Document:

Exhibit
10.2

 

Execution
Version

 

Dated January 19, 2021

 

EARTHASIA
INTERNATIONAL HOLDINGS LTD.

as
Issuer 

 

and 

 

LEXINTER
INTERNATIONAL INC. 

as
Investor

 

SUBSCRIPTION
AGREEMENT

     

     

    

Contents

 

	Clause	Heading	Page
	 	 	 
	1	Definitions	1
	 	 	 
	2	Issue
    and Subscription	6
	 	 	 
	3	Representations
    and Warranties	9
	 	 	 
	4	Undertakings	14
	 	 	 
	5	Conditions
    Precedent	17
	 	 	 
	6	Termination	19
	 	 	 
	7	Indemnification	20
	 	 	 
	8	Payments	20
	 	 	 
	9	Security	20
	 	 	 
	10	Survival
    of Representations and Obligations	21
	 	 	 
	11	Notice	21
	 	 	 
	12	Assignment	22
	 	 	 
	13	Entire
    Agreement	22
	 	 	 
	14	Confidentiality	22
	 	 	 
	15	Costs	23
	 	 	 
	16	Further
    Assurance	23
	 	 	 
	17	Third
    Party Rights	24
	 	 	 
	18	Counterparts	24

    i

     

    

	19	Governing
    Law and Dispute Resolution	24
	 	 	 
	SCHEDULE
    1 FORM OF DIRECTOR CERTIFICATE	1
	 	 
	SCHEDULE
    2 FORM OF DEFINITIVE NOTE CERTIFICATE	1
	 	 
	SCHEDULE
    3 FORM OF WARRANT	1

    ii

     

    

This
Agreement is made on January 19, 2021 among:

 

		(1)	Earthasia
                                         International Holdings Ltd. ,
                                         a company incorporated in the Cayman Islands with limited
                                         liability whose registered address is Windward 3, Regatta Office Park, PO Box 1350, Grand
                                         Cayman KY1-1108, Cayman Islands and having its principal place of business at 11/F, COFCO
                                         Tower, 262 Gloucester Road, Causeway Bay, Hong Kong (the “Issuer”);
                                         and

 

		(2)	Lexinter
                                         International Inc., a company incorporated under the laws of the Province of Ontario,
                                         Canada, whose registered office is at 3443 Bathurst Street Suite 502, Toronto, Ontario,
                                         M6A 2C3 Canada (the “Investor”).

 

The
Issuer and the Investor are collectively referred to herein as the “Parties” and each individually as a “Party”

 

Whereas:

 

		(A)	The
Issuer is a listed company on the The Stock Exchange of Hong Kong Limited (“HKSE”) with stock code 6128. The
Issuer and its Subsidiaries (as defined below) are carrying out businesses in processing and sale of graphite and graphene related
products, landscape architecture and catering.

 

		(B)	On
and subject to the terms of this Agreement, the Issuer agrees to issue and sell to the Investor and the Investor agrees to subscribe
and purchase from the Issuer certain convertible notes and warrants to purchase the ordinary shares of the Issuer in a series
of transactions.

 

		1	Definitions

 

		1.1	In
this Agreement:

 

“Assigns”
has the meaning given to such term in Clause 12.2;

 

“Benchmark
Price” means HK$ 0.65 per Share;

 

“Business
Day” means a day (other than a Saturday or Sunday) on which commercial banks are open for business in Hong Kong;

 

“Chargor”
means Happy Growth Group Limited, a wholly owned Subsidiary of Issuer established under the laws of the British Virgin Islands;

 

“Charged
Company” means Think High Global Limited, a wholly owned Subsidiary of Issuer established under the laws of the British
Virgin Islands, which directly holds 100% of the equity interest of the PRC Graphene HoldCo;

 

“Charged
Shares” means the entire share capital of the Charged Company;

 

“Closing”
means each and any of the Initial Note Closings, the Initial Warrant Closing and the Subsequent Closings;

 

“Closing
Amount” means the closing amount set forth in each Closing Notice;

 

“Closing
Date” means each and any of the First Note Closing Date, the Other Initial Note Closing Date, the Initial Warrant
Closing Date and the Subsequent Closing Date;

     1

     

    

“Closing
Notice” means a written notice by the Investor to the Issuer to request a Closing other than the First Note Closing
and the Initial Warrant Closing in the form attached hereto as Annex 1, specifying the Closing Amount and the Closing Date which
shall not be less than 5 Business Days or more than 10 Business Days from the date of the Closing Notice unless otherwise agreed
by the Parties in writing;

 

“Connected
Person” has the meaning defined in Rule 14A.06(7) of the Listing Rules;

 

“Conversion
Price” means the conversion price per Share as set forth in each Note, as adjusted pursuant to the terms and conditions
thereunder;

 

“Conversion
Shares” means the Shares to be issued on conversion of the Notes pursuant to the terms and conditions thereof;

 

“Definitive
Note Certificate” means the definitive certificate for a Note in the form set out in Schedule 2;

 

“Director(s)”
means the director(s) of the Issuer;

 

“Director
Certificate” means the certificate in the form attached as Schedule 1;

 

“EGM”
means the extraordinary general meeting of the Issuer to be convened and held to consider and, if sought fit, approve the
Specific Mandate;

 

“Environmental
Laws” means all and any laws, common law, statutes, subordinate legislation, directives, orders, regulations, notices,
standards, codes of practice, guidance notes; whether of the PRC or any other relevant jurisdiction, and all judgments, orders,
instructions or awards of any court or competent authority relating to pollution, contamination or protection of the environment,
human health, health of animals, plants or any other living organism or to the storage, labelling, handling, release, treatment,
manufacture, processing, deposit, transportation or disposal of hazardous substances;

 

“Exercise
Price” means the Warrant exercise price to purchase Shares as set forth in each Warrant, as adjusted pursuant to the
terms and conditions thereunder;

 

“First
Note” means the Note in the principal amount of the First Note Amount to be issued at the First Note Closing by the
Issuer;

 

“First
Note Amount” means US$500,000;

 

“First
Note Closing” has the meaning given to such term in Clause 2.2;

 

“First
Note Closing Date” has the meaning given to such term in Clause 2.2;

 

“General
Mandate” means the general mandate granted to the Directors by the Shareholders at the annual general meeting of the
Issuer held on June 15, 2020 to allot, issue and deal with up to 96,458,000 Shares, representing 20% of the total number of issued
Shares on the date of passing such resolution;

 

“Graphene
Business” means the business of processing and sale of graphite and graphene related products carried out by the Group;

 

“Group”
means the Issuer and its Subsidiaries taken as a whole;

     2

     

    

“HKSE”
has the meaning set forth in the Recitals;

 

“Indebtedness”
means any indebtedness for or in respect of (a) money borrowed; (b) any issue of notes, notes or any similar debt instrument;
or (c) the amount of any liability in respect of any guarantee for any of the items referred to in (a) or (b);

 

“Initial
Note Closings” means collectively the First Note Closing and all Other Initial Note Closings;

 

“Initial
Warrant” means a warrant in the form attached as Schedule 3 hereto to be issued at the Initial Warrant Closing
to the Investor, pursuant to which the Investor shall have the right to purchase the Initial Warrant Shares;

 

“Initial
Warrant Amount” means 50% of the aggregate outstanding principal amount under the First Note and the Notes issued at
all Other Initial Note Closings;

 

“Initial
Warrant Closing” has the meaning given to such term in Clause 2.4;

 

“Initial
Warrant Closing Date” has the meaning given to such term in Clause 2.4;

 

“Initial
Warrant Shares” means such number of Shares, calculated by dividing the Initial Warrant Amount by the Benchmark Price;

 

“Institutional
Investor” shall mean any of the following persons: (i) a bank, trust company, savings and loan or other financial institution,
pension plan, broker-dealer or similar entity, (ii) an insurance company, (iii) a pension fund, (iv) a hedge fund, (v) a venture
capital fund, (vi) a mutual fund, (vii) a leveraged buyout fund, (viii) an investment bank, (ix) a savings association, (x) an
investment fund whose principal investors are Institutional Investors, (xi) any Investor, or (xii) any person that is an affiliate
of any person named in the foregoing (i) through (xi);

 

“Listing
Committee” means the listing sub-committee of the board of directors of the HKSE;

 

“Listing
Rules” means the Rules Governing the Listing of Securities on the Main Board;

 

“Long
Stop Date” means December 31, 2021, or such later date as the Issuer and the Investor may agree;

 

“Main
Board” means the main board of HKSE;

 

“Material
Adverse Effect” means a material adverse effect on any of the following (i) the validity or enforceability of any of
the Transaction Documents, (ii) the business, operations, assets, liabilities or condition (financial or otherwise) of the Group
taken as a whole, (iii) the ability of the Issuer to perform its obligations under any of the Transaction Documents, or (iv) the
rights and remedies of the Investor under any of the Transaction Documents but shall exclude any effect caused by any force majeure
events including fires, floods, acts of god, natural disasters, wars, blockade, strikes, changes of policies or lawful acts of
government agencies or public authorities that prohibit the consummation of the transactions contemplated hereunder;

 

“Minimum
Commitment” means US$5,000,000;

 

“New
Shares” means collectively the Conversion Shares and the Warrant Shares;

     3

     

    

“Next
Qualified Debt Financing” means a debt offering with Institutional Investors for net proceeds to the Issuer in excess
of US$10 million after the First Note Closing;

 

“Noteholders”
means holders of each and any of the Notes;

 

“Notes”
means the secured convertible promissory note in the form attached hereto as Schedule 2 issued by the Issuer at the applicable
Closings pursuant to the terms and conditions hereof, and “Note” means each and any of them;

 

“Obligor”
means each and any of the Issuer, the Chargor, the Charged Company, the WFOE and the PRC Graphene HoldCo;

 

“Other
Initial Note Closing” has the meaning given to such term in Clause 2.3;

 

“Other
Initial Note Closing Date” has the meaning given to such term in Clause 2.3;

 

“PRC”
means the People’s Republic of China excluding, for the purposes of this Agreement, Hong Kong, the Macau Special Administrative
Region of the People’s Republic of China and Taiwan;

 

“PRC
Graphene HoldCo” means Heilongjiang Mudanjiang Agriculture Tanao Graphene Deep Processing Company Limited (),
a limited liability company established under the laws of the PRC;

 

“Secured
Obligations” means all indebtedness and other liabilities of any nature of the Issuer and the Obligors due, owing or
incurred under or in connection with the Transaction Documents (or any of them) to the Secured Parties, whether present or future,
actual or contingent, matured or not matured, liquidated or unliquidated, whether incurred solely or jointly with any other person
or in any other capacity whatsoever, and whether as principal or surety, in any currency or currencies;

 

“Secured
Party” means each and any of (i) the Investor and its Assigns, (ii) the Noteholders, (iii) the Warrantholders; (iv)
a receiver and manager or administrative receiver of the whole or any part of the Charged Shares; and (iv) any delegate, agent,
attorney or co-trustee appointed by the Security Agent;

 

“Security”
means a mortgage, charge, pledge, lien or other security interest securing any obligation of any person or any other agreement
or arrangement having a similar effect;

 

“Security
Agent” means the Investor;

 

“Security
Documents” means the Share Charge and any and all such other documents as designated as such by the Issuer and the Security
Agent;

 

“Share
Charge” means the share charge granted by the Chargor in favour of the Security Agent charging the entire share capital
of the Charged Company in form and substance satisfactory to the Investor;

 

“Share
Equivalent” means any security or obligation which is by its terms convertible or exchangeable into Shares or another
Share Equivalent, and any option, warrant or other subscription or purchase right with respect to Shares;

 

“Share
Option Scheme” has the meaning given to such term in Clause 3.1.8;

 

“Shareholders” means holders of
the issued Shares;

 

“Specific
Mandate” means the specific mandate to be sought from the Shareholders of the Issuer at the EGM to grant the
Warrants and allot and issue (i) all Warrant Shares that Warrantholders are entitled to purchase pursuant to the terms and
conditions thereof, and (ii) the Conversion Shares that may be
converted into based on the aggregate principal amount of all Notes pursuant to the terms and conditions thereof, which
Conversion Shares are not covered by the General Mandate;

     4

     

    

“Subsequent
Closing Date” has the meaning given to such term in Clause 2.5; 

 

“Subsequent Closings” has the meaning
given to such term in Clause 2.5;

 

“Subsequent
Warrant” has the meaning given to such term in Clause 2.5.1;

 

“Subsidiary”
means, in respect of any person (the “first person”) at any particular time, any other person (the “second
person”) whose affairs and policies the first person controls or has power to control, (directly or indirectly) whether
by ownership of share capital, contract, the power to appoint or remove a majority of members of the governing body of the second
person or otherwise;

 

“Total
Commitment” means US$15,000,000;

 

“Transaction
Document” means each of this Agreement, any Definitive Note Certificate (including the Note instrument and the terms
and conditions thereof), the Warrants, the Security Documents and any other instrument, document, agreement or certificate ancillary
to the transactions contemplated under this Agreement;

 

“Transaction
Security” means the Security created or evidenced or expressed to be created or evidenced under the Security Documents;

 

“Warrants” means
collectively the Initial Warrant and the Subsequent Warrants, and “Warrant” means each and any
of them;

 

“Warrant
Purchase Price” means US$ 1.00;

 

“Warrant
Shares” means the Shares to be issued upon exercise of the Warrants pursuant to the terms and conditions thereof;

 

“Warrantholders”
means holders of each and any of the Warrants; and

 

“WFOE” means
Shanghai Tanao New Materials Technology Company Ltd. (), a limited liability company established under the laws of the
PRC.

 

		1.2	References
made to:

 

		(i)	a
contract or document in this Agreement is to that contract or document as amended, novated,
supplemented, restated or replaced from time to time;

 

		(ii)	any
person shall include its successors in title, permitted assigns and permitted transferees;

 

		(iii)	the
                                         terms “include” and “including” shall be construed to mean “including
                                         without limitation”;

 

		(iv)	any
document are to be construed as references to such document as amended, supplemented, extended, restated, novated and/or replaced
in any manner from time to time

 

		(v)	any
statute or statutory provision or stock exchange listing rules include: (a) that statute or provision or listing rules as from
time to time modified, re-enacted or consolidated whether before or after the date of this Agreement; (b) any past statute or
statutory provision or listing rules (as from time to time modified, re-enacted or consolidated) which that statute or provision
has directly or indirectly replaced; and (c) any subordinate legislation made from time to time under that statute or statutory
provision; and

 

		(vi)	any
currency other than United States dollars, except for Hong Kong dollars, shall be translated into United States dollars at the
average buying and selling rate published by The
Hongkong and Shanghai Banking Corporation Limited on its website at 11 a.m. on the date of determination; Hong Kong dollars shall
be translated into United States dollars at the exchange rate of HK$7.75 to US$1.

     5

     

    

		2	Issue
                                         and Subscription

 

		2.1	Issue
                                         and Subscription of Notes and Warrants: Subject
                                         to the satisfaction (or waiver) of the conditions set forth in Clause 5, the Issuer agrees
                                         to issue the Notes and the Warrants to the Investor (and/or any person, other than a
                                         Connected Person, designated by the Investor in writing), and the Investor agrees to
                                         subscribe and pay for (including cause any other person designated by the Investor, other
                                         than a Connected Person, to subscribe and pay for) the Notes and the Warrants at the
                                         applicable Closings in accordance with the terms of this Agreement, up to the Total Commitment;
                                         provided that (i) the issue and subscription of the First Note shall be pursuant to Clause
                                         2.2 hereof, (ii) the issue and subscription of the Initial Warrant shall be pursuant
                                         to Clause 2.4 hereof, (iii) prior to the Initial Warrant Closing, the issue and subscription
                                         of the Notes (other than the First Note) shall be pursuant to Clause 2.3 hereof, and
                                         (iv) after the Initial Warrant Closing, the issue and subscription of the Notes (other
                                         than the First Note) and the Warrants (other than the Initial Warrant) shall be pursuant
                                         to Clause 2.5 hereof. Notwithstanding the foregoing, the aggregate principal amount of
                                         the Notes issued and subscribed hereunder shall be no less than the Minimum Commitment
                                         but shall not exceed the Total Commitment and the principal amount of each Note shall
                                         be in the minimum denomination of US$500,000 and integral multiples of US$10,000 in excess
                                         thereof. With respect to the Subsequent Closings, if (i) the Initial Warrant Closing
                                         does not occur by the Long Stop Date for whatever reason, the Investor shall have the
                                         right not to proceed to any Subsequent Closing, and (ii) the aggregate principal amount
                                         of the Notes issued pursuant to Clauses 2.2 and 2.3 hereof is already equal to the Total
                                         Commitment, then no Subsequent Closing shall occur.

 

		2.2	First
                                         Note Closing: Subject
                                         to the terms and conditions of this Agreement and upon the satisfaction (or waiver) of
                                         the conditions set forth in Clause 5.1.1, the issue and subscription of the First Note
                                         (“First Note Closing”) shall
                                         occur on a Business Day (the “First Note
                                         Closing Date”) that is no later than January 31, 2021 unless mutually
                                         agreed otherwise by the Investor and the Issuer on or before such date.

 

		2.2.1	Issuer
Action at First Note Closing: At the First
Note Closing, the Issuer shall issue to the Investor the First Note and procure the entry of the Investor’s name in the
register of Noteholders, and shall deliver to the Investor (i) the duly executed Definitive Note Certificate for the First Note;
(ii) a certified true copy of the updated register of Noteholders registering the Investor as the holder of the First Note; and
(iii) a certified true copy of the board
resolutions of the Issuer approving the entry into this Agreement and
the issue of the First Note.

 

		2.2.2	Investor
                                         Action at First Note Closing: At the
                                         First Note Closing, subject to Clause 15, the Investor shall deliver to the Issuer, via
                                         wire transfer of immediately available funds, cash in the amount equal to the First Note
                                         Amount, to the bank account designated by the Issuer in writing and notified to the Investor
                                         prior to the First Note Closing.

    6 

     

    

		2.3	Other
Initial Note Closings: Subject to the terms
and conditions of this Agreement and upon the satisfaction (or waiver) of the conditions set forth in Clause 5.1.1 but prior to
the satisfaction of the conditions set forth in Clause 5.1.2, if the Investor determines that the additional closing of the issue
and subscription of the Notes with such aggregate number of underlying Conversion Shares the conversion of which can be covered
by the General Mandate (each, the “Other Initial Note Closing”) shall
occur, then the Investor shall notify the Issuer in writing regarding such determination by delivering a Closing Notice setting
forth the Closing Amount for such Other Initial Note Closing and the Closing Date for such
Other Initial Note Closing (each, the “Other Initial Note Closing Date”).

 

		2.3.1	Issuer
Action at other Initial Note Closings:
At each Other Initial Note Closing,
the Issuer shall issue to the Investor (or other person, other than a
Connected Person, designated by the Investor) the Note in the principal amount equal to the closing amount set forth in
the Closing Notice and procure the entry of the name of the Investor (or the name of the person, other than a Connected Person,
designated by the Investor to be the holder of the Note) in the register of Noteholders, and shall deliver to the Investor (or
such other person, other than a Connected Person, designated by the Investor to be the holder thereof) (i) the Definitive Note
Certificate for the Note in the principal amount equal
to the Closing Amount set forth in the Closing Notice delivered for such Closing duly
executed; (ii) a certified true copy of the updated register of Noteholders registering the Investor (or such other person,
other than a Connected Person, designated by the Investor to be the holder thereof) as the record holder of the Note issued at
such Closing; and (iii) to the extent not delivered at the First Note Closing, a certified true copy of the board resolutions
of the Issuer approving the issue of such Note.

 

		2.3.2	Investor
                                         Action at Other Initial Note Closings: At
                                         each Other Initial Note Closing, the Investor shall deliver or cause to be delivered
                                         to the Issuer, via wire transfer of immediately available funds, cash in the amount equal
                                         to the Closing Amount set forth in the Closing Notice delivered for such Other Initial
                                         Note Closing to the bank account designated by the Issuer and notified to the Investor
                                         (or such other person, other than a Connected Person, designated by the Investor to be
                                         the holder thereof) in writing at least five Business Days prior to the Closing Date
                                         set forth in the Closing Notice delivered for such Other Initial Note Closing.

 

		2.4	Initial
                                         Warrant Closing: Subject
                                         to the terms and conditions of this Agreement and upon the satisfaction (or waiver) of
                                         the conditions set forth in Clauses 5.1.1 and 5.1.2, the initial closing of the issue
                                         and subscription of the Initial Warrant (the “Initial
                                         Warrant Closing”) shall take place on or before 3 p.m. (Hong Kong time)
                                         on any Business Day (the “Initial Warrant
                                         Closing Date”) on or before the Long Stop Date; provided that the Initial
                                         Warrant Closing shall occur within 10 Business Days after the satisfaction (or waiver)
                                         of the conditions set forth in Clauses 5.1.1 and 5.1.2 and that the Investor need not
                                         deliver a Closing Notice for such Initial Warrant Closing:

 

		2.4.1	Issuer
Action at Initial Warrant Closing: At the
Initial Warrant Closing, the Issuer shall issue the Initial Warrant to the Investor and procure the entry of the Investor’s
name in the register of Warrantholders, and will deliver to the Investor (i) the
duly executed Initial Warrant; (ii) a certified true copy of the updated register of Warrantholders; and (iii) a certified true
copy of the board resolutions of the Issuer approving the issue of the Initial Warrant;

 

		2.4.2	Investor
                                         Action at Initial Warrant Closing: At
                                         the Initial Warrant Closing, the Investor shall deliver to the Issuer, via wire transfer
                                         of immediately available funds, cash in the amount of the Warrant Purchase Price to the
                                         bank account designated by the Issuer in writing and notified to the Investor prior to
                                         the Initial Warrant Closing.

