Document:

tpic-ex45_611.htm

EXHIBIT 4.5

 

DESCRIPTION OF THE REGISTRANT’S SECURITIES REGISTERED PURSUANT TO SECTION 12 OF THE SECURITIES EXCHANGE ACT OF 1934

 

TPI Composites, Inc. (“TPI,” “Company,” “we,” “us,” and “our”) has one class of securities registered under Section 12 of the Securities Exchange Act of 1934, as amended: our common stock, par value $0.01 per share.

 

DESCRIPTION OF CAPITAL STOCK

 

The following summary of the terms of our capital stock is based upon our Amended and Restated Certificate of Incorporation (the “Certificate of Incorporation”) and our Second Amended and Restated Bylaws (the “Bylaws”). The summary is not complete, and is qualified by reference to our Certificate of Incorporation and our Bylaws, which are filed as exhibits to this Annual Report on Form 10-K and are incorporated by reference herein. The terms of our common stock and preferred stock may also be affected by Delaware law. We encourage you to read our Certificate of Incorporation, our Bylaws, and the applicable provisions of the Delaware General Corporation Law for additional information.

 

Authorized Shares of Capital Stock

Our authorized capital stock consists of 100,000,000 shares of common stock, $0.01 par value per share, and 5,500,000 shares of undesignated preferred stock, $0.01 par value per share. Our board of directors is authorized, subject to limitations prescribed by Delaware law, to issue up to 5,500,000 shares of undesignated preferred stock in one or more series, to establish or change from time to time the number of shares of each such series, and to fix the designations, powers, including voting powers, full or limited, or no voting powers, preferences and the relative, participating, optional or other special rights of the shares of each series and any qualifications, limitations and restrictions, in each case without further vote or action by our stockholders. 

 

As of January 31, 2020, there were 35,184,189 shares of common stock issued and outstanding and no shares of our preferred stock issued and outstanding. All of the outstanding shares of our common stock are fully paid and nonassessable. Our board of directors is authorized, without approval except as required by the listing standards of NASDAQ Global Market, to issue additional shares of our capital stock.

 

Listing

Our common stock is listed on the NASDAQ Global Market under the symbol “TPIC.”

 

Dividend Rights

Subject to preferences that may apply to any shares of preferred stock outstanding at the time, the holders of our common stock are entitled to receive dividends out of funds legally available if our board of directors, in its discretion, determines to issue dividends and then only at the times and in the amounts that our board of directors may determine.

 

Voting Rights

Holders of our common stock are entitled to one vote for each share held of record by such holder on the applicable record date on all matters submitted to a vote of stockholders. We have not provided for cumulative voting for the election of directors in our Certificate of Incorporation. Any election of directors by stockholders shall be determined by a plurality of the votes properly cast on the election of directors.

 

Rights to Receive Liquidation Distributions

If we become subject to a liquidation, dissolution or winding-up, the assets legally available for distribution to our stockholders would be distributable ratably among the holders of our common stock and any participating preferred stock outstanding at that time, subject to prior satisfaction of all outstanding debt and liabilities and the preferential rights of and the payment of liquidation preferences, if any, on any outstanding shares of preferred stock.

 

No Preemptive or Similar Rights

Our common stock is not entitled to preemptive or exchange rights, and is not subject to conversion, redemption, or sinking fund provisions.

 

Transfer Agent and Registrar

The transfer agent and registrar for our common stock is American Stock Transfer & Trust Company, LLC.

 

 
 

Anti-Takeover Provisions

The provisions of Delaware law, our Certificate of Incorporation and our Bylaws may have the effect of delaying, deferring or discouraging another person from acquiring control of our company. They are also designed, in part, to encourage persons seeking to acquire control of us to negotiate first with our board of directors. We believe that the benefits of increased protection of our potential ability to negotiate with an unfriendly or unsolicited acquirer outweigh the disadvantages of discouraging a proposal to acquire us because negotiation of these proposals could result in an improvement of their terms.

 

Delaware Law

We are governed by the provisions of Section 203 of the Delaware General Corporation Law. In general, Section 203 prohibits a public Delaware corporation from engaging in a “business combination” with an “interested stockholder” for a period of three years after the date of the transaction in which the person became an interested stockholder, unless the business combination is approved in a prescribed manner. A “business combination” includes mergers, asset sales or other transactions resulting in a financial benefit to the stockholder. An “interested stockholder” is a person who, together with affiliates and associates, owns, or within three years did own, 15% or more of the corporation’s outstanding voting stock. These provisions may have the effect of delaying, deferring or preventing a change in our control.

