Document:

Document

Exhibit 10.7
AFFIRM HOLDINGS, INC.
AMENDED AND RESTATED 2012 STOCK PLAN
(Adopted by the Board on November 18, 2020; Approved by the stockholders 
of the Company on December 15, 2020; IPO Date on January 12, 2021; Amended May 7, 2021)
1.Purposes of the Plan.  The purposes of this Amended and Restated 2012 Stock Plan are to attract and retain the best available personnel for positions of substantial responsibility, to provide additional incentive to Employees and Consultants and to promote the success of the Company’s business. Options granted under the Plan may be Incentive Stock Options or Nonstatutory Stock Options, as determined by the Administrator at the time of grant of an Option and subject to the applicable provisions of Section 422 of the Code and the regulations promulgated thereunder. Restricted Stock, Restricted Stock Units and Other Awards may also be granted under the Plan.
2.Definitions.  As used herein, the following definitions shall apply:
(a)“Acquiror” means any one person (within the meaning of Section 13(d) of the Exchange Act), or more than one such person acting as a group (as defined under Treasury Regulation § 1.409A-3(i)(5)(v)(B)), in each case, other than (i) the Company, (ii) any Subsidiary, Parent or Affiliate, (iii) any employee benefit plan sponsored by the Company or by any Subsidiary, Parent or Affiliate, (iv) an entity of which at least a majority of its Voting Power is owned directly or indirectly by the Company, (v) an entity owned directly or indirectly by the stockholders of the Company in substantially the same proportions as their ownership of Common Stock or (vi) an entity in which the holders of at least a majority of the Voting Power of the Company outstanding immediately prior to the relevant transaction continue to hold (either by their shares remaining outstanding in the continuing entity or by their shares being converted into securities of the surviving entity or its parent entity) a majority of the total Voting Power of the Company (or the surviving entity or its parent entity) outstanding immediately after such transaction. 
(b)“Administrator” means the Board or its Committee appointed pursuant to Section 4 of the Plan.
(c)“Affiliate” of any Person means a Person that directly or indirectly, through one or more intermediaries, controls, is controlled by or is under common control with the first mentioned Person.  A Person shall be deemed to control another Person if such first Person possesses directly or indirectly the power to direct, or cause the direction of, the management and policies of the second Person, whether through the ownership of voting securities, by contract or otherwise.
(d)“Applicable Laws” means the legal requirements relating to the administration of Awards, including under applicable U.S. state corporate laws, U.S. federal and 