    7 

     

    

		2.5	Subsequent
Closings: Subject to the terms and conditions
of this Agreement and upon satisfaction (or waiver) of the conditions set forth in Clauses
5.1.1, 5.1.2 and 5.1.3, at any time after the Initial Warrant Closing, the issue
and subscription of the Notes and the Warrants shall occur concurrently and the Investor may
proceed to subsequent closing by one or more Closings at
its option (each, the “Subsequent Closing”) by delivering
a Closing Notice to the Issuer on or before the Long Stop Date setting forth the Closing Amount for such Subsequent Closing and
the Closing Date for such Subsequent Closing (each, the “Subsequent
Closing Date”). In the event of a Subsequent Closing: (i) the sale
of the Notes and the Warrants at the Subsequent Closing shall be made on the terms and conditions set forth in this Agreement;
(ii) the representations and warranties of the Issuer set forth in Clause 3.1 hereof shall speak as of each Subsequent Closing
Date; and (iii) the representations and warranties of the Investor in Clause 3.2 hereof shall speak only as of the First Note
Closing Date.

 

		2.5.1	Issuer
                                         Action at Subsequent Closings: At
                                         each Subsequent Closing, the Issuer shall issue the Note in the principal amount equal
                                         to the Closing Amount set forth in the Closing Notice for such Subsequent Closing and
                                         the corresponding Warrant entitling the holder thereof to purchase Shares at the exercise
                                         price therein for the aggregate purchase price thereunder up to the lower of (i) the
                                         amount permitted under Rule 15.02 of the Listing Rules, and (ii) 50% of the Closing Amount
                                         for such Subsequent Closing (each a “Subsequent
                                         Warrant”) to the Investor (or other person, other than a Connected Person,
                                         designated by the Investor) and procure the entry of the name of the Investor (or the
                                         name of the person, other than a Connected Person, designated by the Investor to be the
                                         holder thereof) in the register of Noteholders and Warrantholders respectively, and will
                                         deliver to the Investor (or such other person, other than a Connected Person, designated
                                         by the Investor to be the holder thereof) (i) the Definitive Note Certificate for the
                                         Note duly executed representing the Subsequent Closing Amount for such Subsequent Closing;
                                         (ii) the duly executed corresponding Subsequent Warrant; (iii) a certified true copy
                                         of the updated register of Noteholders; (iv) a certified true copy of the updated register
                                         of Warrantholders; and (v) if not previously delivered at the Initial Note Closings or
                                         the Initial Warrant Closing, a certified true copy of the board resolutions of the Issuer
                                         approving the issue of such Note and such Warrant. If the HKSE approves the issuance
                                         of a Subsequent Warrant after the Long Stop Date, such Subsequent Warrant shall be delivered
                                         to the Investor (or such other person, other than a Connected Person, designated by the
                                         Investor to be the holder thereof).

 

		2.5.2	Investor
                                         Action at Subsequent Closings: At
                                         each Subsequent Closing, the Investor shall deliver or cause to be delivered to the Issuer,
                                         via wire transfer of immediately available funds, cash in the amount of (a) the Closing
                                         Amount set forth in the Closing Notice delivered for such Subsequent Closing, plus (b)
                                         the Warrant Purchase Price for the Warrant issued at such Subsequent Closing, to the
                                         bank account designated by the Issuer and notified to the Investor (or such other person,
                                         other than a Connected Person, designated by the Investor to be the holder(s) thereof)
                                         in writing at least five Business Days prior to the Closing Date set forth in the Closing
                                         Notice delivered for such Subsequent Closing.

 

		2.6	The
                                         Investor’s obligation to subscribe for the Notes of no less than the Minimum Commitment
                                         under Clause 2.1 shall be subject to the conditions set forth in Clause 5.1.1 but shall
                                         not be affected by the non-satisfaction and non-waiver of the other conditions set forth
                                         in Clauses 5.1.2 and 5.1.3.

 

		2.7	A
                                         Closing Notice served by the Investor to the Issuer shall become irrevocable and may
                                         not be withdrawn by the Investor.

    8 

     

    

		3	Representations
                                         and Warranties

 

		3.1	The
                                         Issuer represents and warrants to the Investor that each representation and warranty
                                         set out below is true, accurate, complete and not misleading as of the date of this Agreement
                                         and as of each Closing Date (except that, for the avoidance of doubt, any representation
                                         or warranty that is expressed to be made by reference to the facts and circumstances
                                         existing as at a specific date shall be made by reference to the facts and circumstances
                                         existing as at such specific date):

 

		3.1.1	Incorporation:
                                         each
                                         of the Issuer and its Subsidiaries is a company duly incorporated, validly existing and
                                         (where applicable) in good standing under the laws of its jurisdiction of incorporation,
                                         is not in liquidation or receivership;

 

		3.1.2	Authority:
                                         each
                                         of the Issuer and its Subsidiaries has full power and authority to own its properties
                                         and to conduct its business and is lawfully qualified to do business in those jurisdictions
                                         in which business is conducted by it; and the Issuer has or, prior to each Closing Date
                                         will have full power and authority to create and issue the Notes and Warrants and to
                                         enter into and perform its obligations under the Notes, the Warrants and this Agreement;

 

		3.1.3	Validity
                                         of Agreement: this
                                         Agreement has been duly authorised, executed and delivered by the Issuer and constitutes
                                         valid and legally binding obligations of the Issuer and are enforceable against the Issuer;

 

		3.1.4	Validity
                                         of the Notes and Warrants: the
                                         Notes and the Warrants, when issued and paid for in compliance with this Agreement, will
                                         be duly authorised by the Issuer and will, when duly executed, issued and delivered in
                                         accordance with this Agreement, constitute valid and legally binding obligations of the
                                         Issuer and are enforceable against the Issuer, and will constitute direct, unconditional
                                         and unsubordinated obligations of the Issuer and will at all times rank pari
                                         passu without any preference among themselves and at least pari
                                         passu with all other present and future direct, unconditional, unsecured and
                                         unsubordinated obligations of the Issuer other than those preferred by statute or applicable
                                         law; such Notes and Warrants will have been issued in compliance with all applicable
                                         requirements of the Listing Rules with respect to the issuance of such Notes and Warrants;

 

		3.1.5	Authorised
                                         Share Capital: the
                                         Issuer has or, prior to each Closing Date will have, sufficient authorised but unissued
                                         share capital to satisfy the issue of such number of New Shares as would be required
                                         to be issued on conversion of the Notes and exercise of the Warrants, in each case issued
                                         and outstanding prior to such Closing Date, at the Conversion Price and Exercise Price,
                                         and shall maintain at all times sufficient authorised but unissued share capital to satisfy
                                         the issue of sufficient New Shares
                                         at the Conversion Price and Exercise Price for such Notes and Warrants;

 

		3.1.6	Application
                                         for Listing: the
                                         Issuer has or, prior to each Closing Date will have made or caused to be made an application
                                         for the New Shares to be listed on the Main Board, and has or, prior to each Closing
                                         Date will have delivered to HKSE any such information and to take such other steps, as
                                         may be required for the purposes of obtaining such listings.

    9 

     

    

		3.1.7	New
                                         Shares: the
                                         New Shares, when issued and delivered
                                         in the manner contemplated by the Notes and the Warrants:

 

		(i)	will
                                         be duly and validly issued, fully-paid and non-assessable; free and clear of all liens,
                                         claims, charges, security, encumbrances or like interests, and the Listing Committee
                                         shall have granted its approval for the listing of, and permission to deal in, such New
                                         Shares on the Main Board;

 

		(ii)	will
                                         rank pari passu with and carry the
                                         same rights and privileges in all respects as any other class of ordinary share capital
                                         of the Issuer and shall be entitled to all dividends and other distributions declared,
                                         paid or made thereon; and

 

		(iii)	will
                                         be freely transferable, free and clear of all liens, charges, encumbrances, security
                                         interests or claims of third parties; the New Shares will not be subject to any pre-emptive
                                         or similar rights

 

		3.1.8	Capitalization:

 

		(i)	there
                                         are no outstanding securities issued by the Issuer or any of its Subsidiaries convertible
                                         into or exchangeable for, or warrants, rights or options, or agreements to grant warrants,
                                         rights or options, to purchase or to subscribe for, Shares from the Issuer or any of
                                         its Subsidiaries other than the Issuer’s publicly disclosed share option schemes
                                         on the website of HKSE (the “Share Option
                                         Schemes”) and any securities issued pursuant to the Share Option Schemes;

 

		(ii)	other
                                         than the General Mandate, there are no other or similar arrangements approved by the
                                         board of Directors or a general meeting of Shareholders of the Issuer providing for the
                                         issue or purchase of Shares or the subscription for Shares or Share Equivalents; and

 

		(iii)	no
                                         unissued share capital of the Issuer is under option or agreed conditionally or unconditionally
                                         to be put under option except pursuant to the Share Option Schemes;

 

		3.1.9	Transfer
                                         Restrictions: there
                                         are no restrictions on the transfers of the Notes and Warrants or the voting or transfer
                                         of any of the New Shares or payments of dividends with respect to the New Shares under
                                         Cayman Islands laws or Hong Kong laws or regulations, or pursuant to the Issuer’s
                                         constitutional documents, or pursuant to any agreement or other instrument to which the
                                         Issuer is a party or by which it may be bound;

 

		3.1.10	Capitalisation:
                                         all
                                         outstanding shares of capital stock or other equity interests of the Issuer and each
                                         Subsidiary of the Issuer have been duly and validly authorised and issued, are fully
                                         paid and non-assessable, and all such equity interests are owned directly or indirectly
                                         by the Issuer, free and clear of all liens, charges, encumbrances, security interests,
                                         restrictions on voting or transfer or claims of any third party;

 

		3.1.11	No
                                         winding-up: no
                                         winding up or liquidation proceedings have been commenced against the Issuer or any of
                                         its Subsidiaries, and no proceedings have been started for the purpose of, and no judgment
                                         has been rendered declaring that the Issuer or any of its Subsidiaries is bankrupt or
                                         is in an insolvency proceeding; no member of the Group has taken any action nor have
                                         any legal proceedings been started or threatened against any member of the Group for
                                         it to enter into any arrangement or composition for the benefit of creditors, or for
                                         the appointment of a receiver, trustee, administrator or similar officer of any of them,
                                         or any of their respective revenues or assets, and each member of the Group can pay its
                                         debts as and when they fall due for payment;

    10 

     

    

		3.1.12	Group
                                         Listing: all of the currently outstanding Shares have been, and the New Shares will
                                         be when issued in accordance with the terms and conditions of the Notes and the Warrants,
                                         duly listed on the Main Board;

 

		3.1.13	Listing
                                         Rules: the
                                         Issuer is in compliance with all applicable requirements of the Listing Rules with respect
                                         to the Shares;

 

		3.1.14	Consents:
                                         no consent, clearance, approval, authorisation, order, registration or qualification
                                         of or with any court, governmental agency or regulatory body having jurisdiction over
                                         the Issuer or any Obligor or any other person is required and no other action or thing
                                         is required to be taken, fulfilled or done (including without limitation the obtaining
                                         of any consent or licence or the making of any filing or registration) for the execution
                                         and delivery by the Issuer or any Obligor of the Transaction Documents and the issue
                                         or delivery of the Notes, the Warrants, the issue and delivery of the New Shares, the
                                         carrying out of the other transactions contemplated by the Transaction Documents, the
                                         Notes and the Warrants or the compliance by the Issuer with the terms of the Notes, the
                                         Warrants and this Agreement, or the compliance by any Obligor with the terms of any other
                                         Transaction Document to which such Obligor is a party, as the case may be;

 

		3.1.15	Compliance:
                                         the execution, delivery and performance of the Transaction Documents, the issue of
                                         the Notes, the Warrants, the issue, offer and delivery of the New Shares, the carrying
                                         out of the other transactions contemplated by the Transaction Documents, the Notes and
                                         the Warrants and compliance with their terms do not and will not:

 

		(i)	conflict
                                         with or result in a breach of any of the terms or provisions of, or constitute a default
                                         (nor has any event occurred which, with the giving of notice and/or the passage of time
                                         and/or the fulfilment of any other requirement would result in a default by the Issuer
                                         or any member of the Group) under, (i) its constitutional documents, or (ii) any indenture,
                                         contract, lease, mortgage, deed of trust, note agreement, loan agreement or other agreement,
                                         obligation, condition, covenant or instrument to which the Issuer or any member of the
                                         Group is a party or by which any of their respective properties are bound or to which
                                         any of the property or assets of the Issuer or any member of the Group is subject;

 

		(ii)	infringe
                                         or result in a breach of any existing applicable law, rule, regulation, judgment, order,
                                         authorisation or decree of any government, governmental or regulatory body or court,
                                         domestic or foreign, having jurisdiction over the Issuer or any member of the Group or
                                         any of their respective properties; or the rules of any stock exchange on which securities
                                         of the Issuer are listed;

 

		3.1.16	Financial
                                         Statements:

 

		(i)	the
                                         consolidated financial statements of the Issuer as at and for the six months ended June
                                         30, 2020 (the “Financial Statements”),
                                         which are publicly available on the date hereof, were prepared in accordance
                                         with International Financial Reporting Standards issued by the International Accounting
                                         Standards Board and in compliance with the relevant laws of Hong Kong consistently applied
                                         and present a true and fair view of the financial position of the Issuer and its consolidated
                                         entities (the “Consolidated Group”)
                                         as at the dates, and the results of operations and changes in financial position
                                         of the Consolidated Group for the periods, in respect of which they have been prepared;

    11 

     

    

		(ii)	Except
                                         as set forth in the Financial Statements, the Issuer has no material liabilities or obligations,
                                         contingent or otherwise, other than (i) liabilities incurred in the ordinary course of
                                         business subsequent to June 30, 2020; (ii) obligations under contracts and commitments
                                         incurred in the ordinary course of business; and (iii) liabilities and obligations of
                                         a type or nature not required under International Financial Reporting Standards issued
                                         by the International Accounting Standards Board to be reflected in the Financial Statements,
                                         which, in all such cases, individually and in the aggregate would not have a Material
                                         Adverse Effect; and

 

		(iii)	since
                                         June 30, 2020, there has been no material change which is adverse to the condition (financial
                                         or other), results of operations or general affairs of the Issuer or of the Consolidated
                                         Group;

 

		3.1.17	Approvals
                                         and Filings:

 

		(i)	the
                                         Issuer and each other member of the Group possesses all necessary certificates, authorisations,
                                         licences, orders, consents, approvals or permits (“Approvals”)
                                         issued by, and has made all declarations and filings with, all appropriate
                                         national, state, local and other governmental agencies or bodies, all exchanges and all
                                         courts and other tribunals, domestic or foreign, necessary to own or lease, as the case
                                         may be, and to operate its properties and to conduct the business now operated by it;

 

		(ii)	the
                                         Issuer and each other member of the Group is in compliance with the terms and conditions
                                         of all Approvals;

 

		(iii)	all
                                         of the Approvals are valid and in full force and effect; and

 

		(iv)	neither
                                         the Issuer nor any other member of the Group has received any notice of proceedings relating
                                         to the revocation or modification of any such Approvals or is otherwise aware that any
                                         such revocation or modification is contemplated or threatened;

 

		3.1.18	Taxes
                                         and Assessments: no
                                         liability for tax which has not been provided for in the financial statements of the
                                         Issuer or any other member of the Group has arisen or has been asserted by the tax authorities
                                         against the Issuer or any other member of the Group;

 

		3.1.19	Litigation:
                                         there
                                         are no pending actions, suits or proceedings against or affecting the Issuer or any other
                                         member of the Group or any of their respective properties;

 

		3.1.20	Investigation: there
                                         are no police, legal, governmental or regulatory investigations nor any pending actions,
                                         suits or proceedings against or affecting the Issuer or any other member of the Group
                                         or any of their respective executive directors, officers, properties and employees;

 

		3.1.21	Events
                                         of Default or Adjustment: no
                                         event has occurred or circumstance arisen which, had any Note already been issued, might
                                         (whether or not with the giving of notice and/or the passage of time and/or the fulfilment
                                         of any other requirement): (i) constitute an event described under “Events of Default”
                                         in the Terms and Conditions of such; or (ii) require an adjustment of the initial conversion
                                         price of such Note or the exercise price of the corresponding Warrant;

    12 

     

    

		3.1.22	No
                                         Equity Repurchase: none
                                         of the Issuer, or the Subsidiaries of the Issuer has made any repurchases of “shares”
                                         (as defined in the Listing Rule 10.06(6)(c)) or any equity-linked securities in the 30
                                         days period prior to the date of this Agreement;

 

		3.1.23	Relevant
                                         Public Information:

 

		(i)	there
                                         is no information relating to the Group which any member of the Group is required or
                                         obliged to publish or make available to the public (including under applicable listing
                                         requirements), whether to correct a misleading impression or otherwise to avoid behavior
                                         which would constitute market misconduct (within the meaning of the Securities and Futures
                                         Ordinance, Cap. 571) which has not been published; and

 

		(ii)	the
                                         Issuer and its Directors and officers are not aware of any non-public fact or circumstance
                                         that, if made public, could be expected to have an adverse effect upon the market price
                                         of the Notes, the Warrants or on the market price of the Shares;

 

		3.1.24	Announcements:
                                         with
                                         respect to all the announcements issued by the Issuer under the Listing Rules to date:(i)
                                         all statements contained therein were true and accurate in all material respects and
                                         not misleading in any material respect as at such date; (ii) all opinions and intentions
                                         expressed in them were honestly held, were reached after considering all relevant circumstances
                                         and were based on reasonable assumptions as at such date; and (iii) there were no other
                                         facts omitted so as to make any such statement or expression in any of the announcements
                                         misleading in any respect or which would or might have been material in the context in
                                         which the announcements were made;

 

		3.1.25	Intellectual
                                         Property: the
                                         Issuer owns or possesses or can acquire on commercially reasonable terms sufficient legal
                                         rights to all intellectual property of the Issuer without any known conflict with, or
                                         infringement of, the rights of others, including prior employees or consultants. The
                                         Group has not received any communications alleging that any member of the Group has violated,
                                         or by conducting its business, would
                                         violate any of the patents, trademarks, service marks, tradenames, copyrights, trade
                                         secrets, mask works or other proprietary rights or processes of any other person;

 

		3.1.26	Property:
                                         the
                                         property and assets that the Issuer owns are free and clear of all mortgages, deeds of
                                         trust, liens, loans and encumbrances, except for statutory liens for the payment of current
                                         taxes that are not yet delinquent and encumbrances and liens that arise in the ordinary
                                         course of business and do not materially impair the Issuer’s ownership or use of
                                         such property or assets. With respect to the property and assets it leases, the Issuer
                                         is in compliance with such leases and holds a valid leasehold interest free of any liens,
                                         claims or encumbrances other than those of the lessors of such property or assets. The
                                         Issuer does not own any real property;

 

		3.1.27	Environmental
                                         Compliance: each
                                         member of the Group is currently complying with all Environmental Laws and has at all
                                         times complied with all Environmental Laws applicable to it; and

    13 

     

    

		3.1.28	Employee
                                         Matters:
                                         to the best of the
                                         knowledge and belief of the chief executive officer of the Issuer (i) none of the Issuer’s
                                         employees is obligated under any contract (including licenses, covenants or commitments
                                         of any nature) or other agreement, or subject to any judgment, decree or order of any
                                         court or administrative agency, that would materially interfere with such employee’s
                                         ability to promote the interest of the Group or that would conflict with the Group’s
                                         business. Neither the execution or delivery of the Transaction Documents, nor the carrying
                                         on of the Group’s business by the employees of the Issuer, nor the conduct of the
                                         Group’s business as now conducted and as presently proposed to be conducted, will
                                         conflict with or result in a breach of the terms, conditions, or provisions of, or constitute
                                         a default under, any contract, covenant or instrument under which any such employee is
                                         now obligated; (ii) the Issuer is not delinquent in payments to any of its employees,
                                         consultants, or independent contractors for any wages, salaries, commissions, bonuses,
                                         or other direct compensation for any service performed for it to the date hereof or amounts
                                         required to be reimbursed to such employees, consultants or independent contractors;
                                         (iii) no material labor dispute exists or, to the Issuer’s knowledge, is imminent
                                         or threatened with respect to any of the employees of the Issuer; and (iv) all key employees
                                         are subject to appropriate confidentiality and non-competition agreements reasonably
                                         necessary to protect the interests of the Consolidated Group, the failure of which could
                                         reasonably be expected to result in a Material Adverse Effect.

 

		3.1.29	Graphene
                                         Business Ownership: (i)
                                         each of the Chargor, the Charged Company, the WFOE and the PRC Graphene HoldCo is a wholly
                                         owned Subsidiary of the Issuer; and (ii) the Chargor owns the entire issued and outstanding
                                         share capital of the Charged Company, the Charged Company owns the entire issued and
                                         outstanding share capital of the WFOE and
                                         the WFOE owns the entire issued and outstanding share capital of the PRC Graphene HoldCo;
                                         and (iii) the PRC Graphene HoldCo owns and operates the Group’s entire Graphene
                                         Business.

