for the taking of any action or the expiration of any right required or granted herein shall not be a Business Day, then such action may be taken or such right may be exercised on the next succeeding Business Day.

5.20

Construction. The parties agree that each of them and/or their respective counsel have reviewed and had an opportunity to revise the Transaction Documents and, therefore, the normal rule of construction to the effect that any ambiguities are to be resolved against the drafting party shall not be employed in the interpretation of the Transaction Documents or any amendments thereto. In addition, each and every reference to share prices and shares of Common Stock in any Transaction Document shall be subject to adjustment for reverse and forward stock splits, stock dividends, stock combinations and other similar transactions of the Common Stock that occur after the date of this Agreement.

5.21

WAIVER OF JURY TRIAL.  IN ANY ACTION, SUIT, OR PROCEEDING IN ANY JURISDICTION BROUGHT BY ANY PARTY AGAINST ANY OTHER PARTY, THE PARTIES EACH KNOWINGLY AND INTENTIONALLY, TO THE GREATEST EXTENT PERMITTED BY APPLICABLE LAW, HEREBY ABSOLUTELY, UNCONDITIONALLY, IRREVOCABLY AND EXPRESSLY WAIVES FOREVER TRIAL BY JURY. 

(Signature Pages Follow)

28

IN WITNESS WHEREOF, the parties hereto have caused this Securities Purchase Agreement to be duly executed by their respective authorized signatories as of the date first indicated above.

		
	BIOTRICTY INC. 

	Address for Notice:

275 Shoreline Drive, Suite 150

Redwood City, California 94065

	By:__________________________________________

     Name:

     Title:

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

	Attention: Waqaas Al-Siddiq

walsiddiq@biotricity.com

	Sichenzia Ross Ference Kesner LLP

1185 Avenue of the Americas, 37th Floor

New York, New York 10036

Attention: Gregory Sichenzia, Esq.

gsichenzia@srfkllp.com

phone: (212) 930-9700

	 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK

SIGNATURE PAGE FOR PURCHASER FOLLOWS]

29

[PURCHASER SIGNATURE PAGES TO BIOTRICITY INC. SECURITIES PURCHASE AGREEMENT]

IN WITNESS WHEREOF, the undersigned have caused this Securities Purchase Agreement to be duly executed by their respective authorized signatories as of the date first indicated above.

Name of Purchaser: ________________________________________________________

Signature of Authorized Signatory of Purchaser: _________________________________

Name of Authorized Signatory: _______________________________________________

Title of Authorized Signatory: ________________________________________________

Email Address of Authorized Signatory:_________________________________________

Facsimile Number of Authorized Signatory: __________________________________________

Address for Notice to Purchaser:

Address for Delivery of Securities to Purchaser (if not same as address for notice):

Subscription Amount: $_________________

Shares: _________________

EIN Number: _______________________

30

Annex A 

CLOSING STATEMENT

Pursuant to the attached Securities Purchase Agreement, dated as of the date hereto, the purchasers shall purchase up to $2,500,000 of Common Stock from Biotricty Inc., a Nevada corporation (the “Company”).  All funds will be wired into an account maintained by the Company.  All funds will be disbursed in accordance with this Closing Statement.  

Disbursement Date:

December __, 2017

			
	I.   PURCHASE PRICE

	 

	 
	Gross Proceeds to be Received 

	$

	 
	 

	II.

DISBURSEMENTS

	 

	 
	 

	$

	 
	 

	$

	 
	 
	$

	 
	 
	$

	 
	 
	$

	 
	 

	Total Amount Disbursed:

	$

	 
	 

	 
	 

	 
	 

	WIRE INSTRUCTIONS:

	 

	To: _____________________________________

	 

	To: _____________________________________

	 

31Exhibit 4.1

 

Dated the 22nd day of December
2017

 

LUK LAI CHING KIMMY

 

 

(as Vendor)

 

and

 

Giant Connection
Limited

(as Purchaser)

  

 

 

SHARE EXCHANGE AGREEMENT

in respect of 100% of the issued share capital
of

GIANT CREDIT LIMITED

 

 

   

    	 	 	 

     

    

 

TABLE OF CONTENTS

 

	Clause	Headings	Page
	 	 	 
	1.	DEFINITIONS AND INTERPRETATION	2
	2.	SALE AND PURCHASE OF SALE SHARES	5
	3.	CONSIDERATION	5
	4.	CONDITIONS PRECEDENT	6
	5.	COMPLETION	7
	6.	REPRESENTATIONS AND WARRANTIES	9
	7.	FURTHER ASSURANCE	10
	8.	RESTRICTIONS ON COMMUNICATION AND ANNOUNCEMENTS	10
	9.	PARTIAL INVALIDITY	11
	10.	COSTS AND EXPENSES	11
	11.	ASSIGNMENT	11
	12.	CONTINUING EFFECT OF AGREEMENT	11
	13.	GENERAL	11
	14.	NOTICES	12
	15.	COUNTERPARTS	13
	16.	LAW AND JURISDICTION	13
	SCHEDULE 1 PARTICULARS OF THE COMPANY	15
	SCHEDULE 2 VENDOR WARRANTIES	16
	SCHEDULE 3 PURCHASER WARRANTIES	27
	SCHEDULE 4 Litigation search results	28
	SCHEDULE 5 DEED OF ASSIGNMENT	29

 

    	 	 	 

     

    

 

THIS AGREEMENT is made on the 22nd day of
December 2017

 

BETWEEN

 

		(1)	Luk Lai Ching Kimmy , with Hong Kong identity
                                                                             card number E979645(6) whose residential                                                                              address
                                                                             is situated at Room H, 20/F, Block 33, Phase 3, Laguna City, Kwun Tong, Kowloon, Hong Kong (the “Vendor”);

 

AND

 

		(2)	Giant Connection
                                         Limited , a company incorporated with limited
                                         liability in Seychelles, whose registered office is situated at Vistra Corporate Services
                                         Centre, Suite 23, 1st Floor, Eden Plaza, Eden Island, Mahé, Republic of Seychelles
                                         (the “Purchaser”).

 

WHEREAS:

 

		(A)	As at the date of this Agreement, the Company (particulars
of which are set out in Schedule 1) has an issued share capital of HK$1,000 divided into 1,000 issued and fully paid shares.
The Company is owned as to 100% by the Vendor.

 

		(B)	As at the date of this Agreement, the Purchaser is a wholly
owned subsidiary of SGOCO.

 

		(C)	The Vendor has agreed to sell, and the Purchaser has agreed
to purchase, the Sale Shares upon the terms and conditions set out in this Agreement.

 

		(D)	The Company is currently indebted to the Vendor in the
sum of HK$14,391,354.00 (“Loan”). The Vendor and the Purchaser shall enter into a deed of assignment to assign
the Loan to the Purchaser on Completion.

 

		(E)	Upon Completion, the Company will be owned as to 100% by
the Purchaser.

 

NOW IT IS HEREBY AGREED as follows:

 

		1.	DEFINITIONS
                                         AND INTERPRETATION

 

		1.1	In this Agreement (including the Recitals and the Schedules),
the following expressions shall, unless the context otherwise requires, have the following meanings:

 

	“Accounts”	 	the audited financial statements of the Company comprising the income statement for the financial year ended the Accounts Date and the balance sheet as at the Accounts Date;
	 	 	 
	“Accounts Date”	 	31 March 2017;
	 	 	 
	“Agreement”	 	this share exchange agreement (including its Recitals and Schedules), as may be amended or supplemented from time to time;

 

    	 	2	 

     

    

  

	“business day”	 	a day (other than Saturday) on which banks are open in Hong Kong for general banking business;
	 	 	 
	“Closing Price”	 	the final price at which a security is traded on a day on NASDAQ provided that if such day is not a trading day, the immediate preceding trading day shall be substituted therefor;
	 	 	 
	“Company”	 	Giant Credit Limited , a company incorporated in Hong Kong with limited liability, particulars of which are set out in Schedule 1;
	 	 	 
	“Completion”	 	completion of the sale and purchase of the Sale Shares pursuant to Clause 5;
	 	 	 
	“Completion Consideration Shares”	 	has the meaning ascribed to it in Clause 3.2;
	 	 	 
	“Completion Date”	 	three (3) business days following the date on which all the Conditions Precedent are fulfilled or waived (as the case may be);
	 	 	 
	“Conditions Precedent”	 	the conditions precedent set out in Clause 4;
	 	 	 