 

Certificate of Incorporation and Bylaw Provisions

 

Our Certificate of Incorporation and our Bylaws provide for the following:

 

	
 
	
•
	
Board of Directors Vacancies. In accordance with our Certificate of Incorporation, our board of directors is divided into three classes serving staggered three-year terms, with one class being elected each year. As a result, approximately one-third of the board of directors is elected each year. Our Certificate of Incorporation also provides that directors may be removed only for cause and then only by the affirmative vote of the holders of 75% or more of the shares then entitled to vote at an election of directors. Furthermore, any vacancy on our board of directors, however occurring, including a vacancy resulting from an increase in the size of our board of directors, may only be filled by the affirmative vote of a majority of our directors then in office even if less than a quorum. These provisions may deter a stockholder from removing incumbent directors and simultaneously gaining control of the board of directors by filling the vacancies created by such removal with its own nominees.
	
 

 

	
 
	
•
	
Classified Board. Our Certificate of Incorporation establishes a classified board of directors that is divided into three classes with staggered three-year terms. Only the directors in one class will be subject to election by a plurality of the votes cast at each annual meeting of our stockholders, with the directors in the other classes continuing for the remainder of their respective three-year terms. A third party may be discouraged from making a tender offer or otherwise attempting to obtain control of us as it is more difficult and time consuming for stockholders to replace a majority of the directors on a classified board of directors.
	
 

 

	
 
	
•
	
Stockholder Action; Special Meeting of Stockholders. Our Certificate of Incorporation provides that all stockholder actions are required to be taken by a vote of the stockholders at an annual or special meeting and that stockholders may not take any action by written consent in lieu of a meeting. This limit may lengthen the amount of time required to take stockholder actions and would prevent the amendment of our Bylaws or removal of directors by our stockholders without holding a meeting of stockholders. Our Certificate of Incorporation and Bylaws further provide that special meetings of our stockholders may be called only by our board of directors, the Chariman of our board of directors, or our Chief Executive Officer (pursuant to a resolution approved by the affirmative vote of a majority of the directors then in office), therefore prohibiting a stockholder from calling a special meeting.   Our Bylaws limit the business that may be conducted at an annual meeting of stockholders to those matters properly brought before the meeting. These provisions might delay the ability of our stockholders to force consideration of a proposal or for stockholders controlling a majority of our capital stock to take any action, including removal of directors.
	
 

 

	
 
	
•
	
Advance Notice Requirements for Stockholder Proposals and Director Nominations. Our Bylaws establish advance notice procedures with regard to stockholder proposals relating to the nomination of candidates for election as directors at our annual meeting of stockholders, or new business to be brought before meetings of our stockholders. Our Bylaws also specify certain requirements regarding the form and content of a stockholder’s notice. These provisions might preclude our stockholders from bringing matters before our annual meeting of stockholders or from making nominations for directors at our annual meeting of stockholders if the proper procedures are not followed. These provisions may also discourage or deter a 
	
 

 
 

	
 
		
potential acquirer from conducting a solicitation of proxies to elect the acquirer’s own slate of directors or otherwise attempting to obtain control of our Company. These procedures provide that notice of stockholder proposals must be timely given in writing to our corporate secretary prior to the meeting at which the action is to be taken. Generally, to be timely, notice must be received at our principal executive offices not less than 90 days and not more than 120 days prior to the one year anniversary date of the annual meeting for the preceding year. The notice must contain certain information specified in the Bylaws.
	
 

 

	
 
	
•
	
No Cumulative Voting. The Delaware General Corporation Law provides that stockholders are not entitled to cumulate votes in the election of directors unless a corporation’s certificate of incorporation provides otherwise. Our Certificate of Incorporation does not provide for cumulative voting.
	
 

 

	
 
	
•
	
Directors Removed Only for Cause. Subject to the rights, if any, of any series of undesignated preferred stock to elect directors and to remove any director whom the holders of any such series have the right to elect, our Certificate of Incorporation provides that our directors may be removed from office only for cause and only by the affirmative vote of the holders of 75% or more of the outstanding shares of capital stock entitled to vote at an election of directors. At least 45 days prior to any annual or special meeting of stockholders at which it is proposed that any director be removed from office, written notice of such proposed removal and the alleged grounds thereof shall be sent to the director whose removal will be considered at the meeting.
	