 

		3.2	The
                                         Investor represents and warrants to the Issuer that:

 

		3.2.1	Incorporation:
                                         The
                                         Investor is a company duly incorporated, validly existing and (where applicable) in good
                                         standing under the laws of its jurisdiction of incorporation, is not in liquidation or
                                         receivership; and

 

		3.2.2	Authority:
                                         The
                                         Investor has full power and authority to own its properties and to conduct its business
                                         and is lawfully qualified to do business in those jurisdictions in which business is
                                         conducted by it and has full power and authority to enter into this Agreement and perform
                                         its obligations hereunder.

 

		4	Undertakings

 

		4.1	The
                                         Issuer undertakes to the Investor that, for as long as any Note or Warrant is outstanding:

 

		4.1.1	Taxes:
                                         the
                                         Issuer will pay:

 

		(i)	any
                                         stamp, issue, registration, documentary or other taxes and duties, including interest
                                         and penalties in the Cayman Islands, the PRC or Hong Kong and all other relevant jurisdictions
                                         payable on or in connection with the creation, issue, offering and/or placing of the
                                         Notes, the Warrants or the execution or delivery of the Transaction Documents; and

    14 

     

    

	 	(ii)	in
                                         addition to any amount payable by it under the Transaction Documents, any value added,
                                         service, turnover or similar tax payable in respect thereof in the Cayman Islands, the
                                         PRC and Hong Kong (and references in the Transaction Documents to such amount shall be
                                         deemed to include any such taxes so payable in addition to it);

 

	 	4.1.2	Warranties:
                                         the Issuer will forthwith notify the Investor if at any time prior to each Closing
                                         Date anything occurs which renders or may render untrue or incorrect in any respect any
                                         of its representations, warranties and agreements herein and will forthwith take such
                                         steps as the Investor may reasonably require to remedy and/or publicise the fact;

 

	 	4.1.3	Maintenance
                                         of Share Listing: the Issuer shall maintain the listing of the Shares on the HKSE
                                         in accordance with the respective Terms and Conditions, and pay all fees and supply any
                                         and all documents, information and undertakings and publish all announcements or other
                                         materials that may be necessary or advisable for such purpose.

 

	 	4.1.4	Notes
                                         Conversion and Warrants Exercise:

 

	 	(i)	Issuance
                                         of New Shares: the Issuer shall maintain at all times sufficient authorised but unissued
                                         share capital to satisfy the issue of sufficient New Shares at the Conversion Price and
                                         Exercise Price for such Notes and Warrants; upon conversion of the Notes and exercise
                                         of the Warrants pursuant to their respective terms and conditions, the Issuer will issue
                                         New Shares (which will rank pari passu with the other Shares then outstanding)
                                         free and clear of all liens, claims, charges, security, encumbrances or like interests,
                                         and the Listing Committee shall have granted its approval for the listing of, and permission
                                         to deal in, the New Shares on the Main Board;

 

	 	(ii)	Anti-Dilution:
                                         subject to the terms and conditions on adjustment to Conversion Price and Exercise Price
                                         respectively set forth in the Notes and the Warrants, if and whenever the Issuer shall
                                         issue or sell any Shares or Share Equivalent at a price per Share (“New Issue
                                         Price”) that is less than the Conversion Price or the Exercise Price in effect
                                         immediately prior to the issue of such additional Shares (in the case of any Share Equivalent,
                                         the New Issue Price shall be equal to (x) the sum of the price for such Share Equivalent
                                         plus any additional consideration payable upon the conversion, exchange or exercise of
                                         such Share Equivalent, divided by (y) the number of Shares into which such Share Equivalent
                                         is initially, without regard to any anti-dilution adjustments, convertible or exchangeable
                                         into), then, and in each such case, the Issuer shall take, and cause to be taken all
                                         necessary actions to adjust each of the Conversion Price and Exercise Price in effect
                                         to a price pursuant to the terms and conditions as set forth in the Notes and the Warrants
                                         respectively. Other than the Notes and the Warrants issued under the Closings hereunder,
                                         such adjustment shall be made whenever such Shares or Share Equivalents are issued (provided
                                         however, that no further adjustment in the Conversion Price and Exercise Price shall
                                         be made upon the subsequent exercise, conversion or exchange, as applicable, of the Share
                                         Equivalents pursuant to the terms of such Share Equivalents), and shall become effective
                                         immediately following such issuance;

 

	 	(iii)	Relevant
                                         Issuance Approvals: if at any time the General Mandate or the Specific Mandate
                                         is insufficient to cover the amount of Warrants to be issued at any Closing due to the
                                         limitation of Rule 15.02 of the Listing Rules or otherwise, or the number of New Shares
                                         to be issued on conversion of the Notes and exercise of the Warrants, the Issuer shall
                                         promptly convene a general meeting of its Shareholders for the grant of specific mandate
                                         to the Issuer’s board of Directors permitting the issue of such Warrants to be
                                         issued at each such Closing and further New Shares in amount sufficient to cover the
                                         amount of Warrants and full conversion of the Notes and exercise of the Warrants and
                                         seek from HKSE approval for listing of such Warrants and additional New Shares; in the
                                         event that the Specific Mandate is not granted by the Shareholders, the Issuer’s
                                         board of Directors shall within three months convene a further EGM for Shareholders to
                                         approve the Specific Mandate;

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	 	(iv)	Notice
                                         of Restrictions: where a conversion of Notes or exercise of Warrants pursuant to
                                         the respective terms and conditions thereof would result in (i) the Issuer not being
                                         able to satisfy the HKSE’s public shareholding requirement (i.e. 25% public float)
                                         under Rule 8.08 of the Listing Rules following such conversion or exercise, or (ii) the
                                         triggering of a mandatory offer under rule 26 of the Takeovers Code on the part of the
                                         holder thereof and/or any person(s) acting in concert with such holder, the Issuer shall
                                         immediately notify the Investor of such restrictions on conversion or exercise upon arising
                                         thereof.

 

	 	4.1.5	Approvals
                                         and Consents: the Issuer shall use reasonable endeavours to obtain and cause each
                                         Obligor to obtain all Approvals and consents from any regulatory authorities or other
                                         applicable third parties and promptly make all notifications, registrations and filings
                                         as may from time to time be required in relation to the issue of the Notes, the Warrants
                                         and/or the New Shares, and the effectiveness or validity of the Transaction Documents
                                         and the transactions contemplated thereunder;

 

	 	4.1.6	Use
                                         of Proceeds: the Issuer shall use the net proceeds from the issue of the Notes for
                                         (i) redemption of the Issuer’s outstanding debt securities issued to any third
                                         party, and (ii) the Group’s working capital purposes, including funding equipment
                                         acquisitions and financing any necessary new facilities to increase production capacity,
                                         in each case as the Issuer deems commercially beneficial to the financial condition of
                                         the Group; provided that at least 75% of the proceeds received from issuance of each
                                         Note shall be used for redemption of the outstanding debt securities issued to any third
                                         party;

 

	 	4.1.7	Announcements:
                                         between the date hereof and the First Note Closing Date (both dates inclusive), the
                                         Issuer will, and will cause its Subsidiaries and affiliates and all other parties acting
                                         on its or their behalf, to notify and consult the Investor (unless prevented by applicable
                                         law or regulations) prior to issuing any announcement or press release or initiate any
                                         press conference concerning the offering and distribution of the Notes, the Warrants,
                                         and shall take into account such requests as the Investor shall reasonably make with
                                         respect to such announcements;

 

	 	4.1.8	Corporate
                                         Restructuring: the Issuer shall not and the Issuer shall ensure such other members
                                         of the Group engaged in the the Group’s Graphene Business shall not enter into
                                         any transaction involving amalgamation, merger, consolidation, tender offer or other
                                         business combination involving the Issuer in which the shareholders owning a majority
                                         of the voting securities of the Issuer prior to such transaction do not retain a majority
                                         of the voting power in the surviving entity, or a sale of all or substantially all the
                                         Issuer’s assets or the exclusive license of all or substantially all of the intellectual
                                         property rights of the Group’s Graphene Business to third parties, demerger, reverse
                                         split or other corporate reconstruction but does not include any sale or disposal of
                                         assets, licenses and/or intellectual property rights of the Group that is carried out
                                         in the normal course of the Group’s Graphene Business;

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	 	4.1.9	Change
                                         of Business: the Issuer shall procure that no substantial change is made to the general
                                         nature of the Graphene Business;

 

	 	4.1.10	Share
                                         Charge: the Issuer shall ensure that the duly executed Share Charge shall have been
                                         delivered to the Security Agent and remained in full force and effect on or prior to
                                         each Closing;

 

	 	4.1.11	Compliance
                                         with Transaction Documents: (i) to the extent not delivered at the applicable Closing,
                                         the Issuer shall procure that all Transaction Documents (including all Security Documents)
                                         shall have been duly executed and delivered to the Investor or such other person, other
                                         than a Connected Person, as designated by the Investor in writing; and (ii) the Issuer
                                         shall comply with, and shall cause each Obligor to comply with, all applicable laws and
                                         the Transaction Documents, and take all necessary actions to maintain in full force and
                                         effect any necessary consent or Approval required for the legality, validity, enforceability
                                         and admissibility in evidence of each Transaction Document; and

 

	 	4.1.12	Transfer
                                         of Notes and Warrants: to the extent any Warrant is issued and the outstanding
                                         amount thereunder is equal to the principal amount of a Note being the subject of a transfer,
                                         the Issuer shall procure that the transfer of a Warrant in the amount corresponding to
                                         the principal amount of the transferred Note to be effectuated, as long as the proposed
                                         transfers of the Note and the Warrant is pursuant to their respective terms and conditions.

 

		4.2	The
                                         undertakings made hereunder shall be in addition to and without prejudice to any other
                                         undertakings made by the Issuer under the Notes and the Warrants.

 

	5	Conditions
                                         Precedent

 

	5.1	The
                                         obligation of the Investor to subscribe and pay for, and the obligation of the
                                         Issuer to issue, the Notes and the Warrants are
                                         subject to the fulfilment, prior to or simultaneously at each Closing respectively, of
                                         the following conditions to the satisfaction of the Investor (any or all of such conditions
                                         may be waived by the Investor):

 

	 	5.1.1	At
                                         each Closing

 

	 	(i)	Representations
                                         and Warranties: the representations and warranties of the Issuer in this
                                         Agreement being true, accurate and correct in all respects at, and as if made on, such
                                         date;

 

	 	(ii)	Transaction
                                         Documents and Performance: (a) each of the Transaction Documents having been in form
                                         and substance satisfactory to the Investor, and (b) the Issuer having performed and having
                                         procured each Obligor to have performed all of its respective obligations under the Transaction
                                         Documents required to be performed on or before such Closing Date and the Transaction
                                         Documents to which the Issuer and each Obligor is a party shall have been duly executed
                                         and delivered to the Investor (or such person, other than a Connected Person, designated
                                         by the Investor in writing), except for such Transaction Documents required to be delivered
                                         at Closing;

 

	 	(iii)	Director
                                         Certificate: the duly executed Director Certificate, dated as of such Closing Date,
                                         having been delivered to the Investor

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	 	(iv)	Listing
                                         Status: the current listing of the Shares not having been cancelled or withdrawn,
                                         the Shares continuing to be traded on the HKSE at all times from the date hereof to and
                                         including each Closing Date (save for any temporary suspension of trading for not more
                                         than three consecutive trading days pursuant to the Listing Rules which is for the purpose
                                         of publishing announcement in relation to any proposed acquisition, reorganization or
                                         such other similar activities in the ordinary course of business of the Issuer);

 

	 	(v)	HKSE
                                         Approval: the Listing Committee having granted approval for the listing of, and
                                         permission to deal in, the Conversion Shares that may be issued upon conversion of the
                                         Notes issued at such Closing, and the HKSE having approved the issue of the Notes, or
                                         the Issuer having not received any objection from the HKSE to the issue of such Notes;

 

	 	(vi)	No
                                         Adverse Change: (a) there shall not, since the date of this Agreement, have been
                                         any change to the condition (financial or otherwise), results of operations, assets,
                                         regulatory status, business and prospects of the Group or the financial markets or economic
                                         conditions in general that, in the opinion of the Investor, has had or could be expected
                                         to have a Material Adverse Effect; and (b) there shall not have occurred (i) any change,
                                         or any development involving a prospective change, in national or international monetary,
                                         financial, political or economic conditions or currency exchange rates or foreign exchange
                                         controls, or (ii) a general moratorium on commercial banking activities in Hong Kong,
                                         the Cayman Islands or the PRC by any Governmental Authority;

 

	 	(vii)	No
                                         Injunction: There shall have been no (a) injunction, restraining order or other order
                                         or any other legal or regulatory restraint or prohibition having been issued or made
                                         by any court of competent jurisdiction or regulatory authorities in effect precluding
                                         or prohibiting consummation of any part of the transactions contemplated under the Transaction
                                         Documents, or (b) proposal or enactment of any applicable laws which would prohibit,
                                         restrict or delay the issue of the Notes, the Warrants, the other transactions contemplated
                                         by the Transaction Documents, or the operation of the Group after any Closing;

 

	 	(viii)	Consents:
                                         All consents and approvals required (if any) on the part of the Issuer and each Obligor
                                         in relation to the Transaction Documents and the issue of the applicable Notes and Warrants
                                         and the performance of its obligations under the applicable Notes and Warrants and all
                                         the transactions contemplated under the Transaction Documents (including, without limitation,
                                         approval by the Issuer’s board of Directors, Shareholders and any relevant governmental
                                         or regulatory authorities) shall have been obtained, and all such consents and approvals
                                         shall remain valid up to such Closing.

 

	 	(ix)	Compliance:
                                         The Issuer shall have fully complied with relevant laws and regulations
                                         (including the Listing Rules).

 

	 	(x)	Share
                                         Charge: The Share Charge shall have been duly executed and delivered to the Security
                                         Agent and remained in full force and effect.

 

	 	5.1.2	At
                                         the Initial Warrant Closing, in addition to the conditions set forth in Clause 5.1.1,

 

	 	(i)	the
                                         Issuer shall have obtained resolutions passed by the Issuer’s Shareholders in the
                                         EGM approving the issuance of the Warrants and
                                         the Specific Mandate;

 

	 	(ii)	the
                                         HKSE having granted approval for the issuance and grant of the Warrants, including
                                         the approval required under Rule 15.02 of the Listing Rules; and

    18

     

    

		(iii)	the
                                         Listing Committee having granted approval for the listing of, and permission to deal
                                         in, the Warrant Shares that may be issued upon exercise of the Warrants and the Conversion
                                         Shares covered by the Specific Mandate, and the HKSE having approved the issue of the
                                         Warrants, or the Issuer having not received any objection from the HKSE to the issue
                                         of the Warrant Shares that may be issued upon exercise of the Warrants.

 

		5.1.3	At
                                         each Subsequent Closing, in addition to the conditions set forth in Clauses 5.1.1 and
                                         5.1.2, the Initial Warrant shall have been issued and delivered to the Investor
                                         pursuant to the terms and conditions hereof.

  

	5.2	The
                                         Issuer shall procure the fulfilment of all the conditions set out in Clause 5.1 as
                                         soon as possible after the date of this Agreement and in any event no later than the
                                         Long Stop Date. The Issuer shall notify the Investor in writing of anything that will
                                         or may prevent any of the conditions set out in Clause 5.1 from being satisfied by the
                                         Long Stop Date as soon as reasonably practicable. If the conditions set out in Clause
                                         5.1 are not satisfied or waived on or before the Long Stop Date, the Investor may, at
                                         its option, defer any Closing to a later date as mutually agreed by the Investor and
                                         the Issuer, proceed to such Closing so far as practicable or terminate this Agreement
                                         pursuant to Clause 6.

 

	6	Termination

 

	6.1	If
                                         any of the following occurs at any time prior to any Closing, the Investor shall be entitled
                                         to by written notice to the Issuer to terminate this Agreement:

 

		6.1.1	there
                                         shall have come to the notice of the Investor any breach by the Issuer of, or any event
                                         rendering untrue or incorrect in any respect, any of the warranties, representations
                                         and undertakings by the Issuer contained in this Agreement or any failure to perform
                                         any of the Issuer’s undertakings or agreements in this Agreement and the Issuer
                                         cannot remedy such breach or non-performance to the reasonable satisfaction of the Investor
                                         after 30 days of being notified by the Investor of such breach or non-performance;

 

		6.1.2	there
                                         shall have been, since the date of this Agreement, any material change, which is adverse
                                         to the condition (financial or other), results of operations or general affairs of the
                                         Issuer or the Group which has not been remedied to the reasonable satisfaction of the
                                         Investor 30 days after the occurrence of such material change; or

 

		6.1.3	the
                                         conditions set out in Clause 5.1 are not satisfied or waived on or before the Long Stop
                                         Date.

 

	6.2	Consequences
                                         of Termination: Upon such notice being given by the Investor to the Issuer pursuant
                                         to Clause 6.1, this Agreement shall forthwith become null and void, and there shall be
                                         no liability or obligation on the part of the Issuer or the under this Agreement, except
                                         that such termination shall not relieve the Issuer (i) from liability from any antecedent
                                         breach of any representation or warranty contained herein or any antecedent breach of
                                         any covenant or agreement contained herein, (ii) from obligations under the Notes and
                                         the Warrants issued prior to such termination, and (iii) the obligations with respect
                                         to indemnification as set out in Clause 7, and fees and expenses as set out in Clause
                                         15.

    19

     

    

	7	Indemnification

 

		7.1	The
                                         Issuer hereby agrees to within thirty (30) days of demand indemnify the Investor against,
                                         and agrees to hold the Investor harmless from, any and all damage, loss, liability, obligation,
                                         penalty, charges, cost and expense (including attorneys’ fee and expense in connection with
                                         any action, suit or proceeding), whether or not involving a third-party claim
                                         incurred or suffered by the Investor arising out of:

 

		7.1.1	any
                                         breach of any representation and warranty under Clauses 3.1 made by the Issuer, and/or
                                         a breach by the Issuer of any other document or certificate delivered by it pursuant
                                         to this Agreement;

 

		7.1.2	any
                                         breach of a covenant or agreement to be performed by the Issuer pursuant to the Transaction
                                         Documents; or

 

		7.1.3	any
                                         delay or failure of the Issuer to comply with the requirements under any applicable governmental
                                         or regulatory authorities with respect to the holding, directly or indirectly, of equity
                                         interest in the Issuer and other companies in the Group and the transactions contemplated
                                         under this Agreement.

 

	8	Payments

 

All
payments due under this Agreement are to be made in United States dollars and are stated exclusive of any applicable tax whether
income taxes, withholding taxes, value added taxes, goods and services taxes, business or services taxes or similar taxes other
than taxes imposed in respect of net income by a taxing jurisdiction wherein the recipient is incorporated or resident for tax
purposes (“Taxes”). If any deduction or withholding for or on account of Taxes is required by the laws of Hong
Kong, the PRC or the Cayman Islands (each a “Relevant Jurisdiction”) to be made from any payment to or to the
order of the Investor, then the Issuer shall pay such additional amounts (“Additional Tax Amounts”) so that
the Investor or its nominee receives, free from any such withholding, deduction, assessment or levy, the full amount of the payments
set out herein, except that no Additional Tax Amounts shall be payable to the Investor (or its nominee) who is liable to such
taxes, duties, assessments or governmental charges in respect of such payment by reason of his having some connection with a Relevant
Jurisdiction other than the mere receipt of the amount due or where the withholding or deduction could be avoided by the Investor
(or its nominee) making a declaration of non-residence or other similar claim for exemption to the appropriate authority which
the Investor (or its nominee) is legally capable and competent of making but fails to do so. The Issuer shall make appropriate
payments and returns in respect of such Taxes.

 

		9	Security

 

		9.1	Security
                                         Agent Appointment: The Investor appoints and shall procure its Assigns to appoint
                                         the Security Agent to act as its security agent under and in connection with the Transaction
                                         Documents, and authorizes the Security Agent to exercise the rights, powers, authorities
                                         and discretions specifically given to the Security Agent under or in connection with
                                         the Transaction Documents together with any other incidental rights, powers, authorities
                                         and discretions.

 

		9.2	No
                                         Fiduciary Duty: The Parties acknowledge and agree that nothing in any Transaction
                                         Document shall constitute the Security Agent as a fiduciary of any person.

    20

     

    

	9.3	Next
                                         Qualified Debt Financing: Upon Issuer’s written request, the Investor shall
                                         take and cause to be taken such necessary actions
                                         to share the Transaction Security pari passu with the financiers of any Next Qualified
                                         Debt Financing on terms and conditions reasonably satisfactory to the Investor and such
                                         financiers to effectuate the consummation of such Next Qualified Debt Financing.

 

	10	Survival
                                         of Representations and Obligations

 

The
representations, warranties, agreements and undertakings in this Agreement shall continue in full force and effect for 3 years
after completion of the arrangements for the subscription and issue of the Notes and the Warrants; and the obligations in Clauses
7 and 14 shall continue in full force and effect until the expiration of the applicable statute of limitations.