applicable state securities laws, other U.S. federal and state laws, the Code, any Stock Exchange rules or regulations and the applicable laws, rules and regulations of any other country or jurisdiction where Awards are granted under the Plan, as such laws, rules, regulations and requirements shall be in place from time to time.
(e)“Award” means, except when referring to a particular category of grant under the Plan, shall include Incentive Stock Options, Non-statutory Stock Options, Restricted Stock Awards, Restricted Stock Units or any combination of the foregoing.
(f)“Award Agreement” means a written or electronic agreement setting forth the terms and provisions applicable to an Award granted under the Plan.  Each Award Agreement may contain terms and conditions in addition to those set forth in the Plan; provided, however, in the event of any conflict in the terms of the Plan and the Award Agreement, the terms of the Plan shall govern.
(g)“Board” means the Board of Directors of the Company.
(h)“Cashless Transaction” means a program approved by the Administrator in which payment of the Option exercise price and/or Tax Withholding Obligations applicable to an Award may be satisfied, in whole or in part, with Shares subject to the Award, including by delivery of an irrevocable direction to a securities broker (on a form prescribed by the Administrator) to sell Shares and to deliver all or part of the sale proceeds to the Company in payment of the aggregate exercise price and, if applicable, the amount necessary to satisfy the applicable Tax Withholding Obligations. 
(i)“Cause” for termination of a Holder’s Continuous Service Status will exist if the Holder is terminated by the Company for any of the following reasons: (i) Holder’s willful failure substantially to perform his or her duties and responsibilities to the Company or deliberate violation of a Company policy; (ii) Holder’s commission of any act of fraud, embezzlement, dishonesty or any other willful misconduct that has caused or is reasonably expected to result in material injury to the Company; (iii) unauthorized use or disclosure by Holder of any proprietary information or trade secrets of the Company or any other party to whom the Holder owes an obligation of nondisclosure as a result of his or her relationship with the Company; or (iv) Holder’s willful breach of any of his or her obligations under any written agreement or covenant with the Company.  The determination as to whether a Holder is being terminated for Cause shall be made in good faith by the Company’s Board of Directors and shall be final and binding on the Holder.  The foregoing definition does not in any way limit the Company’s ability to terminate a Holder’s employment or consulting relationship at any time as provided in Section 6(b) below, and the term “Company” will be interpreted to include any Subsidiary, Parent or Affiliate, as appropriate.
(j)“Change of Control” means (i) a majority of members of the Board is replaced during any 12-month period by Directors whose appointment or election is not endorsed by a majority of the members of the Board before the date of each appointment or election; (ii) an Acquiror acquires (or has acquired during the 12-month period ending on the date of the most recent acquisition by such Acquiror) all or substantially all of the Company’s assets; (iii) any 
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merger, consolidation or other business combination transaction of the Company with or into an Acquiror; or (iv) an Acquiror acquires ownership of stock of the Company that, together with stock held by such Acquiror, constitutes more than 50% of the total fair market value or total Voting Power of the stock of the Company.  Notwithstanding anything in this Plan to the contrary, (x) subsections (i) through (iv) shall be interpreted in a manner that is consistent with the Treasury Regulations promulgated pursuant to Section 409A of the Code so that all, and only, such transactions or events that could qualify as a “change in control event” within the meaning of Treasury Regulation §1.409A-3(i)(5)(i) will be deemed to be a Change of Control for purposes of this Plan; provided, however, that such limitation shall only apply to the extent necessary to prevent any tax becoming due under Section 409A of the Code; and (y) a transaction shall not constitute a Change of Control if its sole purpose is to change the state of the Company’s incorporation, or to create a holding company that will be owned in substantially the same proportions by the persons who hold the Company’s securities immediately before such transaction.
(k)“Code” means the Internal Revenue Code of 1986, as amended.
(l)“Committee” means one or more committees or subcommittees of the Board appointed by the Board to administer the Plan in accordance with Section 4 below.
(m)“Common Stock” means the Class A Common Stock of the Company.
(n)“Company” means Affirm Holdings, Inc., a Delaware corporation.
(o) “Consultant” means any natural person, including an advisor, who is engaged by the Company or any Parent, Subsidiary or Affiliate to render services and is compensated for such services, and any director of the Company whether compensated for such services or not, who satisfies the requirements of subsection (c)(1) of Rule 701 under the Securities Act of 1933, as amended.
(p)“Continuous Service Status” means the absence of any interruption or termination of service as an Employee or Consultant.  Continuous Service Status as an Employee or Consultant shall not be considered interrupted in the case of: (i) sick leave; (ii) military leave; (iii) any other leave of absence approved by the Administrator; or (iv) in the case of transfers between locations of the Company or between the Company, its Parents, Subsidiaries, Affiliates or their respective successors.  A change in status from an Employee to a Consultant or from a Consultant to an Employee will not constitute an interruption of Continuous Service Status.  However, for Incentive Stock Option purposes, termination of Continuous Service Status will occur when the Employee ceases to be an employee (as determined in accordance with Section 3401(c) of the Code and the regulations promulgated thereunder) of the Company or one of its Subsidiaries.  The Administrator shall determine whether any corporate transaction, such as a sale or spin-off of a division or business unit, or a joint venture, shall be deemed to result in a termination of Continuous Service Status.
(q)“Director” means a member of the Board.
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(r)“Disability” means “disability” within the meaning of Section 22(e)(3) of the Code.
(s)“Employee” means any person employed by the Company or any Parent or Subsidiary, with the status of employment determined based upon such factors as are deemed appropriate by the Administrator in its discretion, subject to any requirements of the Code or the Applicable Laws.  The payment by the Company of a director’s fee to a Director shall not be sufficient to constitute “employment” of such Director by the Company.
(t)“Evergreen Shares” means Shares made available for issuance under the Plan pursuant to Section 3(b) of the Plan. 
(u)“Exchange Act” means the Securities Exchange Act of 1934, as amended.
(v)“Fair Market Value” means, as of any date, the value of a share of Common Stock or other property as determined by the Administrator, in its discretion, or by the Company, in its discretion, if such determination is expressly allocated to the Company herein, subject to the following:
(i)If, on such date, the Common Stock is listed on a national or regional securities exchange or market system, including without limitation the Nasdaq Global Market, the Fair Market Value of a share of Common Stock shall be the closing price on such date of a share of Common Stock (or the mean of the closing bid and asked prices of a share of Common Stock if the stock is so quoted instead) as quoted on such exchange or market system constituting the primary market for the Common Stock, as reported in The Wall Street Journal or such other source as the Administrator deems reliable.  If the relevant date does not fall on a day on which the Common Stock has traded on such securities exchange or market system, the date on which the Fair Market Value shall be established shall be the last day on which the Common Stock was so traded prior to the relevant date, or such other appropriate day as shall be determined by the Administrator, in its discretion.
(ii)If, on such date, the Common Stock is not listed on a national or regional securities exchange or market system, the Fair Market Value of a share of Common Stock shall be as determined by the Administrator in good faith using a reasonable application of a reasonable valuation method in a manner that complies with Sections 409A and 422 of the Code and without regard to any restriction other than a restriction which, by its terms, will never lapse.
(w)“Holder” means any holder of one or more Awards or Shares issued pursuant to an Award.
(x)“Incentive Stock Option” means an Option intended to qualify as an incentive stock option within the meaning of Section 422 of the Code, as designated in the applicable Option Agreement.
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(y)“Initial Public Offering” means the consummation of the first firm commitment underwritten public offering pursuant to an effective registration statement under the Securities Act covering the offer and sale by the Company of its equity securities, as a result of or following which the Shares shall be publicly held.
(z)“IPO Date” means the offering date of the Initial Public Offering.
(aa)“Non-statutory Stock Option” means an Option not intended to qualify as an Incentive Stock Option, as designated in the applicable Option Agreement.
(ab)“Option” means a stock option granted pursuant to the Plan.  Options granted under the Plan may be Incentive Stock Options or Non-statutory Stock Options, as determined by the Administrator at the time of grant.
(ac)“Option Agreement” means a written document, the form(s) of which shall be approved from time to time by the Administrator, reflecting the terms of an Option granted under the Plan and includes any documents attached to or incorporated into such Option Agreement, including, but not limited to, a notice of stock option grant and a form of exercise notice. 
(ad)“Option Exchange Program” means a program approved by the Administrator whereby outstanding Options are exchanged for Options with a lower exercise price or are amended to decrease the exercise price as a result of a decline in the Fair Market Value of the Common Stock.
(ae)“Optioned Stock” means Shares that are subject to an Option or that were issued pursuant to the exercise of an Option. 
(af)“Optionee” means an Employee or Consultant who receives an Option.
(ag)“Other Award” means an award granted to a Holder pursuant to Section 11 of the Plan.
(ah)“Other Award Agreement” means a written document, the form(s) of which shall be approved from time to time by the Administrator, reflecting the terms of Other Awards granted under the Plan and includes any document attached to such agreement.
(ai)“Parent” means a “parent corporation,” whether now or hereafter existing, as defined in Section 424(e) of the Code, or any successor provision.
(aj)“Person” shall mean any individual, corporation, partnership (limited or general), limited liability company, limited liability partnership, association, trust, joint venture, unincorporated organization or any similar entity.
(ak)“Plan” means this Affirm Holdings, Inc. Amended and Restated 2012 Stock Plan.
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(al)“Restricted Stock Agreement” means a written document, the form(s) of which shall be approved from time to time by the Administrator, reflecting the terms of Restricted Stock granted under the Plan and includes any documents attached to such agreement. 
(am)“Restricted Stock Award” means Awards granted pursuant to Section 9 below and “Restricted Stock” means Shares issued pursuant to such Awards.
(an) “Restricted Stock Unit” means an Award of phantom stock units to a Holder, which may be settled in cash or Shares as determined by the Administrator, pursuant to Section 10.
(ao)“Restricted Stock Unit Agreement” means a written document, the form(s) of which shall be approved from time to time by the Administrator, reflecting the terms of Restricted Stock Units granted under the Plan and includes any document attached to such agreement.
(ap)“Rule 16b-3” means Rule 16b-3 promulgated under the Exchange Act, as amended from time to time, or any successor provision.
(aq)“Securities Act” means the Securities Act of 1933, as amended, and the rules and regulations thereunder.
(ar)“Share” means a share of the Common Stock, as adjusted in accordance with Section 14 of the Plan.
(as)“Stock Exchange” means any stock exchange or consolidated stock price reporting system on which prices for the Common Stock are quoted at any given time.
(at)“Subsidiary” means a “subsidiary corporation,” whether now or hereafter existing, as defined in Section 424(f) of the Code, or any successor provision.
(au)“Tax Withholding Obligations” means any applicable U.S. federal, state, local or non-U.S. tax withholding obligations, social contributions, required deductions or other similar obligations that may arise in connection with an Award. 
(av)“Ten Percent Holder” means a person who owns stock representing more than ten percent (10%) of the voting power of all classes of stock of the Company or any Parent or Subsidiary.
(aw)“Voting Power” means the total combined voting power of all classes of stock (or, in the case of an entity that is not a corporation, similar equity interests) of the relevant entity determined in a manner consistent with the principles applicable to Section 409A of the Code.
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3.Stock Subject to the Plan.  
(a)Available Shares. Subject to the provisions of Section 14 of the Plan, the maximum aggregate number of Shares that may be issued under the Plan is 118,374,202 Shares of Common Stock.  The aggregate number of Shares which may be issued upon the exercise of Incentive Stock Options shall in no event exceed 118,374,202 Shares, subject to adjustment pursuant to Section 14 of the Plan.  The Shares may be authorized, but unissued, or reacquired Common Stock.  For purposes of this limitation, the Shares underlying any Awards that are forfeited, canceled, satisfied without the issuance of Shares, surrendered pursuant to an Option Exchange Program or otherwise terminated (other than by exercise) and Shares that are withheld upon exercise of any Option or settlement of an Award to cover the exercise price or tax withholding shall become available for future grant or sale under the Plan.
(b)Evergreen Shares. In addition, the number of Shares available for issuance under the Plan will automatically increase on the first day of each fiscal year, for a period of not more than ten years from the date the Plan is approved by the stockholders of the Company, commencing on July 1, 2021 and ending on (and including) July 1, 2030, in an amount equal to five percent (5%) of the total number of shares of the Company’s capital stock outstanding on the last day of the calendar month prior to the date of such automatic increase. Notwithstanding the foregoing, the Board may act prior to the first day of a given fiscal year to provide that there will be no increase in the number of Shares available for issuance under the Plan for such fiscal year or that the increase in the number of Shares available for issuance under the Plan for such year will be a lesser number of Shares than would otherwise occur pursuant to the preceding sentence.
4.Administration of the Plan.
(a)General.  The Plan shall be administered by the Board or a Committee, or a combination thereof, as determined by the Board.  The Plan may be administered by different administrative bodies with respect to different classes of Holders and, if permitted by the Applicable Laws, the Board may authorize one or more officers to make awards under the Plan.
(b)Committee Composition.  If a Committee has been appointed pursuant to this Section 4, such Committee shall continue to serve in its designated capacity until otherwise directed by the Board.  From time to time the Board may increase the size of any Committee and appoint additional members thereof, remove members (with or without cause) and appoint new members in substitution therefor, fill vacancies (however caused) and remove all members of a Committee and thereafter directly administer the Plan, all to the extent permitted by the Applicable Laws and, in the case of a Committee administering the Plan in accordance with the requirements of Rule 16b-3 of the Code, to the extent permitted or required by such provisions.  The Committee shall in all events conform to any requirements of the Applicable Laws.
(c)Powers of the Administrator.  Subject to the provisions of the Plan and in the case of a Committee, the specific duties delegated by the Board to such Committee, the Administrator shall have the authority, in its discretion:
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(i)to administer the Plan and to adopt, amend and rescind from time to time rules and regulations for the administration of the Plan;
(ii)to determine the Fair Market Value of the Common Stock in accordance with Section 2(v) of the Plan; provided that such determination shall be applied consistently with respect to Holders under the Plan;
(iii)to select the Employees and Consultants to whom Awards may from time to time be granted;
(iv)to determine whether and to what extent Plan awards are granted;
(v)to determine the number of Shares to be covered by each Award (other than a cash-based Other Award), and the amount of cash to be covered by each cash-based Other Award;
(vi)to approve the form(s) of Award Agreement(s) and other related documents used under the Plan;
(vii)to determine the terms and conditions, not inconsistent with the terms of the Plan, of any Award granted hereunder, which terms and conditions include but are not limited to the exercise or purchase price, the time or times when Awards may vest and/or be exercised (which may be based on performance criteria), any vesting acceleration or waiver of forfeiture restrictions, any pro rata adjustment to vesting as a result of a Holder’s transitioning from full- to part-time service (or vice versa), and any restriction or limitation regarding any Award, Optioned Stock, Restricted Stock, Restricted Stock Unit or Share underlying an Other Award;
(viii)to determine whether and under what circumstances an Award may be settled in cash under Section 10(e) instead of Common Stock;
(ix)subject to Applicable Laws and Section 4(h) of the Plan, to implement an Option Exchange Program on such terms and conditions as the Administrator in its discretion deems appropriate; provided that no amendment or adjustment to an Option that would materially and adversely affect the rights of any Optionee shall be made without the prior written consent of the Optionee;
(x)to amend, waive or otherwise adjust the terms and conditions of any outstanding Award, any Award Agreement or any other agreement related to any Optioned Stock, Restricted Stock, Restricted Stock Unit or Share underlying an Other Award, including any amendment adjusting vesting or exercisability (e.g., in connection with a change in the terms or conditions under which such person is providing services to the Company); provided that no such amendment, waiver or adjustment shall be made that would materially and adversely affect the rights of any Holder without his or her consent; and provided, further, that the 
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Administrator shall not have any such authority to the extent that the grant of such authority would cause any tax to become due under Section 409A of the Code;
(xi)to (A) extend the term of any Award, including, without limitation, extending the period following a termination of a Holder’s Continuous Service Status during which any such Award may remain outstanding or (B) provide for the accrual of dividends or dividend equivalents with respect to any such Award; provided that the Administrator shall not have any such authority to the extent that the grant of such authority would cause any tax to become due under Section 409A of the Code; and provided, further, that no payment in respect of accrued dividends or dividend equivalents shall be made prior to the vesting of the relevant Award;
(xii)to construe and interpret the terms of the Plan, any Award Agreement and any agreement related to any Optioned Stock, Restricted Stock, Restricted Stock Unit or Share underlying an Other Award, which constructions, interpretations and decisions shall be final and binding on all Holders;
(xiii)in order to fulfill the purposes of the Plan and without amending the Plan, to modify grants of Awards to Holders who are foreign nationals or employed outside of the United States in order to recognize differences in local law, tax policies or customs;
(xiv)to approve addenda pursuant to Section 4(d) of the Plan or to grant Awards to, or to modify the terms of any outstanding Award Agreement or any agreement related to any Optioned Stock, Restricted Stock, Restricted Stock Unit or Share underlying an Other Award held by, Holders who are foreign nationals or employed outside of the United States with such terms and conditions as the Administrator deems necessary or appropriate to accommodate differences in local law, tax policy or custom which deviate from the terms and conditions set forth in this Plan to the extent necessary or appropriate to accommodate such differences; and
(xv)to exercise discretion to take or make any and all other actions or determinations which it determines to be necessary or advisable for the administration of the Plan.
(d)Addenda. The Administrator may approve such addenda to the Plan as it may consider necessary or appropriate for the purpose of granting Awards to Employees or Consultants, which Awards may contain such terms and conditions as the Administrator deems necessary or appropriate to accommodate differences in local law, tax policy or custom, which, if so required under Applicable Laws, may deviate from the terms and conditions set forth in this Plan. The terms of any such addenda shall supersede the terms of the Plan to the extent necessary to accommodate such differences but shall not otherwise affect the terms of the Plan as in effect for any other purpose.
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(e)Delegation of Administration of the Plan.  Subject to Applicable Laws, the Administrator, in its discretion, may delegate to a committee of two or more officers of the Company (the “Management Committee”) the power to designate Employees who are not officers of the Company to be recipients of Options or Restricted Stock Units, and to determine the number of such Options or Restricted Stock Units to be received by such Employees; provided, however, that (i) such delegation shall specify the maximum number of Shares available for grants of Awards pursuant to such delegation (which amount may be modified from time to time by the Administrator), (ii) the vesting schedule for each Award granted pursuant to such delegation must be a vesting schedule previously approved by the Administrator for grants of Awards made by the Management Committee pursuant to such delegation, and (iii) such delegation may not delegate the authority to set the exercise price of any Option granted pursuant to such delegation at a price other than the Fair Market Value per Share on the date of grant.  Any such delegation by the Administrator shall also provide that no Management Committee member may grant Awards to himself or herself (or other officers of the Company) without the approval of the Administrator.  Subject to Applicable Laws, the Administrator, in its discretion, also may delegate to the Management Committee the power to take certain identified administrative actions under the Plan for which authority has been assigned to the Administrator under the Plan. The Administrator may revoke or amend the terms of a delegation at any time but such action shall not invalidate any prior actions of the Administrator’s delegate or delegates that were consistent with the terms of the Plan.
(f)Indemnification. To the maximum extent permitted by Applicable Laws, each member of the Committee (including officers of the Company, if applicable), or of the Board, as applicable, shall be indemnified and held harmless by the Company against and from (i) any loss, cost, liability or expense that may be imposed upon or reasonably incurred by him or her in connection with or resulting from any claim, action, suit or proceeding to which he or she may be a party or in which he or she may be involved by reason of any action taken or failure to act under the Plan or pursuant to the terms and conditions of any Award except for actions taken in bad faith or failures to act in good faith, and (ii) any and all amounts paid by him or her in settlement thereof, with the Company’s approval, or paid by him or her in satisfaction of any judgment in any such claim, action, suit or proceeding against him or her; provided that such member shall give the Company an opportunity, at its own expense, to handle and defend any such claim, action, suit or proceeding before he or she undertakes to handle and defend it on his or her own behalf. The foregoing right of indemnification shall not be exclusive of any other rights of indemnification to which such persons may be entitled under the Company’s Articles of Incorporation, Certificate of Incorporation or Bylaws, by contract, as a matter of law or otherwise, or under any other power that the Company may have to indemnify or hold harmless each such person.
(g)Decisions of the Administrator. Decisions of the Administrator shall be final, binding and conclusive on all parties. For the avoidance of doubt, the Administrator may exercise all discretion granted to it under the Plan in a non-uniform manner among Holders and Awards, and the Administrator may take different actions with respect to the vested and unvested portions of an Award.
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(h)Shareholder Approval Required for Repricing. Notwithstanding any provision of this Plan to the contrary, in no event shall (i) any repricing (within the meaning of U.S. generally accepted accounting principles or any applicable Stock Exchange rule) of Options issued under the Plan be permitted at any time under any circumstances, (ii) any new Awards be issued in substitution for outstanding Options previously granted to Holders if such action would be considered a repricing (within the meaning of U.S. generally accepted accounting principles or any applicable Stock Exchange rule) or (iii) any Option or stock appreciation right (x) have its exercise price be reduced or (y) be purchased (or otherwise “cashed out”) by the Company if, on the date of such purchase, the exercise price per Share covered by such Option or stock appreciation right is less than 100% of the Fair Market Value of a Share on such date, in the case of each (i)-(iii), unless the approval of the stockholders of the Company has been obtained to take such action.
5.Eligibility.  Nonstatutory Stock Options, Restricted Stock, Restricted Stock Units and Other Awards may be granted to Employees and Consultants, subject to Applicable Laws. Incentive Stock Options may be granted only to Employees of the Company or of a Subsidiary.
6.Limitations.  
(a)ISO $100,000 Limitation.  Notwithstanding any designation under Section 8(a), to the extent that the aggregate Fair Market Value of Shares with respect to which Options designated as Incentive Stock Options are exercisable for the first time by any Optionee during any calendar year (under all plans of the Company or any Parent or Subsidiary) exceeds $100,000, such excess Options shall be treated as Non-statutory Stock Options.  For purposes of this Section 6(a), Incentive Stock Options shall be taken into account in the order in which they were granted, and the Fair Market Value of the Shares subject to an Incentive Stock Option shall be determined as of the date of the grant of such Option.
(b)No Employment Rights.  Neither the Plan nor any Award shall confer upon any Holder any right with respect to continuation of an employment or consulting relationship with the Company (or any Parent, Subsidiary or Affiliate), nor shall it interfere in any way with (i) such Holder’s right or the Company’s right (or the Parent’s, Subsidiary’s or Affiliate’s right) to terminate the employment or consulting relationship at any time for any reason, or (ii) the Company’s right to increase or decrease the compensation of the Holder from the rate in existence at the time of the grant of an Award. No payment with respect to any Awards under the Plan shall be taken into account in determining any benefits under any pension, retirement, profit sharing, group insurance or other benefit plan of the Company except as otherwise specifically provided in such other plan.
(c)No Right to Awards. No person shall have any claim or right to receive an Award hereunder. The Administrator’s granting of an Award to a Holder at any time shall neither require the Administrator to grant an Award to such Holder, or to any other Holder or other person at any time, nor preclude the Administrator from making subsequent grants to such Holder or any other Holder or other person.
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(d)Limitation on Grants to Non-Employee Directors. The maximum number of Shares subject to Awards (and of cash subject to cash-based Other Awards) granted under the Plan or otherwise during any one fiscal year to any Director (other than a Director who is also an Employee) for service on the Board, taken together with any cash fees paid by the Company to such Director during such fiscal year for service on the Board, will not exceed $650,000 in total value (calculating the value of any such Awards based on the grant date fair value of such Awards for financial reporting purposes); provided, however, that with respect to the first fiscal year during which such a Director serves on the Board (or, in the event such Director does not receive any Awards during such first fiscal year, the second fiscal year during which such a Director serves on the Board), such maximum total value shall instead be $1,000,000.
7.Term of Plan.  The Plan shall become effective as of the IPO date, subject to the approval of the stockholders of the Company as provided in Section 27 of the Plan (the “Effective Date”). It shall continue in effect for a term of ten (10) years from the Effective Date unless sooner terminated under Section 17(a) of the Plan.
8.Stock Options.
Upon the grant of any Option, the Company and the Optionee shall enter into an Option Agreement.  The terms and conditions of each such Option Agreement shall be determined by the Administrator, and such terms and conditions may differ among individual Awards and Optionees.
(a)Type of Option.  Each Option shall be designated in the Option Agreement as either an Incentive Stock Option or a Non-statutory Stock Option.
(b)Term of Option.  The term of each Option shall be the term stated in the Option Agreement; provided that the term shall be no more than ten (10) years from the date of grant thereof or such shorter term as may be provided in the Option Agreement and provided further that, in the case of an Incentive Stock Option granted to a person who at the time of such grant is a Ten Percent Holder, the term of the Option shall be five (5) years from the date of grant thereof or such shorter term as may be provided in the Option Agreement.
(c)Exercise Price.  The per Share exercise price for the Shares to be issued pursuant to exercise of an Option shall be set forth in the Option Agreement and such price as is determined by the Administrator but shall be subject to the following:
(i)In the case of an Incentive Stock Option
(A)granted to an Employee who at the time of grant is a Ten Percent Holder, the per Share exercise price shall be no less than 110% of the Fair Market Value per Share on the date of grant; or
(B)granted to any other Employee, the per Share exercise price shall be no less than 100% of the Fair Market Value per Share on the date of grant.
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(ii)In the case of a Nonstatutory Stock Option, the per Share exercise price shall be such price as is determined by the Administrator, provided that, if the per Share exercise price is less than 100% of the Fair Market Value on the date of grant, it shall otherwise comply with all Applicable Laws, including Section 409A of the Code.
(iii)Notwithstanding the foregoing, Options may be granted with a per Share exercise price other than as required above pursuant to a merger or other corporate transaction.
(d)Permissible Consideration.  The consideration to be paid for the Shares to be issued upon exercise of an Option, including the method of payment, shall be determined by the Administrator (and, in the case of an Incentive Stock Option and to the extent required by Applicable Laws, shall be determined at the time of grant) and may consist entirely of (1) cash; (2) check; (3) subject to any requirements of the Applicable Laws, delivery of Optionee’s promissory note having such recourse, interest, security and redemption provisions as the Administrator determines to be appropriate (subject to the provisions of Section 153 of the Delaware General Corporation Law); (4) cancellation of indebtedness; (5) Shares that have a Fair Market Value on the date of surrender equal to the aggregate exercise price of the Shares as to which the Option is exercised, provided that in the case of Shares acquired, directly or indirectly, from the Company, such Shares must have been owned by the Optionee for more than six months on the date of surrender (or such other period as may be required to avoid the Company's incurring an adverse accounting charge); (6) a Cashless Transaction; (7) any combination of the foregoing methods of payment; or (8) such other consideration and method of payment as determined by the Administrator and to the extent permitted under Applicable Laws. In making its determination as to the type of consideration to accept, the Administrator shall consider if acceptance of such consideration may be reasonably expected to benefit the Company and the Administrator may, in its sole discretion, refuse to accept a particular form of consideration at the time of any Option exercise.
(e)Exercise of Option.
(i)General.
(A)Exercisability.  Any Option granted hereunder shall be exercisable at such times and under such conditions as determined by the Administrator, consistent with the terms of the Plan and reflected in the Option Agreement, including vesting requirements and/or performance criteria with respect to the Company and/or the Optionee. Any such vesting requirements or performance criteria may be based upon the achievement of Company-wide, business unit, or individual goals (including, but not limited to, Continuous Service Status), or any other basis determined by the Administrator in its sole discretion. Each Option shall be exercisable in whole or in part. The partial exercise of an Option shall not cause the expiration, termination or cancellation of the remaining portion thereof.
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(B)Leave of Absence.  The Administrator shall have the discretion to determine whether and to what extent the vesting of Options shall be tolled during any unpaid leave of absence; provided, however, that in the absence of such determination, vesting of Options shall be tolled during any such unpaid leave (unless otherwise required by the Applicable Laws).  In the event of military leave, vesting shall toll during any unpaid portion of such leave, provided that, upon a Holder’s returning from military leave (under conditions that would entitle him or her to protection upon such return under the Uniform Services Employment and Reemployment Rights Act), he or she shall be given vesting credit with respect to Options to the same extent as would have applied had the Holder continued to provide services to the Company throughout the leave on the same terms as he or she was providing services immediately prior to such leave.
(C)Minimum Exercise Requirements.  An Option may not be exercised for a fraction of a Share. The Administrator may require that an Option be exercised as to a minimum number of Shares, or a minimum aggregate exercise price; provided that such requirement shall not prevent an Optionee from exercising the full number of Shares as to which the Option is then exercisable.
(D)Procedures for and Results of Exercise.  An Option shall be deemed exercised when written or electronic notice of such exercise has been given to the Company in accordance with the terms of the Option Agreement by the person entitled to exercise the Option and the Company has received full payment for the Shares with respect to which the Option is exercised and has paid, or made arrangements to satisfy, any Tax Withholding Obligations in accordance with Section 12 of the Plan. Full payment may, as authorized by the Administrator, consist of any consideration and method of payment allowable under Section 8(d) of the Plan, provided that the Administrator may, in its sole discretion, refuse to accept any form of consideration at the time of any Option exercise. The exercise of an Option in any manner shall result in a decrease in the number of Shares that thereafter may be available, both for purposes of the Plan and for sale under the Option, by the number of Shares as to which the Option is exercised.
(E)Rights as Stockholder.  Until the issuance of the Shares (as evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company), no right to vote or receive dividends or any other rights as a stockholder shall exist with respect to the Optioned Stock, notwithstanding the exercise of the Option. No adjustment will be made for a dividend or other right for which the record 
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date is prior to the date of issuance, except as provided in Section 14 of the Plan.
(ii)Termination of Employment or Consulting Relationship.  Except as otherwise set forth in this Section 8(e), the Administrator shall establish and set forth in the applicable Option Agreement the terms and conditions upon which an Option shall remain exercisable, if at all, following termination of an Optionee’s Continuous Service Status, which provisions may be waived or modified by the Administrator at any time.  Unless the Administrator otherwise provides in the Option Agreement, to the extent that the Optionee is not vested in Shares underlying his or her Option at the date of termination of his or her Continuous Service Status, or if the Optionee (or other person entitled to exercise the Option) does not exercise the Option to the extent so entitled within the time specified in the Option Agreement or below (as applicable), the Option shall terminate and the Shares underlying the unexercised portion of the Option shall revert to the Plan.  In no event may any Option be exercised after the expiration of the Option term as set forth in the Option Agreement (and subject to Section 7 of the Plan).
The following provisions (1) shall apply to the extent an Option Agreement does not specify the terms and conditions upon which an Option shall terminate upon termination of an Optionee’s Continuous Service Status, and (2) establish the minimum post-termination exercise periods that may be set forth in an Option Agreement:
(A)Termination other than Upon Disability or Death or for Cause.  In the event of termination of Optionee’s Continuous Service Status other than under the circumstances set forth in subsections (B), (C) and (D) below, such Optionee may exercise an Option until the earlier of (1) three months following the date of such termination (to the extent the Optionee was vested in the Shares underlying the Option as of the date of such termination), if the Optionee’s Continuous Service Status is terminated prior to the Optionee completing two full years of Continuous Service Status; (2) seven years following the date of such termination (to the extent the Optionee was vested in the Shares underlying the Option as of the date of such termination), if the Optionee’s Continuous Service Status is terminated on or after the Optionee completing two or more full years of Continuous Service Status; or (3) the expiration of the term of such Option; provided, however, that the Administrator may in the Option Agreement specify a shorter or longer period of time (but not beyond the expiration date of the Option) following termination of Optionee’s Continuous Service Status during which Optionee may exercise the Option as to Shares that were vested and exercisable as of the date of termination of Optionee’s Continuous Service Status.  No termination shall be deemed to occur and this Section 8(e)(ii)(A) shall not apply if (y) 
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the Optionee is a Consultant who becomes an Employee, or (z) the Optionee is an Employee who becomes a Consultant.
(B)Disability of Optionee.  In the event of termination of an Optionee’s Continuous Service Status as a result of his or her Disability, such Optionee may exercise an Option until the earlier of (1) any time within twelve months following the date of such termination (to the extent the Optionee was vested in the Shares underlying the Option as of the date of such termination), if the Optionee’s Continuous Service Status is terminated prior to the Optionee completing two full years of Continuous Service Status; (2) any time within seven years following the date of such termination (to the extent the Optionee was vested in the Shares underlying the Option as of the date of such termination), if the Optionee’s Continuous Service Status is terminated on or after the Optionee completing two or more full years of Continuous Service Status; or (3) the expiration of the term of such Option.
(C)Death of Optionee.  In the event of the death of an Optionee during the period of Continuous Service Status since the date of grant of the Option, or within thirty days following termination of Optionee’s Continuous Service Status, the Option may be exercised by Optionee’s estate or by a person who acquired the right to exercise the Option by bequest or inheritance until the earliest of (1) any time within twelve months following the date of death (to the extent the Optionee was vested in the Shares underlying the Option as of the date of death, or the date the Optionee’s Continuous Service Status terminated, if earlier), if the Optionee’s Continuous Service Status is terminated prior to the Optionee completing two full years of Continuous Service Status; (2) any time within seven years following the date of death (to the extent the Optionee was vested in the Shares underlying the Option as of the date of death, or the date the Optionee’s Continuous Service Status terminated, if earlier), if the Optionee’s Continuous Service Status is terminated on or after the Optionee completing two or more full years of Continuous Service Status; or (3) the expiration of the term of such Option.
(D)Termination for Cause.  In the event of termination of an Optionee’s Continuous Service Status for Cause, any Option (including any exercisable portion thereof) held by such Optionee shall immediately terminate in its entirety upon first notification to the Optionee of termination of the Optionee’s Continuous Service Status.  If an Optionee’s employment or consulting relationship with the Company is suspended pending an investigation of whether the Optionee shall be terminated for Cause, all the Optionee’s rights under any Option likewise shall be suspended during the investigation period and the Optionee shall have no right to exercise any Option.  The Administrator shall have authority to 
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effect such procedures and take such actions as are necessary to carry out the legal intent of this Section 8(e)(ii)(D), including such procedures and actions as are required to cause the Optionee to return to the Company Shares purchased under the Option that have been purchased or that vested within six months of the events giving rise to the for-Cause termination of the Optionee’s Continuous Service Status and, if such Shares have been transferred by the Optionee, to remit to the Company the value of such transferred Shares.
9.Restricted Stock Awards.
(a)Nature of Restricted Stock Awards.  The Administrator may, in its sole discretion, grant (or sell at par value or such other purchase price determined by the Administrator) to an eligible individual (as determined under Section 5 of the Plan) a Restricted Stock Award under the Plan.  The Administrator shall determine the restrictions and conditions applicable to each Restricted Stock Award at the time of grant.  Conditions may be based on Continuing Service Status, achievement of pre-established performance goals and objectives and/or such other criteria as the Administrator may determine.  Upon the grant of a Restricted Stock Award, the Company and the Holder shall enter into a Restricted Stock Agreement.  The terms and conditions of each such Restricted Stock Agreement shall be determined by the Administrator, and such terms and conditions may differ among individual Awards and Holders.
(b)Rights as a Stockholder.  Upon the grant of the Restricted Stock Award and payment of any applicable purchase price, a Holder of Restricted Stock shall be considered the record owner of and shall be entitled to vote the Restricted Stock if, and to the extent, such Shares are entitled to voting rights, subject to such conditions contained in the Restricted Stock Agreement.  The Holder shall be entitled to receive all dividends and any other distributions declared on the Shares; provided, however, that the Company is under no duty to declare any such dividends or to make any such distribution.
(c)Restrictions.  Restricted Stock may not be sold, assigned, transferred, pledged or otherwise encumbered or disposed of except as specifically provided herein or in the Restricted Stock Agreement.  Except as may otherwise be provided by the Administrator either in the Restricted Stock Agreement or, subject to Section 13 below, in writing after the Restricted Stock Agreement is issued, if a Holder’s Continuous Service Status terminates, the Company or its assigns shall have the right, as may be specified in the relevant instrument, to repurchase some or all of the Shares subject to the Award at such purchase price as is set forth in the Award Agreement.
(d)Vesting of Restricted Stock.  The Administrator at the time of grant shall specify in the Restricted Stock Agreement the date or dates and/or the attainment of pre-established performance goals, objectives and other conditions on which the substantial risk of forfeiture imposed shall lapse and the Restricted Stock shall become vested, subject to such further rights of the Company or its assigns as may be specified in the Restricted Stock Agreement. Any vesting criteria may be based upon the achievement of Company-wide, business unit, or individual goals (including, but not limited to, Continuous Service Status), or any other 
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basis determined by the Administrator in its sole discretion. Notwithstanding the foregoing, at any time after the delivery of Restricted Stock, the Administrator, in its sole discretion, may reduce or waive any applicable vesting criteria.
(e)Leave of Absence.  The Administrator shall have the discretion to determine whether and to what extent the lapsing of Company repurchase rights shall be tolled during any unpaid leave of absence; provided, however, that in the absence of such determination, such lapsing shall be tolled during any such unpaid leave (unless otherwise required by the Applicable Laws).  In the event of military leave, the lapsing of Company repurchase rights shall toll during any unpaid portion of such leave, provided that, upon a Holder’s returning from military leave (under conditions that would entitle him or her to protection upon such return under the Uniform Services Employment and Reemployment Rights Act), he or she shall be given “vesting” credit with respect to Shares purchased pursuant to the Restricted Stock Agreement to the same extent as would have applied had the Holder continued to provide services to the Company throughout the leave on the same terms as he or she was providing services immediately prior to such leave.
(f)Termination of Continuous Service Status. Unless otherwise provided in the applicable Restricted Stock Agreement, in the event the Holder’s Continuous Service Status is terminated for any reason (including death or Disability) prior to the vesting of a Share of Restricted Stock, such Share shall be (i) forfeited for no consideration, in the event it was granted to the Holder, or (ii) subject to a repurchase option exercisable by the Company at the original purchase price paid by the Holder, in the event it was purchased by the Holder.
(g)Other Provisions. The Restricted Stock Agreement shall contain such other terms, provisions and conditions not inconsistent with the Plan as may be determined by the Administrator in its sole discretion.
10.Restricted Stock Units.
(a)Nature of Restricted Stock Units.  The Administrator may, in its sole discretion, grant to an eligible person (as determined under Section 5 of the Plan) Restricted Stock Units under the Plan.  The Administrator shall determine the restrictions and conditions applicable to each Restricted Stock Unit at the time of grant.  Vesting conditions may be based on Continuous Service Status, achievement of pre-established performance goals and objectives and/or other such criteria as the Administrator may determine Upon the grant of Restricted Stock Units, the Holder and the Company shall enter into a Restricted Stock Unit Agreement.  The terms and conditions of each such Restricted Stock Unit Agreement shall be determined by the Administrator and may differ among individual Awards and Holders. On or promptly following the vesting date or dates applicable to any Restricted Stock Unit, but in no event later than March 15 of the year following the year in which such vesting occurs, such Restricted Stock Unit(s) shall be settled in the form of cash or Shares, as specified in the Restricted Stock Unit Agreement.  Restricted Stock Units may not be sold, assigned, transferred, pledged, or otherwise encumbered or disposed of.
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(b)Rights as a Stockholder.  A Holder shall have the rights of a stockholder only as to Shares, if any, acquired upon settlement of Restricted Stock Units. A Holder shall not be deemed to have acquired any such Shares unless and until the Restricted Stock Units shall have been settled in Shares pursuant to the terms of the Plan and the Restricted Stock Unit Agreement.
(c)Award Terms. When Restricted Stock Units are granted under the Plan, the Company shall advise the recipient in writing of the terms, conditions and restrictions applicable to the Award, including the number of Restricted Stock Units that such person shall be entitled to receive. The offer to receive Restricted Stock Units shall be accepted by execution of a Restricted Stock Unit Agreement.
(d)Vesting and Settlement. The Administrator may, in its sole discretion, set vesting criteria for the Restricted Stock Units that must be met in order to be eligible to receive a payout pursuant to the Award (note that the Administrator may specify additional conditions which must also be met in order to receive a payout pursuant to the Award). Any such vesting criteria may be based upon the achievement of Company-wide, business unit, or individual goals (including, but not limited to, Continuous Service Status), or any other basis determined by the Administrator in its sole discretion. Notwithstanding the foregoing, at any time after the grant of Restricted Stock Units, the Administrator, in its sole discretion, may reduce or waive any applicable vesting criteria.
(e)Form and Timing of Settlement. Settlement of earned Restricted Stock Units will be made upon the date(s) determined by the Administrator and may be subject to additional conditions, if any, each as set forth in the Restricted Stock Unit Agreement. The Administrator, in its sole discretion, may settle earned Restricted Stock Units in cash, Shares, or a combination of both.
(f)Termination.  Except as may otherwise be provided by the Administrator either in the Restricted Stock Unit Agreement or in writing after the Restricted Stock Unit Agreement is issued, a Holder’s right in all Restricted Stock Units that have not vested shall automatically terminate upon the Holder’s cessation of Continuous Service Status with the Company and any Subsidiary for any reason.
(g)Other Provisions. The Restricted Stock Unit Agreement shall contain such other terms, provisions and conditions not inconsistent with the Plan as may be determined by the Administrator in its sole discretion. In addition, the provisions of Restricted Stock Unit Agreements need not be the same with respect to each Holder.
11.Other Awards.
(a)General. The Administrator may from time to time grant cash-based, equity-based or equity-related awards not otherwise described herein in such amounts and on such terms as it shall determine, subject to the terms and conditions set forth in the Plan. Without limiting the generality of the preceding sentence, each such Other Award may (i) involve the transfer of actual Shares to Holders, either at the time of grant or thereafter, or payment in cash 
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or otherwise, (ii) be subject to performance-based vesting conditions and/or multipliers and/or service-based vesting conditions, (iii) be in the form of cash, stock appreciation rights, phantom stock, performance shares, deferred share units, share-denominated performance units or other similar awards and (iv) be designed to comply with Applicable Laws of jurisdictions other than the United States; provided that each cash-based Other Award shall be denominated in cash and each equity-based or equity-related Other Award shall be denominated in, or shall have a value determined by reference to, a number of Shares, in each case that is specified (or will be determined using a formula that is specified) at the time of the grant of such Other Award.
(b)Award Terms. When Other Awards are granted under the Plan, the Company shall advise the recipient in writing of the terms, conditions and restrictions applicable to the Other Award. The offer to receive Other Awards shall be accepted by execution of an Other Award Agreement in the form determined by the Administrator.
(c)Vesting, Settlement and Payment. The Administrator may, in its sole discretion, set vesting criteria for the Other Award that must be met in order to be eligible to receive a payout pursuant to the Award (note that the Administrator may specify additional conditions which must also be met in order to receive a payout pursuant to the Award). Any such vesting criteria may be based upon the achievement of Company-wide, business unit, or individual goals (including, but not limited to, Continuous Service Status), or any other basis determined by the Administrator in its sole discretion. Notwithstanding the foregoing, at any time after the grant of the Other Award, the Administrator, in its sole discretion, may reduce or waive any applicable vesting criteria.
(d)Form and Timing of Settlement or Payment. Settlement or payment of earned Other Awards will be made upon the date(s) determined by the Administrator and may be subject to additional conditions, if any, each as set forth in the Other Award Agreement. The Administrator will settle earned cash-based Other Awards solely in cash but, in its sole discretion, may settle earned equity-based or equity related Other Awards in cash, Shares, or a combination of both.
(e)Other Provisions. The Other Award Agreement shall contain such other terms, provisions and conditions not inconsistent with the Plan as may be determined by the Administrator in its sole discretion. The provisions of Other Award Agreements need not be the same with respect to each Holder.
(f)Rights as a Stockholder.  Until the issuance of the Shares (as evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company) (if any), no right to vote or receive dividends or any other rights as a holder of capital stock shall exist with respect to the equity-based or equity-related Other Awards. No adjustment will be made for a dividend or other right for which the record date is prior to the date of issuance, except as provided in Section 14 of the Plan.
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12.Taxes.
(a)Tax Withholding Obligations.
(i)As a condition of the grant, vesting and exercise or settlement of an Award, the Holder (or, in the case of the Holder’s death or a permitted transferee, the person holding, exercising or receiving the proceeds of the Award) shall make such arrangements as the Administrator may require for the satisfaction of any Tax Withholding Obligations that may arise in connection with such Award. The Company and any Subsidiary shall, to the extent permitted by law, have the right to deduct any such taxes from any payment of any kind otherwise due to the grantee. 
(ii)The Company’s required tax withholding obligation may be satisfied, in whole or in part, by the Company withholding from Shares to be issued pursuant to an Award a number of Shares having an aggregate Fair Market Value (as of the date the withholding is effected) that would satisfy the satisfaction of any Tax Withholding Obligations that may arise in connection with such Award. The Administrator may, in its sole discretion, permit or require a Holder (or, in the case of the Holder’s death or a permitted transferee, the person holding, exercising or receiving the proceeds of the Award) to satisfy all or part of his or her Tax Withholding Obligations by remitting cash to the Company, by Cashless Transaction or by surrendering Shares (either directly or by stock attestation) that he or she previously acquired; provided that, unless specifically permitted by the Administrator (i) any Cashless Transaction must be an approved broker-assisted Cashless Transaction and the Shares withheld in the Cashless Transaction must be limited to avoid financial accounting charges under applicable accounting guidance, and (ii) any surrendered Shares must have been previously held for any minimum duration required to avoid financial accounting charges under applicable accounting guidance. Any payment of taxes by surrendering Shares to the Company may be subject to restrictions, including, but not limited to, any restrictions required by rules of the Securities and Exchange Commission. In addition, upon the exercise or settlement of any Award in cash, or the making of any other payment with respect to any Award (other than in Shares), the Company shall have the right to withhold from any payment required to be made pursuant thereto an amount sufficient to satisfy any Tax Withholding Obligations attributable to such exercise, settlement or payment.
(b)Compliance with Section 409A.  Notwithstanding anything to the contrary contained in this Plan, to the extent that the Administrator determines that any Award granted under the Plan is subject to Code Section 409A and unless otherwise specified in the applicable Award Agreement, the Award Agreement evidencing such Award shall incorporate the terms and conditions necessary for such Award to avoid the consequences described in Code Section 409A(a)(1), and to the maximum extent permitted under Applicable Law (and unless otherwise 
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stated in the applicable Award Agreement), the Plan and the Award Agreements shall be interpreted in a manner that results in their conforming to the requirements of Code Section 409A(a)(2), (3) and (4) and any Department of Treasury or Internal Revenue Service regulations or other interpretive guidance issued under Section 409A (whenever issued, the “Guidance”).  Notwithstanding anything to the contrary in this Plan (and unless the Award Agreement provides otherwise, with specific reference to this sentence), to the extent that a Holder holding an Award that constitutes “deferred compensation” under Section 409A and the Guidance is a “specified employee” (also as defined thereunder), no distribution or payment of any amount shall be made before a date that is six months following the date of such Holder’s “separation from service” (as defined in Section 409A and the Guidance) or, if earlier, the date of the Holder’s death.
(c)Deferral of Award Benefits.  The Administrator may in its discretion and upon such terms and conditions as it determines appropriate permit one or more Holders whom it selects to (i) defer compensation payable pursuant to the terms of an Award, or (ii) defer compensation arising outside the terms of this Plan pursuant to a program that provides for deferred payment in satisfaction of such other compensation amounts through the issuance of one or more Awards.  Any such deferral arrangement shall be evidenced by an Award Agreement in such form as the Administrator shall from time to time establish, and no such deferral arrangement shall be a valid and binding obligation unless evidenced by a fully executed Award Agreement, the form of which the Administrator has approved, including through the Administrator’s establishing a written program (the “Program”) under this Plan to govern the form of Award Agreements participating in such Program.  Any such Award Agreement or Program shall specify the treatment of dividends or dividend equivalent rights (if any) that apply to Awards governed thereby, and shall further provide that any elections governing payment of amounts pursuant to such Program shall be in writing, shall be delivered to the Company or its agent in a form and manner that complies with Code Section 409A and the Guidance, and shall specify the amount to be distributed in settlement of the deferral arrangement, as well as the time and form of such distribution in a manner that complies with Code Section 409A and the Guidance.
13.Transfer Restrictions.  Unless otherwise determined by the Administrator, Awards may not be sold, pledged, assigned, hypothecated, transferred or disposed of in any manner other than by will or by the laws of descent or distribution. The designation of a beneficiary by a Holder will not constitute a transfer. An Option may be exercised, during the lifetime of the holder of the Option, only by such holder or a transferee permitted by this Section 13. Upon the death of a Holder, outstanding Awards granted to such Holder may be exercised only by the executors or administrators of the Holder’s estate, by any person or persons who shall have acquired such right to exercise by will or by the laws of descent and distribution or by another transferee permitted by the Administrator pursuant to this Section 13. No transfer by will, the laws of descent and distribution or otherwise of any Award, or of the right to exercise any 
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Award, shall be effective to bind the Company unless (a) the Administrator shall have been furnished with written notice thereof and with a copy of the will and/or such evidence as the Administrator may deem necessary to establish the validity of the transfer, (b) if the transfer was other than by will or by the laws of descent or distribution, the Administrator has provided its written consent to such transfer, and (c) the Administrator shall have been furnished with an agreement by the transferee to comply with all the terms and conditions of the Award that are or would have been applicable to the Holder, to be bound by the acknowledgements made by the Holder in connection with the grant of the Award and, if the transfer was other than by will or by the laws of descent or distribution, to be bound by any additional conditions the Administrator may, in its sole discretion, impose. For the avoidance of doubt, to the extent an unvested Award is transferred, the Continuous Service Status of the Holder will continue to determine, without limitation, the vesting and exercisability of such Award, to the same extent that the Continuous Service Status of the Holder would have done so had the Holder continued to directly hold such Award.
14.Adjustments Upon Changes in Capitalization, Merger or Certain Other Transactions.
(a)Changes in Capitalization.  Subject to any action required under Applicable Laws by the stockholders of the Company, (i) the numbers and class (or type) of Shares, units representing Shares, or other stock or securities: (x) available for future Awards (including pursuant to Incentive Stock Options) under Section 3(a) of the Plan and (y) covered by each outstanding Award, (ii) the price per Share covered by each such outstanding Option, and (iii) any repurchase price per Share applicable to Shares issued pursuant to any Award, shall be proportionately adjusted (or substituted) by the Administrator in the event of a stock split, reverse stock split, stock dividend, combination, consolidation, recapitalization (including a recapitalization through a large nonrecurring cash dividend) or reclassification of the Shares, subdivision of the Shares, exchange of the Shares, a rights offering, a reorganization, merger, spin-off, split-up, change in corporate structure, other increase or decrease in the number of Shares or other similar occurrence. Any adjustment by the Administrator pursuant to this Section 14 shall be made in the Administrator’s sole discretion and shall be final, binding and conclusive. Except as expressly provided herein, (I) no issuance by the Company of shares of stock of any class, or securities convertible into shares of stock of any class, shall affect, and no adjustment by reason thereof shall be made with respect to, the number or price of Shares subject to, or the terms related to, an Award, and (II) no Holder shall have any rights by reason of any subdivision or consolidation of shares of stock of any class, the payment of any dividends or dividend equivalents, any increase or decrease in the number of shares of stock of any class or any dissolution, liquidation, merger or consolidation of the Company or any other corporation. If, by reason of a transaction described in this Section 14 or an adjustment pursuant to this Section 14, a Holder’s Award Agreement or agreement related to any Optioned Stock, Restricted Stock, Restricted Stock Unit or Share underlying an Other Award covers additional or different shares of stock or securities (or units representing additional or different shares of stock or securities), then such additional or different shares (and the units representing such additional or different shares), and the Award Agreement or agreement related to the Optioned Stock, Restricted Stock, Restricted Stock Unit or Share underlying an Other Award in respect thereof, shall be subject to 
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all of the terms, conditions and restrictions which were applicable to the Award, Optioned Stock, Restricted Stock, Restricted Stock Units or Shares underlying an Other Award prior to such adjustment.
(b)Dissolution or Liquidation.  In the event of the dissolution or liquidation of the Company, each Award will terminate immediately prior to the consummation of such action, unless otherwise determined by the Administrator.
(c)Corporate Transactions.  In the event of (i) a transfer of all or substantially all of the Company’s assets, (ii) a merger, consolidation or other capital reorganization or business combination transaction of the Company with or into another corporation, entity or person, or (iii) the consummation of a transaction, or series of related transactions, in which any “person” (as such term is used in Sections 13(d) and 14(d) of the Exchange Act) becomes the “beneficial owner” (as defined in Rule 13d-3 of the Exchange Act), directly or indirectly, of more than 50% of the total Voting Power of the Company, or (iv) a Change of Control (each transaction set forth in clauses (i) through (iv) hereof, a “Corporate Transaction”), each outstanding Award (vested or unvested) will be treated as the Administrator determines, which determination may be made without the consent of any Holder and need not treat all outstanding Awards (or portion thereof) in an identical manner. Such determination, without the consent of any Holder, may provide (without limitation) for one or more of the following in the event of a Corporate Transaction: (A) the continuation of such outstanding Awards by the Company (if the Company is the surviving corporation); (B) the assumption of such outstanding Awards by the surviving corporation or its parent; (C) the substitution by the surviving corporation or its parent of new options or equity awards for such Awards; (D) the cancellation of such Awards in exchange for a payment to the Holders equal to the excess (if any) of (1) the Fair Market Value of the Shares subject to such Awards as of the closing date of such Corporate Transaction (which may, for this purpose, be determined by reference to the value, as determined by the Administrator, of the property (including cash) received by the holder of a Share as a result of such Corporate Transaction) over (2) the exercise price or purchase price paid or to be paid for the Shares subject to the Awards (if any); or (E) the opportunity for Optionees to exercise their Options prior to the occurrence of the Corporate Transaction and the termination (for no consideration) upon the consummation of such Corporate Transaction of any Options not exercised prior thereto.
(d)Savings Clause.  No provision of this Section 14 shall be given effect to the extent that such provision would cause any tax to become due under Section 409A of the Code. Furthermore, no provision of this Section 14 shall be given effect to the extent such provision would result in short-swing profits liability under Section 16 of the Exchange Act or violate the exemptive conditions of Rule 16b-3 of the Exchange Act.
15.Change of Control.  An Award may be subject to additional acceleration of vesting and exercisability upon or after a Change of Control as may be provided in the Award Agreement for such Award.
16.Time of Granting Awards.  The date of grant of an Award shall, for all purposes, be the date on which the Administrator makes the determination granting such Award, or such 
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other date as is determined by the Administrator, provided that in the case of any Incentive Stock Option, the grant date shall be the later of the date on which the Administrator makes the determination granting such Incentive Stock Option or the date of commencement of the Optionee’s employment relationship with the Company.  Notice of the determination shall be given to each Employee or Consultant to whom an Award is so granted within a reasonable time after the date of such grant.
17.Amendment and Termination of the Plan.
(a)Authority to Amend or Terminate.  The Board may at any time amend, alter, suspend, discontinue or terminate the Plan, but no amendment, alteration, suspension, discontinuation or termination (other than an adjustment pursuant to Section 14 of the Plan) shall be made that would materially and adversely affect the rights of any Holder under any outstanding Award, without his or her consent. The preceding sentence shall not restrict the Administrator’s ability to exercise its discretionary authority hereunder, which discretion may be exercised without amendment to the Plan. No provision of this Section 17 shall be given effect to the extent that such provision would cause any tax to become due under Section 409A of the Code. In addition, to the extent necessary and desirable to comply with the Applicable Laws, the Company shall obtain stockholder approval of any Plan amendment in such a manner and to such a degree as required.
18.Conditions Upon Issuance of Shares; Securities Matters. The Company shall be under no obligation to affect the registration pursuant to the Securities Act of 1933, as amended, of any Shares to be issued hereunder or to effect similar compliance under any state, local or non-U.S. laws. Notwithstanding any other provision of the Plan or any Award Agreement, the Company shall not be obligated, and shall have no liability for failure, to issue or deliver any Shares under the Plan unless such issuance or delivery would comply with the Applicable Laws, with such compliance determined by the Company in consultation with its legal counsel. The Administrator may require, as a condition to the issuance of Shares pursuant to the terms hereof, that the recipient of such Shares make such covenants, agreements and representations, and that any related certificates representing such Shares bear such legends, as the Administrator, in its sole discretion, deems necessary or desirable. The exercise or settlement of any Award granted hereunder shall only be effective at such time as counsel to the Company shall have determined that the issuance and delivery of Shares pursuant to such exercise or settlement is in compliance with all Applicable Laws. The Company may, in its sole discretion, defer the effectiveness of any exercise or settlement of an Award granted hereunder in order to allow the issuance of Shares pursuant thereto to be made pursuant to registration or an exemption from registration or other methods for compliance available under U.S. federal, state, local or non-U.S. securities laws. The Company shall inform the Holder in writing of its decision to defer the effectiveness of the exercise or settlement of an Award granted hereunder. During the period that the effectiveness of the exercise of an Award has been deferred, the Holder may, by written notice, withdraw such exercise and obtain the refund of any amount paid with respect thereto.
19.Recoupment.  Notwithstanding anything in the Plan or in any Award Agreement to the contrary, the Company will be entitled to the extent permitted or required by Applicable 
25