	“Consideration”	 	has the meaning ascribed to it in Clause 3.1;
	 	 	 
	“Consideration Shares”	 	has the meaning ascribed to it in Clause 3.2;
	 	 	 
	“Deed of Assignment”	 	means the deed of
    assignment of the Loan to be entered into between the Vendor, the Purchaser and the Company in the form attached hereto as
    Schedule 5 (Deed of Assignment)
	 	 	 
	“Existing Encumbrances”	 	means the existing Encumbrances or security interest created over the landed asset of the Company owing and outstanding immediately prior to the Completion;
	 	 	 
	“Encumbrance”	 	any option, right to acquire, right of pre-emption, mortgage, charge, pledge, lien, hypothecation, title retention, right of set off, counterclaim, trust arrangement or other security or any equity or restriction;
	 	 	 
	“HK$”	 	Hong Kong dollars, the lawful currency of Hong Kong;
	 	 	 
	“HKIAC”	 	Hong Kong International Arbitration Centre;
	 	 	 
	“Hong Kong”	 	the Hong Kong Special Administrative Region of the PRC;
	 	 	 
	“Inland Revenue Ordinance”	 	Inland Revenue Ordinance (Chapter 112 of the Laws of Hong Kong);

 

    	 	3	 

     

    

  

	“Long Stop Date”	 	31 December 2017 or such later date as may be agreed between the Vendor and the Purchaser;
	 	 	 
	“Management Accounts”	 	the unaudited management accounts of the Company comprising the income statement for such period after the Accounts Date and up to the Management Accounts Date and the balance sheet as at the Management Accounts Date;
	 	 	 
	“Management Accounts Date”	 	31 October 2017;
	 	 	 
	“NASDAQ”	 	National Association of Securities Dealers Automated Quotations, the stock market in the USA;
	 	 	 
	“Parties”	 	parties to this Agreement and a “Party” means any one of them;
	 	 	 
	“Purchaser Warranties”	 	the representations, warranties and undertakings made by the Purchaser and contained in Clause 6 and Schedule 3;
	 	 	 
	“Sale Shares”	 	1,000 shares in the share capital of the Company, being 100% of its entire issued share capital as at the date of this Agreement;
	 	 	 
	“SGOCO”	 	SGOCO Group, Ltd., a company incorporated in the Cayman Islands whose shares are listed and traded on NASDAQ;
	 	 	 
	“SGOCO Shares”	 	ordinary shares of SGOCO, par value $0.004 per share (or of such other securities as shall result from a subdivision, consolidation, re-classification or re-construction of such shares from time to time);
	 	 	 
	“Taxation”	 	all forms of tax, rate, levy, duty, charge, impost, fee, deduction or withholding of any nature now or hereafter imposed, levied, collected, withheld or assessed by any taxing or other authority in any part of the world and includes any interest, additional tax, penalty or other charge payable or claimed in respect thereof;
	 	 	 
	“Trading Day(s)”	 	a day when the NASDAQ is open for dealing business and on which the Shares or other securities may be dealt in (other than a day on which the NASDAQ is scheduled to or closes prior to its regular closing time)
	 	 	 
	“USA”	 	the United States of America;
	 	 	 
	“US$”	 	United States dollars, the lawful currency of the USA;
	 	 	 
	“Vendor Warranties”	 	the representations, warranties and undertakings made by the Vendor and contained in Clause 6 and Schedule 2;
	 	 	 
	“Warranties”	 	the Vendor Warranties and the Purchaser Warranties; and
	 	 	 
	“%”	 	per cent.

 

    	 	4	 

     

    

 

		1.2	In this Agreement:

 

		(a)	references to costs, charges, remuneration or expenses
shall include any value added tax, turnover tax or similar tax charged in respect thereof;

 

		(b)	references to any action, remedy or method of judicial
proceedings for the enforcement of rights of creditors shall include, in respect of any jurisdiction other than Hong Kong, references
to such action, remedy or method of judicial proceedings for the enforcement of rights of creditors available or appropriate in
such jurisdiction as shall most nearly approximate thereto;

 

		(c)	words denoting the singular number only shall include the
plural number also and vice versa;

 

		(d)	words denoting one gender only shall include the other
genders and the neuter and vice versa;

 

		(e)	words denoting persons only shall include firms and corporations
and vice versa;

 

		(f)	references to any provision of any statute shall be deemed
also to refer to any modification or re-enactment thereof or any instrument, order or regulation made thereunder or under such
modification or re-enactment; and

 

		(g)	references to any document in the agreed form is to such
document which has been initialed by the parties for identification.

 

		1.3	Headings shall be ignored in construing this Agreement.

 

		1.4	The Recital and the Schedules are part of this Agreement
and shall have effect accordingly.

 

		2.	SALE AND PURCHASE OF SALE SHARES

 

Subject to the terms and conditions of
this Agreement, the Vendor, as legal and beneficial owner, shall sell the Sale Shares to the Purchaser and the Purchaser shall
purchase the same from the Vendor free from all Encumbrances and third party rights of any kind and together with all rights now
or hereafter attaching thereto including the right to receive all dividends and distributions declared, made or paid on or after
the Completion Date.

 

		3.	CONSIDERATION

 

		3.1	The aggregate consideration
                                         (the “Consideration”) of the Sale Shares to be paid by the Purchaser
                                         to the Vendor is HK$19,600,000 (equivalent to US$2,512,821 adopting the exchange rate
                                         of US$1.00 = HK$7.8), which shall be satisfied by the allotment and issue of the Consideration
                                         Shares (hereinafter defined) by SGOCO on the Completion Date.

 

    	 	5	 

     

    

 

		3.2	The Purchaser shall procure SGOCO to allot and issue such number of SGOCO Shares (the “Consideration
                                                                             Shares”) to the Vendor (or their nominees) calculated using the formula of number of Consideration Shares =
                                                                             Consideration (in US$) ÷ average Closing Price of SGOCO Shares for the last 90 Trading Days preceding the Completion
                                                                             Date.

 

		4.	CONDITIONS PRECEDENT

 

		4.1	Completion shall be conditional upon the fulfillment of
the following Conditions Precedent:

 

		(a)	all Vendor Warranties being true, accurate and not misleading
at all material aspects at all times between the date hereof and the Completion Date (as though they had been made on such dates
by reference to the facts and circumstances then subsisting);

 

		(b)	there having been no material adverse change, or any development
likely to involve a prospective material adverse change, in the condition (financial, operational or otherwise) or in the earnings,
business affairs or business prospects, assets or liabilities of the Company, whether or not arising in the ordinary course of
business since the date of this Agreement;

 

		(c)	Save and except for the Loan to be assigned to the Purchaser
on Completion and the Existing Encumbrances, all loans or amounts due by the Company to its shareholder, director or any other
third party creditors having been fully waived or settled, save for the liabilities incurred in the ordinary course of business
after the date of this Agreement and before Completion;

 

		(d)	the Parties having conducted the due diligence exercise
(legal and financial) on the Company and the Purchaser being satisfied with the results thereof;

 

		(e)	the Parties having duly executed and entered into the Deed
of Assignment simultaneously with the matters to be transacted on Completion;

 

		(f)	NASDAQ having granted the approval for the listing of,
and the permission to deal in, the Consideration Shares, if required under NASDAQ continued listing rules and regulations; and

 

		(g)	all necessary consents, approvals, permits and/or authorisations
in respect of the transactions contemplated under this Agreement having been obtained.

 

		4.2	All Conditions Precedent may be waived by the Parties by
written consent.

 

		4.3	Each Party undertakes to the other Party to use its best
endeavours to ensure that the Conditions Precedent in Clause 4.1 are fulfilled as early as practicable and in any event not later
than the Long Stop Date.

 

		4.4	Each Party undertakes to provide all reasonable assistance
to the other Party to fulfill the Conditions Precedent in Clause 4.1 in accordance with Clause 4.3.

 

    	 	6	 

     

    

  

		4.5	If the Conditions Precedent have not been fulfilled or
waived (as the case may be) on or before the Long Stop Date, this Agreement will lapse and become null and void and the Parties
will be released from all obligations hereunder, save for liabilities for any antecedent breaches hereof.

 

		5.	COMPLETION

 

		5.1	Completion shall take place at Loeb & Loeb LLP, 21st
Floor, CCB Tower, 3 Connaught Road Central, Hong Kong at 9.a.m. am on the Completion Date (or at such other place, on such other
time and/or day as the Parties may agree).