 

	11	Notice

 

	11.1	Addresses:
                                         All communications shall be sent to the Party to be notified at the address as set
                                         forth below or at such other address or electronic mail address as such Party may designate
                                         by ten (10) Business Days advance written notice to the other Party:

 

	 	Issuer: 	

Address:
11/F, COFCO Tower, 262 Gloucester Road, Causeway Bay, Hong Kong

	 	 	 
	 	 	Attention: Company Secretary
	 	 	 
	 	 	Tel.: 2559 9438
	 	 	 
	 	 	Email: kwokp@earthasia.com.hk
	 	 	 
	 	Investor:	Address: 3443 Bathurst Street, Unit 502, Toronto,
    Ontario, M6A 2C3 Canada
	 	 	 
	 	 	Attention: David Subotic
	 	 	 
	 	 	Email: operations@lexinterinternational.com

 

	11.2	Effectiveness:
                                         Any notice required or permitted to be delivered pursuant to this Agreement
                                         shall be in writing and shall be deemed effectively given

 

	 	11.2.1	upon
                                         personal delivery to the Party to be notified;

 

	 	11.2.2	when
                                         sent by electronic mail or facsimile if sent during normal business hours of the recipient;
                                         if not, then on the next Business Day; or

 

	 	11.2.3	seven
                                         Business Days after deposit with an internationally recognized courier with written verification
                                         of receipt

 

	11.3	Confirmations:
                                         Any communication not by letter shall be confirmed by letter but failure to
                                         send or receive the letter of confirmation shall not invalidate the original communication.

    21

     

    

	12	Assignment

 

		12.1	The
                                         Issuer may not assign any of its rights or delegate or transfer any of its obligations
                                         under this Agreement without the prior written consent of the Investor.

 

	12.2	Save
                                         and except that the Investor may not assign any of its rights or delegate or transfer
                                         any of its obligations under this Agreement to
                                         any Connected Person, the Investor may assign its rights hereunder to any third party
                                         (“Assigns”) by prior notice to the Issuer without the Issuer’s
                                         consent.

 

	13	Entire
                                         Agreement

 

This
Agreement, together with any documents referred to in it, constitutes the whole agreement between the parties relating to the
issue of and the subscription for the Notes and Warrants and supersedes and extinguishes any other prior drafts, agreements, undertakings,
representations, warranties and arrangements of any nature, whether in writing or oral, relating to the issue of and the subscription
for the Notes and Warrants.

 

	14	Confidentiality

 

	14.1	Obligations
                                         of Confidentiality: Subject to Clause 14.3, each Party shall keep strictly confidential
                                         and not disclose or use, and shall ensure that its affiliates and its officers, employees,
                                         agents and professional and other advisers keep strictly confidential and not disclose
                                         or use, any documents, materials and other information in whatever form received or obtained
                                         by it in connection with the entering into of this Agreement which relates to:

 

	 	14.1.1	the
                                         business, financial or other affairs (including future plans and targets) of any other
                                         Party or its affiliates;

 

	 	14.1.2	the
                                         existence or terms of this Agreement or any transaction contemplated by this Agreement
                                         or the identities of any of the Parties and their respective affiliates; or

 

	 	14.1.3	any
                                         discussions or negotiations with regard to this Agreement or any transaction contemplated
                                         by this Agreement.

 

	14.2	Confidential
                                         Information: For the purpose of this Agreement, “Confidential Information”
                                        includes the information referred to in Clause 14.1 except for any document,
                                         material or other information that:

 

	 	14.2.1	was
                                         lawfully in the possession of the receiving Party prior to its disclosure by the disclosing
                                         Party and had not been obtained from the disclosing Party;

 

	 	14.2.2	is
                                         or becomes generally known to the public (other than by breach of this Agreement or any
                                         other obligation of confidentiality owed between the Parties);

 

	 	14.2.3	is
                                         or becomes available to the receiving Party other than as a result of a disclosure by
                                         a Person known by the receiving Party to be bound by an obligation of secrecy to the
                                         disclosing Party; or

 

	 	14.2.4	is
                                         independently developed by the receiving Party without reference to the Confidential
                                         Information.

    22

     

    

		14.3	Permitted
                                         Disclosure and Use: Clause 14.1 shall not prohibit disclosure or use of any information
                                         if and to the extent that:

 

	 	14.3.1	the
                                         disclosure or use is required by law. or by any securities exchange or regulatory or
                                         governmental body having jurisdiction over the receiving Party or its affiliates, whether
                                         or not the requirement has the force of law;

 

	 	14.3.2	the
                                         disclosure or use is required to vest the full benefit of this Agreement in the receiving
                                         Party, as the case may be;

 

	 	14.3.3	the
                                         disclosure or use is required for the purpose of any judicial arbitration or other similar
                                         proceedings arising out of this Agreement, the disclosure is required to be made to a
                                         taxing or other authority competent to impose any liability in respect of any and all
                                         applicable taxes (“Taxation”) or responsible for the administration
                                         and/or collection of taxation or enforcement of any tax laws (“Tax Authority”)
                                         in connection with the Taxation affairs of the receiving Party or the disclosure is required
                                         for the purpose of preparing any statutory accounts of the receiving Party;

 

	 	14.3.4	the
                                         disclosure is made to the affiliates of the receiving Party, or to the officers, employees,
                                         agents and professional and other advisers of the receiving Party or its affiliates,
                                         where such Person has a business-related need to have access to or use the Confidential
                                         Information on terms that such Person undertakes to comply with the provisions of Clause
                                         14.1 in respect of such information as if they were a party to this Agreement and the
                                         Party disclosing such information to such Person shall be liable for any breach of this
                                         Clause 14 by such person;

 

	 	14.3.5	the
                                         disclosure is made by the Investor to the respective stockholders, limited partners,
                                         members or other owners of the Investor or any of its affiliates, as the case may be,
                                         regarding the general status of its investment in the Issuer; or

 

	 	14.3.6	the
                                         disclosing Party has given prior written approval to the disclosure or use, 
	 	 	 

provided
                                         that prior to disclosure or use of any information pursuant to Clause 14.3 (except in
                                         the case of disclosure to a Tax Authority), to the extent permitted by law and without
                                         compromising any privileges, the receiving Party shall give reasonable prior written
                                         notice to the disclosing Party (including a copy of any relevant written request which
                                         may exist) and the information is disclosed in a manner that is designed to preserve
                                         its confidential nature. If on the receipt of such a notice a Party wishes to take action
                                         to oppose or limit such potential disclosure or seek a protective order in respect of
                                         the information required to be disclosed, it may do so at its own cost and the receiving
                                         Party shall provide it with any reasonable assistance required.

 

	15	Costs

 

Each
party shall bear its own costs and out of pocket expenses incurred in relation to the preparation, negotiation and execution of
this Agreement and all ancillary matters, provided that at the First Note Closing, the Issuer shall pay any legal fees
and expenses of the Investor incurred in connection with this Agreement in the amount of US$60,000, and such fees to be borne
by the Issuer may be deducted from the payment of the First Note Amount for the First Note under Clause 2.2.

 

	16	Further
                                         Assurance

 

Each
Party agrees to perform (or procure the performance of) all further acts and things, and execute and deliver (or procure the
execution and delivery of) such further documents, as may be required by law or as one of the other Parties may reasonably require
to implement and/or give effect to this Agreement and the matters contemplated by the Transaction Documents.

    23

     

    

	17	Third
                                         Party Rights

 

Unless
expressly provided to the contrary in this Agreement, a person who is not a Party has no right under the Contracts (Rights of
Third Parties) Ordinance (Chapter 623) of the Laws of Hong Kong to enforce or to enjoy the benefit of any term of this Agreement.

 

	18	Counterparts

 

This
Agreement may be executed in any number of counterparts, each of which shall be deemed an original.

 

	19	Governing
                                         Law and Dispute Resolution

 

This
Agreement (including this Clause 19) is governed by and shall be construed in accordance with the laws of Hong Kong.

 

	19 .1 	Jurisdiction
                                         of Hong Kong courts

 

	 	19.1.1	Subject
                                         to Clause 19.1.2, the courts of Hong Kong have exclusive jurisdiction to settle any dispute
                                         arising out of or in connection with this Agreement (including a dispute regarding the
                                         existence, validity or termination of this Agreement) (a “Dispute”).

 

	 	19.1.2	This
                                         Clause 19.1 is for the benefit of both the Investor and the Issuer. As a result, the
                                         Investor shall not be prevented from taking proceedings relating to a Dispute in any
                                         other courts with jurisdiction. To the extent allowed by law, the Investor may take concurrent
                                         proceedings in any number of jurisdictions.

 

	19.2	Waiver
                                         of immunity

 

The
Issuer waives generally all immunity it or its assets or revenues may otherwise have in any jurisdiction, including immunity in
respect of:

 

	 	(a)	the
                                         giving of any relief by way of injunction or order for specific performance or for
                                         the recovery of assets or revenues; and/or

 

	 	(b)	the
                                         issue of any process against its assets or revenues for the enforcement of a judgment
                                         or, in an action in rem, for the arrest, detention or sale of any of its assets and revenues.

    24

     

    

This
Agreement has been entered
into on the date stated at the beginning.

 

ISSUER :

 

	SIGNED for and behalf of EARTHASIA

INTERNATIONAL HOLDINGS LTD. 

 by its duly authorised

signatory in the presence of a witness:	)

)

)

)

)	Signature    	/s/ CHAN YICK YAN ANDROSS
	 	 	 	 
	 	 	Name (block capitals)    	CHAN YICK YAN ANDROSS
	 	 	 	Director / 

authorised 

signatory

 

	Witness signature:	/s/ CHAN CHI HING	 

 

	Witness name (block capitals):	CHAN CHI HING	 

 

	Witness address:	11/F., COFCO
    TOWER,	 

 

	262 GLOUCESTER
    ROAD, CAUSEWAY BAY, HK	 

 

Execution Page to
Subscription Agreement

     

     

    

This
Agreement has been entered
into on the date stated at the beginning.

 

ISSUER :

 

	SIGNED for and behalf of EARTHASIA

INTERNATIONAL HOLDINGS LTD. 

 by its duly authorised

signatory in the presence of a witness:	)

)

)

)

)	Signature    	/s/ CHAN YICK YAN ANDROSS
	 	 	 	 
	 	 	Name (block capitals)    	CHAN YICK YAN ANDROSS
	 	 	 	Director / 

authorised 

signatory

 

	Witness signature:	/s/ CHAN CHI HING	 

 

	Witness name (block capitals):	CHAN CHI HING	 

 

	Witness address: 	11/F., COFCO
    TOWER,	 

 

	262 GLOUCESTER
    ROAD, CAUSEWAY BAY, HK	 

 

Execution Page to
Subscription Agreement

     

     

    

This
Agreement has been entered
into on the date stated at the beginning.

 

INVESTOR :

 

	SIGNED for and on behalf of Lexinter	)	 	 
	International Inc. by its duly authorised	)	 	 
	signatory in the presence of a witness	)	 	 
	 	)	 	 
	 	)	Signature    	/s/ JEFFREY ABRAMOVITZ
	 	 	 	 
	 	 	Name (block capitals)    	JEFFREY ABRAMOVITZ
	 	 	 	Director

 

	Witness signature:	/s/ ERIN GONZALEZ	 

 

	Witness name (block capitals):	ERIN GONZALEZ	 

 

	Witness address: 	1860 APPLEBY LINE	 

 

	BURLINGTON ONTARIO CANADA	 

 

Execution Page to
Subscription Agreement

     

     

    

Annex
1

 

Form
of Closing Notice

 

	To:	Earthasia
                                         International Holdings Ltd.
	 	

 

	Re:	Subscription
                                         Agreement dated January [●], 2021 (the “Agreement”)

 

We
refer to the Agreement. Capitalized terms not otherwise defined herein shall have the same meaning as ascribed to such term in
the Agreement.

 

We
hereby give you notice that we wish to purchase the Note in the principal amount of_____________ (the “Closing Amount”)
on_____________ 2021 (the “Closing Date”) pursuant to the terms and conditions of the Agreement. 

 

For
and on behalf of

 

Lexinter
International Inc. 

 

	 	 
	 	 
	Name:	 
	 	 
	Title:	 

    Annex 1

     

    

	

    

    

    Earthasia International Holdings Limited(Incorporated
                           in the Cayman Islands with limited liability)

Stock
Code : 06128.HK 

	 	

11/F COFCO
    Tower

    262 Gloucester Road, Causeway Bay, Hong Kong 

    Tel : 852-2559 9438     Fax
    : 852-2559 9841
	 	 	 
	 	SCHEDULE
1	www.ea-dg.com

FORM
OF DIRECTOR CERTIFICATE

 

To:

 

Lexinter
International Inc.

 

19
January 2021

 

Dear
Sirs

 

Pursuant
to the Subscription Agreement dated January 19, 2021 (the “Agreement”) made among Earthasia International
Holdings Ltd.  (the “Issuer”) and yourself as Investor, I
hereby confirm, on behalf of the Issuer, that as at today’s date:

 

		a)	the
                                         representations and warranties of the Issuer set forth in the Agreement are true, accurate
                                         and correct in all respects at, and as if made on, today’s date;

 

		b)	the
                                         Issuer has performed all of its obligations under the Agreement to be performed on or
                                         before today’s date; and

 

		c)	there
                                         has been no material change which is adverse to the condition (financial or other), results
                                         of operations or general affairs of the Issuer or the Group (as defined in the Agreement).

 

Yours
faithfully

 

For
and on behalf of

 

	Earthasia
International Holdings Ltd.

	
	 
	/s/ CHAN YICK YAN ANDROSS	 
	 
	Name:      CHAN YICK YAN ANDROSS
	 
	Title:        CHIEF EXECUTIVE OFFICER

 

    Schedule 1-1

     

    

SCHEDULE
2

FORM
OF DEFINITIVE NOTE CERTIFICATE

    Schedule 2-1Exhibit 10.3

 

Execution Version

 

DEFINITIVE CERTIFICATE

 

	PRINCIPAL AMOUNT: US$[*]	CERTIFICATE NUMBER: [●]

 

Earthasia International Holdings
Ltd.

(泛亞環境國際控股有限公司)

(incorporated in the Cayman
Islands with limited liability 

whose shares are listed on HKSE with stock code 6128)

 

US$[*]

5.50% Secured Convertible Notes
due in 2023 convertible into the ordinary shares of 

Earthasia International Holdings Ltd.(泛亞環境國際控股有限公司)

 

The Note or Notes in respect of which
this Certificate is issued, the identifying number of which is noted above, are in registered form and form part of a series designated
as specified in the title (the “Notes”) of Earthasia International Holdings Ltd.(泛亞環境國際控股有限公司)
(the “Issuer”).

 

The Notes have the benefit of an instrument
(the “Note Instrument”) dated [*] 2021 attached hereto executed by the Issuer and are subject to, and have the benefit
of, the terms and conditions (the “Conditions”) set out thereto and endorsed hereof. Expressions defined in the Conditions
have the same meaning in this Certificate.

 

The Issuer hereby certifies that [Lexinter
International Inc. or Investor’s designated person other than a Connected Person] is, at the date hereof, entered in the register
of Noteholders as the holder of Notes in the principal amount of US$[*]. For value received, the Issuer promises to pay the person who
appears at the relevant time on the register of Noteholders as holder of the Notes in respect of which this Certificate is issued such
amount or amounts as shall become due in respect of such Notes and otherwise to comply with the Conditions.

 

The Notes in respect of which this Certificate
is issued are convertible into fully-paid ordinary shares of the Issuer subject to and in accordance with the Conditions.

 

This Certificate is evidence of entitlement only.
Title to the Notes passes only on due registration on the register of Noteholders and only the duly registered holder is entitled to payments
on Notes in respect of which this Certificate is issued.

 

This Certificate shall not be valid for any purpose until executed
by the Issuer.

 

The Certificate is governed by, and shall be construed in accordance
with, Hong Kong law.

 

In witness whereof the Issuer has caused this Certificate to be executed
as a deed poll.

 

This Certificate is delivered on [ISSUE DATE].

 

The COMMON SEAL of

Earthasia International Holdings Ltd. 

(泛亞環境國際控股有限公司) 

was affixed in the presence of:

 

 

	Director	 	Director/Secretary

 

Notes:

The Notes cannot be transferred to bearer on delivery and are only
transferable to the extent permitted by Condition 3. This Certificate must be delivered to the specified office of the Issuer for cancellation
and reissue of an appropriate Certificate in the event of any such transfer.

 

Definitive Note Certificate

 

    

     

    

 

Execution Version

 

THE SECURITIES REPRESENTED BY THIS INSTRUMENT
AND THE ORDINARY SHARES ISSUABLE UPON CONVERSION OF THE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED,
OF THE UNITED STATES. THE TRANSFER OF THE SECURITIES REPRESENTED HEREBY IS SUBJECT TO THE CONDITIONS SPECIFIED IN THAT CERTAIN SUBSCRIPTION
AGREEMENT DATED AS OF JANUARY [*], 2021, AS AMENDED AND MODIFIED FROM TIME TO TIME, BETWEEN THE ISSUER AND LEXINTER INTERNATIONAL INC.

 

Earthasia International
Holdings Ltd. 

(泛亞環境國際控股有限公司)

 

Note Instrument

 

constituting

 

US$[*] 5.50% Secured Convertible Note due in 2023

 

[ISSUE DATE] 2021

 

Earthasia International Holdings Ltd.(泛亞環境國際控股有限公司)
(the “Issuer”), a company incorporated in the Cayman Islands with limited liability whose registered address is Windward
3, Regatta Office Park, PO Box 1350, Grand Cayman KY1-1108, Cayman Islands, has in accordance with its memorandum and articles of association
and by a resolution of its board of directors passed on [_____*___________]resolved to create and issue US$[*] 5.50% Secured Convertible
Note due in 2023 (the “Note”) constituted by this instrument.

 

Any reference herein to the “Conditions”
is to the terms and conditions of the Note attached hereto. Expressions defined in the Conditions shall have the same meanings when used
herein.

 

The Note constituted under this Note Instrument
shall have the benefit of the Security constituted by the Security Documents.

 

This Note Instrument shall take effect
as a deed poll for the benefit of the Noteholders from time to time and shall enure to the benefit of each Noteholder and its successors
and permitted assigns.

 

This Note Instrument is governed by, and shall be construed in accordance
with, Hong Kong law.

 

IN WITNESS WHEREOF the Issuer has caused this Note Instrument to be
executed as a deed.

 

The COMMON SEAL of 

Earthasia International Holdings Ltd.

(泛亞環境國際控股有限公司) 

was affixed in the presence of:

 

 

	Director	 	Director/Secretary

 

Note Instrument

 

    

     

    

 

Execution Version

 

Terms and Conditions of the Notes

 

The issue of the US$[*] principal amount
of 5.50% secured convertible notes (the “Notes”) pursuant to the subscription agreement by and between Earthasia International
Holdings Ltd. (泛亞環境國際控股 有限公司) (the “Issuer”)
and Lexinter International Inc. (the “Investor”) dated January [*], 2021 (the “Subscription Agreement”)
..

 

1       Form, Denomination
and Title

 

(A)       Form
and Denomination

 

The Notes are issued in registered
form in the minimum denomination of US$500,000 each and integral multiples of US$10,000 in excess thereof (referred to as the
 “principle amount” of a Note) (the “Authorised Denomination”). A note certificate (each a
 “Certificate”) will be issued to each Noteholder in respect of its registered holding of Notes. Each Certificate
will be numbered serially with an identifying number which will be recorded on the relevant Certificate and in the register of
Noteholders (the “Register”) which the Issuer will procure to be kept.

 

(B)       Conversion

 

Each Note will entitle its registered
holder to convert such Note into Shares in accordance with Condition 5 (Conversion).

 

(C)       Title

 

Title to the Notes will pass only by
transfer and registration in the Register as described in Condition 3 (Transfers of Notes; Issue of Certificates). The holder of
any Note will (except as otherwise required by law or as ordered by a court of competent jurisdiction) be treated as its absolute owner
for all purposes (whether or not it is overdue and regardless of any notice of ownership, trust or any interest in it or any writing on,
or the theft or loss of, the Certificate issued in respect of it) and no person will be liable for so treating the holder. In these terms
and conditions (these “Conditions”), “Noteholder” and (in relation to a Note) “holder”
mean the person in whose name a Note is registered.

 

2       Ranking

 

(A)       Status

 

The Notes constitute direct, unconditional,
unsubordinated and secured obligations of the Issuer and shall at all times rank pari passu and without any preference or priority
among themselves. The payment obligations of the Issuer under the Notes shall at all times rank senior to all of its present and future
unsecured obligations.

 

(B)       Security

 

The Notes will have the benefit of the
Security constituted by the Security Documents on a first ranking basis for all amounts payable on the Notes and all other moneys payable
by the Obligors under the Transaction Documents. The Security Documents shall become immediately enforceable if an Event of Default occurs
and is continuing, following which the Noteholder (or its appointee) may, but shall not be obligated to, take such proceedings or other
action as such Noteholder deems appropriate pursuant to the Transaction Documents.

 

    1 

     

    

 

3       Transfers of Notes;
Issue of Certificates

 

(A)       Register

 

The Issuer will cause the
Register to be kept at a specified office in Hong Kong on which shall be entered (i) the names and addresses of the holders of the
Notes; (ii) the registered account of the Noteholder (as set out in Condition 6(B)(Registered Accounts)) for the receipt of
any amount due under the Notes in cash; (iii) the telephone and facsimile numbers of the relevant contact persons for such
Noteholders; (iv) the names of authorised signatories; and (v) the particulars of the Notes held by them and of all transfers,
redemptions and conversions of the Notes. Each Noteholder shall be entitled to receive only one Certificate in respect of its entire
holding of Notes.