Law, Company policy and/or the requirements of a Stock Exchange on which the Shares are listed for trading, in each case, as in effect from time to time, to recoup compensation of whatever kind paid by the Company at any time to a Holder under this Plan. No such recoupment of compensation will be an event giving rise to a right to resign for “good reason” or “constructive termination” (or similar term) under any agreement between any Holder and the Company.
20.Changes in Status & Leaves of Absence. The Administrator shall have the discretion to determine (whether by establishing a policy applicable to the treatment of any or all Awards in such circumstances, or by making an individualized determination) at any time whether and to what extent any tolling, reduction, vesting-extension, forfeiture or other treatment should be applied to an Award in connection with a Holder’s leave of absence or a change in a Holder’s regular level of time commitment to the Company (e.g., in connection with a change from full-time to part-time status); provided, however, that the Administrator shall not have any such discretion (whether pursuant to a policy or specific determination) to the extent that the grant of such discretion would cause any tax to become due under Section 409A of the Code; and provided, further, that in the absence of a determination to the contrary by the Administrator, vesting shall continue during any paid leave and shall be tolled during any unpaid leave (in all cases, unless otherwise required by Applicable Laws). In the event of any such tolling, forfeiture, reduction or extension, the Holder shall have no right to the portion of the Award so tolled, forfeited, reduced or extended (except for the right that remains, if any, after the application of such action).
21.Failure to Comply. In addition to the remedies of the Company elsewhere provided for herein, failure by a Holder to comply with any of the terms and conditions of the Plan or any Award Agreement, unless such failure is remedied by such Holder within ten days after having been notified of such failure by the Administrator, shall be grounds for the cancellation and forfeiture of such Award, in whole or in part, as the Administrator, in its sole discretion, may determine.
22.Reservation of Shares.  The Company, during the term of this Plan, will at all times reserve and keep available such number of Shares as shall be sufficient to satisfy the requirements of the Plan.
23.Agreements.  Awards shall be evidenced by Award Agreements, respectively, in such form(s) as the Administrator shall from time to time approve.
24.Section 409A.
(a)Unless otherwise expressly provided for in an Award Agreement, the Plan and each Award Agreement will be interpreted to the greatest extent possible in a manner that makes the Plan and the Awards granted hereunder exempt from Section 409A of the Code, and, to the extent not so exempt, in compliance with Section 409A of the Code. If the Administrator determines that any Award granted hereunder is not exempt from and is therefore subject to Section 409A of the Code, the Award Agreement evidencing such Award will incorporate the terms and conditions necessary to avoid the consequences specified in Section 409A(a)(1) of the 
26

Code, and to the extent an Award Agreement is silent on terms necessary for compliance, such terms are hereby incorporated by reference into the Award Agreement. Notwithstanding anything to the contrary in this Plan (and unless the Award Agreement specifically provides otherwise), if the Shares are publicly traded, and if a Holder holding an Award that constitutes “deferred compensation” under Section 409A of the Code is a “specified employee” for purposes of Section 409A of the Code, no distribution or payment of any amount that is due because of a “separation from service” (as defined in Section 409A of the Code without regard to alternative definitions thereunder) will be issued or paid before the date that is six months following the date of such Holder’s “separation from service” (as defined in Section 409A of the Code without regard to alternative definitions thereunder) or, if earlier, the date of the Holder’s death, unless such distribution or payment can be made in a manner that complies with Section 409A of the Code, and any amounts so deferred will be paid in a lump sum on the day after such six month period elapses, with the balance paid thereafter on the original schedule.
(b)With respect to any Award that constitutes nonqualified deferred compensation within the meaning of Section 409A of the Code, termination of a Holder’s Continuous Service Status shall mean a separation from service within the meaning of Section 409A of the Code, unless the Holder was an Employee immediately prior to such termination and is then contemporaneously retained as a Consultant pursuant to a written agreement and such agreement provides otherwise. The Continuous Service Status of a Holder shall be deemed to have terminated for all purposes of the Plan if such person is employed by or provides services to Subsidiary and such Subsidiary ceases to be a Subsidiary, unless the Administrator determines otherwise. To the extent permitted by Section 409A of the Code, a Holder who ceases to be an Employee of the Company but continues, or simultaneously commences, services as a Director of the Company shall be deemed to have had a termination of Continuous Service Status for purposes of the Plan.
25.Beneficiaries. Unless stated otherwise in an Award Agreement, a Holder may designate one or more beneficiaries with respect to an Award by timely filing the prescribed form with the Company. A beneficiary designation may be changed by filing the prescribed form with the Company at any time before the Holder’s death. If no beneficiary was designated or if no designated beneficiary survives the Holder, then, after a Holder’s death, any vested Award(s) shall be transferred or distributed to the Holder’s estate.
26.Expenses and Receipts. The expenses of the Plan shall be paid by the Company. Any proceeds received by the Company in connection with any Award will be used for general corporate purposes.
27.Stockholder Approval.  If required by the Applicable Laws, continuance of the Plan shall be subject to approval by the stockholders of the Company within twelve (12) months before or after the date the Plan is adopted.  Such stockholder approval shall be obtained in the manner and to the degree required under the Applicable Laws.  If the stockholders fail to approve the Plan within 12 months after its adoption by the Board, then any Awards granted or sold under the Plan shall be rescinded and no additional grants or sales shall thereafter be made under the Plan.  Subject to such approval by stockholders and to the requirement that no Shares may be 
27

issued hereunder prior to such approval, Awards may be granted hereunder on and after adoption of the Plan by the Board.
28.Corporate Action Constituting Grant of Awards. Corporate action constituting a grant by the Company of an Award to any Holder shall be deemed completed as of the date of such corporate action, unless otherwise determined by the Administrator, regardless of when the instrument, certificate, or letter evidencing the Award is communicated to, or actually received or accepted by, the Holder. In the event that the corporate records (e.g., Board consents, resolutions or minutes) documenting the corporate action constituting the grant contain terms (e.g., exercise price, vesting schedule or number of Shares) that are inconsistent with those in the Award Agreement or related grant documents as a result of a clerical error in the preparation of the Award Agreement or related grant documentation, the corporate records will control, and the Holder will have no legally binding right to the incorrect term in the Award Agreement or related grant documentation.
29.Severability. If all or any part of this Plan is declared by any court or governmental authority to be unlawful or invalid, such unlawfulness or invalidity shall not serve to invalidate any portion of this Plan not declared to be unlawful or invalid. Any Section or part of a Section so declared to be unlawful or invalid shall, if possible, be construed in a manner that will give effect to the terms of such Section or part of a Section to the fullest extent possible while remaining lawful and valid.
30.Notice.  Any written notice to the Company required by any provisions of this Plan shall be addressed to the Secretary of the Company and shall be effective when received.
31.Governing Law; Interpretation of Plan and Awards.
(a)This Plan and all determinations made and actions taken pursuant hereto shall be governed by the substantive laws, but not the choice of law rules, of the state of Delaware.
(b)In the event that any provision of the Plan or any Award granted under the Plan is declared to be illegal, invalid or otherwise unenforceable by a court of competent jurisdiction, such provision shall be reformed, if possible, to the extent necessary to render it legal, valid and enforceable, or otherwise deleted, and the remainder of the terms of the Plan and/or Award shall not be affected except to the extent necessary to reform or delete such illegal, invalid or unenforceable provision.
(c)The headings preceding the text of the sections hereof are inserted solely for convenience of reference, and shall not constitute a part of the Plan, nor shall they affect its meaning, construction or effect.
(d)The terms of the Plan and any Award shall inure to the benefit of and be binding upon the parties hereto and their respective permitted heirs, beneficiaries, successors and assigns.
28

(e)All questions arising under the Plan or under any Award shall be decided by the Administrator in its total and absolute discretion.  In the event the Holder believes that a decision by the Administrator with respect to such person was arbitrary or capricious, the Holder may request arbitration with respect to such decision.  The review by the arbitrator shall be limited to determining whether the Administrator’s decision was arbitrary or capricious.  This arbitration shall be the sole and exclusive review permitted of the Administrator’s decision, and the Awardee shall as a condition to the receipt of an Award be deemed to explicitly waive any right to judicial review.
32.Limitation on Liability.  The Company and any Affiliate which is in existence or hereafter comes into existence shall not be liable to a Holder, an Employee or any other persons as to:
(a)The Non-Issuance of Shares.  The non-issuance or sale of Shares (including under Section 18 above) as to which the Company has been unable to obtain from any regulatory body having jurisdiction the authority deemed by the Company’s counsel to be necessary to the lawful issuance and sale of any shares hereunder.
(b)Tax Consequences.  Any tax consequence realized by any Holder, Employee or other person due to the receipt, vesting, exercise or settlement of any Award granted hereunder or due to the transfer of any Shares issued hereunder.  The Holder is responsible for, and by accepting an Award under the Plan agrees to bear, all taxes of any nature that are legally imposed upon the Holder in connection with an Award, and the Company does not assume, and will not be liable to any party for, any cost or liability arising in connection with such tax liability legally imposed on the Holder.  In particular, Awards issued under the Plan may be characterized by the Internal Revenue Service (the “IRS”) as “deferred compensation” under the Code resulting in additional taxes, including in some cases interest and penalties.  In the event the IRS determines that an Award constitutes deferred compensation under the Code or challenges any good faith characterization made by the Company or any other party of the tax treatment applicable to an Award, the Holder will be responsible for the additional taxes, and interest and penalties, if any, that are determined to apply if such challenge succeeds, and the Company will not reimburse the Holder for the amount of any additional taxes, penalties or interest that result.
(c)Forfeiture.  The requirement that a Holder forfeit an Award, or the benefits received or to be received under an Award, pursuant to any Applicable Law.
29Exhibit 10.1

 

Execution Version

 

SECURITIES PURCHASE AGREEMENT

 

This SECURITIES PURCHASE
AGREEMENT (the “Agreement”), dated as of September 14, 2021 (the “Execution Date”), between
Borqs Technologies, Inc., a company incorporated in the British Virgin Islands (the “Company”), and the investors
listed on the Buyer Schedules attached hereto (collectively, “Buyer”).