 

		5.2	At Completion, the Vendor shall:

 

		(a)	deliver or cause to be delivered to the Purchaser and/or
its nominee:

 

		(i)	evidence reasonably satisfactory to the Purchaser that
the Conditions Precedent in Clause 4.1 (which are applicable to the Vendor) of this Agreement have been fulfilled;

 

		(ii)	the instrument(s) of transfer and the bought and sold notes
of the Sale Shares duly executed by the Vendor as registered holder thereof in favour of the Purchaser or its nominee together
with the related share certificate(s);

 

		(iii)	draft register of members of the Company reflecting the
shareholding of the Company after Completion;

 

	 	(iv) 	(1) 	all statutory records and minute books (which shall be duly written up to date as at Completion) and accounting records including an original copy of the memorandum and articles of association or other equivalent constitutional documents, certificate of incorporation and business registration certificates, business licence, governmental approval letters and certificates (if any), common seal, authorised chops, share certificate books and other statutory records of the Company;

 

		(2)	all tax returns and assessments of the Company (if applicable)
(receipted where the due dates for payment fell on or before the Completion Date);

 

		(3)	copies of all correspondence, if any, with its lawyers,
accountants, tax or revenue departments, all other documents and correspondence, if any, relating to the business affairs of the
Company; and all title deeds, evidence of ownership and documents relating to assets owned by the Company save and except the
Existing Encumbrances;

 

provided that the above shall be deemed
to have been delivered if they are located at the registered office or principal place of business of the Company;

 

    	 	7	 

     

    

 

		(v)	resignation letter of the director of the Company, in the
form and substances reasonably satisfied by the Purchaser;

 

		(vi)	a cheque made payable to “the Government of Hong
Kong SAR” for such amount representing half share of Hong Kong stamp duty which shall be borne by the Vendor as transferor
of the Sale Shares in accordance with the Stamp Duty Ordinance;

 

		(vii)	such other documents as may be reasonably required by the
Purchaser to, among other things, give good title to the Sale Shares free from all Encumbrances and third party rights of any
kind and to enable the Purchaser or its nominees to become the registered holder thereof;

 

		(viii)	a certified true copy of the resolutions of the sole director
of the Company approving the matters set out in Clause 5.2(b); and

 

		(iv)	the Deed of Assignment duly executed by the Vendor;

 

		(b)	procure that the following businesses shall be approved
in the sole director’s resolution of the Company:

 

		(i)	the director of the Company shall approve the transfer
of the Sale Shares and the Purchaser or its nominee shall be duly registered as the holder of the Sale Shares in the register
of members of the Company, subject to the memorandum and articles of association of the Company;

 

		(ii)	the director of the Company shall approve the resignation
of the existing director of the Company, prior to the Completion and the appointment of the directors nominated by the Purchaser;

 

		(iii)	the director of the Company shall resolve that the share
certificate in respect of the Sale Shares be duly issued and delivered to the Purchaser and/or its nominee; and

 

		(iv)	the director of the Company shall approve the director
to do all such acts and things and to sign any documents reasonably required to give effect to the transaction as contemplated
under this Agreement.

 

		5.3	At Completion, against compliance with the provisions of
Clause 5.2, the Purchaser shall deliver or cause to be delivered to the Vendor:

 

		(a)	a certified copy of the resolutions passed by the board
of directors of the Purchaser approving the execution and performance of this Agreement;

 

		(b)	evidence reasonably satisfactory to the Vendor that the
Conditions Precedent in Clause 4.1 (which are applicable to the Purchaser) of this Agreement have been fulfilled;

 

		(c)	the instrument(s) of transfer and the bought and sold notes
of the Sale Shares duly executed by the Purchaser or its nominee;

 

    	 	8	 

     

    

 

		(d)	a copy of the board resolutions of SGOCO approving the
allotment and issue of the Consideration Shares; and

 

		(e)	the share certificate and other documents as may be reasonably
required to give good title to the Consideration Shares free from all Encumbrances and third party rights of any kind and to enable
the Vendor or his nominees to become the registered holders thereof.

 

		6.	REPRESENTATIONS AND WARRANTIES

 

		6.1	The Purchaser hereby represents, warrants and undertakes
to the Vendor in the terms set out in this Clause 6 and Schedule 3.

 

		6.2	The Vendor hereby represents, warrants and undertakes to
the Purchaser in the terms set out in this Clause 6 and Schedule 2 subject to the matters disclosed or provided in this Agreement.

 

		6.3	The Purchaser shall be deemed to have given all the Purchaser
Warranties on the basis that such Purchaser Warranties will at all times from the date of this Agreement up to and including the
Completion Date be true, complete and accurate in all respects and such Purchaser Warranties shall have effect as if given at
Completion as well as the date of this Agreement.

 

		6.4	The Vendor shall be deemed to have given all the Vendor
Warranties on the basis that such Vendor Warranties will at all times from the date of this Agreement up to and including the
Completion Date be true, complete and accurate in all respects and such Vendor Warranties shall have effect as if given at Completion
as well as the date of this Agreement.

 

		6.5	The Vendor agrees and acknowledges that the Purchaser is
entering into this Agreement in reliance on the Vendor Warranties.

 

		6.6	The Purchaser agrees and acknowledges that the Vendor is
entering into this Agreement in reliance on the Purchaser Warranties.

 

		6.7	None of the Warranties shall be limited or restricted by
reference to or inference from the terms of any other Warranties or any other term of this Agreement.

 

		6.8	If any Party fails to perform any of its obligations in
any material respect (including its obligation at Completion) under this Agreement or breaches any of the terms or Warranties
set out in this Agreement in any material respect prior to Completion, then without prejudice to all and any other rights and
remedies available at any time to a non-defaulting Party (including but not limited to the right to damages for any loss suffered
by that Party), any non-defaulting Party may by notice either require the defaulting Party to perform such obligations or, insofar
as the same is practicable, remedy such breach or to the extent it relates to the failure of the defaulting Party to perform any
of its obligations on or prior to Completion in any material respect, treat the defaulting Party as having repudiated this Agreement
and rescind the same. The rights conferred upon the respective Parties by the provisions of this Clause 6 are additional to and
do not prejudice any other rights the respective Parties may have. Failure to exercise any of the rights herein conferred shall
not constitute a waiver of any such rights.

 

    	 	9	 

     

    

 

		6.9	The Vendor undertakes to indemnify and keep fully indemnified
the Purchaser against, and hold the Purchaser harmless immediately upon demand in respect of, any and all claims that the Purchaser
may suffer or face as a result of or in connection with (a) any inaccuracy of any of the Vendor Warranties; or (b) any breach
of the Vendor Warranties by the Vendor, provided that the maximum aggregate liability of the Vendor in respect of all claims shall
not exceed the amount of the Consideration.

 

		6.10	As at the date of this Agreement, the Company is in the process of applying for the renewal of
its Money Lender’s Licence. To ensure there is no factor on the parts of the Vendor or the Company prior to the Closing Date
of this Agreement that might in any way prejudice the continuation or renewal of the Money Lender’s Licence pursuant to Clause
6.9 of the Vendor Warranties, the Vendor agrees and acknowledges that it will pay to the Purchaser an indemnity in the amount of
the Consideration if the Company is unable to renew its current Money Lender’s Licence solely due to conduct or factor relating
or connecting to the Vendor or the Company’s operation from the date of this Agreement up to and including the Completion
Date. For the avoidance of doubt, should the Company’s failure to renew its current Money Lender’s Licence for (i)
any reason relating to the Purchaser or its affiliates including but not limited to their respective background or source of funds,
or (ii) conduct or factor relating to the Company’s operation after Completion, then the Vendor shall not be liable to pay
any indemnity whatsoever. The terms “failure to renew” or “unable to renew” in respect of the Company’s
Money Lender’s Licence which is the subject of the pending renewal application shall refer to the Licensing Court having
made a final determination that such licence shall be revoked.

 

		7.	FURTHER ASSURANCE

 

Each Party undertakes to the
other Party to execute or procure to be executed all such documents and to do or procure to be done all such other acts and things
as may be reasonable and necessary to give all Parties the full benefit of this Agreement.