 

Any Noteholder may require a copy of
the names and addresses of the Noteholders and the aggregate principal amount of Notes outstanding for each Noteholder as set forth in
the Register and within five Business Days of receipt by the Issuer of such requirement, a copy of the Register shall be made available
for collection at the specified office of the Issuer or, if so requested by the Noteholder, be sent by courier at the risk of the Noteholder
entitled (but free of charge to the holder and at the Issuer’s expense).

 

(B)       Transfer

 

Subject to Condition 3(E)(No Transfer to Competitor,
Adversary or Connected Person) and Exhibit D (Regulations Concerning the Transfer and Registration of Notes), for as long as
a Note is outstanding, such Note may be freely transferred without the consent of the Issuer in whole or in part at any time and from
time to time to any person in a multiple of the Authorised Denomination by delivery of the Certificate issued in respect of that Note,
with the form of transfer on the back duly completed and signed by the holder or such holder’s attorney duly authorised in writing,
to the specified office of the Issuer (currently at 11/F, COFCO Tower, 262 Gloucester Road, Causeway Bay, Hong Kong). No transfer of a
Note will be valid unless and until entered on the Register. The Issuer shall procure that transfers are promptly entered on the Register
upon compliance with the application transfer provisions in this Condition 3(B) (Transfer) and in Exhibit D (Regulations Concerning
the Transfer and Registration of Notes) and evidence as may be reasonably requested by the Issuer is being provided by the holder
of the Note to show that the transferee of the Note is not a Connected Person of the Issuer referred to in Condition 3(E))(No Transfer
to Connected Person). A Note may be registered only in the name of, and transferred only to, a named person (or persons).

 

To the extent any Warrant is issued and
the outstanding amount thereunder is equal to 50% of the principal amount of a Note being the subject of a transfer, the Issuer shall
procure that the transfer of a Warrant in the amount corresponding to 50% of the principal amount of the transferred Note to be effectuated,
as long as the proposed transfer of the Note is pursuant to the Conditions and the transfer of Warrant is pursuant to the terms and conditions
thereof.

 

(C)       Delivery
of New Certificates

 

Each new Certificate to be issued upon
a transfer of Notes will, within ten (10) Business Days of receipt by the Issuer of the original Certificate and the form of transfer
duly completed and signed, be made available for collection at the specified office of the Issuer or, if so requested in the form of transfer,
be mailed by uninsured mail at the risk of the holder entitled to the Notes (but free of charge to the holder and at the Issuer’s
expense) to the address specified in the form of transfer.

 

Where only part of a principal amount of the Notes
(being that of one or more Notes) in respect of which a Certificate is issued is to be transferred, converted, redeemed or repurchased
in part, a new Certificate in respect of the Notes not so transferred, converted, redeemed or repurchased in part will, within ten (10)
Business Days of delivery of the original Certificate to the Issuer, be made available for collection at the specified office of the Issuer
or, if so requested in the form of transfer, be mailed by uninsured mail at the risk of the holder of the Notes not so transferred, converted,
redeemed or repurchased (but free of charge to the holder and at the Issuer’s expense) to the address of such holder appearing on
the Register.

 

(D)       Formalities
Free of Charge

 

Registration of a transfer of Notes
and issuance of new Certificates will be effected without charge by or on behalf of the Issuer subject to (a) the person making such
application for transfer paying or procuring the payment of any Taxes, duties and other governmental charges in connection
therewith, (b) the Issuer being satisfied with the documents of title and/or identity of the person making the application and (c)
the regulations concerning transfers of Notes (as initially set out in Exhibit D (Regulations Concerning the Transfer and
Registration of Notes)).

 

    2 

     

    

 

(E)       No
Transfer to Competitor, Adversary or Connected Person

 

None of the Notes may be transferred to a competitor, adversary
or Connected Person of the Issuer.

 

		4	Interest 

 

The Notes bear interest from and
including the Issue Date (the “First Accrual Date”) at the rate of 5.50% per annum (the “Interest Rate”)
which shall accrue daily and is payable quarterly on the 20th Business Day of March, June, September and December of each
year (each an “Interest Payment Date”) falling after the First Accrual Date, provided that, notwithstanding anything
to the contrary, the last Interest Payment Date shall instead fall on the Maturity Date.

 

Each Note will cease to bear interest
(a) where the Conversion Right attached to it shall have been exercised by a Noteholder, from and including the relevant Conversion Date,
(b) where such Note is redeemed or repaid pursuant to Condition 8 (Redemption and Cancellation) or Condition 10 (Events of Default),
from the due date for redemption or repayment thereof unless, upon due presentation thereof, payment of principal is improperly withheld
or refused. In such event, it will continue to bear interest at a rate equal to 20% per annum above the Interest Rate (the “Default
Rate”) from the date such sums are due but not paid (both before and after judgment) until (but excluding) the day on which
all sums due in respect of such Note up to that day are received by or on behalf of the relevant holder.

 

If interest is required to be calculated
for a period of less than twelve months, the relevant day-count fraction will be determined on the basis of the actual number of days
elapsed over a 365-day year.

 

In these Conditions, the period
beginning on and including the First Accrual Date and ending on but excluding the first Interest Payment Date and each successive period
beginning on and including an Interest Payment Date and ending on but excluding the next succeeding Interest Payment Date is called an
 “Interest Period”.

 

Interest in respect of any Note
shall be calculated in Principal Amount Outstanding of the Notes. The amount of interest payable for any period shall be equal to the
product of the Principal Amount Outstanding, multiplied by the applicable rate of interest and the day-count fraction (determined in the
same manner as stated above in this Condition 4(Interest)) for the relevant period, rounding the resulting figure to the nearest
cent (half a cent being rounded upwards).

 

		5	Conversion 

 

(A)       Conversion
Right

 

		(i)	Conversion Period: Subject as provided in these Conditions, each Note shall
entitle the holder to convert such Note into Shares credited as fully paid at any time during the Conversion Period referred to below
(the “Conversion Right”).

 

Subject to and upon compliance
with these Conditions, the Conversion Right in respect of a Note may be exercised, at the option of the holder thereof, in whole or
in part at any time and from time to time (subject to any applicable fiscal or other laws or regulations and as hereinafter
provided) on or after the Issue Date to the close of business in Hong Kong on the date falling one Business Day prior to the
Maturity Date (both days inclusive)(the “Conversion Period”), save that the Conversion Right may not be exercised
(a) on any date on which the Issuer’s register of shareholders is to be closed and (b) at any time after the circumstance
stated in subsection (viii) of Condition 5(D)(Undertakings) shall have arisen and before the Relevant Approval shall have
been obtained by the Issuer. If the final date on which the Conversion Right may be exercised is not a Business Day, then the period
for the exercise of the Conversion Right by Noteholders shall end on the immediately subsequent Business Day.

 

    3 

     

    

 

On exercise of Conversion Right by
a Noteholder, the Issuer is entitled to request the Noteholder to provide evidence as may be reasonably requested by the Issuer to show
that such particular conversion will not result in the Issuer cease to satisfy the public float requirement under the Listing Rules, or
give rise to a general offer obligation under the Hong Kong Code on Takeovers and Mergers by the Noteholder.

 

Notwithstanding
the foregoing, if solely as a result of, and to the extent that, the issue of any Shares to the Noteholder upon such particular conversion
(the “Uncovered Shares”), (x) the Issuer would cease to satisfy the public float requirement under the Listing Rules,
or (y) a general offer obligation under the Hong Kong Code on Takeovers and Mergers in respect of the Shares would arise, the Conversion
Right with respect only to the part of the Note convertible into the Uncovered Shares shall not be exercisable until such Noteholder
has taken and caused to be taken the necessary actions to sell, assign or otherwise dispose the Shares held by such Noteholder such that
the issuance of the Uncovered Shares to such Noteholder would not result in (x) the Issuer ceasing to satisfy the public float requirement
under the Listing Rules, or (y) a general offer obligation under the Hong Kong Code on Takeovers and Mergers in respect of the Shares
arising.

 

The price at which Shares will be
issued upon exercise of a Conversion Right (the “Conversion Price”) will initially be the Benchmark Price per Share,
but will be subject to adjustment in the circumstances described in Conditions 5(C)(Adjustment to Conversion Price).

 

		(ii)	The number of Shares to be issued on exercise of a Conversion Right shall be determined by dividing
the amount equal to 100% of the principal amount of the Notes being the subject of conversion together with the interest accrued but
unpaid thereon as to the Conversion Date (inclusive), by the Conversion Price in effect on the relevant Conversion Date. A Conversion
Right may be exercised in respect of one or more Notes. If more than one Note held by the same holder is converted at any one time by
the same holder, the number of Shares to be issued upon such conversion will be calculated on the basis of the aggregate principal amount
of the Notes to be converted.

 

		(iii)	Fractions of Shares: Fractions of Shares will not be issued on exercise of Conversion Rights and
no cash payment or other adjustment will be made in lieu thereof. However, if the Conversion Right in respect of more than one Note is
exercised at any one time such that Shares to be issued on conversion are to be registered in the same name, the number of such Shares
to be issued in respect thereof shall be calculated on the basis of the aggregate principal amount of such Notes being so converted and
rounded down to the nearest whole number of Shares. Notwithstanding the foregoing, in the event of a consolidation or re-classification
of Shares by operation of law or otherwise occurring after the Issue Date which reduces the number of Shares outstanding, the Issuer will
upon conversion of Notes pay in cash in United States dollars a sum equal to such portion of the principal amount of the Note or Notes
evidenced by the Certificate deposited in connection with the exercise of Conversion Rights, aggregated as provided in subsection (i)
of Condition 5(A)(Conversion Right), as corresponds to any fraction of a Share not issued as a result of such consolidation or
re-classification aforesaid, provided that such sum exceeds US$100. Any such sum shall be paid not later than five Trading Days after
the relevant Conversion Date by a United States dollar cheque drawn on, or by transfer to a United States dollar account maintained by
the payee with, a bank in Hong Kong, in accordance with instructions given by the relevant Noteholder in the Conversion Notice.

 

		(iv)	Revival and/or Survival after Default: Notwithstanding the provisions in subsection (i) of Condition
5(A)(Conversion Right), if (a) the Issuer shall default in making payment in full in respect of any Note
which shall have been called for redemption on the date fixed for redemption thereof; (b) any Note has become due and payable prior
to the Maturity Date by reason of the occurrence of any of the events under Condition 10 (Events of Default); or (c) any Note
is not redeemed on the Maturity Date in accordance with Condition 8(A)(Method of Payment), the Conversion Right attaching to
such Note will revive and/or will continue to be exercisable up to, and including, the close of business (at the place where the
Certificate evidencing such Note is deposited for conversion) on the date upon which the full amount of the moneys payable in
respect of such Note has been duly received by the Noteholders and notwithstanding the provisions of subsection (i) of Condition
5(A)(Conversion Right), any Note in respect of which the Certificate and Conversion Notice are deposited for conversion prior
to such date shall be converted on the relevant Conversion Date notwithstanding that the full amount of the moneys payable in
respect of such Note shall have been received by the Noteholders before such Conversion Date or that the Conversion Period may have
expired before such Conversion Date.

 

		(v)	Meaning of “Shares”: As used in these Conditions, the expression
 “Shares” means ordinary shares of the Issuer or shares of any class or classes resulting from any subdivision, consolidation
or re-classification of those shares, which as between themselves have no preference in respect of dividends or of amounts payable in
the event of any voluntary or involuntary liquidation or dissolution of the Issuer.

 

    	 	4 	 

     

    

 

		(B)	Conversion Procedure

 

		(i)	Conversion Notice: Conversion Rights may be exercised by a Noteholder during the Conversion Period
by delivering the relevant Certificate to the specified office of the Issuer during its usual business hours accompanied by a duly completed
and signed notice of conversion (a “Conversion Notice”)
in the form set out in Exhibit B. Conversion Rights shall be exercised subject in each case to any applicable fiscal or other laws or
regulations applicable in Hong Kong.

 

If such delivery is made after the
end of normal business hours (being 3.00 p.m.) or on a day which is not a Business Day, such delivery shall be deemed for all purposes
of these Conditions to have been made on the next following such Business Day.

 

Conversion Rights may be exercised in
respect of all or part of the Principal Amount Outstanding of a Note, in each case at the Noteholder’s option, but may only be exercised
in respect of an Authorised Denomination.

 

The conversion date in respect of a Note
(the “Conversion Date”) shall be deemed to be the Trading Day immediately following the date of the surrender of the
Certificate in respect of such Note and delivery of such Conversion Notice and, if applicable, any such abovementioned certification or
any payment to be made or indemnity given under these Conditions in connection with the exercise of such Conversion Right.

 

		(ii)	Stamp Duty etc.: The Issuer must pay any capital, stamp, issue, registration, transfer or
                                                                   similar Taxes and duties arising on conversion
(the “Conversion Taxes”) and the Issuer must also pay if any, Taxes arising by reference to any disposal or deemed
disposal of a Note in connection with such conversion and all other expenses arising on the issue of Shares on conversion of Notes and
all charges of the share transfer agent for the Shares.

 

		(iii)	Registration: Upon exercise by a Noteholder of its Conversion Right and compliance with subsections
(i) and (ii) of Condition 5(B)(Conversion Procedure) the Issuer will, as soon as practicable, and in any event not later than five
Trading Days after the Conversion Date, register the person or persons, other than a Connected Person, designated to receive the Conversion
Shares as set forth in the Conversion Notice as holder(s) of the relevant number of Shares
in the Issuer’s share register and will, if the Noteholder has also requested in the Conversion Notice and to the extent
permitted under applicable law and the rules and procedures of the Central Clearing and Settlement System of Hong Kong
(“CCASS”) effective from time to time, take all necessary action to procure that Shares are delivered through
CCASS for so long as the Shares are listed on the HKSE; or will make such certificate or certificates available for collection at
the office of the Issuer’s share registrar in Hong Kong (currently Tricor Hong Kong Investor Services Limited) notified to
Noteholders in accordance with Condition 11 (Notices) or, if so requested in the relevant Conversion Notice, will cause its
share registrar to mail (at the risk, and, if sent at the request of such person otherwise than by ordinary mail, at the expense, of
the person to whom such certificate or certificates are sent) such certificate or certificates to the person and at the place
specified in the Conversion Notice, together (in either case) with any other securities, property or cash required to be delivered
upon conversion and such assignments and other documents (if any) as may be required by law to effect the transfer thereof, in which
case a single share certificate will be issued in respect of all Shares issued on conversion of Notes subject to the same Conversion
Notice and which are to be registered in the same name.

 

The delivery of the Shares to the converting
Noteholder (or such person or persons, other than a Connected Person, designated in the relevant Conversion Notice) in the manner contemplated
above in this Condition 5(B)(iii) will be deemed to satisfy the Issuer’s obligation to pay the principal, interest and premium (if
any) on such converted Notes.

 

    	 	5 	 

     

    

 

If the Conversion Date in relation to the conversion
of any Note shall be after the record date for any issue, distribution, grant, offer or other event as gives rise to the adjustment of
the Conversion Price pursuant to Condition 5(C)(Adjustment to Conversion Price), but before the relevant adjustment becomes effective
(the “Relevant Effective Date”) under the relevant Condition (a “Retroactive Adjustment”), upon
the relevant adjustment becoming effective the Issuer shall procure the issue to the converting Noteholder (or in accordance with the
instructions contained in the Conversion Notice (subject to applicable exchange control or other laws or other regulations)), such additional
number of Shares (“Additional Shares”) as is, together with Shares to be issued on conversion of the Note(s), equal
to the number of Shares which would have been required to be issued on conversion of such Note if the relevant adjustment to the Conversion
Price had been made and become effective on or immediately after the relevant record date and in such event and in respect of such Additional
Shares references in this Condition 5(B)(iii) to the Conversion Date shall be deemed to refer to the Relevant Effective Date (notwithstanding
that the Relevant Effective Date falls after the end of the Conversion Period).

 

The person or persons specified for that
purpose in the Conversion Notice will become the holder of record of the number of Shares issuable upon conversion with effect from the
date such person is or persons are registered as such in the Issuer’s register of members (the “Registration Date”).

 

The Shares issued upon exercise of Conversion
Rights will be fully paid and will in all respects rank pari passu with the fully paid Shares in issue on the relevant Registration
Date except that such Shares will not rank for (or, as the case may be, the relevant holder shall not be entitled to receive) any rights,
distributions or payments the record or other due date for the establishment of entitlement for which falls prior to the relevant Registration
Date.

 

If
the record date for the payment of any dividend or other distribution in respect of the Shares is on or after the Conversion Date in
respect of any Note, but before the Registration Date (disregarding any Retroactive Adjustment of the Conversion Price referred to
in this Condition 5(B)(iii) prior to the time such Retroactive Adjustment shall have become effective), the Issuer will calculate
and pay to the converting Noteholder or such Noteholder’s designee an amount in United States dollars (the
 “Equivalent Amount”) equal to the Fair Market Value of such dividend or other distribution to which such
Noteholder would have been entitled had such Noteholder on that record date been such a shareholder of record and will make the
payment at the same time as it makes payment of the dividend or other distribution, or as soon as practicable thereafter, but, in
any event, not later than seven days thereafter. The Equivalent Amount shall be paid by transfer to a United States dollar account
maintained by the payee with in accordance with instructions given by the relevant Noteholder in the Conversion Notice.

 

		(C)	Adjustments to Conversion Price 

 

The Conversion Price will be subject
to adjustment as follows:

 

		(1)	Failure to issue and grant Warrants. In the event the Issuer is unable to obtain the Specific Mandate
or approval from the HKSE to grant and issue the Warrant and the Warrant Shares by the Long Stop Date and the Investor elects to terminate
the Subscription Agreement, the Conversion Price shall be adjusted downward to the benchmarked price of the Shares under Rule 13.36(2)
of the Listing Rules as of the date of the Subscription Agreement.

 

		(2)	Share Dividends. In the event that the Issuer makes a dividend or other distribution in Shares
to holders of Shares, the Conversion Price shall be reduced by multiplying the Conversion Price in effect immediately prior to the close
of business on the date fixed for the determination of shareholders entitled to such dividend or distribution by a fraction, the numerator
of which is the number of Shares in issue at the close of business on the date fixed for such determination and the denominator of which
is such number of Shares plus the total number of Shares constituting such dividend or other distribution, such decrease in the Conversion
Price to become effective immediately prior to the opening of business on the day following the date fixed for such determination.

 

    	 	6 	 

     

    

 

		(3)	Subdivisions and Combinations. In the event that outstanding Shares are subdivided into a greater
number of Shares, the Conversion Price in effect immediately prior to the effectiveness of such subdivision shall be proportionately reduced,
and, conversely, in the event that outstanding Shares are combined into a smaller number of Shares, the Conversion Price in effect immediately
prior to the effectiveness of such combination shall be proportionately increased. If the Conversion Price is reduced or increased pursuant
to this Condition 5(C)(3) . Such reduction or increase of the Conversion Price shall become effective simultaneously with the effectiveness
of such subdivision or combination.

 

		(4)	Distributions. In the event that the Issuer distributes to holders of Shares, by dividend or otherwise,
evidences of its indebtedness, shares of any class of its capital stock, cash or other assets (including securities, but excluding (i)
any dividend or distribution paid exclusively in cash out of the aggregate net profits (less losses) attributable to Shares for all financial
periods after June 30, 2020 and (ii) any dividend or distribution referred to in Condition 5(C)(2)(Share Dividends)), the Conversion
Price shall be reduced by multiplying the Conversion Price in effect immediately prior to the close of business on the date fixed for
the determination of shareholders entitled to such distribution by a fraction, the numerator of which is (x) such then current Conversion
Price less (y) the aggregate fair market value on such date of the evidences of indebtedness, shares of capital stock, cash and other
assets to be distributed divided by the number of Shares in issue at the close of business on such date, and the denominator of which
is such then current Conversion Price, such reduction to become effective immediately prior to the opening of business on the day following
such date.

 

		(5)	Share Reclassifications. The reclassification of Shares into securities which include
                                                                  securities other than Shares shall be deemed to involve (i) a distribution of such securities other than Shares to all holders of
                                                                  Shares within the meaning of Condition 5(C)(4)(Distributions) (and the effective date of such reclassification shall be
                                                                  deemed to be "the date fixed for the determination of shareholders entitled to such distribution" within the meaning of
                                                                  Condition 5(C)(4)(Distributions)) and (ii) a subdivision of the number of Shares in issue immediately prior to such
                                                                  reclassification into the number of Shares in issue immediately thereafter within the meaning of Condition 5(C)(3)(Subdivisions
                                                                  and Combinations) (and the effective date of such reclassification shall be deemed to be the date of effectiveness of such
                                                                  subdivision or combination, as the case may be, for purposes of Condition
5(C)(3)(Subdivisions and Combinations)).

 

		(6)	Rights Issues. In the event that the Issuer offers to holders of any Shares new Shares for subscription
by way of rights, or grants to holders of Shares any options or warrants to subscribe for new Shares, at a price (“New Rights
Issue Price”) that is less than the Conversion Price, the Conversion
Price shall be reduced to equal the New Rights Issue Price, such adjustment to become effective (if appropriate retroactively) immediately
prior to the opening of business on the next day following the record date for the offer or grant.