 

RECITALS

 

A. The
Company and Buyer are executing and delivering this Agreement in reliance upon the exemption from securities registration afforded by
Section 4(a)(2) of the Securities Act of 1933, as amended (the “1933 Act”), and Rule 506 of Regulation D (“Regulation D”)
as promulgated by the United States Securities and Exchange Commission (the “SEC”) under the 1933 Act.

B.  Buyer
wishes to purchase, and the Company wishes to sell, upon the terms and conditions stated in this Agreement, (i) 8% convertible unsecured
notes in the form attached hereto as Exhibit A (each, a “Convertible Note,” and with any Additional Note
(as defined below), collectively, the “Convertible Notes”) convertible into Ordinary Shares in an aggregate amount
as set forth on the Buyer Schedules; and (ii) warrants, in the form attached hereto as Exhibit B (with any Additional Warrants
(as defined below), collectively, the “Warrants”), to acquire up to the aggregate number of Ordinary Shares set forth
on the Buyer Schedules. “Conversion Shares” means all or a portion of the total number of Ordinary Shares issuable
upon full exercise of the Convertible Notes. “Warrant Shares” means all or a portion of the total number of Ordinary
Shares issuable upon full exercise of the Warrants.

 

AGREEMENT

 

NOW, THEREFORE, in consideration
of the premises and the mutual covenants contained herein and for other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the Company and Buyer hereby agree as follows:

 

		1.	PURCHASE AND SALE OF CONVERTIBLE NOTE AND WARRANTS.

 

(a)
Convertible Note and Warrants. Subject to the satisfaction (or waiver) of the conditions set forth in Sections 6 and 7 below,
the Company shall issue and sell to Buyer, and Buyer shall purchase from the Company on the applicable Closing Date (as defined below),
Convertible Notes in original principal amounts as is set forth on the Buyer Schedules, along with Warrants to initially acquire up to
the aggregate number of Warrant Shares as is set forth on the Buyer Schedules.

 

(b)
Closing. Each closing (each, a “Closing”) of the purchase of the Convertible Notes by the Buyer shall
occur as contemplated by this Agreement. Subject to the conditions set forth in this Agreement and the termination provisions hereof,
the first Closing hereunder (the “First Closing”) shall be held on the date hereof, at which the Convertible Notes
and Warrants set forth on the Buyer Schedule for the First Closing shall be purchased and sold. Subject to the conditions set forth in
this Agreement and the termination provisions hereof, the second Closing hereunder (the “Second Closing”) shall take
place as soon as practicable, but no later than the fifth (5th) Business Day following the satisfaction or waiver of all of the closing
conditions set forth in Sections 6 and 7, as applicable (other than those to be satisfied at the Closing), or as otherwise mutually agreed
by the Parties, at which the Convertible Notes and Warrants set forth on the Buyer Schedule for the Second Closing shall be purchased
and sold. The date on which each Closing actually occurs is referred to herein as a “Closing Date.”

 

(c)
Closing Payment. The aggregate purchase price for the Convertible Note and the Warrants to be purchased by Buyer at the
applicable Closing (each, a “Closing Payment”) shall be paid at the Closing and in the amount as set forth on the Buyer
Schedules.

 

(d)
Payment of Closing Payment; Delivery of Securities. On each Closing Date, (i) Buyer shall pay the applicable Closing Payment
to the Company for the respective Securities to be issued and sold to Buyer at such Closing, by wire transfer of immediately available
funds in accordance with the Company’s written wire instructions and (ii) the Company shall issue to Buyer the Convertible
Notes (pursuant to which Buyer initially shall have the right to acquire up to the aggregate number of Conversion Shares as is set forth
on the Buyer Schedules in respect of such Convertible Notes) and the Warrants (pursuant to which Buyer initially shall have the right
to acquire up to the aggregate number of Warrant Shares as is set forth on the Buyer Schedules in respect of such Warrants) as set forth
on the Buyer Schedules, in all cases, duly executed on behalf of the Company and registered in the name of Buyer or its designee, all
as set forth on the Buyer Schedules.

 

     

     

    

 

(e)
Beneficial Ownership Limitation. The Company shall not issue and Buyer shall not accept any Ordinary Shares under the Transaction
Documents, and Buyer shall not otherwise purchase Ordinary Shares or securities exercisable or exchangeable for or convertible into Ordinary
Shares from any party, in the public market or otherwise, if such shares proposed to be sold or otherwise issued, or the Ordinary Shares
proposed to be purchased or issuable upon exercise, exchange or conversion of the securities proposed to be purchased (after giving effect
to any limitation on exercise, exchange or conversion therein), when aggregated with all other Ordinary Shares then owned beneficially
(as calculated pursuant to Section 13(d) of the Exchange Act and Rule 13d-3 promulgated thereunder) by Buyer and its affiliates, constitute
more than the Maximum Percentage of the then issued and outstanding Ordinary Shares. The number of Ordinary Shares constituting the Maximum
Percentage determination shall be appropriately adjusted for any stock dividend, stock split, reverse stock split or similar transaction.
For the avoidance of doubt, any such Ordinary Shares that are determined at any time to cause Buyer’s beneficial ownership of Ordinary
Shares to exceed the Maximum Percentage upon issuance shall be issued to Buyer at such later time to the extent such issuance would not
cause Buyer’s beneficial ownership of Ordinary Shares to exceed the Maximum Percentage.

 

(f)
Taxes. The Company shall pay any and all transfer, stamp or similar taxes that may be payable with respect to the issuance
and delivery of any Securities to the Buyer made under this Agreement or the other Transaction Documents (as defined below).

 

		2.	BUYER’S REPRESENTATIONS AND WARRANTIES.

 

Buyer represents and warrants
to the Company, on behalf of itself, that:

 

(a)
Organization; Authority. Buyer is an entity duly organized, validly existing and in good standing under the laws of the
jurisdiction of its organization with the requisite power and authority to enter into and to consummate the transactions contemplated
by the Transaction Documents to which it is a party and otherwise to carry out its obligations hereunder and thereunder.

 

(b)
No Public Sale or Distribution. Buyer (i) is acquiring, or will acquire, the Convertible Notes and Warrants, (ii) upon
conversion of its Convertible Note, will acquire the Conversion Shares issuable upon conversion thereof, and (iii) upon exercise
of its Warrants, will acquire the Warrant Shares issuable upon exercise thereof, in each case, for its own account and not with a view
towards, or for resale in connection with, the public sale or distribution thereof in violation of applicable securities laws, except
pursuant to sales registered or exempted under the 1933 Act; provided, however, by making the representations herein, Buyer does not agree,
or make any representation or warranty, to hold any of the Securities for any minimum or other specific term and reserves the right to
dispose of the Securities at any time in accordance with or pursuant to a registration statement or an exemption under the 1933 Act. Buyer
does not presently have any agreement or understanding, directly or indirectly, with any Person (as defined below) to distribute any of
the Securities in violation of applicable securities laws.

 

(c)
Accredited Investor Status. Buyer is an “accredited investor” as that term is defined in Rule 501(a) of Regulation D.

 

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

 

(e)
No Governmental Review. Buyer understands that no United States federal or state agency or any other government or governmental
agency has passed on or made any recommendation or endorsement of the Securities or the fairness or suitability of the investment in the
Securities nor have such authorities passed upon or endorsed the merits of the offering of the Securities.

 

(f)
Transfer or Resale. Buyer understands that: (i) the Securities have not been and are not being registered under the 1933
Act or any state securities laws, and may not be offered for sale, sold, assigned or transferred unless (A) subsequently registered thereunder,
(B) Buyer shall have delivered to the Company (if requested by the Company) an opinion of counsel to Buyer, in a form reasonably acceptable
to the Company, to the effect that such Securities to be sold, assigned or transferred may be sold, assigned or transferred pursuant to
an exemption from such registration, or (C) Buyer provides the Company with reasonable assurance that such Securities can be sold, assigned
or transferred pursuant to Rule 144 or Rule 144A promulgated under the 1933 Act (or a successor rule thereto) (collectively, “Rule
144”); (ii) any sale of the Securities made in reliance on Rule 144 may be made only in accordance with the terms of Rule 144,
and further, if Rule 144 is not applicable, any resale of the Securities under circumstances in which the seller (or the Person (as defined
below) through whom the sale is made) may be deemed to be an underwriter (as that term is defined in the 1933 Act) may require compliance
with some other exemption under the 1933 Act or the rules and regulations of the SEC promulgated thereunder; and (iii) except as provided
in the Registration Rights Agreement, neither the Company nor any other Person is under any obligation to register the Securities under
the 1933 Act or any state securities laws or to comply with the terms and conditions of any exemption thereunder.

 

    2

     

    

 

(g)
Validity; Enforcement. The execution and delivery of the Transaction Documents and the consummation by Buyer of the transactions
contemplated hereby and thereby have been duly and validly authorized by all necessary action on the part of Buyer and no further consent
or authorization of Buyer or its members is required. Each Transaction Document has been duly executed by Buyer and when delivered in
accordance with terms hereof and thereof, constitutes the legal, valid and binding obligations of Buyer enforceable against Buyer in accordance
with its terms, except as such enforceability may be limited by general principles of equity or applicable bankruptcy, insolvency, reorganization,
moratorium, liquidation and other similar laws relating to, or affecting generally, the enforcement of applicable creditors’ rights
and remedies.

 

(h)
No Conflicts. The execution, delivery and performance by Buyer of this Agreement and the consummation by Buyer of the transactions
contemplated hereby will not (i) result in a violation of the organizational documents of Buyer, (ii) conflict with, or constitute a default
(or an event which with notice or lapse of time or both would become a default) under, or give to others any rights of termination, amendment,
acceleration or cancellation of, any agreement, indenture or instrument to which Buyer is a party or (iii) result in a violation of any
law, rule, regulation, order, judgment or decree (including federal and state securities laws) applicable to Buyer, except in the case
of clauses (ii) and (iii) above, for such conflicts, defaults, rights or violations which would not, individually or in the aggregate,
reasonably be expected to have a material adverse effect on the ability of Buyer to perform its obligations hereunder.

 

(i)
Experience of Buyer. Buyer has such knowledge, sophistication and experience in business and financial matter so as to be
capable of evaluating the merits and risks of the prospective investment in the Securities, and has so evaluated the merits and risks
of such investment. Buyer is able to bear the economic risk of an investment in the Securities and, at the present time, is able to afford
a complete loss of such investment.

 

(j)
Information. Buyer and its advisors, if any, acknowledge that they have been furnished with or provided access via
EDGAR to the Company’s most recent Annual Report on Form 20-F and current reports on Form 6-K. Buyer and its advisors, if any, have
been afforded the opportunity to ask questions of, and receive answers from, the Company concerning the offer and sale of the Securities
and to obtain any additional information Buyer has requested which is necessary to verify the accuracy of the information furnished to
Buyer concerning the Company and such offering. Buyer understands that its investment in the Securities involves a high degree of risk.
Buyer has sought such accounting, legal and tax advice as it has considered necessary to make an informed investment decision with respect
to its acquisition of the Securities. Buyer acknowledges that Buyer is basing its decision to invest in the Securities solely upon the
information contained in the Transaction Documents, the Company’s most recent Annual Report on Form 20-F and current reports on
Form 6-K, and its own due diligence and, except as specifically set forth in this Agreement, has not based its investment decision upon
any representations made by any Person (as defined below).

 

(k)
Foreign Corrupt Practices. Neither Buyer, nor any of its Subsidiaries or affiliates, nor to the knowledge of Buyer, any
of its directors, officers, agents, employees, members or other Persons acting on behalf of Buyer or any its Subsidiaries or affiliates
has, in the course of its actions for, or on behalf of, Buyer or any of its Subsidiaries or affiliates (i) used any corporate funds for
any unlawful contribution, gift, entertainment or other unlawful expenses relating to political activity; (ii) made any direct or indirect
unlawful payment to any foreign or domestic government official or employee from corporate funds; (iii) violated or is in violation of
any provision of the U.S. Foreign Corrupt Practices Act of 1977, as amended; or (iv) made any unlawful bribe, rebate, payoff, influence
payment, kickback or other unlawful payment of any foreign or domestic government official or employee.

 

(l)
General Solicitation. Buyer is not purchasing the Securities as a result of any advertisement, article, notice or other
communication regarding the Securities published in any newspaper, magazine or similar media or broadcast over television or radio or
presented at any seminar or any other general solicitation or advertisement.

 

 (m) Patriot Act Representations.

 

(i)
Buyer represents that all evidence of identity provided is genuine and all related information furnished is accurate.

 

    3

     

    

 

(ii)
Buyer hereby acknowledges that the Company seeks to comply with all applicable anti-money laundering laws and regulations. In furtherance
of such efforts, Buyer hereby represents and agrees that: (1) no part of the funds used by Buyer to acquire the Securities have been,
or shall be, directly or indirectly derived from, or related to, any activity that may contravene federal, state, or international laws
and regulations, including anti-money laundering laws and regulations; and (ii) no payment to the Company by Buyer shall cause the Company
to be in violation of any applicable anti-money laundering laws and regulations including without limitation, the Uniting and Strengthening
America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism (USA PATRIOT ACT) Act of 2001, Executive Order 13224
(2001) (the “Patriot Act”) issued by the President of the United States and the U.S. Department of the Treasury Office of
Foreign Assets Control (“OFAC”) regulations.

 

(iii)
Buyer represents and warrants that the amounts to be paid by Buyer to the Company will not be directly or indirectly derived from
activities that may contravene federal, state or international laws and regulations, including anti-money laundering laws and regulations.
Buyer represents and warrants that, to the best of its knowledge, none of: (a) Buyer; (b) any person controlling or controlled by Buyer;
or (c) any person having a beneficial interest in Buyer is (i) a country, territory, individual or entity named on a list maintained by
OFAC, (ii) a person prohibited under the OFAC Programs, (iii) a senior foreign political figure,1
or any immediate family member2 or close
associate3 of a senior foreign political
figure as such terms are defined in the footnotes below or (iv) a “foreign shell bank” within the meaning of the U.S. Bank
Secrecy Act (31 U.S.C. §5311 et seq.), as amended (the “Bank Secrecy Act”) and the regulations promulgated thereunder
by the U.S. Department of the Treasury.

 

(iv)
Buyer further represents and warrants that Buyer: (i) has conducted thorough due diligence with respect to all of its beneficial
owners, (ii) has established the identities of all beneficial owners and the source of each of the beneficial owner’s funds and
(iii) will retain evidence of any such identities, any such source of funds and any such due diligence.

 

(v)
Neither Buyer nor any person directly or indirectly controlling, controlled by or under common control with Buyer is a person identified
as a terrorist organization on any relevant lists maintained by governmental authorities.

 

(vi)
Buyer agrees to provide the Company all information that may be reasonably requested to comply with applicable laws and regulations
of any applicable jurisdiction, or to respond to requests for information concerning the identity of Buyer from any governmental authority,
self-regulatory organization or financial institution in connection with its anti-money laundering compliance procedures, or to update
such information. Buyer agrees to notify the Company promptly if there is any change with respect to the representations and warranties
provided herein. Buyer consents to the disclosure to regulators and law enforcement authorities by the Company and its affiliates and
agents of any information about Buyer or its constituents as the Company reasonably deems necessary or appropriate to comply with applicable
anti-money laundering, anti-terrorist and asset control laws, regulations, rules and orders.

 

		3.	REPRESENTATIONS AND WARRANTIES OF THE COMPANY.

 

The Company represents and
warrants to the Buyer the matters set forth in this Section 3. These representations and warranties are current as of the date of this
Agreement, except to the extent that a representation or warranty expressly states that such representation or warranty is current only
as of an earlier date. If any information is so reflected as of an earlier date, there have been no material changes since such date to
the date hereof.

 

(a)
Organization and Qualification. Each of the Company and each of its Subsidiaries are entities duly organized and validly
existing and in good standing under the laws of the jurisdiction in which they are formed, and have the requisite power and authorization
to own their properties and to carry on their business as now being conducted and as presently proposed to be conducted. Each of the Company
and each of its Subsidiaries is duly qualified as a foreign entity to do business and is in good standing in every jurisdiction in which
its ownership of property or the nature of the business conducted by it makes such qualification necessary, except to the extent that
the failure to be so qualified or be in good standing would not have a Material Adverse Effect. Except as provided on Exhibit 8.1 to the
Company’s most recent Annual Report on Form 20-F, the Company has no material Subsidiaries.

 

 

		1	A “senior foreign political figure” is defined as
a senior official in the executive, legislative, administrative, military or judicial branches of a foreign government (whether elected
or not), a senior official of a major foreign political party, or a senior executive of a foreign government-owned corporation. In addition,
a “senior foreign political figure” includes any corporation, business or other entity that has been formed by, or for the
benefit of, a senior foreign political figure.
		2	“Immediate family” of a senior foreign political figure
typically includes the figure’s parents, siblings, spouse, children and in-laws.
		3	A “close associate” of a senior foreign political
figure is a person who is widely and publicly known to maintain an unusually close relationship with the senior foreign political figure,
and includes a person who is in a position to conduct substantial domestic and international financial transactions on behalf of the
senior foreign political figure.

 

    4

     

    

 

(b)
Authorization; Enforcement; Validity. The Company has the requisite power and authority to enter into and perform its obligations
under this Agreement and the other Transaction Documents and to issue the Securities in accordance with the terms hereof and thereof.
The execution and delivery of this Agreement and the other Transaction Documents by the Company and the consummation by the Company of
the transactions contemplated hereby and thereby (including, without limitation, the issuance of the Convertible Notes and the issuance
of the Warrants and the reservation for issuance and issuance of the Conversion Shares upon conversion of the Convertible Notes and issuance
of the Warrant Shares issuable upon exercise of the Warrants) have been (i) duly authorized by the Company’s board of directors
and (ii) no further filing, consent or authorization is required by the Company, its board of directors or its shareholders or other governing
body of the Company (other than the filing of required notices and/or applications to the Principal Market for the issuance and sale of
the Securities, a Form D with the SEC and any other filings as may be required by any state securities agencies). This Agreement has been,
and the other Transaction Documents will be prior to the Closing, duly executed and delivered by the Company, and each constitutes the
legal, valid and binding obligations of the Company, enforceable against the Company in accordance with its respective terms, except as
such enforceability may be limited by general principles of equity or applicable bankruptcy, insolvency, reorganization, moratorium, liquidation
or similar laws relating to, or affecting generally, the enforcement of applicable creditors’ rights and remedies and except as
rights to indemnification and to contribution may be limited by federal or state securities law.

 

(c)
Issuance of Securities. The issuance of the Convertible Notes and Warrants pursuant to the Transaction Documents is duly
authorized, and upon the due execution, issuance and delivery thereof against payment in full therefor in accordance with the terms of
this Agreement, the Convertible Notes and Warrants will be valid and binding obligations of the Company enforceable against the Company
in accordance with their terms. The issuance of the Conversion Shares is duly authorized, and upon issuance in accordance with the Convertible
Notes, the Conversion Shares will be validly issued, fully paid and non-assessable and free from all preemptive or similar rights, taxes,
Liens, charges and other encumbrances with respect to the issue thereof (other than pursuant to the securities laws), with the holders
being entitled to all rights accorded to a holder of Ordinary Shares. The issuance of the Warrant Shares is duly authorized, and upon
issuance in accordance with the Warrants, the Warrant Shares will be validly issued, fully paid and non-assessable and free from all preemptive
or similar rights, taxes, Liens, charges and other encumbrances with respect to the issue thereof (other than pursuant to the securities
laws), with the holders being entitled to all rights accorded to a holder of Ordinary Shares. As of the Closing, the Company shall have
reserved from its duly authorized capital stock not less than the sum of (i) 200% of the maximum number of Conversion Shares issuable
upon conversion of the Convertible Notes (without taking into account any limitations on the conversion of the Convertible Notes set forth
therein) and (ii) 200% of the maximum number of Warrant Shares issuable upon exercise of the Warrants (without taking into account any
limitations on the exercise of the Warrants set forth therein). Subject to the accuracy of the representations and warranties of the Buyer
in this Agreement, the offer and issuance by the Company of the Securities is exempt from registration under the 1933 Act. Upon issuance
in accordance with the terms of this Agreement, Buyer will have good and marketable title to the Securities.

 

(d)
No Conflicts. The execution, delivery and performance of the Transaction Documents by the Company and the consummation by
the Company of the transactions contemplated hereby and thereby (including, without limitation, the issuance of the Convertible Notes,
the Conversion Shares, the Warrants and the Warrant Shares and the reservation for issuance of the Conversion Shares and the Warrant Shares)
will not (i) result in a violation of the Memorandum of Association of the Company (including, without limitation, any certificate of
designation contained therein) or other organizational documents of the Company or any of its Subsidiaries, any capital stock of the Company
or any of its Subsidiaries or bylaws or operating agreements of the Company or any of its Subsidiaries, (ii) conflict with, or constitute
a default (or an event which with notice or lapse of time or both would become a default) under, or give to others any rights of termination,
amendment, acceleration or cancellation of, any agreement, indenture or instrument to which the Company or any of its Subsidiaries is
a party or (iii) result in a violation of any law, rule, regulation, order, judgment or decree (including, without limitation, foreign,
federal and state securities laws and regulations and the rules and regulations of the Principal Market or by which the Ordinary Shares
or any property or asset of the Company is bound or affected except, in the case of clause (ii) or (iii) above, to the extent such violations
that could not reasonably be expected to have a Material Adverse Effect.

 

    5

     

    

 

(e)
Consents. Neither the Company nor any Subsidiary is required to obtain any consent from, authorization or order of, or make
any filing or registration with any court, governmental agency or any regulatory or self-regulatory agency or any other Person (other
than the filing required notices and/or applications to the Principal Market for the issuance and sale of the Securities, a Form D with
the SEC and any other filings as may be required by any state securities agencies), in order for it to execute, deliver or perform any
of its respective obligations under, or contemplated by, the Transaction Documents, in each case, in accordance with the terms hereof
or thereof. All consents, authorizations, orders, filings and registrations which the Company is required to obtain at or prior to the
applicable Closing have been obtained or effected on or prior to the applicable Closing Date, and the Company is not aware of any facts
or circumstances which might prevent the Company from obtaining or effecting any of the registration, application or filings contemplated
by the Transaction Documents. The Company is not in violation of the requirements of the Principal Market and has no knowledge of any
facts or circumstances which could reasonably lead to suspension of the listing or trading of the Ordinary Shares in the foreseeable future.
There is no requirement for the Company to obtain approval of the Principal Market for listing or trading of Ordinary Shares.