 

		8.	RESTRICTIONS ON COMMUNICATION AND ANNOUNCEMENTS

 

		8.1	Each of the Parties undertakes to the other Party that it shall not at any time after the date
of this Agreement divulge or communicate to any person other than to its professional advisers, or when required by law or any
rule of any relevant stock exchange body, or to its respective officers or employees whose province it is to know the same any
confidential information concerning the business, accounts, finance or contractual arrangements or other dealings, transactions
or affairs of the other which may be within or may come to its knowledge in connection with the transactions contemplated by this
Agreement and it shall use its best endeavours to prevent the publication or disclosure of any such confidential information concerning
such matters. This restriction shall not apply to information or knowledge which is or which properly comes into the public domain,
through no fault of any of the Parties or to information or knowledge which is already known to any of the Parties at the time
of its receipt.

 

    	 	10	 

     

    

 

		8.2	Each of the Parties undertakes that it shall not at any
time (save as required by law or any rule of any relevant stock exchange or regulatory body) make any announcement in connection
with this Agreement unless the other Party shall have given its consent to such announcement (which consent may not be unreasonably
withheld or delayed and may be given either generally or in a specific case or cases and may be subject to conditions). If any
Party is required by law or any rule of any relevant stock exchange or regulatory body to make any announcement in connection
with this Agreement, the other Party agrees to supply all relevant information relating to itself that is within its knowledge
or in its possession as may be reasonably necessary or as may be required by any exchange and regulatory body to be included in
the announcement.

 

		9.	PARTIAL INVALIDITY

 

If, at any time, any provision
of this Agreement is or becomes illegal, invalid or unenforceable in any respect in any jurisdiction, the legality, validity and
enforceability in other jurisdictions or of the remaining provisions of this Agreement shall not be affected or impaired thereby.

 

		10.	COSTS AND EXPENSES

 

Each Party shall bear its own
costs of and incidental to the preparation, negotiation and settlement of this Agreement and the transactions contemplated hereunder
(including, without limitation, legal fees and expenses, and capital fees or stamp duty (if any) relating to this Agreement).

 

		11.	ASSIGNMENT

 

No Party shall assign any of
its rights or obligations under this Agreement without the written consent of the other Party.

 

		12.	CONTINUING EFFECT OF AGREEMENT

 

Any provision of this Agreement
which is capable of being performed after Completion but which has not been performed at or before Completion shall remain in full
force and effect notwithstanding Completion.

 

		13.	GENERAL

 

		13.1	This Agreement supersedes all and any previous agreements, arrangements or understanding between
the Parties relating to the matters referred to in this Agreement and all such previous agreements, understanding or arrangements
(if any) shall cease and determine with effect from the date hereof and neither Party shall have any claim in connection therewith.

 

		13.2	This Agreement constitutes the entire agreement between the Parties with respect to its subject
matter (no Party having relied on any representation or warranty made by the other Party which is not contained in this Agreement).
No variation of this Agreement shall be effective unless made in writing and signed by all Parties.

 

		13.3	Time shall be of the essence of this Agreement but no failure by any Party to exercise, and no
delay on its part in exercising any right hereunder shall operate as a waiver thereof, nor shall any single or partial exercise
of any right under this Agreement preclude any other or further exercise of it or the exercise of any right or prejudice or affect
any right against the other. The rights and remedies provided in this Agreement are cumulative and not exclusive of any rights
or remedies provided by law.

 

    	 	11	 

     

    

 

		13.4	No delay or failure by a Party to exercise or enforce (in whole or in part) any right provided
by this Agreement or by law shall operate as a release or waiver, or in any way limit that Party’s ability to further exercise
or enforce that, or any other, right. A waiver of any breach of any provision of this Agreement shall not be effective, or implied,
unless that waiver is in writing and is signed by the Party against whom that waiver is claimed. In the event of a default by either
Party in the performance of its obligations under this Agreement, the non-defaulting Party shall have the right to obtain specific
performance of the defaulting Party’s obligations. Such remedy shall be in addition to any other remedies provided under
this Agreement or at law.

 

		14.	NOTICES

 

		14.1	Any notice claim, demand, court process,
                                         document or other communication to be given under this Agreement (collectively “communication”
                                         in this Clause) shall be in writing in the English or Chinese language and may be
                                         served or given personally or sent to the e-mail address (if any) of the relevant Party
                                         and marked for the attention and/or copied to such other person as specified in Clause
                                         14.4.

 

		14.2	A change of address or e-mail address of the person to whom a communication is to be addressed
or copied pursuant to this Agreement shall not be effective until five days after a written notice of change has been served in
accordance with the provisions of this Clause 14 on the other Party with specific reference in such notice that such change is
for the purposes of this Agreement.

 

		14.3	All communications shall be served by the following means and the addressee of a communication
shall be deemed to have received the same within the time stated adjacent to the relevant means of despatch;

 

	Means of despatch	 	Time of deemed receipt
	Local mail or courier	 	24 hours
	E-mail	 	on despatch
	Air courier/Speedpost	 	3 days
	Airmail	 	7 days

 

		14.4	The initial addresses and e-mail addresses of the Parties for the service of communications, the
person for whose attention such communications are to be marked and the person to whom a communication is to be copied are as follows:

 

If to the Vendor:

 

	Address 	:	Room H, 20/F, Block 33, Phase
    3, Laguna City, Kwun Tong, Kowloon, Hong Kong
	E-mail 	:	 
	Attention 	:	Luk Lai Ching Kimmy

 

If to the Purchaser:

 

	Address	:
	E-mail	:
	Attention	:

 

    	 	12	 

     

    

 

		14.5	A communication served in accordance with this Clause 14 shall be deemed sufficiently served and
in proving service and/or receipt of a communication it shall be sufficient to prove that such communication was left at the addressee’s
address or that the envelope containing such communication was properly addressed and posted or despatched to the addressee’s
address. In the case of communication by e-mail, such communication shall be deemed properly transmitted upon the receipt of the
sent confirmation by the e-mail account of the sender.

 

		14.6	Nothing in this Clause shall preclude the service of communication or the proof of such service
by any mode permitted by law.

 

		15.	COUNTERPARTS

 

This Agreement may be executed
in any number of counterparts, and this has the same effect as if the execution on the counterparts were on a single copy of this
Agreement.

 

		16.	LAW AND JURISDICTION

 

		16.1	This Agreement shall be governed by and construed in accordance with the laws of Hong Kong.

 

		16.2	All claims or disputes arising out
                                         of or in connection with this Agreement, including any dispute as to its existence, validity,
                                         termination, or enforceability thereof, and any dispute relating to any non-contractual
                                         obligations arising out of or in connection with it (for the purpose of this Clause,
                                         a “Dispute”) shall be notified in writing to the other Party. The
                                         notification must set out brief details of the nature of the Dispute. In case of a Dispute,
                                         the Parties shall use all their reasonable efforts to reach an amicable settlement within
                                         thirty (30) days following the above-mentioned notification. If the Parties fail to reach
                                         such an amicable settlement within the said thirty-day period, any Party to that Dispute
                                         may refer the dispute to arbitration administered by the HKIAC in accordance with the
                                         HKIAC Administered Arbitration Rules in force at that time. The seat of arbitration shall
                                         be in Hong Kong. The Parties to the arbitration shall jointly appoint a single arbitrator
                                         and the award rendered by that arbitrator shall be final and binding on them. If the
                                         Parties are unable to agree to the appointment of the arbitrator, then any Party to the
                                         Dispute may refer the matter to the HKIAC for nomination of an arbitrator for such purpose.
                                         Judgment upon the arbitration award may be rendered in any court of competent jurisdiction
                                         or application may be made to such court for a judicial acceptance of the award and an
                                         order of enforcement, as the case may be.

 

    	 	13	 

     

    

  

IN WITNESS whereof this Agreement has been duly executed
on the date first above written.

 

VENDOR

 

	SIGNED by Luk
    Lai Ching Kimmy   	)	 
	in the presence of:	)	/s/ Luk Lai Ching Kimmy

 

PURCHASER

 

	 	 	For and on behalf of
	SIGNED
    by Lau Pui Kiu	)	GIANT
    CONNECTION LIMITED
	for and on behalf
    of	)	
	Giant Connection
    Limited 	)	/s/
    Lau Pui Kiu
	in the presence
    of:	)	Authorized Signature(s)

 

    	 	14	 

     

    

 

SCHEDULE 1 

PARTICULARS OF THE COMPANY

 

	1.	Company name	:	Giant Credit Limited 
	 	 	 	 
	2.	Company number	:	2045289
	 	 	 	 
	3.	Date of incorporation	:	3 March 2014
	 	 	 	 
	4.	Place of incorporation	:	Hong Kong
	 	 	 	 
	5.	Address of registered office	:	Rm 23, 1/F, Harbour Crystal Centre, 100 Granville Rd, Tsim Sha Tsui, Hong Kong
	 	 	 	 
	6.	Issued share capital	:	HK$1,000 divided into 1,000 issued and fully paid shares
	 	 	 	 
	7.	Shareholder (number of shares and shareholding %)	:	Luk Lai Ching Kimmy (1,000 shares –
    100%)
	 	 	 	 
	8.	Director	:	Luk Lai Ching Kimmy

 

    	 	15	 

     

    

 

SCHEDULE 2 

VENDOR WARRANTIES

 

		1.	General

 

		1.1	The contents of the Recitals of and Schedule 1 to this Agreement are true and accurate.

 

		1.2	All information given by the Vendor or his agents or professional advisers to the Purchaser or
its employees, agents or professional advisers relating to the business, activities, affairs, or assets or liabilities of the Company
was, when given, and is now true, accurate and complete in all respects.