 

 

	
 
	
•
	
Amendment of Charter Provisions and Bylaws. Any amendment of our Certificate of Incorporation must first be adopted by a majority of our board of directors and must thereafter be approved by a majority of the outstanding shares entitled to vote on the amendment and a majority of the outstanding shares of each class entitled to vote thereon as a class, except that the amendment of the provisions relating to stockholder action, board composition, limitation of liability, exclusive jurisdiction of Delaware courts, the amendment of our Bylaws, and the amendment of our Certificate of Incorporation must be approved by the holders of not less than 75% of the outstanding shares entitled to vote on the amendment and the holders of not less than 75% of the outstanding shares of each class entitled to vote thereon as a class. Our Bylaws may be amended by the affirmative vote of a majority of the directors then in office, subject to any limitations set forth in our Bylaws, and may also be amended by the affirmative vote of the holders of at least 75% of the outstanding shares entitled to vote on the amendment, or, if our board of directors recommends that the stockholders approve the amendment, by the affirmative vote of the majority of the outstanding shares entitled to vote on the amendment, in each case voting together as a single class.
	
 

 

	
 
	
•
	
Issuance of Undesignated Preferred Stock. Our board of directors has the authority, without further action by the stockholders, to issue up to 5,500,000 shares of undesignated preferred stock with rights and preferences, including voting rights, designated from time to time by our board of directors that may be senior to our common stock. The existence of authorized but unissued shares of preferred stock may enable our board of directors to render more difficult or to discourage an attempt to obtain control of us by means of a merger, tender offer, proxy contest or otherwise. The issuance of shares of preferred stock could decrease the amount of earnings and assets available for distribution to holders of shares of common stock. The issuance may also adversely affect the rights and powers, including voting rights, of these holders and may have the effect of delaying, deterring or preventing a change in control of us.
	
 

 

	
 
	
•
	
Exclusive Jurisdiction for Certain Actions. Our Certificate of Incorporation provides that unless we consent in writing to the selection of an alternative forum, the Court of Chancery of the State of Delaware shall be the sole and exclusive forum for  (A) any derivative action or proceeding brought on our behalf, (B) any action asserting a claim of breach of a fiduciary duty owed by any of our directors, officers or other employees to us or our stockholders, (C) any action asserting a claim arising pursuant to any provision of the Delaware General Corporation Law, our Certificate of Incorporation or our Bylaws, or (D) any action asserting a claim against us governed by the internal affairs doctrine. Although we believe this provision benefits us by providing increased consistency in the application of Delaware law in the types of lawsuits to which it applies, the provision may have the effect of discouraging lawsuits against our directors and officers. The enforceability of similar exclusive forum provisions in other companies’ certificates of incorporation has been challenged in legal proceedings, and it is possible that a court could rule that this provision in our Certificate of Incorporation is inapplicable or unenforceable.Exhibit 10.3

 

 

 

 

 

 

 

 

 

 

SUBSCRIPTION AGREEMENT

 

by and between

 

Pony Group Inc., as Issuer
and Company

 

and

 

[__________________],
as Subscriber

 

 

 

 

 

[ ], 2020

 

 

 

 

 

 

 

 

 

 

 

     

     

    

 

SUBSCRIPTION AGREEMENT (the “Agreement”)
dated as of ___________, 2020, by and among Pony Group Inc., a Delaware corporation (the “Company”), and the
person set forth on the signature page hereto (the “Subscriber”).

 

RECITALS:

 

WHEREAS, subject to the terms and conditions
set forth in this Agreement, the Company desires to issue and sell to the Subscriber and the Subscriber desires to purchase from
the Company shares (the “Shares”) of the Company’s common stock, par value $0.001 (the “Common
Stock”), as more fully set forth herein;

 

NOW THEREFORE, in consideration of
the mutual promises and representations, warranties, covenants and agreements set forth herein, the parties hereto, intending to
be legally bound, hereby agree as follows:

 

ARTICLE I - PURCHASE
AND SALE

 

1.1 Purchase and Sale. On the
terms and subject to the conditions set forth in this Agreement, at the Closing (as defined in Section 2.2(a)), the Company will
sell and the Subscriber will purchase the Shares in the amount set forth on the signature page of the Subscriber attached hereto.

 

ARTICLE II - PURCHASE
PRICE AND CLOSING

 

2.1 Purchase Price. The purchase
price to be paid shall be $0.10 per share, and the aggregate price to be paid by the Subscriber to the Company to acquire the Shares
shall be the amount set forth on the Subscriber’s signature page attached hereto (the “Purchase Price”).