 

(f)
Acknowledgment Regarding Buyer’s Purchase of Securities. Buyer is not (i) an officer or director of the Company, (ii)
an affiliate (as defined in Rule 405 of the 1933 Act) of the Company (an “Affiliate”) or (iii) to the Company’s
knowledge, a “beneficial owner” (as defined for purposes of Rule 13d-3 of the 1934 Act) of more than 10% of the Ordinary Shares.
The Company’s decision to enter into the Transaction Documents has been based on its and its representative’s independent
evaluation of the transactions contemplated hereby and the Company has neither been induced by, nor has it relied upon, any representation,
warranty, covenant or statement (written or oral), whether express or implied, made by Buyer except those that are expressly set forth
in this Agreement.

 

(g)  
No General Solicitation; Placement Agent’s Fees. None of the Company, any of its Affiliates, or any Person acting
on the behalf of the Company or any of its Affiliates, has engaged in any form of general solicitation or general advertising (within
the meaning of Regulation D) in connection with the offer or sale of the Securities. The Company shall be responsible for the payment
of any of its placement agent’s fees, financial advisory fees, or brokers’ commissions, relating to or arising out of the
transactions contemplated hereby.

 

(h)  
No Integrated Offering. None of the Company, any of its Affiliates, or, to the knowledge of the Company, any Person acting
on the behalf of the Company or any of its Affiliates has, directly or indirectly, made any offers or sales of any security or solicited
any offers to buy any security, under circumstances that would require registration of the issuance of any of the Securities under the
1933 Act, whether through integration with prior offerings or otherwise, or cause this offering of the Securities to require approval
of shareholders of the Company under any applicable shareholder approval provisions, including, without limitation, under the rules and
regulations of any exchange or automated quotation system on which any of the securities of the Company are listed or designated for quotation.
None of the Company, any of its Affiliates, or, to the knowledge of the Company, any Person acting on the behalf of the Company or any
of its Affiliates will take any action or steps that would require registration of the issuance of any of the Securities under the 1933
Act or cause the offering of any of the Securities to be integrated with other offerings of securities of the Company.

 

(i)
Dilutive Effect. The Company understands and acknowledges that the number of Conversion Shares and Warrant Shares may increase
in certain circumstances. The Company further acknowledges that, except to the extent an issuance would exceed the beneficial ownership
limitation in Section 1(e) of this Agreement, its obligation to issue the Conversion Shares upon conversion of the Convertible Notes and
the Warrant Shares upon exercise of the Warrants in accordance therewith and with this Agreement is absolute and unconditional, regardless
of the dilutive effect that such issuance may have on the ownership interests of other shareholders of the Company.

 

(j)
Application of Takeover Protections; Rights Agreement. The Company and its board of directors have taken all necessary action,
if any, in order to render inapplicable any control share acquisition, interested shareholder, business combination, poison pill (including,
without limitation, any distribution under a rights agreement), shareholder rights plan or other similar anti-takeover provision under
the Memorandum of Association, bylaws or other organizational documents of the Company or any of its Affiliates or the laws of the jurisdiction
of its incorporation or otherwise which is or could become applicable to Buyer as a result of the transactions contemplated by this Agreement,
including, without limitation, the Company’s issuance of the Securities and Buyer’s ownership of the Securities. The Company
and its board of directors have taken all necessary action, if any, in order to render inapplicable any shareholder rights plan or similar
arrangement relating to accumulations of beneficial ownership of Ordinary Shares or a change in control of the Company or any of its Affiliates.

 

    6

     

    

 

(k)
SEC Documents; Financial Statements. During the two (2)
years prior to the date hereof, the Company has timely filed all reports, schedules, forms, statements and other documents required to
be filed by it with the SEC pursuant to the reporting requirements of the 1934 Act (all of the foregoing filed prior to the date hereof
and all exhibits and appendices included therein and financial statements, notes and schedules thereto and documents incorporated by reference
therein being hereinafter referred to as the “SEC Documents”). As of their respective dates, the SEC Documents complied
in all material respects with the requirements of the 1934 Act and the rules and regulations of the SEC promulgated thereunder applicable
to the SEC Documents, and none of the SEC Documents, at the time they were filed with the SEC, contained any untrue statement of a material
fact or omitted to state a material fact required to be stated therein or necessary in order to make the statements therein, in the light
of the circumstances under which they were made, not misleading. As of its dates, the financial statements of the Company included in
the SEC Documents complied in all material respects with applicable accounting requirements and the published rules and regulations of
the SEC with respect thereto as in effect as of the time of filing. Such financial statements have been prepared in accordance with generally
accepted accounting principles, consistently applied, during the periods involved (except (i) as may be otherwise indicated in such financial
statements or the notes thereto, or (ii) in the case of unaudited interim statements, to the extent they may exclude the footnotes or
may be condensed or summary statements) and fairly present in all material respects the financial position of the Company as of the dates
thereof and the results of its operations and cash flows for the periods then ended (subject, in the case of unaudited statements, to
normal year-end audit adjustments which will not be material, either individually or in the aggregate). No other information provided
by or on behalf of the Company to Buyer which is not included in the SEC Documents contains any untrue statement of a material fact or
omits to state any material fact necessary in order to make the statements therein not misleading, in the light of the circumstance under
which they are or were made.

 

(l)
Absence of Certain Changes. Since the date of the Company’s most recent audited financial statements contained in
a Form 20-F, except as disclosed in the SEC Documents filed subsequent to such Form 20-F, there has been no material adverse change and
no material adverse development in the business, assets, liabilities, properties, operations (including results thereof), or condition
(financial or otherwise) of the Company and its Subsidiaries. Since the date of the Company’s most recent audited financial statements
contained in a Form 20-F, neither the Company nor any of its Subsidiaries has (i) declared or paid any dividends, (ii) sold any material
assets outside of the ordinary course of business or (iii) made any material capital expenditures, individually or in the aggregate, outside
of the ordinary course of business. Neither the Company nor any of its Subsidiaries has taken any steps to seek protection pursuant to
any law or statute relating to bankruptcy, insolvency, reorganization, receivership, liquidation or winding up. Neither the Company nor
any of its Subsidiaries has any knowledge or reason to believe that any of their respective creditors intend to initiate involuntary bankruptcy
proceedings or any actual knowledge of any fact which would reasonably lead a creditor to do so. The Company is not, and after giving
effect to the transactions contemplated hereby to occur at the Closing will not be, Insolvent (as defined below). The Company has not
engaged in any business or in any transaction, and is not about to engage in any business or in any transaction, for which the Company’s
remaining assets constitute unreasonably small capital.

 

(m)
No Undisclosed Events, Liabilities, Developments or Circumstances. Since January 1, 2020, no event, liability, development
or circumstance has occurred or exists, or is reasonably expected to occur or exist with respect to the Company or any of its Subsidiaries
or any of their respective businesses, properties, liabilities, prospects, operations (including results thereof) or condition (financial
or otherwise) that would have a Material Adverse Effect on the Company.

 

(n)
Conduct of Business; Regulatory Permits. Neither the Company nor any of its Subsidiaries is in violation of any term of
or in default under its organizational documents including its Memorandum of Association, bylaws, certificate of formation, any other
organizational charter, any certificate of designation, preferences or rights of any outstanding series of preferred stock of the Company
or any of its Subsidiaries, respectively. Neither the Company nor any of its Subsidiaries is in violation of any judgment, decree or order
or any statute, ordinance, rule or regulation applicable to the Company or any of its Subsidiaries, and the Company will not conduct its
business in violation of any of the foregoing, except in all cases for possible violations which could not, individually or in the aggregate,
have a Material Adverse Effect. Without limiting the generality of the foregoing, except as disclosed in the SEC Documents, the Company
is not in violation of any of the rules, regulations or requirements of the Principal Market and has no knowledge of any facts or circumstances
that could reasonably lead to suspension of the listing or trading of the Ordinary Shares by the Principal Market in the foreseeable future.
Since August 18, 2017, (i) the Ordinary Shares has been designated for quotation on the Principal Market, (ii) trading in the Ordinary
Shares has not been suspended by the SEC or the Principal Market and (iii) except as disclosed in the SEC Documents, the Company has received
no communication, written or oral, from the SEC or the Principal Market regarding the suspension of the trading or listing of Ordinary
Shares from the Principal Market. The Company and each of its Subsidiaries possess all certificates, authorizations and permits issued
by the appropriate regulatory authorities necessary to conduct their businesses, except where the failure to possess such certificates,
authorizations or permits would not have, individually or in the aggregate, a Material Adverse Effect, and neither the Company nor any
such Subsidiary has received any notice of proceedings relating to the revocation or modification of any such certificate, authorization
or permit.

 

    7

     

    

 

(o)
Foreign Corrupt Practices. Neither the Company nor any of its Subsidiaries nor to the knowledge of the Company, any director,
officer, agent, employee or other Person acting on behalf of the Company or any of its Subsidiaries (as applicable) has, in the course
of its actions for, or on behalf of, the Company or any of its Subsidiaries (i) used any corporate funds for any unlawful contribution,
gift, entertainment or other unlawful expenses relating to political activity; (ii) made any direct or indirect unlawful payment to any
foreign or domestic government official or employee from corporate funds; (iii) violated or is in violation of any provision of the U.S.
Foreign Corrupt Practices Act of 1977, as amended; or (iv) made any unlawful bribe, rebate, payoff, influence payment, kickback or other
unlawful payment to any foreign or domestic government official or employee.

 

(p)
Sarbanes-Oxley Act. Except as set forth in the SEC Documents,
the Company and each of its Subsidiaries is in material compliance with all applicable requirements of the Sarbanes-Oxley Act of 2002
and all applicable rules and regulations promulgated by the SEC thereunder.

 

(q)
Transactions With Affiliates. Except as provided in the SEC Documents, none of the officers, directors, employees or Affiliates
of the Company is presently a party to any transaction with the Company (other than for ordinary course services as employees, officers
or directors and immaterial transactions), including any contract, agreement or other arrangement providing for the furnishing of services
to or by, providing for rental of real or personal property to or from, or otherwise requiring payments to or from any such officer, director,
employee or Affiliate or, to the knowledge of the Company, any corporation, partnership, trust or other Person in which any such officer,
director, employee or Affiliate has a substantial interest or is an employee, officer, director, trustee or partner.

 

(r)
Equity Capitalization. As of the date hereof, the authorized capital stock of the Company consists solely of an unlimited
number of Ordinary Shares, of which, 88,846,677 Ordinary Shares are issued and outstanding and [ ] are reserved for issuance pursuant
to Convertible Securities (as defined below) (other than the Convertible Notes and Warrants). No Ordinary Shares are held in treasury.
All of such outstanding shares are duly authorized and have been, or upon issuance will be, validly issued and are fully paid and non-assessable.
Except as provided in the SEC Documents, (i) to the Company’s knowledge, no Person owns 10% or more of the Company’s issued
and outstanding Ordinary Shares (calculated based on the assumption that all Convertible Securities, whether or not presently exercisable
or convertible, have been fully exercised or converted (as the case may be) taking account of any limitations on exercise or
conversion (including “blockers”) contained therein without conceding that such identified Person is a 10% shareholder for
purposes of federal securities laws); (ii) the Company’s capital stock and the capital stock of its Subsidiaries are not subject
to preemptive rights or any other similar rights or any Liens; (iii) there are no outstanding options, warrants, scrip, rights to subscribe
to, calls or commitments of any character whatsoever relating to, or securities or rights convertible into, or exercisable or exchangeable
for, any capital stock of the Company or any of its Subsidiaries, or contracts, commitments, understandings or arrangements by which the
Company or any of its Subsidiaries is or may become bound to issue additional capital stock or options, warrants, scrip, rights to subscribe
to, calls or commitments of any character whatsoever relating to, or securities or rights convertible into, or exercisable or exchangeable
for, any capital stock of the Company or any of its Subsidiaries, respectively (other than as may be issued from time to time under any
equity incentive plan maintained); (iv) there are no outstanding debt securities, convertible notes, credit agreements, credit facilities
or other agreements, documents or instruments evidencing Indebtedness of the Company or any of its Subsidiaries or by which the Company
or any of its Subsidiaries is or may become bound; (v) there are no financing statements securing obligations in any amounts filed in
connection with the Company or any of its Subsidiaries; (vi) there are no agreements or arrangements under which the Company or any of
its Subsidiaries is obligated to register the sale of any of their securities under the 1933 Act (except as provided in Section 5(h) hereof);
(vii) there are no outstanding securities or instruments of the Company or any of its Subsidiaries which contain any redemption or similar
provisions, and there are no contracts, commitments, understandings or arrangements by which the Company or any of its Subsidiaries is
or may become bound to redeem a security of the Company or any of its Subsidiaries; (viii) there are no securities or instruments containing
anti-dilution or similar provisions that will be triggered by the issuance of the Securities; (ix) neither the Company nor any of its
Subsidiaries has stock appreciation rights or “phantom stock” plans or agreements or any similar plan or agreement; and (x)
the Company does not have any liabilities or obligations required to be disclosed in the SEC Documents which are not so disclosed in the
SEC Documents, other than those incurred in the ordinary course of the Company’s business and which does not or could not have a
Material Adverse Effect. The SEC Documents contain true, correct and complete copy of the Company’s charter as in effect on the
date hereof, and the terms of all securities convertible into, or exercisable or exchangeable for, Ordinary Shares and the material rights
of the holders thereof.

 

    8

     

    

 

(s)
Indebtedness and Other Contracts. Except as disclosed in the SEC Documents, each of the Company and its Subsidiaries (i)
does not have any material outstanding Indebtedness, Indebtedness secured by any Lien on any assets of the Company or any of its Subsidiaries
or other material debt obligations, (ii) is not a party to any contract, agreement or instrument, the violation of which, or default under
which, by the other party(ies) to such contract, agreement or instrument could reasonably be expected to result in a Material Adverse
Effect, (iii) is not in violation of any term of, or in default under, any contract, agreement or instrument relating to any Indebtedness,
except where such violations and defaults would not result, individually or in the aggregate, in a Material Adverse Effect, and (iv) is
not a party to any contract, agreement or instrument relating to any Indebtedness, the performance of which, in the judgment of the Company’s
officers, has or is expected to have a Material Adverse Effect. The Company has no current intention or expectation to file for reorganization
or liquidation under the bankruptcy or reorganization laws of any jurisdiction.

 

(t)
Absence of Litigation. Except as disclosed in the SEC Documents, there is no action, suit, proceeding, inquiry or investigation
before or by any court, public board, government agency, self-regulatory organization or body pending or, to the knowledge of the Company,
threatened against or affecting the Company or any of its Subsidiaries, the Ordinary Shares or any of the Company’s or its Subsidiaries’
executive officers or directors which would be reasonably likely to adversely affect the transactions contemplated by this Agreement or
would require disclosure in the SEC Documents, except as otherwise disclosed in the SEC Documents. There has not been, and to the knowledge
of the Company, there is not pending or contemplated, any investigation by the SEC involving the Company, any of its Subsidiaries or any
current or former director or officer of the Company or any of its Subsidiaries. The SEC has not issued any stop order or other order
suspending the effectiveness of any registration statement filed by the Company under the 1933 Act or the 1934 Act.

 

(u)
Insurance. The Company and each of its Subsidiaries are insured by insurers of recognized financial responsibility against
such losses and risks and in such amounts as management of the Company believes to be prudent and customary in the businesses in which
the Company and its Subsidiaries are engaged. Neither the Company nor any such Subsidiary has been refused any insurance coverage sought
or applied for, and the Company has no reason to believe that it will be unable to renew its existing insurance coverage as and when such
coverage expires or to obtain similar coverage from similar insurers as may be necessary to continue its business at a cost that would
not have a Material Adverse Effect.

 

(v)
Employee Relations. Neither the Company nor any of its Subsidiaries is a party to any collective bargaining agreement nor
does it employ any member of a union. No executive officer (as defined in Rule 501(f) promulgated under the 1933 Act) or other key employee
of the Company or any of its Subsidiaries has notified the Company or any such Subsidiary that such officer intends to leave the Company
or any such Subsidiary or otherwise terminate such officer’s employment with the Company or any such Subsidiary. To the knowledge
of the Company, no executive officer or other key employee of the Company or any of its Subsidiaries is, or is now expected to be, in
violation of any material term of any employment contract, confidentiality, disclosure or proprietary information agreement, non-competition
agreement, or any other contract or agreement or any restrictive covenant, and the continued employment of each such executive officer
or other key employee (as the case may be) does not subject the Company or any of its Subsidiaries to any liability with respect to any
of the foregoing matters. The Company and its Subsidiaries are in compliance with all federal, state, local and foreign laws and regulations
respecting labor, employment and employment practices and benefits, terms and conditions of employment and wages and hours, except where
failure to be in compliance would not, either individually or in the aggregate, reasonably be expected to result in a Material Adverse
Effect.

 

(w)
Title. The Company and its Subsidiaries have good and marketable title to (i) all real property owned by it and (ii) all
personal property, owned by them which is material to the business of the Company and its Subsidiaries, in each case, free and clear of
all Liens, encumbrances and defects except such as do not materially affect the value of such property and do not interfere with the use
made and proposed to be made of such property by the Company and any of its Subsidiaries. Any real property and facilities held under
lease by the Company and any of its Subsidiaries are held by them under valid, subsisting and enforceable leases with such exceptions
as are not material and do not interfere with the use made and proposed to be made of such property and buildings by the Company or any
of its Subsidiaries.

 

    9

     

    

 

(x)
Intellectual Property Rights. The Company and its Subsidiaries own or possess adequate rights or licenses to use all material
trademarks, trade names, service marks, service mark registrations, service names, patents, patent rights, copyrights, original works,
inventions, licenses, approvals, governmental authorizations, trade secrets and other intellectual property rights and all applications
and registrations therefor (“Intellectual Property Rights”) necessary to conduct their respective businesses as now
conducted and as presently proposed to be conducted. None of the Company’s or its Subsidiaries’ Intellectual Property Rights
have expired, terminated or been abandoned, or are expected to expire, terminate or be abandoned, within three years from the date of
this Agreement, which could reasonably be expected to result in a Material Adverse Effect. The Company has no knowledge of any material
infringement by the Company or any of its Subsidiaries of Intellectual Property Rights of others. There is no claim, action or proceeding
being made or brought, or to the knowledge of the Company or any of its Subsidiaries, being threatened, against the Company or any of
its Subsidiaries regarding their Intellectual Property Rights and which would reasonably be expected to have a Material Adverse Effect.
The Company is not aware of any facts or circumstances which might give rise to any of the foregoing infringements or claims, actions
or proceedings. The Company and each of its Subsidiaries have taken reasonable security measures to protect the secrecy, confidentiality
and value of all of their Intellectual Property Rights, except where failure to take such measures would not, either individually or in
the aggregate, reasonably be expected to materially affect the value of their respective Intellectual Property Rights.

 

(y)
Environmental Laws. The Company and its Subsidiaries (i) are in compliance with all Environmental Laws (as defined below),
(ii) have received all permits, licenses or other approvals required of them under applicable Environmental Laws to conduct their respective
businesses and (iii) are in compliance with all terms and conditions of any such permit, license or approval where, in each of the foregoing
clauses (i), (ii) and (iii), the failure to so comply could be reasonably expected to have, individually or in the aggregate, a Material
Adverse Effect.

 

(z)
Subsidiary Rights. The Company or one of its Subsidiaries has unrestricted right to vote, and (subject to limitations imposed
by applicable law) to receive dividends and distributions on, all capital securities of its Subsidiaries as owned by the Company or such
Subsidiary.

 

(aa)
Tax Status. Except as set forth in the SEC Documents, each of the Company and its Subsidiaries (i) has timely made or filed
all foreign, federal and state income and all other tax returns, reports and declarations required by any jurisdiction to which it is
subject, (ii) has timely paid all taxes and other governmental assessments and charges that are material in amount, shown or determined
to be due on such returns, reports and declarations, except those being contested in good faith and (iii) has set aside on its books provision
reasonably adequate for the payment of all taxes for periods subsequent to the periods to which such returns, reports or declarations
apply, except in each case where the failure to file, pay or set aside could not be reasonably expected to have a Material Adverse Effect.
There are no unpaid taxes in any material amount claimed to be due by the taxing authority of any jurisdiction, and the officers of the
Company and it Subsidiaries know of no basis for any such claim. The Company is not operated in such a manner as to qualify as a passive
foreign investment company, as defined in Section 1297 of the U.S. Internal Revenue Code of 1986, as amended.

 

(bb)
Internal Accounting and Disclosure Controls. Except as disclosed
in the SEC Documents, the Company and each of its Subsidiaries maintains internal control over financial reporting (as such term is defined
in Rule 13a-15(f) under the 1934 Act) that is effective to provide reasonable assurance regarding the reliability of financial reporting
and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles, including
that (i) transactions are executed in accordance with management’s general or specific authorizations, (ii) transactions are recorded
as necessary to permit preparation of financial statements in conformity with generally accepted accounting principles and to maintain
asset and liability accountability, (iii) access to assets or incurrence of liabilities is permitted only in accordance with management’s
general or specific authorization and (iv) the recorded accountability for assets and liabilities is compared with the existing assets
and liabilities at reasonable intervals and appropriate action is taken with respect to any difference. The Company maintains disclosure
controls and procedures (as such term is defined in Rule 13a-15(e) under the 1934 Act) that are effective in ensuring that information
required to be disclosed by the Company in the reports that it files or submits under the 1934 Act is recorded, processed, summarized
and reported, within the time periods specified in the rules and forms of the SEC, including, without limitation, controls and procedures
designed to ensure that information required to be disclosed by the Company in the reports that it files or submits under the 1934 Act
is accumulated and communicated to the Company’s management, including its principal executive officer or officers and its principal
financial officer or officers, as appropriate, to allow timely decisions regarding required disclosure. Neither the Company nor any of
its Subsidiaries has received any notice or correspondence from any accountant or other Person relating to any potential material weakness
or significant deficiency in any part of the internal controls over financial reporting of the Company or any of its Subsidiaries. There
are no material disagreements presently existing, or reasonably anticipated by the Company to arise, between the accountants and lawyers
formerly or presently employed by the Company.

 

    10

     

    

 

(cc)
Off Balance Sheet Arrangements. There is no transaction,
arrangement, or other relationship between the Company or any of its Subsidiaries and an unconsolidated or other off balance sheet entity
that is required to be disclosed by the Company in the SEC Documents and is not so disclosed or that otherwise could be reasonably likely
to have a Material Adverse Effect.