 

		1.3	There are no material facts or circumstances, in relation to the assets, business or financial
condition of the Company which have not been exhaustively, expressly and fairly disclosed in writing to the Purchaser or its employees,
agents or professional advisers, and which, if disclosed, might reasonably have been expected to affect the decision of the Purchaser
to enter into this Agreement.

 

		1.4	The execution and performance of this Agreement will not conflict with or result in a breach of
or be a reason for the termination or variation of any agreement or obligation to which the Company is now a party or any of the
Company or its assets are or may be bound or affected or be in violation of any law, rule or regulation of any governmental, administrative
or regulatory body or any order, injunction or decree of any judicial, administrative, regulatory or governmental body affecting
the Company.

 

		2.	Organisation, Authority and Power

 

		2.1	The Company is a company duly incorporated and validly existing under the laws of Hong Kong. All
issued shares in the Company are duly authorised, validly issued and fully paid up and none of such shares (where applicable) has
been issued in violation of the memorandum and articles of association of the Company or the terms of any agreement by which the
Company or its shareholders were or are bound, if any.

 

		2.2	The Vendor has, on the date of this Agreement and on Completion, full and unfettered right, power
and authority to enter into this Agreement and assume all of their obligations hereunder and no further actions or proceedings
are necessary on their part in connection with the execution, delivery and performance by them of this Agreement.

 

		2.3	This Agreement constitutes valid and legally binding obligations on the part of the Vendor enforceable
in accordance with its terms.

 

		2.4	The Vendor is the legal and beneficial owners of the Sale Shares and is entitled to sell and transfer
the Sale Shares and pass the full legal and beneficial ownership thereof with all rights thereto to the Purchaser or its nominee
on the terms of this Agreement. The Sale Shares are issued and fully paid and is beneficially owned by the Vendor free from all
Encumbrances. The Sale Shares constitutes the 100% of the issued share capital of the Company.

 

    	 	16	 

     

    

  

		3.	Records and taxation

 

		3.1	The Company has duly made up all requisite books of account (reflecting in accordance with generally
accepted accounting principles for all the financial transactions of the Company), minutes books, registers and records in compliance
with all applicable laws and regulatory requirements and these and all other deeds and documents (properly stamped where necessary)
belonging to or which ought to be in its possession and its seal are in its possession.

 

		3.2	All the accounts, books, ledgers, financial and other records of whatsoever kind, of the Company
are in its possession, have been fully, properly and accurately kept and completed, do not contain any material inaccuracies or
discrepancies of any kind and give and reflect a true and fair view of its trading transactions, and its financial, contractual
and trading position.

 

		3.3	The Company has duly complied with its obligations to account to the relevant tax authorities and
all other authorities for all amounts for which it is or may become accountable in respect of Taxation relating to its business.

 

		3.4	All returns in connection with Taxation that should have been filed by the Company have been filed
correctly and on a proper basis in accordance with all applicable laws and regulatory requirements and there are no facts known
or which would on reasonable enquiry be known to the Company or the director which may give rise to any dispute or to any claim
for any Taxation or the deprivation of any relief or advantage that might have been available.

 

		3.5	The Company is not and does not expect to be involved in any dispute in relation to Taxation and
no authority concerned has investigated or indicated that it intends to investigate into the tax affairs of the Company nor are
there any circumstances of which the Vendor is aware which would cause any authority to investigate into the tax affairs of the
Company.

 

		3.6	The Company has no liability in respect of Taxation (whether actual or contingent) nor any liability
for interest, penalties or charges imposed in relation to any Taxation arising or deemed to arise in any accounting period ending
on or before the Accounts Date that is not provided for in full in the Accounts, and in particular, has no outstanding liability
for:

 

		(i)	Taxation in any part of the world assessable or payable by reference to any profit, gain, income
or distribution earned, received, paid, arising or deemed to arise on or at any time prior to the Accounts Date or in respect of
any period ending on or before the Accounts Date; or

 

		(ii)	purchase, value added, sales or other similar tax in any part of the world referable to transaction
effected on or before the Accounts Date, 

 

that is not provided for in the Accounts.

 

		3.7	Since the Accounts Date up to and inclusive of the Completion
Date:

 

		(i)	the Company has not been involved in any transaction outside the ordinary course of business which
has given or may give rise to a liability to Taxation on the Company (or would have given or might give rise to such a liability
but for the availability of any relief, allowance, deduction or credit);

  

    	 	17	 

     

    

 

 

		(ii)	no accounting period or year of assessment of the Company has ended;

 

		(iii)	no disposal has taken place or other event occurred which will or may have the effect of crystallising
a liability to Taxation which should have been included in the provision for deferred Taxation contained in the Accounts if such
a disposal or other event had been planned or predicted at the date on which the Accounts were drawn up;

 

		(iv)	no payment has been made by the Company which will not be deductible for profits tax (or its equivalent)
purposes either in computing the profits of the Company or in computing the profits tax chargeable on the Company;

 

		(v)	no event has occurred with the result that the Company has or will become liable to pay or bear
a liability in respect of Taxation directly or primarily charged against, or attributable to, another person, firm or company;
and

 

		(vi)	the Company has not paid or become liable to pay any penalty in connection with any Taxation or
otherwise paid any Taxation after its due date for payment or become liable to pay any Taxation the due date for payment of which
has passed or will become prospectively liable to pay any Taxation the due date for payment of which will fall within 30 days after
the date of this Agreement.

 

		3.8	The Company has within the time limits prescribed by the
relevant legislation duly paid all tax (including provisional tax), made all returns, given all notices, supplied all other information
required to be supplied to the Inland Revenue Department and any other relevant governmental authority (including any governmental
authority of a foreign jurisdiction) and all such information was and remains complete and accurate in all material respects and
all such returns and notices were and remain complete and accurate in all material respects and were made on a proper basis and
do not, nor, to the best of the knowledge, information and belief of the Vendor, having made due and careful enquiry, are likely
to, reveal any transactions which may be the subject of any dispute with the Inland Revenue Department or other relevant authorities
and the Company is not and has not in the last six years been the subject of an Inland Revenue Department (or equivalent foreign
tax authority) investigation or field audit or other dispute regarding tax or duty recoverable from the Company or regarding the
availability of any relief from Taxation or duty to the Company and there are no facts known to the Vendor which are likely to
cause such an investigation or audit to be instituted or such a dispute to arise.

 

		3.9	The Company has duly submitted all claims and disclaimers which have been assumed to have been
made for the purpose of the Accounts.

 

		3.10	There are no material and/or unusual arrangements, agreements or undertakings, between the Company
and the Inland Revenue Department, or any foreign tax authorities, regarding or affecting the Taxation treatment of the Company.

 

		3.11	The Company has kept sufficient records in either English or Chinese:

 

		(i)	of its income and expenditure to enable the assessable profits of its trade, profession or business
to be readily ascertained in compliance with and for the period mentioned in Section 51C of the Inland Revenue Ordinance or other
similar legislation;

 

    	 	18	 

     

    

 

 

		(ii)	of the consideration, in money or money’s worth, payable or deemed to be payable to it, to
its order or for its benefit in respect of the right of use of its land or buildings or land and buildings to enable the assessable
value of its land or buildings or land and buildings to be readily ascertained in compliance with and for the period mentioned
in Section 57D of the Inland Revenue Ordinance.

 

		3.12	The Company has duly complied with all requirements to deduct or withhold Taxation from any payments
it has made and has accounted in full to the appropriate authorities for all amounts so deducted or withheld.