 

		(7)	Issuance of Shares Below Conversion Price or New Securities for Total Effective
Consideration Below Conversion Price 

 

		(i)	In the event that the Issuer issues any Shares for consideration per share (“New
Share Issue Price”) that is less than the Conversion Price in effect immediately prior to such issuance, the Conversion Price
shall be reduced to equal the New Share Issue Price, such reduction to become effective on the date of the issuance;

 

		(ii)	In the event that the Issuer issues any securities that by their terms are convertible into or exchangeable
for or carry rights of subscription for new Shares ("Share Equivalents") and the Total Effective Consideration per Share
receivable for such Share Equivalents at the time of issuance (“New Share Equivalent Issue Price”) is less than the
Conversion Price in effect immediately prior to such issuance, the Conversion Price shall be reduced to equal the New Share Equivalent
Issue Price, such reduction to become effective on the date of issuance;

 

		(iii)	In the event that after the date of issuance of the Share Equivalents, the rights of conversion or exchange
or subscription attached to any Share Equivalents are modified so that the Total Effective Consideration per Share receivable for such
Share Equivalents (the “New Share Equivalent Conversion Price”) becomes less than the Conversion Price in effect immediately
prior to the effectiveness of such New Share Equivalent Conversion Price, the Conversion Price shall be reduced to equal such New Share
Equivalent Conversion Price. Such reduction shall become effective simultaneously with the effectiveness of such New Share Equivalent
Conversion Price. A right of conversion or exchange or subscription shall not be treated as modified for the foregoing purposes to the
extent that it is adjusted to take account of events giving rise to an adjustment of the Conversion Price pursuant to this Condition 5.

 

    	 	7 	 

     

    

 

		(iv)	For the purposes of Condition 5, the "Total Effective Consideration" receivable for the
Share Equivalents issued shall be deemed to be the consideration receivable by the Issuer for any such Share Equivalents plus the additional
minimum consideration (if any) to be received by the Issuer upon (and assuming) the conversion or exchange thereof or the exercise of
such subscription rights, and the "Total Effective Consideration per Share" receivable for such Share Equivalents shall
initially be such aggregate consideration divided by the number of Shares to be issued upon (and assuming) such conversion or exchange
at the initial conversion or exchange rate or the exercise of such subscription rights at the initial subscription price, in each case
without any deduction for any commissions, discounts or expenses paid, allowed or incurred in connection with the issuance.

 

		(8)	Modification of Rights. Without limiting any other provision of this Condition 5, if the Issuer
or any Subsidiary shall in any way modify the rights attached to any share or loan capital so as wholly or partly to exchange or make
convertible such share or loan capital into, or attach thereto any rights to acquire, Shares, the Issuer shall appoint an approved auditor
to consider whether any adjustment to the Conversion Price is appropriate, and if such approved auditor shall certify that any such adjustment
is appropriate the Conversion Price shall be adjusted accordingly.

 

		(9)	Other Changes. If the Issuer at any time proposes to take any action affecting the Shares similar
to or having an effect similar to any of the actions described in any of Condition 5 (but not including any action described
in any such Condition), then the Board shall consider in good faith whether any adjustment of the Conversion Price is appropriate and,
if so, the amount of such adjustment. The Issuer shall notify the Holders of the Board's determination not less than ten (10) days prior
to the effectiveness of such proposed action. If Majority Noteholders gives notice to the Issuer within thirty (30) days after delivery
of such notice to the Holders, or if the Issuer fails to give such notice as required above, then upon the request of Majority Noteholders
an approved auditor shall determine whether an adjustment of the Conversion Price is appropriate and, if so, the amount of such adjustment.

 

		(10)	Value of Consideration. In case at any time any Shares or Share Equivalents are issued or sold
for cash, the consideration received therefor shall be deemed to be the amount received by the Issuer therefor, without deduction therefrom
of any expenses incurred or any underwriting commissions or concessions or discounts paid or allowed by the Issuer in connection therewith.
In case any Shares or Share Equivalents are issued or sold for a consideration other than cash, the amount of the consideration other
than cash received by the Issuer shall be deemed to be the fair market value of such consideration, with deduction therefrom of any expenses
incurred or any underwriting commissions or concessions or discounts paid or allowed by the Issuer in connection therewith by the Board
of Directors of the Issuer.

 

		(11)	Limitations. The provisions of paragraphs Conditions 5(C)(6) through 5(C)(7)
shall not apply to an issue of Shares or other securities of the Issuer wholly or partly convertible into, or rights to acquire, Shares
to officers or employees of the Issuer or any of its subsidiaries pursuant to any employee or executive share scheme in existence as at
the date of issue of each Note.

 

    	 	8 	 

     

    

 

		(12)	Definitions. For purpose of this Condition 5:

 

		(i)	"announcement" shall include the release of an announcement to the
press or the delivery or transmission by telephone, telex or otherwise of an announcement to HKSE, and "date of announcement"
shall mean the date on which the announcement is first so released, delivered or transmitted;

 

		(ii)	"approved auditor" means an auditing firm of international repute selected by Majority
Noteholders for the purpose of providing a specific opinion or calculation or determination hereunder;

 

		(iii)	"fair market value" of any capital stock or other assets means fair market value as determined
by the Board in good faith and set forth in a Board Resolution and a written notice delivered to the Holders, provided that if, within
thirty (30) days after delivery of such notice to the Holders, Majority Noteholders objects to such determination, the fair market value
of such capital stock or other assets shall be as determined by an approved auditor;

 

		(iv)	"issue" shall include allot;

 

		(v)	"listing" means a listing of the Shares on an internationally recognized stock exchange;

 

		(vi)	"reserves" includes unappropriated profits;

 

		(vii)	"rights" includes rights in whatsoever form issued.

 

		(13)	Miscellaneous. No adjustment in the Conversion Price shall be required unless
such adjustment (plus any other adjustments not previously made by reason of this Condition 5(C)(13)) would require an increase or decrease
of at least 0.1% in the Conversion Price; provided that any adjustments which by reason of this paragraph (m) are not required to be made
shall be carried forward and taken into account in any subsequent adjustment. All calculations under this Condition 5 shall be made to
the nearest cent, to the nearest one-hundredth of a percentage point or to the nearest one-hundredth of a share, as the case may be.

 

		(14)	Notice of Adjustments of Conversion Price. Whenever the Conversion Price is adjusted as herein
provided, the Issuer shall compute the adjusted Conversion Price in accordance with this Condition 5 and shall prepare a certificate signed
by the Chief Financial Officer of the Issuer setting forth the adjusted Conversion Price and showing in reasonable detail the facts upon
which such adjustment is based, and such certificate shall forthwith be delivered to each Holder. If Majority Noteholders gives notice
to the Issuer objecting to such calculation or stating that, in the opinion of such Majority Noteholders, an event has occurred that requires
an adjustment to the Conversion Price pursuant to Condition 5 but no notice of adjustment has been given by the Issuer, an approved auditor
shall be appointed within ten (10) Business Days after delivery of such notice from the Majority Noteholders to determine the appropriate
adjustment of the Conversion Price, if any, and such determination shall be final and binding on the Issuer and the Holder.

 

(D)       Undertakings

 

Without prejudice to the undertakings made by the Issuer in
favour of the Investor as set forth in the Subscription Agreement, the Issuer undertakes that so long as any Note remains outstanding:

 

		(i)	it will (a) maintain a listing for all the issued Shares on the HKSE, and (b) obtain
and maintain a listing for all the Shares issued on the exercise of the Conversion Rights on the HKSE;

 

		(ii)	it will pay the expenses of the issue of, and all expenses of obtaining listing for,
Shares arising on conversion of the Notes;

 

    	 	9 	 

     

    

 

		(iii)	without prior written consent of the Majority Noteholders, it will not make any reduction
of its ordinary share capital or any uncalled liability in respect thereof or of any share premium account except, in each case, where
the reduction is permitted by applicable law and results in (or would, but for the provision of these Conditions relating to rounding
or the carry forward of adjustments, result in) an adjustment to the Conversion Price or is otherwise taken into account for the purposes
of determining whether such an adjustment should be made provided always that the Issuer shall not be prohibited from purchasing its Shares
to the extent permitted by law;

 

		(iv)	it will reserve, free and clear of all liens, claims, charges, security, encumbrances
or like interests, any other pre-emptive or other similar rights, out of its authorised but unissued ordinary share capital the full number
of Shares liable to be issued on conversion of the Notes from time to time remaining outstanding and shall ensure that all Shares delivered
on conversion of the Notes will be duly and validly issued as fully-paid, and the HKSE shall have granted its approval for the listing
of, and permission to deal in, the Shares delivered on conversion of the Notes on the Main Board;

 

		(v)	it will not make any offer, issue, grant or distribute or take any action the effect
of which would be to reduce the Conversion Price below the par value of the Shares of the Issuer, provided always that the Issuer shall
not be prohibited from purchasing its Shares to the extent permitted by law;

 

		(vi)	unless so required by applicable law or regulation or the articles of association
of the Issuer or in order to establish a dividend or other rights attaching to the Shares, it will not close its register of Shareholders
or take any other action which prevents the transfer of its Shares generally and ensure that the Notes
may be converted legally and the Shares issued on conversion may (subject to any limitation imposed by law) be transferred (as between
transferor and transferee although not as against the Issuer) at all times while the register is closed or such other action is effective,
nor take any action which prevents the conversion of the Notes or issue of Shares in respect of them otherwise than in accordance with
these Conditions;

 

    	 	10 	 

     

    

 

		(vii)	where exercise of the Conversion Rights pursuant to the terms and conditions hereof
would result in (i) the Issuer not being able to satisfy the HKSE’s public shareholding requirement (i.e. 25% public float) under Rule 8.08 of
the Listing Rules following such exercise, or (ii) conversion of all or part of the Note would trigger a mandatory offer under rule 26
of the Takeovers Code on the part of the Holder and/or any person(s) acting in concerti with such Holder, it shall immediately notify
the Noteholder of such restrictions on conversion upon arising thereof; and

 

		(viii)	if at any time the Conversion Price is adjusted in accordance with these Conditions
resulting in an increase to the number of Shares falling to be issued on conversion of the Notes and the General Mandate shall become
insufficient to satisfy full conversion of the Notes, then the Issuer shall promptly:

 

		(a)	convene a general meeting of its Shareholders for the grant of specific mandate to the Issuer’s board of directors permitting
the issue of further Shares in amount sufficient to satisfy full conversion of the Notes; and

 

		(b)	seek from HKSE approval for listing of the further Shares,

 

(collectively, the “Relevant Approval”).

 

6       Payments

 

(A)       Method
of Payment

 

Payment of principal, premium (if any)
and interest due other than on an Interest Payment Date will be made by transfer to the registered account of the Noteholder. Such payment
will only be made after surrender of the relevant Certificate at the specified office of the Issuer.

 

Interest on Notes due on an Interest
Payment Date will be paid on the due date for the payment of interest to the holder shown on the Register at the close of business on
the fifth day before the due date for the payment of interest (the “Interest Record Date”). Payments of interest on
each Note will be made by transfer of cash in immediately available funds to the registered account of the Noteholder.

 

If an amount which is due on the Notes
is not paid in full, the Issuer will annotate the Register with a record of the amount (if any) in fact paid, up to the date on which
the Notes are paid in full.

 

When making payments to Noteholders,
fractions of one United States cent will be rounded down to the nearest United States cent and the Issuer shall not be liable for the
payment of any such fractions.

 

(B)       Registered
Accounts

 

For the purposes of this Condition
6, a Noteholder’s registered account means the United States dollar account maintained by or on behalf of it with a bank in Hong
Kong, details of which appear on the Register at the close of business on the second Payment Business Day before the due date for payment,
and a Noteholder’s registered address means its address appearing on the Register at that time.

 

(C)       Fiscal
Laws

 

Payments
will be subject in all cases to (i) any fiscal or other laws and regulations applicable thereto in the place of payment, but without
prejudice to the provisions of Condition 9 (Taxation) and (ii) any withholding or deduction required pursuant to an agreement
described in Section 1471(b) of the U.S. Internal Revenue Code of 1986 (the “Code”) or otherwise imposed pursuant
to Sections 1471 through 1474 of the Code, any regulations or agreements thereunder, any official interpretations thereof, or (without
prejudice to the provisions of Condition 9 (Taxation)) any law implementing an intergovernmental approach thereto. No commissions
or expenses shall be charged to the Noteholders in respect of such payments.

 

    	 	11 	 

     

    

 

(D)       Payment
Initiation

 

Where payment is to be made by transfer
to a registered account, payment instructions (for value on the due date or, if that is not a Payment Business Day, for value on the first
following day which is a Payment Business Day) will be initiated and, where payment is to be made by cheque, the cheque will be mailed
(at the risk and, if mailed at the request of the holder otherwise than by ordinary mail, expense of the holder) on the due date for payment
(or, if it is not a Payment Business Day, the immediately following Payment Business Day) or, in the case of a payment of principal, premium
and interest due other than on an Interest Payment Date, if later, on the Payment Business Day on which the relevant Certificate is surrendered
at the specified office of an Agent.

 

(E)       Delay
In Payment

 

Noteholders will not be entitled
to any interest or other payment for any delay after the due date in receiving the amount due if the due date is not a Payment Business
Day, if the Noteholder is late in surrendering its Certificate (if required to do so) or if a cheque mailed in accordance with this Condition
arrives after the due date for payment.

 

		7	Covenants 

 

		(A)	General Undertakings 

 

		(1)	The Issuer must notify each Noteholder of any Default (and the steps, if any, being
taken to remedy it) promptly upon becoming aware of its occurrence.

 

		(2)	Promptly upon reasonable request, the Issuer must supply to a Noteholder a certificate,
signed by a director or an authorised signatory, certifying that no Default is continuing (or if a Default is continuing, specifying the
Default and the steps, if any, being taken to remedy it).

 

		(3)	The Issuer shall comply with, and shall cause each Obligor to comply with, all applicable laws and the
Transaction Documents, and take all necessary actions to maintain in full force and effect any necessary consent, approval, authorization,
exemption, filing, license, order, recording or registration required for the legality, validity, enforceability and admissibility in
evidence of the Transaction Documents.

 

(B)       Negative
Pledge

 

		(1)	The Issuer shall not (and the Issuer shall ensure that no other member of the Group will) create or permit
to subsist any Security over any of its material and substantial assets, whether or not such Security is created to secure new or existing
indebtedness.

 

		(2)	The Issuer shall not (and the Issuer shall ensure that no other member of the Group will):

 

		(i)	sell, transfer or otherwise dispose of any of its assets on terms whereby they are
or may be leased to or re-acquired by the Issuer or any other member of the Group;

 

		(ii)	sell, transfer or otherwise dispose of any of its receivables on recourse terms;

 

		(iii)	enter into or permit to subsist any title retention arrangement;

 

		(iv)	enter into or permit to subsist any arrangement under which money or the benefit of
a bank or other account may be applied, set-off or made subject to a combination of accounts; or

 

		(v)	enter into or permit to subsist any other preferential arrangement having a similar effect, in circumstances where the arrangement or transaction
is entered into primarily as a method of raising financial indebtedness or of financing the acquisition of an asset.

 

    	 	12 	 

     

    

 

		(3)	Paragraphs (1) and (2) above do not apply to:

 

		(i)	any netting or set-off arrangement entered into by any member of the Group in the
ordinary course of its banking arrangements for the purpose of netting debit and credit balances;

 

		(ii)	any lien arising by operation of law and in the ordinary course of business;

 

		(iii)	the Transaction Security and any Security created pursuant to any Transaction Document;
or

 

		(iv)	any transaction that is entered into by any member of the Group in the ordinary course
of its business operations as conducted as of the Issue Date, provided that such transaction will not result in or threaten to result
in the avoidance of performance of the obligations of the Issuer and each other Obligor under the Transaction Documents.

 

		8	Redemption and Cancellation 

 

(A)     Maturity 

 

Unless previously redeemed, converted
or purchased and cancelled as provided herein, each Note shall have a maturity date falling 24 months from the Issue Date of such Note
(the “Maturity Date”). On the Maturity Date, the Issuer will redeem each Note in cash in the amount of the redemption
price, being 100% of the Principal Amount Outstanding together with accrued but unpaid interest thereon as to the Maturity Date (inclusive).

 

(B)      Redemption for Relevant
Event 

 

Following the occurrence of a Relevant
Event, the holder of each Note will have the right at such holder’s option, to require the Issuer to redeem all but not some only
of such holder’s Notes on the Relevant Event Redemption Date in cash at the amount equal to the redemption price, being [125%] of
the Principal Amount Outstanding together with accrued but unpaid interest thereon as to such redemption date (inclusive). To exercise
such right, the holder of the relevant Note must deposit during normal business hours at the specified office of the Issuer a duly completed
and signed notice of redemption, in the form set out in Exhibit C (a “Relevant Event Redemption Notice”), together
with the Certificate evidencing the Notes to be redeemed by not later than 30 Business Days following a Relevant Event, or, if later,
30 Business Days following the date upon which notice thereof is given to Noteholders by the Issuer in accordance with Condition 11 (Notices).
The “Relevant Event Redemption Date” shall be the fifteenth Business Day after the expiry of such period of 30 Business
Days as referred to above.

 

The Issuer shall redeem the Notes
being the subject of the Relevant Event Redemption Notice (subject to delivery of the relevant Certificate as aforesaid) on the Relevant
Event Redemption Date.

 

Within 15 Trading Days of the occurrence
of a Relevant Event, the Issuer shall give notice thereof in writing to the Noteholders in accordance with Condition 11 (Notices).
The notice regarding the Relevant Event shall contain a statement informing Noteholders of their entitlement to exercise their rights
to require redemption of their Notes pursuant to this Condition 8(B) (Redemption for Relevant Event). Such notice shall specify:
(a) the date of such Relevant Event and, all information material to Noteholders concerning the Relevant Event; (b) the Relevant Event
Redemption Date; (c) the last date by which a Relevant Event Redemption Notice must be given; (d) the procedures that Noteholders must
follow and the requirements that Noteholders must satisfy in order to exercise the Relevant Event redemption right, and all the information
required in Condition 8(F) (Redemption Notices).

 

    	 	13 	 

     

    

 

For the purposes of this Condition
8(B):

 

a
 “Relevant Event” occurs when (a) the listing of the Shares on the Main Board is cancelled or withdrawn; or (b)
the Issuer is delisted by the HKSE; or (c) approval from the HKSE with respect to listing of and dealing in the Shares arising from
the conversion of the Notes is revoked or cancelled; or (d) the Shares are suspended from trading on the Main Board for 10
consecutive Trading Days; (e) the Issuer is delayed, for whatsoever reason, in reporting its financial results and/or submitting its
financial results to HKSE resulting the HKSE or the SFC suspends the Shares; (f) the Shares are suspended by HKSE as a result of
irregular trading activities (other than merge and acquisition within its ordinary course of business).

 

(C)       Redemption
for Illegality

 

		(i)	If at any time it becomes unlawful in any applicable jurisdiction for a Noteholder
to perform any of its obligations as contemplated by any Transaction Document or to hold or maintain its holding of any Note or it becomes
unlawful in any applicable jurisdiction for any Affiliate of a Noteholder for that Noteholder to do so that Noteholder may notify the
Issuer upon becoming aware of that event and specify the date of redemption of the Notes held by it.

 

		(ii)	After receipt of the notice under paragraph (i) above, the Issuer must on the date of redemption for illegality
redeem all of the Notes held by that Noteholder at the amount equal to the sum of (i) the redemption price, being 100% of the Principal
Amount Outstanding together with the corresponding interest accrued but unpaid thereon as to the date of such redemption (inclusive).

 

(D)       Early
Redemption

 

The Issuer may not redeem any part
of the Note prior to the Maturity Date without the consent of the holder thereof, which may be withheld in its sole discretion.

 

(E)       Cancellation

 

All Notes which are redeemed, converted
or purchased by the Issuer or any of its Subsidiaries will forthwith be cancelled. Certificates in respect of all Notes cancelled will
be forwarded to or to the order of the Registrar and such Notes may not be reissued or resold.

 

(F)       Redemption
Notices

 

All
notices to Noteholders given by or on behalf of the Issuer pursuant to this Condition 8 will be given in accordance with Condition 11
(Notices) specifying: (a) the Conversion Price as at the date of the relevant notice; (b) the last day on which Conversion Rights
may be exercised; (c) the Closing Price of the Shares on the latest practicable date prior to the publication of the notice; (d) the
accrued interest payable (if any); (e) the date for redemption; (f) the manner in which redemption will be effected; and (g) the aggregate
principal amount of the Notes outstanding as at the latest practicable date prior to the publication of the notice.

 

		9	Taxation 

 

Each
of the Issuer and Noteholder shall be responsible for its own Taxes, duties, assessments or governmental charges of whatever nature
imposed, levied, collected, withheld or assessed by or on behalf of Hong Kong, the PRC, or the Cayman Islands or any authority
thereof or therein having power to Tax, respectively, in connection with the Notes, provided that the Issuer cannot for any
reason request the Noteholder to return or repay to the Issuer any amount which has been paid to the Noteholder under the terms and
conditions of the Transaction Documents, provided further that in the event any payment is made by or forced to be made by
the Noteholders for and on behalf of the Issuer (irrespective of whether the Issuer is in breach of any laws and regulations or has
requested the Noteholders to make such payment) pursuant to a request of a government authority of any jurisdiction for the purpose
of complying with any relevant laws and regulations of such jurisdiction, the Issuer shall, on demand and in any case not more than
ten (10) Business Days after the date the Noteholder sends its written demand to the Issuer, reimburse such amount paid by the
Noteholder to the relevant government authorities.