 

(dd)
Investment Company Status. The Company is not, and upon consummation of the sale of the Securities will not be, an “investment
company,” an affiliate of an “investment company,” a company controlled by an “investment company” or an
“affiliated person” of, or “promoter” or “principal underwriter” for, an “investment company”
as such terms are defined in the Investment Company Act of 1940, as amended.

 

(ee)
Manipulation of Price. The Company has not, and, to the
knowledge of the Company, no Person acting on its behalf has, directly or indirectly, (i) taken any action designed to cause or to result
in the stabilization or manipulation of the price of any security of the Company to facilitate the sale or resale of any of the Securities,
(ii) sold, bid for, purchased, or paid any compensation for soliciting purchases of, any of the Securities, or (iii) paid or agreed to
pay to any Person any compensation for soliciting another to purchase any other securities of the Company.

 

(ff)
No Disqualification Events. None of the Company, any of its predecessors, any affiliated issuer, any director, executive
officer, other officer of the Company participating in the offering contemplated hereby, any beneficial owner of 20% or more of the Company’s
outstanding voting equity securities, calculated on the basis of voting power, nor any promoter (as that term is defined in Rule 405 under
the 1933 Act) connected with the Company in any capacity at the time of sale (each, an “Issuer Covered Person”) is
subject to any of the “Bad Actor” disqualifications described in Rule 506(d)(1)(i) to (viii) under the 1933 Act (a “Disqualification
Event”), except for a Disqualification Event covered by Rule 506(d)(2) or (d)(3). The Company has exercised reasonable care
to determine whether any Issuer Covered Person is subject to a Disqualification Event.

 

(gg)
Transfer Taxes. On the applicable Closing Date, all stock transfer or other taxes (other than income or similar taxes) which
are required to be paid in connection with the issuance, sale and transfer of the Securities to be sold to Buyer hereunder will be, or
will have been, fully paid or provided for by the Company, and all laws imposing such taxes will be or will have been complied with.

 

(hh)
Shell Company Status. The Company is not an issuer identified in Rule 144(i)(1)(i), the Company has ceased to be an issuer
described in Rule 144(i)(1)(i) and the Company meets all of the requirements under Rule 144(i)(2), including that more than one year has
elapsed from the date that the Company filed “Form 10 information” with the SEC reflecting its status as an entity that is
no longer an issuer described in paragraph 144(i)(1)(i).

 

(ii)
Fixtures and Equipment. Each of the Company and its Subsidiaries (as applicable) has good title to, or a valid leasehold
interest in, the tangible personal property, equipment, improvements, fixtures, and other personal property and appurtenances that are
used by the Company or its Subsidiary in connection with the conduct of its business (the “Fixtures and Equipment”).
The Fixtures and Equipment are structurally sound, are in good operating condition and repair, are adequate for the uses to which they
are being put, are not in need of maintenance or repairs except for ordinary, routine maintenance and repairs and are sufficient for the
conduct of the Company’s and/or its Subsidiaries’ businesses (as applicable) in the manner as conducted prior to each Closing.
Each of the Company and its Subsidiaries owns all of its Fixtures and Equipment free and clear of all Encumbrances except for (a) Liens
for current taxes not yet due and (b) zoning laws and other land use restrictions that do not impair the present or anticipated use of
the property subject thereto.

 

(jj)
Illegal or Unauthorized Payments; Political Contributions. Neither the Company nor any of its Subsidiaries nor, to the best
of the Company’s knowledge (after reasonable inquiry of its executive officers and directors), any of the officers, directors, employees,
agents or other representatives of the Company or any of its Subsidiaries or any other business entity or enterprise with which the Company
or any of its Subsidiaries is or has been affiliated or associated, has, directly or indirectly, made or authorized any payment, contribution
or gift of money, property, or services, whether or not in contravention of applicable law, (a) as a kickback or bribe to any Person or
(b) to any political organization, or the holder of or any aspirant to any elective or appointive public office except for personal political
contributions not involving the direct or indirect use of funds of the Company or any of its Subsidiaries.

 

    11

     

    

 

(kk)
Money Laundering. The Company and its Subsidiaries are in compliance with, and have not previously violated, the USA Patriot
Act of 2001 and all other applicable U.S. and non-U.S. anti-money laundering laws and regulations, including, without limitation, the
laws, regulations and Executive Orders and sanctions programs administered by the U.S. Office of Foreign Assets Control, including, without
limitation, (i) Executive Order 13224 of September 23, 2001 entitled, “Blocking Property and Prohibiting Transactions With Persons
Who Commit, Threaten to Commit, or Support Terrorism” (66 Fed. Reg. 49079 (2001)); and (ii) any regulations contained in 31 CFR,
Subtitle B, Chapter V.

 

(ll)
Registration Rights. Except as provided in the Registration Rights Agreement, no holder of securities of the Company has
rights to the registration of any securities of the Company because of the issuance of the Securities hereunder that could expose the
Company to material liability or Buyer to any liability or that could impair the Company’s ability to consummate the issuance and
sale of the Securities in the manner, and at the times, contemplated hereby, which rights have not been waived by the holder thereof as
of the date hereof.

 

(mm)  
Disclosure. The Company confirms that neither it nor any other Person acting on its behalf has provided Buyer or their agents
or counsel with any information that constitutes or could reasonably be expected to constitute material, non-public information concerning
the Company or any of its Subsidiaries, other than the existence of the transactions contemplated by this Agreement and the other Transaction
Documents. The Company understands and confirms that Buyer will rely on the foregoing representations in effecting transactions in securities
of the Company. All disclosure provided to the Buyer regarding the Company, its Subsidiaries, their respective businesses and the transactions
contemplated hereby, including the schedules to this Agreement, furnished by or on behalf of the Company or any of its Subsidiaries is
true and correct in all material respects and does not contain any untrue statement of a material fact or omit to state any material fact
necessary in order to make the statements made therein, in the light of the circumstances under which they were made, not misleading.
Each press release issued by the Company during the twelve (12) months preceding the date of this Agreement did not at the time of release
contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary in order to
make the statements therein, in the light of the circumstances under which they are made, not misleading. No event or circumstance has
occurred or information exists with respect to the Company or any of its Subsidiaries or their respective businesses, properties, liabilities,
prospects, operations (including results thereof) or conditions (financial or otherwise), which, under applicable law, rule or regulation,
requires public disclosure at or before the date hereof or announcement by the Company but which has not been so publicly disclosed. The
Company acknowledges and agrees that Buyer makes no and has not made any representations or warranties with respect to the transactions
contemplated hereby other than those specifically set forth in Section 2.

 

		4.	COVENANTS.

 

(a)
Form D and Blue Sky. The Company shall file a Form D with respect to the Securities as required under Regulation D and provide
a copy thereof to Buyer promptly after filing. The Company shall, on or before the Closing Date, take such action as the Company shall
reasonably determine is necessary in order to obtain an exemption for, or to, qualify the Securities for sale to Buyer at the Closing
pursuant to this Agreement under applicable securities or “Blue Sky” laws of the states of the United States (or to obtain
an exemption from such qualification), and shall provide confirmation of any such action, if applicable, so taken to Buyer on or prior
to such Closing Date. Without limiting any other obligation of the Company under this Agreement, the Company shall timely make all filings
and reports relating to the offer and sale of the Securities required under all applicable securities laws (including, without limitation,
all applicable federal securities laws and all applicable “Blue Sky” laws), and the Company shall comply with all applicable
federal, foreign, state and local laws, statutes, rules, regulations and the like relating to the offering and sale of the Securities
to Buyer.

 

(b)
Reporting Period. Until the date on which the Buyer shall have sold all of the Securities (the “Reporting Period”),
the Company shall file all reports required to be filed with the SEC pursuant to the 1934 Act, and the Company shall not terminate its
status as an issuer required to file reports under the 1934 Act even if the 1934 Act or the rules and regulations thereunder would no
longer require or otherwise permit such termination.

 

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(c)
Use of Proceeds. The Company shall use the proceeds from the sale of the Securities, in the first instance, to engage an
independent auditor to perform an audit of the Company in accordance with PCAOB standards or that otherwise satisfies SEC requirements
companies list on the Nasdaq Global Select Market and, in the second instance, for general corporate purposes.

 

(d)
Financial Information. The Company agrees to send the following
to Buyer during the Reporting Period unless the following are filed with the SEC through EDGAR and are available to the public through
the EDGAR system, (i) within one (1) Business Day after the filing thereof with the SEC, a copy of its Annual Reports on Form 20-F and
any interim reports or any consolidated balance sheets, income statements, stockholders’ equity statements and/or cash flow statements
for any period other than annual, any Current Reports on Form 6-K and any registration statements (other than on Form S-8) or amendments
filed pursuant to the 1933 Act, (ii) on the same day as the release thereof, facsimile copies of all press releases issued by the Company
and (iii) copies of any notices and other information made available or given to the stockholders of the Company generally, contemporaneously
with the making available or giving thereof to the stockholders.

 

(e)
Listing. The Company shall promptly secure the listing or
designation for quotation (as the case may be) of all of the Securities consisting of Ordinary Shares upon each trading market and national
securities exchange and automated quotation system, if any, upon which the Ordinary Shares is then listed or designated for quotation
(as the case may be) (so that all such Securities consisting of Ordinary Shares may be traded on the foregoing, subject to official notice
of issuance) (but in no event later than the First Closing) and shall maintain such listing or designation for quotation (as the case
may be) of all Securities from time to time issuable under the terms of the Transaction Documents on such national securities exchange
or automated quotation system. The Company shall maintain the Ordinary Share’s listing or designation for quotation (as the case
may be) on the Principal Market, The New York Stock Exchange, the NYSE Amex, the Nasdaq Global Select Market, the Nasdaq Global Market
or the Nasdaq Capital Market (each, an “Eligible Market”). The Company shall not take any action which could be reasonably
expected to result in the delisting or suspension of the trading or listing of Ordinary Shares on an Eligible Market. The Company shall
pay all fees and expenses in connection with satisfying its obligations under this Section 4(e).

 

(f)
Fees. The Company shall be responsible for the payment of any transfer agent fees, DTC fees or broker’s commissions,
relating to or arising out of the issuance and sale of the Securities by the Company as contemplated hereby. The Company shall pay, and
hold Buyer harmless against, any liability, loss or expense (including, without limitation, reasonable attorneys’ fees and out-of-pocket
expenses) arising in connection with any claim relating to any such payment. Except as otherwise set forth in the Transaction Documents,
each party to this Agreement shall bear its own expenses in connection with the sale of the Securities to Buyer.

 

(g)
Pledge of Securities. Notwithstanding anything to the contrary contained in this Agreement, the Company acknowledges and
agrees that the Securities may be pledged by Buyer in connection with a bona fide margin agreement or other loan or financing arrangement
that is secured by the Securities. The pledge of Securities shall not be deemed to be a transfer, sale or assignment of the Securities
hereunder, and Buyer effecting a pledge of Securities shall not be required to provide the Company with any notice thereof or otherwise
make any delivery to the Company pursuant to this Agreement or any other Transaction Document. At Buyer’s expense, the Company hereby
agrees to execute and deliver such documentation as a pledgee of the Securities may reasonably request in connection with a pledge of
the Securities to such pledgee by Buyer provided that the Company shall be under no obligation to deliver any legal opinion required in
connection therewith unless required by the Company’s transfer agent to be issued by the Company’s legal counsel.

 

    13

     

    

 

(h)
Disclosure of Transactions and Other Material Information. The Company shall, on or before 8:30 a.m., New York time,
on the first (1st) Business Day after the date of this Agreement, file a Current Report on Form 6-K describing all the material terms
of the transactions contemplated by the Transaction Documents in the form required by the 1934 Act and attaching all the material Transaction
Documents (including, without limitation, this Agreement and the form of each of the Warrants) (including all attachments, the “6-K
Filing”). From and after the date of the 6-K Filing, the Company shall have disclosed all material, non-public information (if
any) delivered to Buyer by the Company, or any of its officers, directors, employees or agents in connection with the transactions contemplated
by the Transaction Documents. The Company shall not, and the Company shall cause each of its officers, directors, employees and agents
not to, provide Buyer with any material, non-public information regarding the Company from and after the date of the 6-K Filing without
the express prior written consent of Buyer. Subject to the foregoing, neither the Company nor Buyer shall issue any press releases or
any other public statements with respect to the transactions contemplated hereby; provided, however, the Company shall be entitled, without
the prior approval of Buyer, to make any press release or other public disclosure with respect to such transactions (i) in substantial
conformity with the 6-K Filing and contemporaneously therewith and (ii) as is required by applicable law and regulations (provided that
Buyer shall be consulted by the Company in connection with any such press release or other public disclosure prior to its release). Without
the prior written consent of Buyer, the Company shall not (and shall cause each of its affiliates to not) disclose the name of Buyer in
any filing (other than the 8-K Filing or any filing that incorporates language from the 8-K Filing and other than as required by applicable
law or rules and regulations), announcement, release or otherwise. Notwithstanding anything contained in this Agreement to the contrary
and without implication that the contrary would otherwise be true, the Company expressly acknowledges and agrees that, from and after
the Execution Date, and except as set forth in Section 4(r), Buyer shall not have (unless expressly agreed to by Buyer after the date
hereof in a written definitive and binding agreement executed by the Company and Buyer), any duty of confidentiality with respect to,
or a duty not to trade on the basis of, any information regarding the Company or any of its Subsidiaries (as applicable) that Buyer receives
from the Company, any of its Subsidiaries or any of its or its officers, directors, employees, shareholders or agents.

 

(i)
Right to Additional Note Purchases. From the Execution Date until that date which six (6) months from the date on which
the Registration Statement is declared effective by the SEC, Buyer shall have the right, but not the obligation, at any time from time
to time, in its sole and absolute discretion to purchase additional convertible notes from the Company up to a principal amount equal
to the aggregate of all Closing Payments paid by Buyer hereunder (each an “Additional Note” and collectively the “Additional
Notes”) on the same terms and conditions as applicable to the purchase and sale of the Convertible Note (each a “Additional
Note Purchase” and collectively “Additional Note Purchases”). Buyer may exercise such right by the delivery
of written notice to the Company, which notice shall include a statement that the Buyer is exercising its right to an Additional Note
Purchase, the principal amount of the Additional Note to be purchased by such Buyer, and the date on which such purchase and sale shall
occur (“Additional Note Closing”), which Additional Note Closing shall occur within five (5) days following such notice
by such Buyer, or such other date mutually agreed upon by the Buyer and Company. The terms and conditions of any Additional Note Purchase
shall be identical to the terms and conditions set forth in this Agreement applicable to the sale of the Convertible Note, including without
limitation each Additional Note will be in the form attached hereto as Exhibit A, provided that the maturity date of the
Additional Note shall be the second (2nd) anniversary from the issue date of the Additional Note. Further, upon each Additional Note Purchase,
Buyer shall receive a proportional amount of warrants identical to the terms and conditions set forth in this Agreement (the “Additional
Warrants”) including without limitation each Additional Warrant will be in the form attached hereto as Exhibit B,
provided that the Expiration Date (as defined in the Warrants) of the Additional Warrants shall be the fifth (5th) anniversary from the
issuance date of such Additional Warrants. On or prior to any Additional Note Closing(s), the Company and the Buyer shall, upon Buyer’s
request, execute and deliver a new securities purchase agreement with respect to the Additional Note Purchase(s) in the same form and
substance as this Agreement.

 

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(j)
Company Conversion Rights. From the date on which the Registration Statement is declared effective by the SEC until
the fifth (5th) calendar day after such date, the Company shall have the right, but not the obligation, in its sole and absolute discretion
to cause the Buyer to exchange all of the Convertible Notes for preferred stock of the Company, provided that such preferred stock has
the same economic terms and conversion rights as the Convertible Notes; provided, further, that the Company may not be entitled to exercise
its right under this Section 4(j) on any day on which the Closing Bid Price (as defined in the applicable Warrant) of the Ordinary Shares
as of one (1) Trading Day prior to such date is less than $0.25.

 

(k)
Additional Issuance of Securities. The Company agrees that
during the Restricted Period, the Company shall not directly or indirectly issue, offer, sell, grant any option or right to purchase,
or otherwise dispose of (or announce any issuance, offer, sale, grant of any option or right to purchase or other disposition of) any
equity security or any equity-linked or related security (including, without limitation, any “equity security” (as that term
is defined under Rule 405 promulgated under the 1933 Act), any Convertible Securities, debt (with or related to equity), any preferred
stock or any purchase rights) (“Additional Issuance”). Notwithstanding the foregoing, this Section 4(k) shall not apply
in respect of the issuance of the following: (i) Ordinary Shares or standard options to purchase Ordinary Shares to directors (who are
also employees of the Company), officers, employees or consultants of the Company pursuant to an Approved Share Plan (as defined below),
provided that the exercise price of any such options is not lowered, none of such options are amended to increase the number of shares
issuable thereunder and none of the terms or conditions of any such options are otherwise materially changed in any manner that adversely
affects Buyer; (ii) Ordinary Shares issued upon the conversion or exercise of Convertible Securities issued prior to the date hereof,
provided that the conversion or exercise (as the case may be) of any such Convertible Security is made solely pursuant to the conversion
or exercise (as the case may be) provisions of such Convertible Security that were in effect on the date immediately prior to the date
of this Agreement, the conversion or exercise price of any such Convertible Securities is not lowered, none of such Convertible Securities
are amended or waived in any manner (whether by the Company or the holder thereof) to increase the number of shares issuable thereunder
and none of the terms or conditions of any such Convertible Securities are otherwise materially changed or waived (whether by the Company
or the holder thereof) in any manner that adversely affects Buyer; (iii) the Convertible Notes; (iv) Conversion Shares; (v) the Warrants;
and (vi) the Warrant Shares; and (vii) the issuance of approximately 14.6 million shares in regards to the Company’s acquisition
of 51% of Holu Hou Energy LLC where such shares do not have registration rights and the majority of such shares will be held in escrow
until after December 31, 2023. The Company further agrees that, without prior consent of the Buyer, until the earlier of (A) twelve (12)
months after the Second Closing or (b) the date on which Buyer has sold or disposed of all Securities, the Company will not issue any
floating conversion rate or variable priced securities convertible into Ordinary Shares.

 

(l)
Lock-Up Period. The Company will cause each of its directors and officers to furnish or, where the Ordinary Shares or other
securities referred to below are held by an entity represented by the relevant director or officer rather than by the director or officer
himself, cause such entity to furnish, prior to the Closing Date, a letter pursuant to which each such person shall agree not to directly
or indirectly offer, sell, assign, transfer, pledge, contract to sell, or otherwise transfer or dispose of any Ordinary Shares or securities
convertible into or exercisable or exchangeable for Ordinary Shares or enter into any derivative or other transaction having substantially
similar economic effect with respect to the shares of the Company or any such securities or announce publicly their intention to do any
of the foregoing during the Restricted Period, without the prior written consent of Buyer, subject to customary exceptions.

 

(m)
Reservation of Shares. As long as any of the Convertible Notes and Warrants remain outstanding, the Company shall take all
action necessary to at all times have authorized and reserved for the purpose of issuance no less than 200% of the Ordinary Shares issuable
upon conversion of the Convertible Note (assuming the Convertible Notes are exercisable in full and without regard to any limitations
on the exercise of the Convertible Notes set forth therein) and no less than 200% of the Ordinary Shares issuable upon exercise of the
Warrants (assuming the Warrants are exercisable in full and without regard to any limitations on the exercise of the Warrants set forth
therein).

 

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(n)
Transfer Agent. As long as any of the Convertible Notes and Warrants remain outstanding, the Company shall not terminate,
release, replace, or otherwise change its transfer agent without the prior written consent of the Buyer, which may be given, withheld
or conditioned in the Buyer’s sole discretion. As long as any of the Convertible Notes and Warrants remain outstanding, the Company
shall cause its transfer agent to participate in the DTC Fast Automated Securities Transfer Program.

 

(o)
Conduct of Business. The business of the Company shall not be conducted in violation of any law, ordinance or regulation
of any governmental entity, except where such violations would not result, either individually or in the aggregate, in a Material Adverse
Effect.

 

(p)
Passive Foreign Investment Company. The Company shall conduct its business in such a manner as will ensure that the Company
will not be deemed to constitute a passive foreign investment company within the meaning of Section 1297 of the U.S. Internal Revenue
Code of 1986, as amended.

 

(q)
Corporate Existence. So long as Buyer owns any Convertible Notes or Warrants, the Company shall not be party to any Fundamental
Transaction (as defined in the Convertible Notes and Warrants) unless the Company is in compliance with the applicable provisions governing
Fundamental Transactions set forth in the Convertible Notes and Warrants.

 

(r)
Due Diligence. In connection with any reasonable request by Buyer made in connection with the filing of the Registration
Statement, or any amendment or supplement thereto, Buyer shall have the right, from time to time as Buyer may reasonably deem appropriate,
to perform reasonable due diligence on the Company during normal business hours and subject to reasonable prior notice to the Company.
The Company and its officers and employees shall provide information (“Confidential Information”) and reasonably cooperate
with Buyer in connection with Buyer’s due diligence; provided, however, that at no time is the Company required or permitted to
disclose material nonpublic information to Buyer or breach any obligation of confidentiality or non-disclosure to a third party or make
any disclosure that could cause a waiver of attorney-client privilege. Except as may be required by law, court order or governmental authority,
each party hereto agrees not to disclose any Confidential Information of the other party to any third party and shall not use the Confidential
Information of such other party for any purpose other than in connection with, or in furtherance of, the transactions contemplated hereby.
In the event a party is required by law, court order or governmental authority to disclose the Confidential Information of the other party,
such party shall give the other party written notice of the information to be disclosed as far in advance of its disclosure as practicable
and use its commercially reasonable efforts, and shall reasonably cooperate with the other party’s efforts, to obtain assurances
that confidential treatment will be accorded such information. Each party hereto acknowledges that the Confidential Information shall
remain the property of the disclosing party and agrees that it shall take all reasonable measures to protect the secrecy of any Confidential
Information disclosed by the other party.

 

(s)
Indebtedness. During the Restricted Period, the Company shall not, and the Company shall cause each of its Subsidiaries
to not, directly or indirectly, incur any Indebtedness of the Company or any of the Subsidiaries, or amend or modify any Indebtedness
in such a manner that increases the Indebtedness of the Company or results in such Indebtedness being, secured by any Lien on any assets
of the Company. Notwithstanding the foregoing, the Company’s Subsidiaries may incur Indebtedness; provided, however, that such Indebtedness
is not guaranteed by the Company and does not result in any Lien on any assets of the Company.

 

		5.	REGISTER; TRANSFER AGENT INSTRUCTIONS; LEGEND.

 

(a)
Register. The Company shall maintain at its principal executive offices (or such other office or agency of the Company as
it may designate by notice to each holder of Securities), a register for the Convertible Notes and the Warrants in which the Company shall
record the name and address of the Person in whose name the Convertible Notes and the Warrants have been issued (including the name and
address of each transferee) reflecting the principal amount of the Convertible Notes and the Warrants held by such Person. The Company
shall keep the register open and available at all times during business hours for inspection by Buyer or its legal representatives.