 

		4.	Corporate Status

 

		4.1	The Company has all requisite corporate power and authority to own its assets and to carry on its
business as currently conducted and is duly qualified to do business and is in good standing as a foreign corporation in each jurisdiction
where the ownership or operation of its assets or the conduct of its business requires such qualification.

 

		4.2	No events or omissions have occurred whereby the constitution, subsistence or corporate status
of the Company has been or is likely to be adversely affected.

 

		4.3	No order for the appointment of a liquidator has been made and as receiver has been appointed over
the whole or any part of the assets of the Company.

 

		4.4	No order has been made, or petition presented, or resolution passed for the winding up of the Company,
nor has any distress, execution or other process been levied in respect of the Company which remains undischarged; nor is there
any unfulfilled or unsatisfied judgment or court order outstanding against the Company.

 

		4.5	Save as contemplated under and this Agreement, as at the Completion Date, there are no
                                                           pre-emptive or other outstanding rights, options, warrants, conversion rights or agreements or commitments of any character
                                                           relating to the authorised and issued, unissued or treasury shares or equity interest of the Company and the Company has not
                                                           issued any debt securities, other securities, rights or obligations which are convertible into or exchangeable for, or giving
                                                           any person a right to subscribe for or acquire, capital or equity interest of the Company, and no such securities or
                                                           obligations evidencing such rights are outstanding.

 

		4.6	The Company is duly incorporated, validly existing and in good standing under the laws
                                                           of Hong Kong and has all requisite corporate or similar power and authority to own and operate its properties and assets and
                                                           to carry on its business as presently conducted and is duly qualified to do business.

 

    	 	19	 

     

    

 

		5.	Accounts and Management Accounts

 

		5.1	The Accounts:

 

		(i)	have been prepared on a basis consistent with all previous balance sheets and profit and loss accounts
of the Company and in accordance with generally accepted accounting principles, standards and practice adopted in Hong Kong;

 

		(ii)	are true, complete and accurate in all material respects and in particular have made full provision
for all material liabilities or make proper provision for (or contain a note in accordance with good accounting practice adopted
in Hong Kong respecting) all material deferred or contingent liabilities (whether liquidated or unliquidated) at the date thereof
and have made adequate provision for bad and doubtful debts and for depreciation of the Company’s fixed assets having regard
to their original cost and estimated life;

 

		(iii)	give a true and fair view of the state of affairs and the financial position of the Company as
at the Accounts Date and of the results of the Company for the financial period ended on that date;

 

		(iv)	are not adversely affected by any unusual items which are not disclosed in the Accounts; and

 

		(v)	any slow moving, old, obsolescent or excessive stock has been written down appropriately in the
Accounts, any irrevocable work in progress has been wholly written off and the value attributed in the Accounts to the remaining
stock did not exceed the lower of cost and net realisable value at the Accounts Date and no part of such value is attributable
to stock which is unusable or unsaleable in the normal course of the Company’s business.

 

		5.2	The Company has no liability for Taxation of any kind, which has not been provided for in the Accounts.

 

		5.3	Due provision has been made in the Accounts for any capital commitment undertaken or authorised
at the Accounts Date as may be appropriate and for any bad or doubtful debt due and payable to the Company in its own right.

 

		5.4	The Company is not a member of any partnership or unincorporated company or association.

 

		5.5	Since the Accounts Date up to and inclusive of Completion Date:

 

		(i)	there has been no material adverse change in the financial position or business or prospects of
the Company and the Company has entered into transactions and incurred liabilities only in the ordinary course of business;

 

		(ii)	The Company has not declared, paid or made nor is proposing to declare, pay or make any dividend
or other distribution;

 

		(iii)	the business of the Company has been carried on in the ordinary and usual course and in the same
manner (including nature and scope) as in the past, no fixed asset or stock has been written up nor any debt written off and no
unusual or abnormal contract has been entered into by the Company; and

 

    	 	20	 

     

    

  

		(iv)	no asset of the Company has been acquired or disposed of on capital account, or has been agreed
to be acquired or disposed of, otherwise than in the ordinary course of business and the Company has not disposed of or parted
with possession of any of its property assets (including know how) or stock in trade or made any payments and no contract involving
expenditure by it on capital account has been entered into by the Company and no liability has been created or has otherwise arisen
(other than in the ordinary course of business as previously carried on).

 

		5.6	The Management Accounts have been properly complied by the director of the Company on the basis
which is consistent with the accounting policies consistently applied and are accurate in all respects and show a true and fair
view of the state of affairs of the Company and of its results and profits for the financial period ending on the Management Accounts
Date and:

 

		(a)	depreciation of the fixed assets of the Company has been made at a rate sufficient to write down
the value of such assets to nil not later than the end of their useful working lives;

 

		(b)	the Management Accounts disclose and make full provision or reserve for all actual liabilities;

 

		(c)	the Management Accounts disclose and make proper provision or reserve for or note all contingent
liabilities, capital or burdensome commitments;

 

		(d)	the bases and policies of accounting of the Company (including depreciation) adopted for the purpose
of preparing the Management Accounts are the same as those adopted for the purpose of preparing the audited accounts of the Company
for each of the preceding accounting periods since the date of incorporation;

 

		(e)	the profits and losses of the Company shown in the Management Accounts and for the preceding accounting
periods have not in any material respect been affected by any unusual or exceptional item or by any other matter which has rendered
such profits or losses unusually high or low; and

 

		(f)	the accounts receivable shown in the Management Accounts have been collected or will in aggregate
realise the nominal amount thereof less any reserve for bad and doubtful debts included in the Management Accounts and none of
the amounts shown in the Management Accounts in respect of debtors is represented by debts which were then more than six (6) months
overdue for payment and none of the same has been released or settled for an amount less than that shown in the Management Accounts.
All such debts will be collectible in full within one hundred and eighty (180) days of the Completion Date subject to the Company
using all reasonable endeavours to collect the same.

 

		6.	Business, etc.

 

		6.1	The Company has not given or permitted to be outstanding any powers of attorney or authority (expressed
or implied) to any party to enter into any contracts, commitments or transactions (other than the usual authority conferred on
its director in respect of the ordinary course of business) or pursuant to the banking facilities granted to the Company.

 

    	 	21	 

     

    

 

		6.2	The Company has not entered into any contracts, commitments or transactions other than on an arms-length
basis nor breached or defaulted under any contracts, commitments or transactions.

 

		6.3	There are no existing circumstances which indicate that as a result of the consummation of this
Agreement:

 

		(i)	the existing level of business of the Company may be substantially reduced; and

 

		(ii)	the Company will lose the benefit of any right or privilege which it enjoys.

 

		6.4	Compliance with the terms of this Agreement does not and will not:

 

		(i)	conflict with, or result in the breach of, or constitute a default under, any of the terms, conditions
or provisions of any agreement or instrument to which the Company is a party, or any provision of the memorandum or articles of
association or equivalent constitutive documents of the Company or any Encumbrance, lease, contract, order, judgment, award, injunction,
regulation or other restriction or obligation of any kind or character by which or to which any asset of the Company is bound or
subject;

 

		(ii)	relieve any person from any obligation to the Company (whether contractual or otherwise), or enable
any person to determine any obligation, or any right or benefit enjoyed by the Company, or to exercise any right, whether under
an agreement with, or otherwise in respect of, the Company;

 

		(iii)	result in the creation, imposition, crystallisation or enforcement of any Encumbrances whatsoever
on any of the assets of the Company; or

 

		(iv)	result in any present or future indebtedness of the Company becoming due, or capable of being declared
due and payable, prior to its stated maturity.

 

		6.5	The Company has, at all times, carried on its business and conducted its affairs in all respects
in accordance with its memorandum and articles of association or equivalent constitutive documents for the time being in force
and any other documents to which it is, or has been, a party.

 

		6.6	The Company is empowered and duly qualified to carry on business in all jurisdictions in which
it now carries on business.

 

		6.7	The Company is not a party to any undertaking or assurances given to any court or governmental
agency, which is still in force.

 

		6.8	The Company has conducted and is conducting its business in all respects in accordance with all
applicable laws and regulations, whether of Hong Kong or elsewhere.

 

		6.9	The Company is not in breach of any of the terms or conditions of any of the licences or consents;
the enforcement of this Agreement shall not, and there are no factors that might, in any way prejudice the continuation, or renewal,
of any of them.