 

    	 	14 	 

     

    

 

		10	Events of Default 

 

If
any of the following events (each an “Event of Default”) occurs and is continuing, the Majority Noteholders at their
discretion may give notice to the Issuer that the Notes are, and they shall immediately become due and repayable by cash in the amount
of the redemption price, being 125% of their Principal Amount Outstanding together with accrued but unpaid interest (if any) thereon
as to the date of payment (inclusive) (subject to as provided below and without prejudice to the right of Noteholders to exercise the
Conversion Right in respect of their Notes in accordance with Condition 5 (Conversion)) if:

 

		(i)	Non-Payment: the Issuer fails to pay any amount payable on any of the Notes
when due and the default continues for a period of 14 days; or

 

		(ii)	Breach of any Covenant: any requirement of Condition 7 (Covenants) is
not satisfied, including that the Issuer or any Obligor takes action to avoid or threaten to avoid the performance of any of its obligations
under the Transaction Documents; or

 

		(iii)	Failure to deliver Shares: any failure by the Issuer to deliver any Shares
as and when the Shares are required to be delivered following Conversion of Notes; or

 

		(iv)	Breach of Other Obligations: the Issuer or any other Obligor does not perform
or comply with any one or more of its other obligations in the Notes (other than those referred to in Condition 10(i) and (ii)) and any
other Transaction Documents which default is incapable of remedy or, if capable of remedy, is not remedied within 45 days after written
notice of such default shall have been given to the Issuer or the applicable Obligor by the Noteholders; or

 

		(v)	Cross-Acceleration: the Issuer or any of its Subsidiaries fails to pay any
amount payable by it under any present or future guarantee for, or indemnity in respect of, any moneys borrowed or raised,

 

		(a)	when due, if the aggregate amount of such indebtedness is no more than US$500,000;
and

 

		(b)	when due and after the lapse of any grace period, if the aggregate amount of such
indebtedness exceeds US$500,000; or

 

		(vi)	Enforcement Proceedings: a distress, attachment, execution or other legal process
is levied, enforced or sued out on or against a substantial part of the property, assets or revenues of the Issuer or against all or substantially
all of the property, assets or revenues of any of its Subsidiaries, and is not discharged or stayed within 60 days of having been so levied,
enforced or sued out; or

 

		(vii)	Winding-up: an order is made or an effective resolution passed for the winding-up or dissolution,
judicial management or administration of the Issuer or any of its Subsidiaries (except for a members’ voluntary solvent winding
up of a Subsidiary), or the Issuer or any of its Subsidiaries ceases or threatens to cease to carry on all or substantially all of its
business or operations, except for the purpose of and followed by a reconstruction, amalgamation, reorganisation, merger, disposal or
consolidation (a) on terms approved by the Majority Noteholders, or (b) in the case of a Subsidiary, whereby the undertaking and assets
of such Subsidiary are transferred to or otherwise vested in the Issuer or another of its Subsidiaries or (c) on an arms’-length
basis; or

 

    	 	15 	 

     

    

 

		(viii)	Insolvency: the Issuer or any of its Subsidiaries is (or is, or could be, deemed
by law or a court to be) insolvent or bankrupt or unable to pay its debts, stops, suspends or threatens to stop or suspend payment of
all or a substantial part of its debts, proposes or makes any agreement for the deferral, rescheduling or other
readjustment of all of its debts, proposes or makes a general assignment or an arrangement or composition with or for the benefit of the
relevant creditors in respect of all or a substantial part of such debts or a moratorium is agreed or declared in respect of or affecting
all or a substantial part of (or of a particular type of) the debts of the Issuer or any of its Subsidiaries except for the purpose of
and followed by a reconstruction, amalgamation, reorganisation, merger or consolidation (a) on terms approved by the Majority Noteholders,
or (b) in the case of a Subsidiary, whereby the undertaking and assets of such Subsidiary are transferred to or otherwise vested in the
Issuer or another of its Subsidiaries; an administrator or liquidator of the Issuer or any of its Subsidiaries or all or substantially
all of the assets and turnover of the Issuer or any of its Subsidiaries is appointed; or

 

		(ix)	Nationalisation: (a) any step is lawfully taken by any competent governmental
authority with a view to the seizure, compulsory acquisition, expropriation or nationalisation of all or substantially all of the assets
of the Issuer or any of its Subsidiaries or (b) the Issuer, or any of its Subsidiaries is prevented by any competent governmental authority
from exercising normal control over all or substantially all of its property, assets and turnover; or

 

		(x)	Authorisation and Consents: any action, condition or thing (including the obtaining or effecting
of any necessary consent, approval, authorisation, exemption, filing, licence, order, recording or registration) at any time required
to be taken, fulfilled or done in order (a) to enable the Issuer and each Obligor lawfully to enter into, exercise its rights and perform
and comply with its obligations under the Notes and the other Transaction Documents, (b) to ensure that those obligations are legally
binding and enforceable against the Issuer and such Obligor, and (c) to make the Notes or the applicable Transaction Documents admissible
in evidence in the courts of the Cayman Islands and Hong Kong, is not taken, fulfilled or done; or

 

		(xi)	Illegality: it is or will become unlawful for the Issuer to perform or comply
with any one or more of its obligations under any of the Notes; or

 

		(xii)	Listing status: the current listing of the Shares having been cancelled or
withdrawn, or the Issuer is delisted by HKSE or the HKSE approval with respect to the listing and dealing in of the Shares arising from
the conversion of the Notes having been revoked or cancelled; or

 

		(xiii)	Change of business nature: the Issuer ceases or threatens to cease to carry on its Graphene Business
or any substantial part thereof or changes or threatens to change the nature or scope of its Graphene Business or the Issuer disposes
of or threatens to dispose of all or substantial part of its Graphene Business or assets; or

 

		(xiv)	Analogous Events: any event occurs which under the laws of any relevant jurisdiction
has an analogous effect to any of the events referred to in any of Conditions 10(vi) to 10(xi) (both inclusive).

 

		11	Notices 

 

Any notice required or permitted to
be delivered hereunder shall be in writing and shall be deemed effectively given (i) upon personal delivery to the party to be notified;
(ii) when sent by electronic mail or facsimile if sent during normal business hours of the recipient; if not, then on the next Business
Day; or (iii) seven Business Days after deposit with an internationally recognized courier with written verification of receipt. All notices
to Noteholders shall be validly given to them at their respective addresses in the Register. For the avoidance of doubt, a Conversion
Notice given by electronic mail shall be deemed effectively given upon receipt of such electronic mail.

 

    	 	16 	 

     

    

 

		12	Replacement of Certificates 

 

If
any Certificate is lost, stolen, mutilated, defaced or destroyed, it may be replaced at the specified office of the Issuer, subject
to all applicable laws and stock exchange requirements, upon payment by the claimant of the expenses properly incurred by the Issuer
in connection with such replacement and on such terms as to evidence and indemnity as the Issuer may require. Mutilated or defaced
Certificates must be surrendered before replacements will be issued.

 

13       Meetings
of Noteholders, Modification and Waiver

 

(A)       Meetings
of Noteholders

 

The Issuer may at any time and shall
at the request in writing of persons holding not less than 25% of the principal amount of the Notes outstanding at any time convene a
meeting of the Noteholders by giving not less than fourteen days’ notice (exclusive of the day on which the notice is given and
the day on which the meeting is held) thereof to Noteholders which notice shall specify the date, time and place of the meeting and shall
specify the nature of the resolutions to be proposed. Such meeting shall have power by a resolution passed by the Majority Noteholders
to sanction any modification or compromise or agreement or any arrangement in respect of the rights of the Noteholders against the Issuer,
the exchange of the Notes for or the conversion of the Notes into obligations or securities of any other company, to do anything required
to be done by resolution and to assent to any modification or abrogation of the provisions of the Notes. A resolution signed by the Majority
Noteholders shall be as valid and effectual as if it had been passed at a meeting of the Noteholders duly convened and held. All resolutions
passed at any meeting or resolutions by way of written resolutions shall be binding on all Noteholders, whether or not they are present
or represented at the meeting. The provisions governing the conduct of meetings are as set out in Exhibit E (Provisions Governing Noteholder
Meetings).

 

(B)       Modification
and Waiver

 

Any modification or amendment to
the Conditions or any waiver or authorisation of any breach by the Issuer of the Notes may only be effected after being sanctioned by
a resolution of the Majority Noteholders. Notice of any modification to the Conditions upon approval of the Majority Noteholders shall
be given to the Noteholders as soon as reasonably practicable after such approval.

 

In the event of the passing of a
resolution in accordance with Condition 13(A) or a modification, waiver or authorisation in accordance with this Condition 13(B), the
Issuer will procure that the Noteholders be notified in accordance with Condition 11 (Notices).

 

		14	Enforcement 

 

		(A)	Security Agent 

 

		(i)	Appointment: Each Noteholder by such Noteholder’s acceptance of the benefits
of this Note, hereby designates the Investor as the Security Agent to act as specified herein and in the Transaction Documents. Each Noteholder
shall be deemed irrevocably to authorize the Security Agent to take such action on its behalf under the provisions of the Transaction
Documents and to exercise such powers and to perform such duties hereunder and thereunder as are specifically delegated to or required
of the Security Agent by the terms hereof and thereof and such other powers as are reasonably incidental hereto and thereto. The Security
Agent may perform any of its duties hereunder by or through its agents or employees.

 

		(ii)	Duties: The Security Agent shall have no duties or responsibilities except those expressly
                                                                   set forth in the Transaction Documents. Neither the Security Agent nor any of its partners, members, shareholders, officers,
                                                                   directors, employees or agents shall be liable for any action taken or omitted by it as such hereunder or under the Transaction
                                                                   Documents or in connection herewith or therewith, be responsible for the consequence of any oversight or error of judgment or
                                                                   answerable for any loss, unless caused solely by its or their gross negligence or willful misconduct as determined by a final
                                                                   judgment (not subject to further appeal) of a court of competent jurisdiction. The duties of the Security Agent shall be mechanical
                                                                   and administrative in nature; the Security Agent shall
not have by reason of any Transaction Documents or any transfer documents a fiduciary relationship in respect of the Issuer, any Obligor
or any Secured Party; and nothing in the Transaction Documents, expressed or implied, is intended to or shall be so construed as to impose
upon the Security Agent any obligations in respect of the Transaction Documents, except as expressly set forth herein and therein.

 

    	 	17 	 

     

    

 

		(iii)	No reliance: Independently and without reliance upon the Security Agent, each Secured Party, to
the extent it deems appropriate, has made and shall continue to make (i) its own independent investigation of the financial condition
and affairs of the Issuer and the applicable Obligor in connection with such Secured Party’s investment in the Issuer, the creation
and continuance of the obligations, and the taking or not taking of any action in connection therewith, and (ii) its own appraisal of
the creditworthiness of the Issuer, each Obligor and of the value of the Transaction Security from time to time, and the Security Agent
shall have no duty or responsibility, either initially or on a continuing basis, to provide any Secured Party with any credit, market
or other information with respect thereto, whether coming into its possession before any obligations are incurred or at any time or times
thereafter. The Security Agent shall not be responsible to the Issuer, any Obligor or any Secured Party for any recitals, statements,
information, representations or warranties herein or in any document, certificate or other writing delivered in connection herewith, or
for the execution, effectiveness, genuineness, validity, enforceability, perfection, collectability, priority or sufficiency of the Transaction
Documents, or for the financial condition of the Issuer or Obligor or the value of any of the Transaction Security, or be required to
make any inquiry concerning either the performance or observance of any of the terms, provisions or conditions of the Transaction Documents,
or the financial condition of the Issuer or any Obligor, or the value of any of the Transaction Security, or the existence or possible
existence of any default or Event of Default under the Transaction Documents or the Notes. The Security Agent shall have no obligation
whatsoever to any Secured Party to assure that the Transaction Security exists or is owned by the Issuer or any Obligor or is cared for,
protected or insured or that the liens granted pursuant to the Transaction Documents have been properly or sufficiently or lawfully created,
perfected, or enforced or are entitled to any particular priority. The Security Agent shall be entitled to rely, and shall be fully protected
in relying, upon any writing, resolution, notice, statement, certificate, telex, teletype or telecopier message, cablegram, radiogram,
order or other document or telephone message signed, sent or made by the proper person or entity, and, with respect to all legal matters
pertaining to the Transaction Documents and its duties hereunder and thereunder.

 

		(iv)	Rights: The Security Agent shall have the right to take any action with respect
to the Transaction Security, on behalf of all of the Secured Parties. To the extent practical, the Security Agent shall request instructions
from the Secured Parties with respect to any material act or action (including failure to act) in connection with the Transaction Documents,
and shall be entitled to act or refrain from acting in accordance with the instructions of the Secured Parties; if such instructions are
not provided despite the Security Agent’s request therefor, the Security Agent shall be entitled to refrain from such act or taking
such action, and if such action is taken, shall be entitled to appropriate indemnification from the Secured Parties in respect of actions
to be taken by the Security Agent; and the Security Agent shall not incur liability to any person or entity by reason of so refraining.
Without limiting the foregoing, (a) no Secured Party shall have any right of action whatsoever against the Security Agent as a result
of the Security Agent acting or refraining from acting hereunder in accordance with the terms of the Transaction Documents, and the Issuer
and the Obligors shall have no right to question or challenge the authority of, or the instructions given to, the Security Agent pursuant
to the foregoing, and (b) the Security Agent shall not be required to take any action which the Security Agent believes (i) could reasonably
be expected to expose it to personal liability or (ii) is contrary to the Transaction Documents or applicable law.

 

    	 	18 	 

     

    

 

		(v)	Resignation: The Security Agent may resign from the performance of all its
functions and duties under the Transaction Documents at any time by giving 30 days' prior written notice (as provided in the Subscription
Agreement) to the Issuer. Upon any such notice of resignation, the Secured Parties shall appoint a successor Security Agent hereunder.

 

		(vi)	Indemnification: To the extent that the Security Agent is not reimbursed and indemnified by the
Issuer or any Obligor, the Secured Parties will jointly and severally reimburse and indemnify the Security Agent, in proportion to their
initially purchased respective principal amounts of Notes, from and against any and all liabilities, obligations, losses, damages, penalties,
actions, judgments, suits, costs, expenses or disbursements of any kind or nature whatsoever which may be imposed on, incurred by or asserted
against the Security Agent in performing its duties under the Transaction Documents, or in any way relating to or arising out of the Transaction
Documents, except for those determined by a final judgment (not subject to further appeal) of a court of competent jurisdiction to have
resulted solely from the Security Agent's own gross negligence or willful misconduct. Prior to taking any action hereunder as Security
Agent, the Security Agent may require each Secured Party to deposit with it sufficient sums as it determines in good faith is necessary
to protect the Security Agent for costs and expenses associated with taking such action.

 

(B) Rights with respect to Transaction Security

 

Each Secured Party agrees with all other
Secured Parties and the Security Agent (i) that it shall not, and shall not attempt to, exercise any rights with respect to its security
interest in the Transaction Security, whether pursuant to any other agreement or otherwise (other than pursuant to the Transaction Documents),
or take or institute any action against the Security Agent or any of the other Secured Parties in respect of the Transaction Security
or its rights thereunder and (ii) that such Secured Party has no other rights with respect to the Transaction Security other than as set
forth in the Security Documents.

 

(C) Application of Proceeds

 

If the Security Agent receives a payment
that is insufficient to discharge all the amounts then due and payable by the Issuer and the Obligors under the Transaction Documents,
the Security Agent shall apply that payment towards the obligations of the Issuer and the Obligors under the Transaction Documents in
the following order: first, in or towards payment pro rata of any unpaid fees, costs and expenses of and other amounts owing to,
the Security Agent; secondly, in or towards payment pro rata of all payable amounts due but unpaid under the Notes.

 

(D) Consent Threshold

 

Where under these Conditions, any matter
is expressed to require the consent, approval, waiver or determination of the Secured Parties, such consent, approval, waiver or determination
shall, except as otherwise stated, be deemed to be given or made if agreed to by the Majority Noteholders.

 

Subject to the other provisions in
this Condition 14(Enforcement) and the Transaction Documents, at any time after the Notes have become due and repayable, Majority
Noteholders may be way of resolution, at their discretion and without further notice to the Issuer, take such proceedings against the
Issuer and/or enforce any security interest created or evidenced to be created to secure the obligations under the Notes as the Majority
Noteholders may think fit to enforce repayment of the Notes and to enforce the provisions of these Conditions.

 

15       Governing Law
and Submission to Jurisdiction

 

(A)       Governing
Law

 

The Notes are governed by, and shall be construed in accordance
with, Hong Kong law.

 

    	 	19 	 

     

    

 

(B)       Jurisdiction

 

The courts of Hong Kong have non-exclusive
jurisdiction to settle any disputes which may arise out of or in connection with the Notes (including a dispute regarding the existence,
validity or termination of the Notes). Notwithstanding the foregoing, this Condition is for the benefit of both the Issuer and the holder.
As a result, the holder shall not be prevented from taking proceedings relating to a dispute which may arise out of or in connection with
the Notes in any other courts with jurisdictions. To the extent allowed by law, the holder may take concurrent proceedings in any number
of jurisdictions.

 

(C)       Waiver
of immunity

 

The Issuer waives generally all
immunity it or its assets or revenues may otherwise have in any jurisdiction, including immunity in respect of:

 

		(a)	the giving of any relief by way of injunction or order for specific performance or
for the recovery of assets or revenues; and/or

 

		(b)	the issue of any process against its assets or revenues for the enforcement of a judgment
or, in an action in rem, for the arrest, detention or sale of any of its assets and revenues.

 

		16	Definitions and Interpretation 

 

(A)       Definitions

 

In these Conditions, capitalized
terms not otherwise defined herein shall have the same meaning ascribed to such term in the Subscription Agreement:

 

“Additional Shares” has the meaning
given to such term in Condition 5(B);

 

"Affiliate" means,
in relation to any person, a Subsidiary of that person or a Holding Company of that person or any other Subsidiary of that Holding Company;

 

“Business Day”
means a day (other than a Saturday or Sunday) on which commercial banks are open for business in Hong Kong;

 

“Authorised Denomination” has the meaning
given to such term in Condition 1;

 

“Certificate” has the meaning given
to such term in Condition 1;

 

“CCASS” has the meaning given to such
term in Condition 5(B);

 

“Closing Price”
means, in respect of a Share for any Trading Day, the closing market price published in the daily quotation sheet published by the HKSE;

 

“Conversion Date” has the meaning given
to such term in Condition 5(B);

 

“Conversion Notice” has the meaning
given to such term in Condition 5(B);

 

“Conversion Period” has the meaning
given to such term in Condition 5(A);

 

“Conversion Price” has the meaning given
to such term in Condition 5(A);

 

“Conversion Right” has the meaning given
to such term in Condition 5(A);

 

“Conversion Taxes” has the meaning given
to such term in Condition 5(B);

 

“Default” means
an Event of Default or any event or circumstance specified in Condition 10 (Events of Default) which would (with the expiry of
a grace period, the giving of notice, the making of any determination under the Transaction Documents or any combination of any of the
foregoing) be an Event of Default;

 

“Default Rate” has the meaning given
to such term in Condition 4;

 

“Equivalent Amount” has the meaning
given to such term in Condition 5(B);

 

    	 	20 	 

     

    

 

“Event of Default” has the meaning given to such
term in Condition 10;

 

“Fair Market Value”
means, with respect to any asset, security, option, warrant or other right on any date, the fair market value of that asset, security,
option, warrant or other right as determined by an Independent Investment Bank, provided that (i) the fair market value of a cash dividend
paid or to be paid per Share shall be the amount of such cash dividend per Share determined as at the date of announcement of such dividend;
(ii) where options, warrants or other rights are publicly traded in a market of adequate liquidity (as determined by such Independent
Investment Bank) the fair market value of such options, warrants or other rights shall equal the arithmetic mean of the daily closing
prices of such options, warrants or other rights during the period of five trading days on the relevant market commencing on the first
such trading day such options, warrants or other rights are publicly traded;

 

“First Accrual Date” has the the meaning given to
such term in Condition 4;

 

“Graphene Business”
means the business of processing and sale of graphite and graphene related products carried out by the Group;

 

“HKSE” means The Stock Exchange of Hong Kong Limited;

 

“Hong Kong” means the Hong Kong Special Administrative
Region of the PRC;

 

"Holding Company" means,
in relation to a person, any other person in respect of which it is a Subsidiary;

 

“Investor” has the meaning given to such
term in the Subscription Agreement; “Interest Payment Date” has the meaning given to such term in Condition 4;

 

“Interest Period” has the meaning given to such
term in Condition 4;

 

“Interest Rate” has the meaning given to such term
in Condition 4;

 

“Interest Record Date” has the meaning given to
such term in Condition 6(A);

 

“Issue Date” means
the date of the Definitive Note Certificate to which these Conditions are attached to;

 

“Listing Rules” means the Rules Governing the Listing
of Securities on Main Board;

 

“Main Board” means the main board of HKSE;

 

“Majority Noteholders” means,
at any time, any one or more holders holding Notes or being proxies or representatives in respect of Notes and representing, in the aggregate,
more than 66.67% of the aggregate principal amount of all Notes then outstanding;

 

“Maturity Date” has the meaning given to such term
in Condition 8(A);

 

“New Share Equivalent Issue Price” has the meaning
given to such term in Condition 5(C);

 

“New Share Equivalent Conversion Price” has the
meaning given to such term in Condition 5(C);

 

“New Share Issue Price” has the meaning given to
such term in Condition 5(C);

 

”Obligor” has the meaning given to such term in
the Subscription Agreement;

 