 

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(b)
Transfer Agent Instructions. The Company shall issue irrevocable instructions to its transfer agent and any subsequent transfer
agent in a form acceptable to Buyer to credit shares to the applicable balance accounts at The Depository Trust Company (“DTC”),
registered in the name of Buyer or its respective nominee(s), for the Conversion Shares and the Warrant Shares in such amounts as specified
from time to time by Buyer to the Company, and confirmed by the Company, upon the conversion of the Convertible Notes or the exercise
of the Warrants (as the case may be). The Company represents and warrants that no instruction other than such irrevocable transfer agent
instructions referred to in this Section 5(b), and stop transfer instructions to give effect to Section 2(f) hereof, will be given by
the Company to its transfer agent with respect to the Securities, and that the Securities shall otherwise be freely transferable on the
books and records of the Company, as applicable, to the extent provided in this Agreement and the other Transaction Documents. If Buyer
effects a sale, assignment or transfer of the Securities in accordance with Section 2(f), the Company shall permit the transfer and shall
promptly instruct its transfer agent to credit shares to the applicable balance accounts at DTC in such name and in such denominations
as specified by Buyer to effect such sale, transfer or assignment. In the event that such sale, assignment or transfer involves Conversion
Shares or Warrant Shares sold, assigned or transferred pursuant to an effective registration statement or in compliance with Rule 144
or another exemption from registration, the transfer agent shall issue such shares to Buyer, assignee or transferee (as the case may be)
without any restrictive legend in accordance with Section 5(d) below. The Company acknowledges that a breach by it of its obligations
hereunder will cause irreparable harm to Buyer. Accordingly, the Company acknowledges that the remedy at law for a breach of its obligations
under this Section 5(b) will be inadequate and agrees, in the event of a breach or threatened breach by the Company of the provisions
of this Section 5(b), that Buyer shall be entitled, in addition to all other available remedies, to an order and/or injunction restraining
any breach and requiring immediate issuance and transfer, without the necessity of showing economic loss and without any bond or other
security being required. The Company shall cause its counsel to issue the legal opinion referred to in the irrevocable transfer agent
instructions to the Company’s transfer agent on the applicable Closing Date. Any fees (with respect to the transfer agent, counsel
to the Company or otherwise) associated with the issuance of such opinion or the removal of any legends on any of the Securities shall
be borne by the Company.

 

(c)
Legends. Buyer understands that the Securities have been issued (or will be issued in the case of the Conversion Shares
and Warrant Shares) pursuant to an exemption from registration or qualification under the 1933 Act and applicable state securities laws,
and except as set forth below, the Securities shall bear any legend as required by the “blue sky” laws of any state and a
restrictive legend in substantially the following form (and a stop-transfer order may be placed against transfer of such stock certificates):

 

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

 

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(d)
Removal of Legends. Certificates evidencing Securities shall not be required to contain the legend set forth in Section
5(c) above or any other legend (i) while a registration statement (including the Registration Statement) covering the resale of such Securities
is effective under the 1933 Act (provided that Buyer provides the Company with any certificates from Buyer or its broker reasonably required
by the Company’s transfer agent), (ii) following any sale of such Securities pursuant to Rule 144 (assuming the transferor is not
an affiliate of the Company) or a registration statement, (iii) if such Securities are eligible to be sold, assigned or transferred under
Rule 144 without current public information being available and without volume and manner of sale limitations (provided that Buyer provides
the Company with reasonable assurances that such Securities are eligible for sale, assignment or transfer under Rule 144, which shall
not include an opinion of counsel, but which may include any certificates from Buyer or its broker reasonably required by the Company’s
transfer agent), (iv) in connection with a sale, assignment or other transfer (other than under Rule 144), provided that Buyer provides
the Company with an opinion of counsel to Buyer from reputable counsel to the effect that such sale, assignment or transfer of the Securities
may be made without registration under the applicable requirements of the 1933 Act or (v) if such legend is not required under applicable
requirements of the 1933 Act (including, without limitation, controlling judicial interpretations and pronouncements issued by the SEC).
If a legend is not required pursuant to the foregoing, the Company shall no later than five (5) Trading Days following either (x) the
delivery by Buyer to the Company or the transfer agent (with notice to the Company) of a legended certificate representing such Securities
(endorsed or with stock powers attached, signatures guaranteed, and otherwise in form necessary to affect the reissuance and/or transfer,
if applicable), or (y) the delivery by Buyer to the Company of a notice of exercise or conversion, in each case, together with any other
deliveries from Buyer as may be required above in this Section 5(d), as directed by Buyer, credit the aggregate number of Ordinary Shares
to which Buyer shall be entitled to Buyer’s or its designee’s balance account with DTC through its Deposit/Withdrawal at Custodian
system (the date by which such credit is so required to be made to the balance account of Buyer’s or Buyer’s nominee with
DTC pursuant to the foregoing is referred to herein as the “Required Delivery Date”).

 

(e)
Failure to Timely Deliver; Buy-In. If the Company fails to issue and credit (or cause to be credited) by the Required Delivery
Date to the balance account of Buyer’s or Buyer’s nominee with DTC for such number of Securities so required to be delivered
by the Company, then, in addition to all other remedies available to Buyer, at the sole discretion of Buyer, the Company shall:

 

(i) pay
in cash to Buyer on each Trading Day after the Required Delivery Date that the issuance or credit of such shares is not timely effected
an amount equal to 1% of the product of (A) the number of Ordinary Shares not so delivered or credited (as the case may be) to Buyer or
Buyer’s nominee multiplied by (B) the Closing Sale Price of the Ordinary Shares on the Trading Day immediately preceding the Required
Delivery Date; or

 

(ii) if
on or after the Required Delivery Date, Buyer (or any other Person in respect, or on behalf, of Buyer) purchases (in an open market transaction
or otherwise) Ordinary Shares (“Replacement Shares”) to deliver in satisfaction of a sale by Buyer of all or any portion
of the number of Ordinary Shares, or a sale of a number of Ordinary Shares equal to all or any portion of the number of Ordinary Shares,
that Buyer so anticipated receiving from the Company without any restrictive legend, then, within five (5) Trading Days after Buyer’s
request and in Buyer’s sole discretion, either (x) pay cash to Buyer in an amount equal to Buyer’s total purchase price (including
brokerage commissions and other out-of-pocket expenses, if any) for the Replacement Shares (the “Buy-In Price”), at
which point the Company’s obligation to credit Buyer’s balance account shall terminate and such shares shall be cancelled
or (B) promptly honor its obligation to so deliver to credit Buyer’s DTC account representing such number of Ordinary Shares that
would have been so delivered if the Company timely complied with its obligations hereunder and pay cash to Buyer in an amount equal to
the excess (if any) of the Buy-In Price over the product of (1) such number of Ordinary Shares that the Company was required to deliver
to Buyer by the Required Delivery Date multiplied by (2) the lowest Closing Sale Price of the Ordinary Shares on any Trading Day during
the period commencing on the date Buyer purchased Replacement Shares and ending on the date of such delivery and payment under this clause
(ii).

 

(f)
Manner of Sale. Buyer agrees with the Company that Buyer will sell any Securities pursuant to either the registration requirements
of the 1933 Act, including any applicable prospectus delivery requirements, or an exemption therefrom, and acknowledges that the removal
of the restrictive legend from certificates representing Securities as set forth in this Section 5 is predicated upon the Company’s
reliance upon this understanding.

 

    18

     

    

 

		6.	CONDITIONS TO THE COMPANY’S OBLIGATION TO SELL.

 

(a)
The obligation of the Company hereunder to issue and sell the Convertible Note and the related Warrants to Buyer at the applicable
Closing is subject to the satisfaction, at or before the applicable Closing Date, of each of the following conditions, provided that these
conditions are for the Company’s sole benefit and may be waived by the Company at any time in its sole discretion by providing Buyer
with prior written notice thereof:

 

(i)
Buyer shall have executed each of the other Transaction Documents to which it is a party and delivered the same to the Company.

 

(ii)
Buyer shall have delivered to the Company the applicable Closing Payment for the Convertible Notes and Warrants being purchased
by Buyer at such Closing by wire transfer of immediately available funds pursuant to the wire instructions provided by the Company.

 

(iii)
The representations and warranties of Buyer shall be true and correct in all material respects as of the date when made and as
of the applicable Closing Date as though originally made at that time (except for representations and warranties that speak as of a specific
date, which shall be true and correct as of such date), and Buyer shall have performed, satisfied and complied in all material respects
with the covenants, agreements and conditions required by this Agreement to be performed, satisfied or complied with by Buyer at or prior
to the applicable Closing Date.

 

		7.	CONDITIONS TO BUYER’S OBLIGATION TO PURCHASE.

 

(a)
The obligation of Buyer hereunder to purchase its Convertible Note and related Warrants at the applicable Closing is subject to
the satisfaction, at or before the applicable Closing Date and in respect of each such Closing Date, of each of the following conditions,
provided that these conditions are for Buyer’s sole benefit and may be waived by Buyer at any time in its sole discretion by providing
the Company with prior written notice thereof:

 

(i)
The Company shall have duly executed and delivered to Buyer each of the Transaction Documents to which it is a party and the Company
shall have duly executed and delivered to Buyer the Convertible Note and Warrants as is set forth on the Buyer Schedules and the Company
shall have complied in all respects with all obligations under this Agreement and the other Transaction Documents, including, without
limitation, the Convertible Note and the Warrants.

 

(ii)
The Company shall have delivered to Buyer a certificate, in the form previously provided to the Company by Buyer, executed by the
Secretary of the Company and dated as of the Closing Date, as to (i) the resolutions consistent with Section 3(b) as adopted by the Company’s
board of directors in a form reasonably acceptable to Buyer, and (ii) the Memorandum of Association and bylaws (or comparable charter
documents) of the Company as in effect at the Closing.

 

(iii)
Each and every representation and warranty of the Company shall be true and correct in all material respects as of the date when
made and as of the applicable Closing Date as though originally made at that time (except for representations and warranties that speak
as of a specific date, which shall be true and correct in all material respects as of such date) and the Company shall have performed,
satisfied and complied in all material respects with the covenants, agreements and conditions required to be performed, satisfied or complied
with by the Company at or prior to the applicable Closing Date, including, without limitation, the issuance of all Securities prior to
the date of the applicable Closing as required by the Transaction Documents. Buyer shall have received a certificate, executed by the
Chief Executive Officer of the Company, dated as of the Closing Date, to the foregoing effect and as to such other matters as may be reasonably
requested by Buyer in the form reasonably acceptable to Buyer.

 

(iv)
The Company shall have delivered to Buyer information from the Company’s transfer agent certifying the number of Ordinary
Shares outstanding on the applicable Closing Date immediately prior to the applicable Closing.

 

    19

     

    

 

(v)
The Registrable Securities shall be designated for quotation on the Principal Market and the Ordinary Shares shall not have been
suspended, as of the applicable Closing Date, by the SEC or the Principal Market from trading on the Principal Market nor shall suspension
by the SEC or the Principal Market have been threatened, as of the applicable Closing Date, either (A) in writing by the SEC or the Principal
Market or (B) by falling below the minimum maintenance requirements of the Principal Market; since January 1, 2021, the Company shall
have timely complied (without regard to any extensions) with all filing and reporting obligations under the federal securities laws; and
the Company shall be in compliance with all requirements in order to maintain quotation on the Principal Market (including reporting requirements
under the 1934 Act).

 

(vi)
Prior to the Second Closing, the Initial Registration Statement (as defined in the Registration Rights Agreement) covering the
sale of all of the Registrable Securities shall have been declared effective under the 1933 Act by the SEC and no stop order with respect
thereto shall be pending or threatened by the SEC. The Company shall have made all filings (including the Prospectus Supplement) under
applicable federal and state securities laws necessary to consummate the sale of the Registrable Securities pursuant to the Registration
Statement and in compliance with such laws.

 

(vii)  
Deleted.

 

(viii)
The Company shall have obtained all governmental, regulatory or third party consents and approvals, if any, necessary for the sale
of the Securities, including, without limitation, those required by the Principal Market.

 

(ix)
No statute, rule, regulation, executive order, decree, ruling or injunction shall have been enacted, entered, promulgated or endorsed
by any court or governmental authority of competent jurisdiction that prohibits the consummation of any of the transactions contemplated
by the Transaction Documents, and no actions, suits or proceedings shall be in progress or pending by any Person that seeks to enjoin,
prohibit or otherwise adversely affect any of the transactions contemplated by the Transaction Documents.

 

(x)
Since the date of execution of this Agreement, the Company has not filed for nor is it subject to any bankruptcy, insolvency, reorganization
or liquidation proceedings or other proceedings for relief under any bankruptcy law or any law for the relief of debtors instituted by
or against the Company.

 

(xi)
The Company shall have delivered to Buyer such other documents, instruments or certificates relating to the transactions contemplated
by this Agreement reasonably required to consummate the transactions contemplated hereby.

 

		8.	TERMINATION.

 

In the event that the First
Closing shall not have occurred within ten (10) days after the date hereof, then Buyer shall have the right to terminate its obligations
under this Agreement at any time on or after the close of business on such date without liability of Buyer to any other party; provided,
however, the right to terminate this Agreement under this Section 8 shall not be available to Buyer if the failure of the transactions
contemplated by this Agreement to have been consummated by such date is the result of Buyer’s breach of this Agreement. In the event
that the Second Closing shall not have occurred by ten (10) days following the date on which the Registration Statement is declared effective
by the SEC, then the Buyer shall have the right at the close of business on such date, or any date thereafter, to terminate the obligations
hereunder of the parties to consummate the Second Closing without further liability of the parties to one another in respect thereof;
provided, however, the right to terminate this Agreement under this Section 8 shall not be available to the Buyer if the failure of the
transactions contemplated by this Agreement to have been consummated by such date is the result of the Buyer’s breach of this Agreement
or if the Buyer is otherwise in breach of this Agreement or any other Transaction Document. In the event that the Second Closing shall
not have occurred by thirty (30) days following the date on which the Registration Statement is declared effective by the SEC, then at
the close of business on such date the parties’ obligations hereunder to consummate the Second Closing shall automatically terminate
without further liability of the parties to one another in respect thereof. Notwithstanding anything to the contrary above, nothing contained
in this Section 8 shall be deemed to release any party from any liability for any breach by such party of the terms and provisions of
this Agreement or the other Transaction Documents or to impair the right of any party to compel specific performance by any other party
of its obligations under this Agreement or the other Transaction Documents.

 

    20

     

    

 

		9.	CERTAIN DEFINITIONS

 

(a)
1934 Act. The “1934 Act” means the Securities Exchange Act of 1934, as amended.

 

(b)
Approved Share Plan. “Approved Share Plan” means the 2017 Equity Incentive Plan as approved by the Company’s
shareholders prior to the date hereof.

 

(c)
Business Day. “Business Day” means any day other than a Saturday, Sunday or other day on which commercial
banks in New York, New York are authorized or required by law to remain closed.

 

(d)
Closing Sale Price. “Closing Sale Price” shall mean for any security as of any date, the last closing
trade price for such security on the principal securities exchange or trading market where such security is listed or traded, as reported
by Bloomberg, L.P. (“Bloomberg”), or if the foregoing do not apply, the average of the bid prices of all of the market makers
for such security as reported in the “pink sheets” by OTC Markets Group Inc. (formerly Pink Sheets LLC). All such determinations
shall be appropriately adjusted for any stock dividend, stock split, stock combination or other similar transaction during such period.

 

(e)
Contingent Obligation. “Contingent Obligation” means, as to any Person, any direct or indirect liability,
contingent or otherwise, of that Person with respect to any Indebtedness, lease, dividend or other obligation of another Person if the
primary purpose or intent of the Person incurring such liability, or the primary effect thereof, is to provide assurance to the obligee
of such liability that such liability will be paid or discharged, or that any agreements relating thereto will be complied with, or that
the holders of such liability will be protected (in whole or in part) against loss with respect thereto.

 

(f)
Convertible Securities. “Convertible Securities” means any capital stock or other security of the Company
that is at any time and under any circumstances directly or indirectly convertible into, exercisable or exchangeable for, or which otherwise
entitles the holder thereof to acquire, any capital stock or other security of the Company (including, without limitation, Ordinary Shares).

 

(g)
Environmental Laws. “Environmental Laws” means all federal, state, local or foreign laws relating to
pollution or protection of human health or the environment (including, without limitation, ambient air, surface water, groundwater, land
surface or subsurface strata), including, without limitation, laws relating to emissions, discharges, releases or threatened releases
of chemicals, pollutants, contaminants, or toxic or hazardous substances or wastes (collectively, “Hazardous Materials”)
into the environment, or otherwise relating to the manufacture, processing, distribution, use, treatment, storage, disposal, transport
or handling of Hazardous Materials, as well as all authorizations, codes, decrees, demands or demand letters, injunctions, judgments,
licenses, notices or notice letters, orders, permits, plans or regulations issued, entered, promulgated or approved thereunder.

 

(h)
Indebtedness. “Indebtedness” of any Person means, without duplication (A) all indebtedness for borrowed
money, (B) all obligations issued, undertaken or assumed as the purchase price of property or assets, including indebtedness created or
arising under any conditional sale or other title retention agreement, or incurred as financing, in either case with respect to any property
or assets acquired with the proceeds of such indebtedness (even though the rights and remedies of the seller or bank under such agreement
in the event of default are limited to repossession or sale of such property), other than trade payables entered into in the ordinary
course of business, (C) all reimbursement or payment obligations with respect to letters of credit, surety bonds and other similar instruments,
(D) all obligations evidenced by notes, bonds, debentures or similar instruments, (E) all monetary obligations under any leasing or similar
arrangement which, in connection with generally accepted accounting principles, consistently applied for the periods covered thereby,
is classified as a capital lease, (F) all indebtedness referred to in clauses (A) through (E) above secured by (or for which the holder
of such Indebtedness has an existing right, contingent or otherwise, to be secured by) any mortgage, lien, pledge, charge, security interest
or other encumbrance upon or in any material property or assets (including accounts and contract rights) owned by such Person, even though
the Person has not assumed or become liable for the payment of such indebtedness, and (G) all Contingent Obligations in respect of indebtedness
or obligations of others of the kinds referred to in clauses (A) through (F) above.

 

    21

     

    

 

(i)
Insolvent. “Insolvent” means the present fair saleable value of the Company’s assets is less than
the amount required to pay the Company’s total Indebtedness (as defined below).

 

(j)
Lien. “Lien” means any lien, mortgage, pledge, encumbrance, charge, security interest, adverse claim,
liability, interest, charge, preference, priority, proxy, transfer restriction (other than restrictions under the 1933 Act and state securities
laws), encroachment, tax, order, community property interest, equitable interest, option, warrant, right of first refusal, easement, profit,
license, servitude, right of way, covenant or zoning restriction.

 

(k)
Material Adverse Effect. “Material Adverse Effect” means any material adverse effect on (i) the business,
properties, assets, liabilities, operations (including results thereof), condition (financial or otherwise) or prospects of the Company
and its Subsidiaries, taken as a whole, (ii) the transactions contemplated hereby or in any of the other Transaction Documents or (iii)
the authority or ability of the Company or any of its Subsidiaries to perform any of its respective obligations under any of the Transaction
Documents (as defined below); provided, however, that clause (i) shall not include any event, circumstance, change or effect
resulting from (x) a change in general economic conditions (including, without limitation, the effect of the COVID-19 global pandemic)
or a change in securities markets in general, provided that, in each case, such change does not have a materially disproportionate effect
(relative to other industry participants) on the Company or the Company Subsidiaries, (y) a general change in the industries in which
the Company and the Company Subsidiaries operate, except an event, circumstance, change or effect that adversely affects the Company and
its Subsidiaries to a materially greater extent than it affects other entities operating in such industries, (z) the public announcement
or pendency of the transactions contemplated hereby or the Company’s or the Company Subsidiaries’ compliance with the terms
and conditions of this Agreement or actions taken or not taken by the Company or the Company Subsidiaries upon the request of the Buyer,
(xx) changes in Laws or (yy) changes in GAAP of general applicability or generally applicable to the Company’s or Company Subsidiaries’
industry segment.

 

(l)
Maximum Percentage. “Maximum Percentage” means 9.9%.

 

(m)
Ordinary Shares. “Ordinary Shares” means the Ordinary shares, no par value, of the Company and any other
shares of stock issued or issuable with respect thereto (whether by way of a stock dividend or stock split or in exchange for or upon
conversion of such shares or otherwise in connection with a combination of shares, distribution, recapitalization, merger, consolidation,
other corporate reorganization or other similar event with respect to the Ordinary Shares).

 

(n)
Person. “Person” means an individual, a limited liability company, a partnership, a joint venture, a
corporation, a trust, an unincorporated organization, any other entity and a government or any department or agency thereof.

 

 (o) Principal Market. “Principal Market” means the Nasdaq Capital Market.

 

(p)
Registrable Securities. “Registrable Securities” means (i) the Conversion Shares, (ii) the Warrant Shares
and (iii) any capital stock of the Company issued or issuable with respect to such Conversion Shares, the Warrant Shares, the Convertible
Notes or the Warrants, including, without limitation, (1) as a result of any stock split, stock dividend, recapitalization, exchange or
similar event or otherwise and (2) shares of capital stock of the Company into which the Ordinary Shares is converted or exchanged and
shares of capital stock of a Successor Entity (as defined in the Warrants) into which the Ordinary Shares are converted or exchanged,
in each case, without regard to any limitations on exercise or exchange of the Warrants. As to any Registrable Securities, such securities
shall cease to be Registrable Securities when: (a) a registration statement with respect to the sale of such securities shall have become
effective under the 1933 Act and such securities shall have been sold, transferred, disposed of or exchanged in accordance with such registration
statement; (b) such securities shall have been otherwise transferred, new certificates for them not bearing a legend restricting further
transfer shall have been delivered by the Company, and subsequent public distribution of them shall not require registration under the
1933 Act; or (c) such securities are freely saleable under Rule 144 under the 1933 Act without the requirement for current public information
and without volume or manner of sale limitations.

 

(q)
Registration Rights Agreement. “Registration Rights Agreement” means that certain Registration Rights
Agreement, between the Company and the Purchaser, dated as of the date hereof, in the form attached hereto as Exhibit C.

 

(r)
Registration Statement. “Registration Statement” has the meaning set forth in the Registration Rights
Agreement.

 

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(s)
Restricted Period. “Restricted Period” means the period commencing on the Execution Date and ending on
the earlier of (i) the date immediately following the six month anniversary after the Registration Statement has been declared effective
by the SEC (provided that the Company has maintained an effective registration statement to cover the resale of Registrable Securities
in accordance with the Registration Rights Agreement) and (ii) the 90th day after the Securities purchased hereunder are saleable under
Rule 144 without the requirement for current public information and without volume or manner of sale limitations.

 

(t)
Securities. “Securities” means the Convertible Notes, the Conversion Shares, the Warrants and the Warrant
Shares.