 

    	 	22	 

     

    

 

		6.10	The Company is not a party to any contract, transaction,
arrangement or liability which:

 

		(i)	is of an unusual or abnormal nature, or outside the ordinary
and proper course of business; or

 

		(ii)	cannot readily be fulfilled or performed by it on time
without undue, or unusual, expenditure of money, effort or personnel.

 

		6.11	No notice, demand or claim of default under any agreement,
instrument or arrangement to which the Company is a party has been received by the Company and is outstanding against it and there
is nothing whereby any such agreement, instrument or arrangement may be prematurely terminated or rescinded by any other party.

 

		6.12	The Vendor is not aware of:

 

		(i)	any party to any agreement with, or under an obligation
to, the Company who is in default under it, being a default which would be material in the context of the Company’s financial
position; and

 

		(ii)	any circumstances likely to give rise to such a default.

 

		6.13	Insofar as the Vendor is aware, the Company has not supplied
services or products which are, or were, or will become faulty or defective, or which do not comply in any material respect with
any warranties or representations, expressly or impliedly made by it, or with all applicable regulations and requirements.

 

		7.	Corporate Records and Procedures etc.

 

		7.1	The copy of the memorandum and articles of association
or the equivalent constitutive documents of the Company delivered to the Purchaser is accurate, update and complete in all respects.

 

		7.2	No alteration has been made to the memorandum or articles
of association or the equivalent constitutive documents of the Company and no resolution of any kind of the shareholders of the
Company has been passed (other than resolutions relating to the business at annual general meetings which was not special business)
without disclosure in writing to the Purchaser.

 

		7.3	The Company has fully and punctually observed and complied
with its obligations under the relevant companies legislations and the relevant statutes and all returns, particular resolutions
and other documents (if any) required to be filed have been properly and punctually filed.

 

		7.4	The register of members of the Company is and will at Completion
be correct. There has been no notice of any proceedings to rectify the register, and there are no circumstances which might lead
to any application for rectification of the register, nor will there be any such circumstances at or before Completion.

 

    	 	23	 

     

    

 

		8.	Director

 

Other than the director set out in Schedule
1, the Company has no other director.

 

		9.	Landed Property

 

The landed property owned by the Company
and used in connection with the business of the Company is material in the context of its business. Such landed property is in
the sole legal and beneficial ownership of the Company and is held by the Company subject to an all monies first legal charge/mortgage
dated 12th May 2017 made by the Company in favour of United Overseas Bank Limited, Hong Kong Branch.

 

		10.	Dispute, Claims and Litigation

 

		10.1	Except for the litigation search results and their brief
description as set out in Schedule 4 of this Agreement, the Company is not engaged in any litigation, administrative, mediation
or arbitration proceedings, as plaintiff or defendant; there are no non-compliance, investigation, inquiry or enforcement proceedings
pending or threatened, either by or against the Company; and no circumstances exist which are likely to give rise to any litigation,
administrative, mediation or arbitration proceedings.

 

		10.2	There is no dispute with any revenue, or other official,
department or other regulatory authority in Hong Kong or elsewhere, in relation to the affairs of the Company, and the Company
and the Vendor is not aware of any facts which may give rise to any dispute.

 

		10.3	No order has been made, or petition presented, or resolution
passed for the winding up of the Company; nor has any distress, execution or other process been levied in respect of the Company
which remains undischarged; nor is there any unfulfilled or unsatisfied judgment or court order outstanding against the Company.

 

		10.4	The Company has conducted its business and dealt with its
assets in all material respects in accordance with all applicable legal and administrative requirements in any jurisdiction.

 

		10.5	The Company has not committed any criminal act or material
breach of contract or statutory duty or any tortious or other unlawful act.

 

		10.6	No unsatisfied judgment is outstanding against the Company.

 

		11.	Liabilities

 

		11.1	The Company does not have, as at the Accounts Date, any
material liabilities or financial commitment except as disclosed in the Accounts.

 

		11.2	All loans and payables incurred before Completion have
been either waived or settled, save for those as agreed between the Vendor and the Purchaser.

 

		12.	Agents

 

		12.1	There are in force no powers of attorney or any special
authorities given by the Company other than those given in the ordinary course of business.

 

    	 	24	 

     

    

 

		12.2	Other than in the ordinary course of business, the Company
has not ever entered into an agreement under which any person has been given representative or agency rights or powers.

 

		13.	Acquisition of the Consideration Shares

 

		13.1	The Vendor understands that the Consideration Shares are
“restricted securities” and have not been registered under the Securities Act of 1933, as amended (the “Securities
Act”) or any applicable state securities law and are acquiring the Consideration Shares as principal for their own account
and not with a view to or for distributing or reselling the Consideration Shares or any part thereof in violation of the Securities
Act, have no present intention of distributing any of such Consideration Shares in violation of the Securities Act and have no
direct or indirect arrangement or understandings with any other persons to distribute or regarding the distribution of such Consideration
Shares in violation of the Securities Act. The Vendor understands that the Consideration Shares may only be disposed of in compliance
with the Securities Act. In connection with any transfer of the Consideration Shares other than pursuant to an effective registration
statement, SGOCO may require the transferor thereof to provide SGOCO with an opinion of counsel selected by the transferor and
reasonably acceptable to SGOCO, the form and substance of which opinion shall be reasonably satisfactory to SGOCO, to the effect
that such transfer does not require registration of such transferred Consideration Shares under the Securities Act.

 

		13.2	The Vendor hereby represents that he has satisfied himself
as to the full observance of the laws of his jurisdiction in connection with any invitation to subscribe for the Consideration
Shares, including (i) the legal requirements within his jurisdiction for the acquisition of the Consideration Shares, (ii) any
foreign exchange restrictions applicable to such purchase, (iii) any governmental or other consents that may need to be obtained,
and (iv) the income tax and other tax consequences, if any, that may be relevant to the purchase, holding, redemption, sale, or
transfer of the Consideration Shares. The Vendor’s beneficial ownership of the Consideration Shares will not violate any
applicable securities or other laws of the Vendor’s jurisdiction.

 

		13.3	The Vendor, either alone or together with his representatives,
have such knowledge, sophistication and experience in business and financial matters so as to be capable of evaluating the merits
and risks of the acquisition of the Consideration Shares, and have so evaluated the merits and risks. The Vendor is able to bear
the economic risk of the Consideration Shares and, at the present time, are able to afford a complete loss of the Consideration
Shares.

 

		13.4	The Vendor is not, to his knowledge, acquiring the Consideration
Shares as a result of any advertisement, article, notice or other communication regarding the Consideration Shares published in
any newspaper, magazine or similar media or broadcast over television or radio or presented at any seminar or any other general
solicitation or general advertisement.

 

		13.5	The Vendor acknowledges that he has had the opportunity
to review any and all documents and has been afforded (i) the opportunity to ask such questions as they have deemed necessary
of, and to receive answers from, representatives of SGOCO concerning the Consideration Shares; and (ii) access to information
about SGOCO and its financial condition, results of operations, business, properties, management and prospects sufficient to enable
it to evaluate the transaction. The Vendor acknowledges and agrees that SGOCO has not provided the Vendor with any information
or advice with respect to the Consideration Shares nor is such information or advice necessary or desired.

 

    	 	25	 

     

    

 

		13.6	Neither the Vendor nor any person acting on his behalf
has engaged, nor will engage, in any directed selling efforts to a U.S. Person (as defined in the Securities Act) with respect
to the Consideration Shares and the Vendor and any person acting on his behalf has complied and will comply with the “offering
restrictions” requirements of Regulation S. The transactions contemplated hereby have not been pre-arranged with a buyer
located in the United States or with a U.S. Person, and are not part of a plan or scheme to evade the registration requirements
of the Securities Act. Neither the Vendor nor any person acting on his behalf has undertaken or carried out any activity for the
purpose of, or that could reasonably be expected to have the effect of, conditioning the market in the United States, its territories
or possessions, for any of the Consideration Shares. The Vendor agrees not to cause any advertisement of the Consideration Shares
to be published in any newspaper or periodical or posted in any public place and not to issue any circular relating to the Consideration
Shares, except such advertisements that include the statements required by Regulation S, and only offshore and not in the U.S.
or its territories, and only in compliance with any local applicable securities laws.

 

		13.7	The Vendor understands that the Consideration Shares and
any securities issued in respect of or exchange for the Consideration Shares, may be notated with one or all of the following
legends, as applicable:

 

“THIS SECURITY HAS NOT BEEN REGISTERED
WITH THE SECURITIES AND EXCHANGE COMMISSION IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS
AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION
STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT.”