“Payment Business Day”
means a day other than a Saturday or Sunday on which commercial banks are open for business in Hong Kong;

 

“Principal Amount Outstanding”
of a Note on any date means its original principal amount less the aggregate amount of all principal amounts which had been redeemed or
converted (for the avoidance of doubt, excluding any interest or premium) in respect of such Note which shall have been paid;

 

“Register” has the meaning given to such term in
Condition 1;

 

“Registration Date” has the meaning given to such
term in Condition 5(B);

 

    	 	21 	 

     

    

 

“Relevant Approval” has the meaning given to such
term in Condition 5(D);

 

“Relevant Effective Date” has the meaning given
to such term in Condition 5(B);

 

“Relevant Event” has the meaning given to such term
in Condition 8(B);

 

“Relevant Event Redemption Date” has the meaning
given to such term in Condition 8(B);

 

“Relevant Event Redemption Notice” has the meaning
given to such term in Condition 8(B);

 

“Retroactive Adjustment” has the meaning given to
such term in Condition 5(B);

 

“RMB” means Renminbi Yuan, the lawful currency of
the PRC;

 

“Secured Party” has the meaning given to such term
in the Subscription Agreement;

 

“Security” means a
mortgage, charge, pledge, lien or other security interest securing any obligation of any person or any other agreement or arrangement
having a similar effect;

 

“Security Documents” has the meaning given to such
term in the Subscription Agreement;

 

“SFC” means the Securities and Futures Commission
of Hong Kong;

 

“Subsidiary” means,
in respect of any person (the “first person”) at any particular time, any other person (the “second person”)
whose affairs and policies the first person controls or has power to control, (directly or indirectly) whether by ownership of share capital,
contract, the power to appoint or remove a majority of members of the governing body of the second person or otherwise;

 

"Tax" means any tax,
levy, impost, duty or other charge or withholding of a similar nature (including any penalty or interest payable in connection with any
failure to pay or any delay in paying any of the same);

 

“Total Effective Consideration” has the meaning
given to such term in Condition 5(C);

 

“Trading Day” means
a day when the HKSE or, as the case may be an Alternative Stock Exchange (or in respect of any other security, the relevant stock exchange
or securities market), is open for dealing business, provided that if no closing price is reported for one or more consecutive dealing
days such day or days will be disregarded in any relevant calculation and shall be deemed not to have been dealing days when ascertaining
any period of dealing days;

 

“Transaction Security” has the meaning given to
such term in the Subscription Agreement;

 

“Uncovered Shares” has the meaning given to such
term in Condition 5(A);

 

“US$” or “USD” means United States
dollar, the lawful currency of the United States;

 

“Warrant” has the meaning given to such term in
the Subscription Agreement;

 

(B)       Construction

 

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

 

		(i)	any “Noteholder”, any “Party”, or any other
person shall be construed so as to include its successors in title, permitted assigns and permitted transferees;

 

		(ii)	“outstanding” means, in relation to the Notes, all the Notes issued except (a) those
which have been redeemed in accordance with these Conditions, (b) those which have been purchased and cancelled as provided in these Conditions,
and (c) those in respect of which the Conversion Right has been duly exercised and discharged (and, for the avoidance of doubt, a Note
in respect of which a Conversion Date has occurred shall be deemed to remain outstanding until the Conversion Right has been satisfied
and discharged even if the holder is removed from the Register during the conversion process); provided that for the purposes of (1) ascertaining
the right to attend and vote at any meeting of the
Noteholders and (2) determining how many Notes are outstanding for the purposes of Conditions 10 (Events of Default), 14
(Meetings of Noteholders, Modification and Waiver) and 15 (Enforcement) and Exhibit E (Provisions Governing
Noteholder Meetings) those Notes which are beneficially held by or on behalf of the Issuer or any of, its Subsidiaries and not
yet cancelled shall be deemed not to remain outstanding;

 

    	 	22 	 

     

    

 

		(iii)	any issue or offer or grant to Shareholders “as a class” or “by
way of rights” shall be taken to be references to an issue or offer or grant to all or substantially all Shareholders, other
than Shareholders by reason of the laws of any territory or requirements of any recognised regulatory body or any other stock exchange
or securities market in any territory or in connection with fractional entitlements, it is determined not to make such issue or offer
or grant;

 

		(iv)	principal in respect of any Note shall, where the context so permits, be deemed to
include a reference to any premium payable thereon;

 

		(v)	"assets" includes present and future properties, revenues and rights of every description;

 

		(vi)	a "Transaction Document" or any other agreement or instrument is
a reference to that Transaction Document or other agreement or instrument as amended, novated, supplemented, extended or restated;

 

		(vii)	"including" shall be construed as "including without limitation"
(and cognate expressions shall be construed similarly);

 

		(viii)	"indebtedness" includes any obligation (whether incurred as principal
or as surety) for the payment or repayment of money, whether present or future, actual or contingent;

 

		(ix)	“interest” includes the interest accrued at the Interest Rate and the Default Rate;

 

		(x)	a "person" includes any individual, firm, company, corporation, government,
state or agency of a state or any association, trust, joint venture, consortium or partnership (whether or not having separate legal personality);

 

		(xi)	a "regulation" includes any regulation, rule, official directive,
request or guideline (whether or not having the force of law) of any governmental, intergovernmental or supranational body, agency, department
or regulatory, self-regulatory or other authority or organisation;

 

		(xii)	a provision of law is a reference to that provision as amended or re-enacted;

 

		(xiii)	a time of day is a reference to Hong Kong time;

 

		(xiv)	a Default is “continuing” if it has not been remedied or waived and an Event of Default
is "continuing" if it
has not been waived; and

 

		(xv)	any currency other than United States dollars, except for Hong Kong dollars, shall
be translated into United States dollars at the average buying and selling rate published by The Hongkong and Shanghai Banking Corporation
Limited on its website at 11 a.m. on the date of determination; Hong Kong dollars shall be translated into United States dollars at the
exchange rate of HK$7.75 to US$1.

 

    	 	23 	 

     

    

 

Execution Version

 

EXHIBIT A

 

FORM OF TRANSFER

 

FOR VALUE RECEIVED the undersigned hereby transfers to

 

______________________________________

 

______________________________________

 

(PLEASE PRINT OR TYPEWRITE NAME AND ADDRESS OF THE TRANSFEREE,
THE TELEPHONE AND FACSIMILE NUMBERS OF THE RELEVANT CONTACT PERSONS FOR SUCH TRANSFEREE AND THE NAMES OF AUTHORISED SIGNATORIES OF SUCH
TRANSFEREE)

 

US$[●] (United States dollars [●]) principal
amount of the Notes in respect of which this Certificate (Certificate No.: [●]) is issued, and all rights in respect thereof.

 

All payments in respect of the Notes
hereby transferred are to be made (unless otherwise instructed by the transferee) to the following account:

 

Name of bank:

 

US$ account number:

 

For the account of:

 

Dated:

 

 

 

 

 

Certifying Signature

 

Name:

 

Notes:

 

		(a)	A representative of the holder of the Notes should state the capacity in which he signs, e.g. executor.

 

		(b)	The signature of the persons effecting a transfer shall conform to any list of duly authorized specimen
signatures supplied by the registered holder or be certified by a notary public or in such other manner as the Issuer may require.

 

		(c)	This form of transfer should be dated as of the date it is deposited with the Issuer.

 

		(d)	Transfers of the Notes are subject to the restrictions set out in Condition 3 and
Exhibit D (Regulations Concerning the Transfer and Registration of Notes).

 

    Exhibit A

     

    

 

Execution Version

 

EXHIBIT B

 

FORM OF CONVERSION NOTICE

 

CONVERSION NOTICE

 

[date]

 

		To:	Earthasia International Holdings Ltd.泛亞環境國際控股有限公司
(the “Issuer”)

 

		Re:	Conversion Notice in relation to the US$[*] 5.50% convertible notes due 2023 (the “Notes”),
constituted by the Certificate issued in respect of the Notes as of [●] with an aggregate outstanding, principal amount of US$[●].
Capitalised terms used herein and not otherwise defined shall have their respective meanings as set forth in the Certificate and Conditions.

 

Dear Sirs,

 

We, being the holder of Notes aggregate
principal amount of US$[●] (the “Notes”), hereby deliver this Conversion Notice pursuant to Condition 5(B) of
the Notes and notify the Issuer of the exercise of the conversion rights set forth in Condition [5(A)(i)]/[5(A)(iv)] of the Notes to convert
[all of the outstanding Notes] [such principal amount of the Notes set out below] at the prevailing Conversion Price set out below. Capitalised
terms used herein shall, unless otherwise defined, meanings as given to them in the Certificate and the Conditions of the Notes.

 

		1.	Total principal amount and certificate numbers of Notes to be converted:

                                                                                 

                                                                                Total principal amount:

 

Total number of Notes:

 

Certificate numbers of Notes:

 

N.B. If necessary, the certificate
numbers of Notes attached need not be in consecutive serial numbers.

 

		2.	Conversion Price on Conversion Date:

 

		3.	Total number of Shares to be issued

 

		4.	Name(s), address(es) and signature(s) of person(s) in whose name(s) the Shares required
to be delivered on conversion are to be registered:

 

Name: __________________________________

 

Address: ________________________________

 

_______________________________________

 

_______________________________________

 

Signature: _______________________________

 

		5.	(A)	the relevant number of Shares be issued in the name(s) of the person(s) whose name(s) stand(s) on the Register as the Noteholder(s) represented
by this Certificate and the certificate for such Shares be delivered to the address of the following participant of the Central Clearing
and Settlement System (CCASS) operated by the Hong Kong Securities Clearing Company Limited:

 

		 	Participation I.D. of the designated CCASS participant:

 

		 	CCASS participants contact person:

 

		 	CCASS participants contact telephone number and fax number:

 

    Exhibit B

     

    

 

CCASS participants address for delivery of share certificates:

 

OR

 

		(B)	I/We hereby request that the certificates for the Shares (or other securities) required
to be delivered upon conversion be despatched (at my/our risk) to the person whose name and address is given below and in the manner specified
below:

 

Name: __________________________________

 

Address: ________________________________

 

_______________________________________

 

_______________________________________

 

Manner of dispatch (if other

than by ordinary mail): _____________________

 

		6.	I/We hereby request that a Certificate evidencing the Notes not so converted be issued in our name and
be made available for collection at the principal place of business in Hong Kong of the Issuer/delivered to the address set out below
by ordinary mail* in accordance with Condition 6(B)(iii).

 

		7.	The Certificates representing the Notes converted hereby accompany this Conversion Notice.

 

		8.	I/We confirm that any amounts (if required) to be paid by me/us as the Noteholder
under Condition 5(B)(ii) have been paid.

 

*       (Delete as appropriate)

 

 

SIGNED for and on behalf of

 

[NOTEHOLDER]

 

by

 

	Name: __________________________________	Date: _______________________________

 

Address: ________________________________

 

Signature: _______________________________

 

 

 

Notes:

 

		(i)	This Conversion Notice will be void unless the introductory details, Sections 1, 2, 3, 4, (if applicable)
5 and 6 are completed.

 

		(ii)	Despatch of share certificates or other securities or property will be made at the
risk of the converting Noteholder.

 

		(iii)	If an adjustment contemplated by the terms and conditions of the Notes is
                                                               required in respect of a conversion of Notes where additional Shares are to be issued, certificates for the additional Shares deliverable pursuant to such adjustment
(together with any other securities, property or cash) will be delivered or despatched in the same manner as the Shares, other securities,
property and cash previously issued pursuant to the relevant Conversion Notice.

  

    Exhibit B

     

    

 

Execution Version

 

EXHIBIT C

 

FORM OF RELEVANT EVENT REDEMPTION NOTICE

 

RELEVANT EVENT REDEMPTION NOTICE

 

[date]

 

		To:	Earthasia International Holdings Ltd.泛亞環境國際控股有限公司(the
 “Issuer”)

 

		Re:	Conversion Notice in relation to the US$[*] 5.50% secured convertible
notes due 2023 (the “Notes”), constituted by the Certificate issued in respect of the Notes as of [●] 2021 with
an aggregate outstanding, principal amount of US$[●]. Capitalised terms used herein and not otherwise defined shall have their
respective meanings as set forth in the Certificate and Conditions.

 

Dear Sirs,

 

We, being the holder of Notes, hereby
deliver this Relevant Event Redemption Notice pursuant to Condition 8(B) of the Notes Conditions and notify the Issuer of the exercise
of the rights set forth in Condition 8(B) of the Notes Conditions to have all of the outstanding Notes redeemed at 125% of Principal Amount
Outstanding together with accrued and unpaid interests of such Notes. Capitalised terms used herein shall, unless otherwise defined, have
the same meanings as given to them in the Certificate and the Conditions of the Notes.

 

	1.	Total principal amount and certificate numbers of Notes to be redeemed:	 

 

	 	Total principal amount:	x 125%

 

 

Total number of Notes:

 

Certificate numbers of Notes:

 

N.B. If necessary, the certificate numbers of Notes
attached need not be in consecutive serial numbers.

 

		2.	Relevant Event Redemption Date:

 

		3.	The Certificates representing the Notes to be redeemed hereby accompany this Relevant
Event Redemption Notice.

 

		4.	Payment in respect of the above-mentioned Notes will be made in accordance with the
Conditions of the Notes.

 

SIGNED for and on behalf of

 

[NOTEHOLDER]

 

by

 

	Name: __________________________________	Date: _______________________________

 

Address: ________________________________

 

Signature: _______________________________

 

    Exhibit C

     

    

 

Execution Version

 

EXHIBIT D

 

REGULATIONS CONCERNING THE TRANSFER AND REGISTRATION
OF NOTES

 

		1	Each Note shall be in a minimum denomination of US$500,000. Certificates, each evidencing entitlement to
one or more Notes, shall be issued in accordance with the Conditions.

 

		2	The Notes are transferable by execution of the form of transfer on each Certificate endorsed under the
hand of the transferor or, where the transferor is a corporation, under its common seal or under the hand of a director or a duly authorised
officer in writing. In this Exhibit “transferor” shall where the context permits or requires include joint transferors
and be construed accordingly.

 

		3	The Certificate issued in respect of the Note to be transferred must be delivered for registration to
the specified office of the Issuer (currently at 11/F, COFCO Tower, 262 Gloucester Road, Causeway Bay, Hong Kong) accompanied by such
other evidence (including certificates and/or legal opinions) as the Issuer may reasonably require to prove the title of the transferor
or his right to transfer the Note and his identity and, if the form of transfer is executed by some other person on his behalf or in the
case of the execution of a form of transfer on behalf of a corporation by its officers, the authority of that person or those persons
to do so. The signature of the person effecting a transfer of a Note shall conform to any list of duly authorised specimen signatures
supplied by the registered holder or be certified by a recognised bank, notary public or in such other manner as the Issuer may require.

 

		4	The executors or administrators of a deceased holder of Notes (not being one of several joint holders)
and, in the case of the death of one or more of joint holders, the survivor or survivors of such joint holders, shall be the only persons
recognised by the Issuer as having any title to such Notes.

 

		5	Any person becoming entitled to Notes in consequence of the death or bankruptcy of
the holder of such Notes may, upon producing such evidence that he holds the position in respect of which he proposes to act under this
paragraph or of his title as the Issuer shall require (including certificates and/or legal opinions), be registered himself as the holder
of such Notes or, subject to the preceding paragraphs as to transfer, may transfer such Notes. The Issuer may retain any amount payable
upon the Notes to which any person is so entitled until such person shall be so registered or shall duly transfer the Notes.

 

		6	Unless otherwise requested by him and agreed by the Issuer, a holder of Notes shall
be entitled to receive only one Certificate in respect of his holding.

 

		7	The joint holders of a Note shall be entitled to one Certificate only in respect of
their joint holding which shall, except where they otherwise direct, be delivered to the joint holder whose name appears first in the
Register in respect of the joint holding.

 

		8	The Issuer shall make no charge to the holders for the registration of any holding of Notes or any transfer
of Notes or for the issue of any Certificates or for the delivery of Certificates at the principal place of business in Hong Kong of the
Issuer to whom the request for registration, transfer or delivery was delivered or by uninsured post to the address specified by the holder.
If any holder entitled to receive a Certificate wishes to have it delivered to him otherwise than at the principal place of business in
Hong Kong of the Issuer, such delivery shall be made upon his written request to the Issuer, at his risk and (except where sent by uninsured
post to the address specified by the holder) at his expense.

 

		9	The Issuer will within five Business Days of a request to effect a transfer of a Note deliver at its
                                                           principal place of business in Hong Kong to the transferee or despatch by mail (at the risk of the transferee) to such address as
                                                           the transferee may request, a new Certificate in respect of the Note or Notes transferred. In the case of a transfer, conversion or
                                                           redemption of fewer than all the Notes in respect of which a Certificate is issued, a new Certificate in respect of the Notes not
                                                           transferred, converted or redeemed will be so delivered to the holder
of the Notes to its address appearing on the register of holders of Notes.

 

    Exhibit D

     

    

 

		10	Notwithstanding any other provisions of this Certificate, the Issuer shall register the transfer of any
Note only upon presentation of an executed and duly completed form of transfer substantially in the form set forth in Exhibit A together
with any other documents thereby required.

 

		11	The Issuer may promulgate any other regulations that it may deem reasonably necessary
to facilitate the registration and transfer of the Notes.

 

    Exhibit D

     

    

 

Execution Version

 

EXHIBIT E

 

PROVISIONS GOVERNING NOTEHOLDER MEETINGS

 

(A)       Poll

 

On a poll each Noteholder, proxy or representative
will have a vote in respect of each Note held or for which it is a proxy or representative. All votes will be conducted by poll.

 

(B)       Conduct and
Quorum

 

Any meeting of the Noteholders shall (subject
to the provisions of this Exhibit and Condition 14) be convened, conducted and held in all respects as near as possible in the same way
as shall be provided by the bye-laws for the time being of the Issuer with regard to general meetings of the Issuer provided that no member
of the Issuer not being a director or officer of the Issuer shall be entitled to notice thereof or to attend thereat unless he is also
a Noteholder and that the quorum at any such meeting shall be persons holding or representing by proxy or representative 50.1% of the
principal amount of the Notes for the time being outstanding. In the event of any conflict between the bye-laws of the Issuer for the
time being and Condition 14 and this Exhibit, the Conditions and this Exhibit shall prevail.

 

(C)       Proxies

 

Any Noteholder shall be permitted to appoint a
proxy to represent him at any Noteholders’ meeting held in accordance with this Instrument. A proxy need not be a Noteholder and
need not be a member of the Issuer. Any Noteholder wishing to appoint a proxy must deliver to the principal place of business of the Issuer
in Hong Kong a notice in writing signed by the Noteholder or, in the case of a corporation, executed under its common seal or signed on
its behalf by an attorney or a duly authorised officer of the corporation stating that the Noteholder desires to appoint a proxy to represent
the Noteholder at the meeting. The notice shall state the name of the proxy and the notice will only be valid if delivered to the principal
place of business in Hong Kong of the Issuer at least 48 hours prior to the time appointed for the commencement of the meeting. A validly
appointed proxy shall have the right to vote on a resolution or act on his or its behalf in connection with any meeting or proposed meeting.
A holder of a Note which is a corporation may by delivering to the principal place of the Issuer in Hong Kong not later than 48 hours
before the time fixed for any meeting a resolution of its directors or other governing body in Hong Kong authorise any person to act as
its representative (a “representative”) in connection with any meeting or proposed meeting of

 

Noteholders.

 

A proxy or representative so appointed shall so
long as such appointment remains in force be deemed, for all purposes in connection with any meeting or proposed meeting of Noteholders
specified in such appointment, to be the holder of the Notes to which such appointment relates and the holder of the Note shall be deemed
for such purposes not to be the holder.

 

(D)       Adjournments

 

If within a quarter of an hour after the time
appointed for any meeting of Noteholders a quorum as set out in paragraph (B) above is not present the meeting shall stand adjourned to
such day (not being less than fourteen (14) or more than twenty-eight (28) days after the date of the meeting from which such adjournment
takes place) and time and place as the chairman of the meeting may determine and at the adjourned meeting the Noteholders present (whatever
the amount held or represented by them) shall form a quorum. Notice of an adjourned meeting shall be given in like manner as for the original
meeting and such notice shall state that the Noteholders present at such meeting whatever their number or the Notes held or represented
by them will constitute a quorum for all purposes.

 

The chairman of the meeting may with the
consent of (and shall if directed by) a meeting adjourn the meeting from time to time and from place to place but no business shall be
transacted at an adjourned meeting which may not lawfully have been transacted at
the meeting from which the adjournment took place.

 

    Exhibit E

     

    

 

The chairman shall be selected by the Issuer, failing whom
the Majority Noteholders shall be entitled to elect a chairman (who need not be a Noteholder).

 

The following shall be entitled to attend and vote at any
meeting of Noteholders

 

(a)       Noteholders,
proxies and representatives.

 

The following shall be entitled to attend any meeting of
the Noteholders

 

		(a)	Representatives of the Issuer;

 

		(b)	The Issuer’s legal and financial advisers.

 

(E) Written Resolutions 

 

A resolution in writing signed by
or on behalf of the Majority Noteholders who for the time being are entitled to receive notice of a meeting in accordance with these provisions
shall for all purposes be as valid as a resolution passed at a meeting of Noteholders convened and held in accordance with these provisions.
Such resolution in writing may be in one document or several documents in like form each signed by or on behalf of one or more of the
Noteholders.

 

    Exhibit E

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