 

2.2 The Closing.

 

(a) The completion of the purchase and
sale of the Shares (the “Closing”) shall occur at a place and time (the “Closing Date”) to
be specified by the Company, and of which the Subscriber will be notified in advance by the Company. At the Closing, the Subscriber
shall purchase from the Company, and the Company shall issue and sell to the Subscriber, Shares in an amount set forth on the Subscriber’s
signature page attached hereto. The Closing is expected to occur on or around [ ], 2020. At the Closing, (a) the Company shall
cause Corporate Stock Transfer, the Company’s transfer agent (the “Transfer Agent”) to deliver to the
Subscriber the number of Shares set forth on the Subscriber’s signature page attached hereto registered in the name of the
Subscriber or, if so indicated on the Subscriber’s signature page attached hereto, in the name of a nominee designated by
the Subscriber and (b) the aggregate purchase price for the Shares being purchased by the Subscriber will be delivered by or on
behalf of the Subscriber to the Escrow Agent (as defined below).

 

 

(b) Upon
execution of this Agreement and no later than one (1) business day prior to the Closing Date, the Subscriber shall remit by
wire transfer the amount of funds equal to the aggregate purchase price for the Shares being subscribed by the Subscriber to
the following account designated by the Company (the “Escrow Account”) pursuant to the terms of that
certain Escrow Agreement (the “Escrow Agreement”) dated as of [ ], 2020, by and among the Company and
Shenzhen Yizhongxing Media Technology Co., Ltd. as the escrow agent (the “Escrow Agent”).

 

Bank: [     ]

Swift Code: [     ]

To account #: [     ]

Attn: Yizhongxing as Escrow Agent for Clients

Ref:Pony Group Escrow

 

    2

     

    

 

Such funds shall be held in escrow until the
Closing and delivered by the Escrow Agent on behalf of the Subscriber to the Company upon the satisfaction, in the reasonable judgment
of the Company, of the conditions set forth in Article V hereof.

 

(c) Delivery of Shares in the Form
of A Stock Certificate or by Electronic Book-Entry at the Depository Trust Company. Upon execution of this Agreement and no
later than one (1) business day prior to the Closing Date, the Subscriber shall elect whether to get a physical stock certificate
or elect to hold the securities in street name through The Depository Trust Company (“DTC”). If the Subscriber
elects electronic delivery, the Subscriber shall direct the custodial agent or broker-dealer at which the account or accounts to
be credited with the Shares being subscribed by the Subscriber are maintained, which custodial agent or broker/dealer shall be
a DTC participant, to set up a Deposit/Withdrawal at Custodian (“DWAC”) instructing the Transfer Agent to credit
such account or accounts with the Shares by means of an electronic book-entry delivery. Such DWAC shall indicate the settlement
date for the deposit of the Shares, which date shall be provided to the Subscriber by the Company. If no election is made, a physical
certificate will be sent to the address of the Subscriber in this Agreement. Simultaneously with the delivery to the Company by
the Escrow Agent of the funds held in escrow pursuant to Section 2.2(b) above, the Company shall direct the Transfer Agent to credit
the Subscriber’s account or accounts with the Shares pursuant to the information contained in the DWAC.

 

(d) No offer by the Subscriber to buy
Shares will be accepted and no part of the Purchase Price will be delivered to the Company until the Company has accepted such
offer by countersigning a copy of this Agreement. No such offer by the Subscriber to buy Shares may be withdrawn or revoked at
any time prior to the Company sending (orally, in writing, or by electronic mail) notice of its acceptance or rejection of such
offer.

 

ARTICLE III - REPRESENTATIONS,
WARRANTIES AND COVENANTS OF THE COMPANY

 

The Company’s representations and warranties
below are qualified in their entirety by the SEC Documents (as defined below). The Company represents and warrants to the Subscriber
as follows:

 

3.1 Corporate Existence and Power.
The Company is a corporation duly incorporated, validly existing and in good standing under the laws of the state of Delaware
and has all corporate powers required to carry on its business as now conducted. The Company is duly qualified to do business as
a foreign corporation and is in good standing in each jurisdiction where the character of the property owned or leased by it or
the nature of its activities makes such qualification necessary, except for those jurisdictions where the failure to be so qualified
would not have or result in (i) a material adverse effect on the legality, validity or enforceability of this Agreement, (ii) a
material adverse effect on the business or financial condition of the Company, or (iii) a material adverse effect on the Company’s
ability to perform in any material respect on a timely basis its obligations under this Agreement (any of (i), (ii) or (iii), a
“Material Adverse Effect”). True and complete copies of the Company’s Certificate of Incorporation, as
amended (the “Certificate”), and Bylaws, as amended (the “Bylaws”), as currently in effect
and as will be in effect on the Closing Date (collectively, the “Certificate and Bylaws”), have been filed as
exhibits to the Company’s SEC Documents (as defined below).