 

“THESE SECURITIES ARE BEING OFFERED
TO INVESTORS WHO ARE NOT U.S. PERSONS (AS DEFINED IN REGULATION S UNDER THE SECURITIES ACT OF 1933, AS AMENDED (“THE SECURITIES
ACT”) AND WITHOUT REGISTRATION WITH THE UNITED STATES SECURITIES AND EXCHANGE COMMISSION UNDER THE SECURITIES ACT IN RELIANCE
UPON REGULATION S PROMULGATED UNDER THE SECURITIES ACT. TRANSFER OF THESE SECURITIES IS PROHIBITED, EXCEPT IN ACCORDANCE WITH THE
PROVISIONS OF REGULATION S PROMULGATED UNDER THE SECURITIES ACT, PURSUANT TO REGISTRATION UNDER THE SECURITIES ACT, OR PURSUANT
TO AVAILABLE EXEMPTION FROM REGISTRATION. HEDGING TRANSACTIONS MAY NOT BE CONDUCTED UNLESS IN COMPLIANCE WITH THE SECURITIES ACT.”

 

    	 	26	 

     

    

 

SCHEDULE 3

PURCHASER WARRANTIES

 

		1.	The Purchaser has, on the date of this Agreement and on
Completion, full and unfettered right, power and authority to enter into this Agreement and assume all of its obligations hereunder
and no further actions or proceedings are necessary on its part in connection with the execution, delivery and performance by
it of this Agreement.

 

		2.	The Purchaser is a company duly incorporated and validly
existing under the laws of Seychelles.

 

		3.	This Agreement constitutes valid and legally binding obligations
on the part of the Purchaser enforceable in accordance with its terms.

 

		4.	All information given by the Purchaser or its agents or
professional advisers to the Vendor or his employees, agents or professional advisers was, when given, and is now true, accurate
and complete in all respects.

 

		5.	Subject to the fulfillment of the Conditions Precedent,
all necessary consents, authorisations and approvals of and all necessary registrations and filings with any governmental or regulatory
agency or body required in Seychelles for or in connection with this Agreement and the performance of the terms thereof have been
obtained or made or will have been obtained or made by Completion.

 

		6.	All the Consideration Shares to be issued and allotted
by SGOCO to the Vendor will be duly authorised, validly issued and fully paid up and none of such shares will be issued in violation
of the memorandum and articles of association of SGOCO or the terms of any agreement or laws and regulations by which SGOCO or
its shareholders were or are bound, if any.

 

    	 	27	 

     

    

 

SCHEDULE 4

LITIGATION SEARCH RESULTS

 

	Eastern Magistrates’ Court – Miscellaneous Proceeding
	Case No.	 	Hearing Date	 	Parties	 	Party Filing Date
	 	 	 	 	 	 	 
	ESMP227/2017	 	07/03/2017	 	Defendant: 
Giant Credit Ltd	 	07/03/2017
	 	 	 	 	 	 	 
	ESMP2644/2015	 	14/01/2017	 	Defendant: 
Giant Credit Ltd	 	14/01/2016

 

    	 	28	 

     

    

 

SCHEDULE 5

DEED OF ASSIGNMENT

 

THIS DEED OF ASSIGNMENT is
made on the [*] day of [*] 2017

 

BETWEEN

 

		(1).	Luk Lai Ching Kimmy ,
with Hong Kong identity card number E979645(6) whose residential address is situated at Room H, 20/F, Block 33, Phase 3, Laguna
City, Kwun Tong, Kowloon, Hong Kong (the “Assignor”);

 

		(2).	Giant Connection Limited ,
a company incorporated with limited liability in Seychelles, whose registered office is situate at Vistra Corporate Services Centre,
Suite 23, 1st Floor, Eden Plaza, Eden Island, Mahé, Republic of Seychelles (the “Assignee”); and

 

		(3).	Giant Credit Limited 
(company no. 2045289), a company incorporated under the laws of Hong Kong, whose registered office is situate at Rm 23, 1/F, Harbour
Crystal Centre, 100 Granville Rd, Tsim Sha Tsui, Hong Kong (the “Company”).

 

WHEREAS:

 

		(A)	By a sale and purchase agreement dated [*] (the “Agreement”)
made between, among others, the Assignor as Vendor and the Assignee as Purchaser, the Assignor has agreed to sell and the Assignee
has agreed to purchase the Sale Share (as defined in the Agreement).

 

		(B)	As at the date hereof, the Company is indebted to the Assignor
in the amount of HK$14,391,354 (“Shareholder’s Loan”).

 

		(C)	The Assignor has agreed to assign all her right, title,
interest and benefit in and to the Shareholder’s Loan in favour of the Assignee (including without limitation the right
to demand and enforce repayment of all indebtedness due by the Company and all other covenants thereto).

 

		(D)	It is a condition of completion of the Agreement that the
Assignor delivers to the Assignee this Deed of Assignment.

 

NOW THIS DEED WITNESSES as follows:

 

		1.	In this Deed, unless and except to the extent that the
context requires otherwise, references to any party to this Deed shall include its successors or permitted assigns.

 

		2.	In this Deed, unless the context otherwise requires, words
and expressions used herein shall have the meanings set out in the Agreement.

 

    	 	29	 

     

    

 

		3.	The Assignor hereby irrevocably and unconditionally assigns
and transfers to the Assignee absolutely all the Assignor’s right title and interest in and to the Shareholder’s Loan.

 

		4.	All the parties to this Deed hereby agree that in accordance
with the Agreement and subject to the Completion thereunder, this Deed shall become effective, and the assignment of the Shareholder’s
Loan shall be completed, on the Completion Date.

 

		5.	The Assignor covenants with the Assignee that:

 

		(a)	the Assignor is the legal and beneficial owner of the Shareholder’s
Loan and the Shareholder’s Loan is free from all Encumbrances and that the Assignor has not previously assigned or agreed
to assign the Shareholder’s Loan or any rights or benefits in relation thereto to any third party whether absolutely or
conditionally; and

 

		(b)	the Shareholder’s Loan is presently due and owing
in full by the Company to the Assignor.

 

		6.	Insofar as is necessary to perfect the interests of the
Assignee hereunder, the Assignor hereby irrevocably and unconditionally appoints the Assignee as the attorney of the Assignor
to demand, sue for, recover, receive and discharge the Shareholder’s Loan.

 

		6.	If after the date hereof the Assignor receives any payment
or makes recovery in respect of the Shareholder’s Loan, whether from the Company or any other person, he shall immediately
notify the Assignee and, pending payment of such sum to the Assignee, the Assignor shall hold such payment or recovery to the
order of and upon trust for the Assignee.

 

		7.	The Company irrevocably and unconditionally acknowledges
and consents to the assignment of the Shareholder’s Loan pursuant to this Deed and covenants to pay the Shareholder’s
Loan to the Assignee without set off or consideration for or on account of any sum whatsoever.

 

		8.	This Deed may be executed in any number of counterparts
and all of such counterparts taken together shall be deemed to constitute one and the same instrument.

 

		9.	This Deed shall be governed by and construed in all respects
in accordance with the laws of Hong Kong. Each of the parties irrevocably submits to the non-exclusive jurisdiction of the Hong
Kong courts.

 

		10.	Notwithstanding anything herein provided to the contrary,
a person who is not a party to this Deed shall have no rights under the Contracts (Rights of Third Parties) Ordinance (Cap.623)
to enforce or enjoy the benefit of any provisions of this Deed.

 

IN WITNESS whereof this Deed has been duly
executed the day and year first before written.

 

	The Assignor	 	 
	 	 	 
	SIGNED SEALED AND DELIVERED	)	 
	By Luk Lai Ching Kimmy ,	)	[Form of Deed of Assignment, please
	 	)	do not sign here]
	in the presence of:-	)	 

 

    	 	30	 

     

    

 

	The Assignee	 	 
	 	 	 
	EXECUTED as a deed with the Common Seal of	)	 
	Giant Connection Limited	)	[Form of Deed of Assignment, please
		)	do not sign here]
	and SIGNED by Lau Pui Kiu	)	 
	in the presence of:	)	 
	 	 	 
	The Company	 	 
	 	 	 
	EXECUTED as a
    deed with the Common Seal of	)	 
	Giant Credit
    Limited	)	[Form of Deed of Assignment, please
		)	do not sign here]
	and SIGNED
    by Luk Lai Ching Kimmy 	)	 
	in the presence of:	)	 

 

    	 	31

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