 

(u)
Subsidiary. “Subsidiary” means any Person in which the Company, directly or indirectly, (I) owns any
of the outstanding capital stock or holds any equity or similar interest of such Person or (II) controls or operates all or any part of
the business, operations or administration of such Person; provided, that after the Execution Date, a Person (other than Subsidiaries
as of the Subscription Date) shall not become a Subsidiary pursuant to clause (I) unless the Company, directly or indirectly, owns at
least 10% of any of the outstanding capital stock or holds at least 10% of any equity or similar interest of such person.

 

(v)
Trading Day. “Trading Day” means, as applicable, (x) with respect to all price determinations relating
to the Ordinary Shares, any day on which the Ordinary Shares are traded on the principal securities exchange or securities market on which
the Ordinary Shares are then traded, provided that “Trading Day” shall not include any day on which the Ordinary Shares are
scheduled to trade on such exchange or market for less than 4.5 hours or any day that the Ordinary Shares are suspended from trading during
the final hour of trading on such exchange or market (or if such exchange or market does not designate in advance the closing time of
trading on such exchange or market, then during the hour ending at 4:00:00 p.m., New York time) unless such day is otherwise designated
as a Trading Day in writing by the Holder or (y) with respect to all determinations other than price determinations relating to the Ordinary
Shares, any day on which The New York Stock Exchange (or any successor thereto) is open for trading of securities.

 

(w)
Transaction Documents. “Transaction Documents” means, collectively, this Agreement, the Convertible Notes,
the Warrants, the Registration Rights Agreement and each of the other agreements and instruments entered into or delivered by any of the
parties hereto in connection with the transactions contemplated hereby and thereby, as may be amended from time to time.

 

		10.	MISCELLANEOUS.

 

(a)
Governing Law; Jurisdiction; Jury Trial.

 

All questions concerning the
construction, validity, enforcement and interpretation of this Agreement and the other Transaction Documents shall be governed by the
internal laws of the State of New York, without giving effect to any choice of law or conflict of law provision or rule (whether of the
State of New York or any other jurisdictions) that would cause the application of the laws of any jurisdictions other than the State of
New York. Each party hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting in The City of New
York, Borough of Manhattan, for the adjudication of any dispute hereunder or under any of the other Transaction Documents or in connection
herewith or therewith or with any transaction contemplated hereby or thereby or discussed herein or therein, and hereby irrevocably waives,
and agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of any such
court, that such suit, action or proceeding is brought in an inconvenient forum or that the venue of such suit, action or proceeding is
improper. Each party hereby irrevocably waives personal service of process and consents to process being served in any such suit, action
or proceeding by mailing a copy thereof to such party at the address for such notices to it under this Agreement and agrees that such
service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit
in any way any right to serve process in any manner permitted by law. Nothing contained herein shall be deemed or operate to preclude
Buyer from bringing suit or taking other legal action against the Company in any other jurisdiction to collect on the Company’s
obligations to Buyer or to enforce a judgment or other court ruling in favor of Buyer. EACH PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT
IT MAY HAVE TO, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION WITH OR ARISING
OUT OF THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY.

 

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(b)
Counterparts. This Agreement may be executed in two or more identical counterparts, all of which shall be considered one
and the same agreement and shall become effective when counterparts have been signed by each party and delivered to the other party. In
the event that any signature is delivered by facsimile transmission or by an e-mail which contains a portable document format (.pdf) file
of an executed signature page, such signature page shall create a valid and binding obligation of the party executing (or on whose behalf
such signature is executed) with the same force and effect as if such signature page were an original thereof.

 

(c)
Headings; Gender. The headings of this Agreement are for convenience of reference and shall not form part of, or affect
the interpretation of, this Agreement. Unless the context clearly indicates otherwise, each pronoun herein shall be deemed to include
the masculine, feminine, neuter, singular and plural forms thereof. The terms “including,” “includes,” “include”
and words of like import shall be construed broadly as if followed by the words “without limitation.” The terms “herein,”
“hereunder,” “hereof” and words of like import refer to this entire Agreement instead of just the provision in
which they are found.

 

(d)
Severability. If any provision of this Agreement is prohibited by law or otherwise determined to be invalid or unenforceable
by a court of competent jurisdiction, the provision that would otherwise be prohibited, invalid or unenforceable shall be deemed amended
to apply to the broadest extent that it would be valid and enforceable, and the invalidity or unenforceability of such provision shall
not affect the validity of the remaining provisions of this Agreement so long as this Agreement as so modified continues to express, without
material change, the original intentions of the parties as to the subject matter hereof and the prohibited nature, invalidity or unenforceability
of the provision(s) in question does not substantially impair the respective expectations or reciprocal obligations of the parties or
the practical realization of the benefits that would otherwise be conferred upon the parties. The parties will endeavor in good faith
negotiations to replace the prohibited, invalid or unenforceable provision(s) with a valid provision(s), the effect of which comes as
close as possible to that of the prohibited, invalid or unenforceable provision(s).

 

(e)
Entire Agreement; Amendments. This Agreement, the other Transaction Documents and the schedules and exhibits attached hereto
and thereto and the instruments referenced herein and therein supersede all other prior oral or written agreements between the Buyer,
the Company, its affiliates and Persons acting on its behalf solely with respect to the matters contained herein and therein, and this
Agreement, the other Transaction Documents, the schedules and exhibits attached hereto and thereto and the instruments referenced herein
and therein contain the entire understanding of the parties solely with respect to the matters covered herein and therein. Except as specifically
set forth herein or therein, neither the Company nor Buyer makes any representation, warranty, covenant or undertaking with respect to
such matters. For clarification purposes, the Recitals are part of this Agreement. No provision of this Agreement may be amended other
than by an instrument in writing signed by the Company and Buyer. No waiver shall be effective unless it is in writing and signed by an
authorized representative of the waiving party. No consideration shall be offered or paid to any Person to amend or consent to a waiver
or modification of any provision of any of the Transaction Documents unless the same consideration also is offered to all of the parties
to the Transaction Documents or all holders of the Warrants (as the case may be). The Company has not, directly or indirectly, made any
agreements with Buyer relating to the terms or conditions of the transactions contemplated by the Transaction Documents except as set
forth in the Transaction Documents. Without limiting the foregoing, the Company confirms that, except as set forth in this Agreement,
no Buyer has made any commitment or promise or has any other obligation to provide any financing to the Company or otherwise. As a material
inducement for Buyer to enter into this Agreement, the Company expressly acknowledges and agrees that (i) no due diligence or other investigation
or inquiry conducted by Buyer, any of its advisors or any of its representatives shall affect Buyer’s right to rely on, or shall
modify or qualify in any manner or be an exception to any of, the Company’s representations and warranties contained in this Agreement
or any other Transaction Document and (ii) unless a provision of this Agreement or any other Transaction Document is expressly preceded
by the phrase “except as disclosed in the SEC Documents,” nothing contained in any of the SEC Documents shall affect Buyer’s
right to rely on, or shall modify or qualify in any manner or be an exception to any of, the Company’s representations and warranties
contained in this Agreement or any other Transaction Document.

 

    24

     

    

 

(f)
Notices. Any notices, consents, waivers or other communications required or permitted to be given under the terms of this
Agreement must be in writing and will be deemed to have been delivered when sent, if sent by e-mail (provided that such sent e-mail is
kept on file (whether electronically or otherwise) by the sending party and the sending party does not receive an automatically generated
message from the recipient’s e-mail server that such e-mail could not be delivered to such recipient). The e-mail addresses for
such communications shall be:

 

If to the Company:

 

To the Company:

Borqs Technologies, Inc.

Suite 309, 3/F, Dongfeng KASO

Dongfengbeiqiao, Chaoyang District

Beijing 100016, China

Attention: Pat Sek Yuen Chan, CEO

 

With a copy (for informational purposes
only) to:

 

Sichenzia Ross Ference LLP

1185 Avenue of the Americas, 37th Floor

New York, NY 10036

Attention: Darrin Ocasio, Partner

 

 

If to the Transfer Agent:

 

Continental Stock Transfer & Trust
Company

One State Street, 30th Floor

New York, NY 10004

Attention: George Dalton, Account Administrator

 

If to Buyer:

 

See the Buyer Schedules

 

or to such other e-mail address and/or to the
attention of such other Person as the recipient party has specified by written notice given to each other party five (5) days prior to
the effectiveness of such change. A copy of the e-mail transmission containing the time, date and recipient e-mail address shall be rebuttable
evidence of receipt by e-mail.

 

(g)
Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and its successors
and assigns, including, as contemplated below, any assignee of any of the Securities. The Company shall not assign this Agreement or any
rights or obligations hereunder without the prior written consent of the Buyer, including, without limitation, by way of a Fundamental
Transaction (as defined in the Convertible Notes and Warrants) (unless the Company is in compliance with the applicable provisions governing
Fundamental Transactions set forth in the applicable Convertible Notes and Warrants).

 

    25

     

    

 

(h)
No Third Party Beneficiaries. This Agreement is intended for the benefit of the parties hereto and its permitted successors
and assigns, and is not for the benefit of, nor may any provision hereof be enforced by, any other Person, other than the Indemnitees
referred to in Section 9(k).

 

(i)
Survival. The representations, warranties, agreements and covenants shall survive the Closing. Buyer shall be responsible
only for its representations, warranties, agreements and covenants hereunder.

 

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

 

(k)
Indemnification.

 

(i)
In consideration of Buyer’s execution and delivery of the Transaction Documents and acquiring the Securities thereunder and
in addition to all of the Company’s other obligations under the Transaction Documents, the Company shall defend, protect, indemnify
and hold harmless Buyer and each holder of any Securities and all of their stockholders, partners, members, officers, directors, employees
and direct or indirect investors and any of the foregoing Persons’ agents or other representatives (including, without limitation,
those retained in connection with the transactions contemplated by this Agreement) (collectively, the “Indemnitees”)
from and against any and all actions, causes of action, suits, claims, losses, costs, penalties, fees, liabilities and damages, and reasonable
and documented expenses in connection therewith (irrespective of whether any such Indemnitee is a party to the action for which indemnification
hereunder is sought), and including reasonable attorneys’ fees and disbursements (the “Indemnified Liabilities”),
incurred by any Indemnitee as a result of, or arising out of, or relating to (a) any misrepresentation or breach of any representation
or warranty made by the Company in any of the Transaction Documents, (b) any breach of any covenant, agreement or obligation of the Company
contained in any of the Transaction Documents or (c) any cause of action, suit, proceeding or claim brought or made against such Indemnitee
by a third party (including for these purposes a derivative action brought on behalf of the Company, but other than by an affiliate of
Buyer) or which otherwise involves such Indemnitee that arises out of or results from (i) the execution, delivery, performance or enforcement
of any of the Transaction Documents, (ii) any transaction financed or to be financed in whole or in part, directly or indirectly, with
the proceeds of the issuance of the Securities, (iii) any disclosure properly made by Buyer pursuant to Section 4(h), or (iv) the status
of Buyer or holder of the Securities either as an investor in the Company pursuant to the transactions contemplated by the Transaction
Documents or as a party to this Agreement (including, without limitation, as a party in interest or otherwise in any action or proceeding
for injunctive or other equitable relief), unless such action is based primarily upon a breach of Buyer’s representations, warranties,
or covenants under the Transaction Documents, or any agreements or understandings Buyer may have with any such third party, or any violations
by Buyer of state or federal securities laws or any conduct by Buyer which constitutes fraud, gross negligence or willful misconduct.
To the extent that the foregoing undertaking by the Company may be unenforceable for any reason, the Company shall make the maximum contribution
to the payment and satisfaction of each of the Indemnified Liabilities which is permissible under applicable law.

 

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(ii)
Promptly after receipt by an Indemnitee under this Section 9(k) of notice of the commencement of any action or proceeding (including
any governmental action or proceeding) involving an Indemnified Liability, such Indemnitee shall, if a claim in respect thereof is to
be made against the Company under this Section 9(k), deliver to the Company a written notice of the commencement thereof, and the Company
shall have the right to participate in, and, to the extent the Company so desires, to assume control of the defense thereof with counsel
mutually satisfactory to the Company and the Indemnitee; provided, however, that an Indemnitee shall have the right to retain its own
counsel with the fees and expenses of such counsel to be paid by the Company if: (i) the Company has agreed in writing to pay such fees
and expenses; (ii) the Company shall have failed promptly to assume the defense of such Indemnified Liability and to employ counsel reasonably
satisfactory to such Indemnitee in any such Indemnified Liability; or (iii) the named parties to any such Indemnified Liability (including
any impleaded parties) include both such Indemnitee and the Company, and such Indemnitee shall have been advised by counsel that a conflict
of interest is likely to exist if the same counsel were to represent such Indemnitee and the Company (in which case, if such Indemnitee
notifies the Company in writing that it elects to employ separate counsel at the expense of the Company, then the Company shall not have
the right to assume the defense thereof and such counsel shall be at the expense of the Company), provided further, that in the case of
clause (iii) above the Company shall not be responsible for the reasonable fees and expenses of more than one (1) separate legal counsel
for such Indemnitee. The Indemnitee shall reasonably cooperate with the Company in connection with any negotiation or defense of any such
action or Indemnified Liability by the Company and shall furnish to the Company all information reasonably available to the Indemnitee
which relates to such action or Indemnified Liability. The Company shall keep the Indemnitee reasonably apprised at all times as to the
status of the defense or any settlement negotiations with respect thereto. The Company shall not be liable for any settlement of any action,
claim or proceeding effected without its prior written consent, provided, however, that the Company shall not unreasonably withhold, delay
or condition its consent. The Company shall not, without the prior written consent of the Indemnitee, consent to entry of any judgment
or enter into any settlement or other compromise which does not include as an unconditional term thereof the giving by the claimant or
plaintiff to such Indemnitee of a release from all liability in respect to such Indemnified Liability or litigation, and such settlement
shall not include any admission as to fault on the part of the Indemnitee. Following indemnification as provided for hereunder, the Company
shall be subrogated to all rights of the Indemnitee with respect to all third parties, firms or corporations relating to the matter for
which indemnification has been made. The failure to deliver written notice to the Company within a reasonable time of the commencement
of any such action shall not relieve the Company of any liability to the Indemnitee under this Section 9(k), except to the extent that
the Company is materially and adversely prejudiced in its ability to defend such action.

 

(iii)
The indemnification required by this Section 9(k) shall be made by periodic payments of the amount thereof during the course of
the investigation or defense, as and when bills are received or Indemnified Liabilities are incurred.

 

(iv)
Notwithstanding any provision in this Agreement or any other Transaction Documents, the aggregate indemnification obligations of
the Company pursuant to this Section 9(k) shall not exceed 100% of the aggregate of all Closing Payments actually paid by the Buyer.

 

(v)
The sole and exclusive remedies for any breach of any representation, warranty, covenant or agreement hereunder shall be the indemnification
provided by this Section 9(k), and Buyer expressly waives any other rights or remedies it may have; provided however, that equitable relief,
including remedies of specific performance and injunction, shall be available with respect to any matter where money damages would not
be sufficient to compensate Buyer or to preserve the rights of Buyer pending resolution of a dispute, and this Section 9(k) shall not
relieve the Company from liability for willful misconduct, gross negligence, bad faith, fraud or willful breach of any of its representations,
warranties, covenants or agreements set forth in this Agreement.

 

    27

     

    

 

(l)
Construction. The language used in this Agreement will be deemed to be the language chosen by the parties to express their
mutual intent, and no rules of strict construction will be applied against any party. No specific representation or warranty shall limit
the generality or applicability of a more general representation or warranty. Each and every reference to share prices, Ordinary Shares
and any other numbers in this Agreement that relate to the Ordinary Shares shall be automatically adjusted for stock dividends, stock
splits, stock combinations and other similar transactions that occur with respect to the Ordinary Shares after the date of this Agreement.

 

(m)
Remedies. Buyer and each holder of any Securities shall have all rights and remedies set forth in the Transaction Documents
and all rights and remedies which such holders have been granted at any time under any other agreement or contract and all of the rights
which such holders have under any law. Any Person having any rights under any provision of this Agreement shall be entitled to enforce
such rights specifically (without posting a bond or other security, to the extent permitted by law), to recover damages by reason of any
breach of any provision of this Agreement and to exercise all other rights granted by law. Furthermore, the Company recognizes that in
the event that it fails to perform, observe, or discharge any or all of its obligations under the Transaction Documents, any remedy at
law may prove to be inadequate relief to Buyer. The Company therefore agrees that Buyer shall be entitled to seek specific performance
and/or temporary, preliminary and permanent injunctive or other equitable relief from any court of competent jurisdiction in any such
case without the necessity of proving actual damages and without posting a bond or other security.

 

(n)
Exercise of Right. Notwithstanding anything to the contrary contained in (and without limiting any similar provisions of)
the Transaction Documents, whenever Buyer exercises a right, election, demand or option under a Transaction Document and the Company does
not timely perform its related obligations within the periods therein provided, then Buyer may continue to exercise it other rights, elections,
demands and options hereunder and under any other Transaction Document from time to time as if such original right, election, demand or
option had not been exercised without prejudice to its future actions and rights and remedies.

 

(o)
Payment Set Aside; Currency. To the extent that the Company makes a payment or payments to Buyer hereunder or pursuant to
any of the other Transaction Documents or Buyer enforces or exercises its rights hereunder or thereunder, and such payment or payments
or the proceeds of such enforcement or exercise or any part thereof are subsequently invalidated, declared to be fraudulent or preferential,
set aside, recovered from, disgorged by or are required to be refunded, repaid or otherwise restored to the Company, a trustee, receiver
or any other Person under any law (including, without limitation, any bankruptcy law, foreign, state or federal law, common law or equitable
cause of action), then to the extent of any such restoration the obligation or part thereof originally intended to be satisfied shall
be revived and continued in full force and effect as if such payment had not been made or such enforcement or setoff had not occurred.
Unless otherwise expressly indicated, all dollar amounts referred to in this Agreement and the other Transaction Documents are in United
States Dollars (“U.S. Dollars”), and all amounts owing under this Agreement and all other Transaction Documents shall
be paid in U.S. Dollars. All amounts denominated in other currencies (if any) shall be converted into the U.S. Dollar equivalent amount
in accordance with the Exchange Rate on the date of calculation. “Exchange Rate” means, in relation to any amount of
currency to be converted into U.S. Dollars pursuant to this Agreement, the U.S. Dollar exchange rate as published in the Wall Street Journal
on the relevant date of calculation.

 

[signature
pages follow]

 

    28

     

    

 

IN WITNESS WHEREOF, Buyer
and the Company has caused its signature page to this Agreement to be duly executed as of the date first written above.

 

	 	COMPANY: 
	 	 
	 	BORQS TECHNOLOGIES, INC.
	 	 
	 	By:	 
	 	Name:	Pat Sek Yuen Chan
	 	Title:	Chief Executive Officer

 

     

     

    

 

IN WITNESS WHEREOF,
Buyer and the Company has caused its signature page to this Agreement to be duly executed as of the date first written above.

 

	 	BUYER #1: 
	 	 
	 	ESOUSA HOLDINGS LLC
	 	 
	 	By:	
	 	Name:	Michael Wachs
	 	Title:	Managing Member

 

     

     

    

 

BUYER SCHEDULE #1

 

Name of Buyer: Esousa Holdings LLC

 

Convertible Notes to be purchased
and sold: In consideration of payment of an amount equal to the initial principal amount, Convertible Notes with an aggregate principal
amount of $10,000,000, convertible into Ordinary Shares at a purchase price per Ordinary Share equal to the lower of (i) $[ ]4;
(ii) ninety percent (90%) of the Closing Bid Price of the Ordinary Shares on the date that the Registration Statement is declared effective
by the SEC; (iii) in the event that the Registration Statement is not declared effective by the SEC on an earlier date, a ninety percent
(90%) of the Closing Bid Price of the Ordinary Shares on that date that the Conversion Shares are eligible to be sold, assigned or transferred
under Rule 144 (the “Conversion Price”), subject to down round protection for Additional Issuances at an effective
price per share less than the then-current Conversion Price (as may be adjusted for stock dividends, subdivisions, or combinations in
the manner described in the Convertible Note). The Convertible Notes will have a maturity date of the second (2nd) anniversary
of the applicable Closing Date, unless previously converted, and shall begin to amortize on a quarterly basis beginning 12-months from
the applicable Closing Date. Interest shall accrue on the Convertible Note at 8% annually, payable on a quarterly basis, in either cash
or, in the event the Registration Statement has been declared effective, Ordinary Shares. The Convertible Note shall contain a 9.9% blocker.

 

Buyer will purchase Convertible
Notes with an aggregate principal amount of $5,000,000 at the First Closing. Buyer will purchase Convertible Notes with an aggregate principal
amount of $5,000,000 at the Second Closing.

 

The Buyer shall have the right
to convert all of the Convertible Note into Ordinary Shares at the Conversion Price. The Buyer may exercise this right at any time while
principal under the Convertible Note remains outstanding and unpaid.

 

Warrants to be issued to
Buyer at First Closing: For no additional consideration, five-year Warrants to acquire nine Ordinary Shares for every ten Conversion
Shares initially issuable to Buyer calculated by dividing (x) the aggregate principal amount of all Convertible Notes to be purchased
by Buyer multiplied by nine (9) divided by (y) [ ]5
multiplied by ten (10). Each Warrant shall have an exercise price (the “Exercise Price”) equal to one hundred ten percent
(110%) of the Closing Bid Price of the Ordinary Shares as of two (2) Trading Days prior to the Execution Date (as may be adjusted for
stock dividends, subdivisions, or combinations in the manner described in the Warrants).

 

The Warrants may be exercised
for cash. In addition, the Buyer may elect to redeem the Warrants pursuant to the following formula:

 

Net Number = (A x B)/C

 

For purposes of the foregoing formula:

A= the total number of shares with respect to which the applicable Warrant is then being exercised.

B= Black Scholes Value (as defined in the applicable Warrant).

C= the Closing Bid Price of the Ordinary Shares as of two (2) Trading Days prior to the time of such exercise (as such Closing Bid Price
is defined in the applicable Warrant), but in any event not less than $0.25 (as may be adjusted for stock dividends, subdivisions, or
combinations in the manner described in the Warrant).

 

 

		4	Equal to ninety percent (90%) of the Closing Bid Price of the
Ordinary Shares on the Execution Date.

		5	Equal to ninety percent (90%) of the Closing Bid Price of the
Ordinary Shares on the Execution Date.

 

     

     

    

 

Notice Contact Information

 

Esousa Holdings LLC

211 East 43rd Street

Suite 402

New York, NY 10017

Telephone: (646) 278-6785

Facsimile: (212) 732-1131

Email: michael@esousallc.com

Attention: Michael Wachs

 

with a copy (for informational purposes only) to:

McDermott Will & Emery LLP

340 Madison Ave.

New York, NY 10173

Telephone: (212) 547-5885

E-mail: Rcohen@mwe.com

dwoodard@mwe.com

Attention: Robert Cohen, Esq.

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