 

3.2 Corporate Authorization. The
execution, delivery and performance by the Company of this Agreement and the consummation of the transactions contemplated hereby
(including, but not limited to, the sale and delivery of the Shares) have been duly authorized, and no additional corporate or
stockholder action is required for the approval thereof. This Agreement has been duly executed and delivered and constitutes the
legal, valid and binding agreement of the Company, enforceable against the Company in accordance with its terms, except as may
be limited by bankruptcy, reorganization, insolvency, moratorium and similar laws of general application relating to or affecting
the enforcement of rights of creditors, and except as enforceability of its obligations hereunder are subject to general principles
of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law).

 

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3.3 Governmental Authorization.
Except as otherwise specifically contemplated in this Agreement and except for: (i) the filing with the Securities and Exchange
Commission (the “Commission” or the “SEC”) of the Prospectus (as defined below) and (ii)
any filings required under state securities laws that are permitted to be made after the date hereof, the execution, delivery and
performance by the Company of this Agreement and the consummation of the transactions contemplated hereby (including, but not limited
to, the sale and delivery of the Shares) by the Company require no action (including, without limitation, stockholder approval)
by or in respect of, or filing with, any governmental or regulatory body, agency, official or authority, except as would not cause
a Material Adverse Effect.

 

3.4 Non-Contravention. The execution,
delivery and performance by the Company of this Agreement and the consummation by the Company of the transactions contemplated
hereby (including the issuance of the Shares) do not and will not (a) contravene or conflict with the Certificate and Bylaws of
the Company or any material agreement to which the Company is a party or by which it is bound; (b) contravene or conflict with
or constitute a violation of any material provision of any law, regulation, judgment, injunction, order or decree binding upon
or applicable to the Company; (c) constitute a default (or would constitute a default with notice or lapse of time or both) under
or give rise to a right of termination, cancellation or acceleration or loss of any benefit under any material agreement, contract
or other instrument binding upon the Company or under any material license, franchise, permit or other similar authorization held
by the Company; or (d) result in the creation or imposition of any Lien (as defined below) on any asset of the Company. For purposes
of this Agreement, the term “Lien” means, with respect to any asset, any mortgage, lien, pledge, charge, security
interest, claim or encumbrance of any kind in respect of such asset.

 

3.5 Registration Statement and Prospectus.
The Company has filed with the U.S. Securities and Exchange Commission (the “Commission”) a registration
statement, and an amendment or amendments thereto, on Form S-1 (File No. 333-234358), including any related prospectus or prospectuses,
for the registration of the Securities under the Securities Act of 1933, as amended (the “Securities Act”),
which registration statement and amendment or amendments have been prepared by the Company in all material respects in conformity
with the requirements of the Securities Act and the rules and regulations of the Commission under the Securities Act (the “Securities
Act Regulations”) and contain all material statements that are required to be stated therein in accordance with the Securities
Act and the Securities Act Regulations. Except as the context may otherwise require, such registration statement, as amended, on
file with the Commission at the time the registration statement became effective (including the Preliminary Prospectus included
in the registration statement, financial statements, schedules, exhibits and all other documents filed as a part thereof or incorporated
therein and all information deemed to be a part thereof as of the Effective Date pursuant to paragraph (b) of Rule 430A of the
Securities Act Regulations (the “Rule 430A Information”)), is referred to herein as the “Registration
Statement.” If the Company files any registration statement pursuant to Rule 462(b) of the Securities Act Regulations,
then after such filing, the term “Registration Statement” shall include such registration statement filed pursuant
to Rule 462(b). The Registration Statement has been declared effective by the Commission on [ ], 2020.

 

Each prospectus used prior to the effectiveness
of the Registration Statement, and each prospectus that omitted the Rule 430A Information that was used after such effectiveness
and prior to the execution and delivery of this Agreement, is herein called a “Preliminary Prospectus.” The
Preliminary Prospectus, subject to completion, that was included in the Registration Statement immediately prior to the Applicable
Time is hereinafter called the “Pricing Prospectus.” The final prospectus for use in the Offering is hereinafter
called the “Prospectus.” Any reference to the “most recent Preliminary Prospectus” shall be deemed
to refer to the latest Preliminary Prospectus included in the Registration Statement.

 

    4

     

    

 

3.6 Capitalization.

 

		(a)	Common stock, $0.001 par value per share, of which 9,000,000 shares are issued and outstanding as of the date hereof, and no
shares of preferred stock were issued and outstanding.

 

		(b)	All shares of the Company’s issued and outstanding capital stock have been duly authorized, are validly issued and outstanding,
and are fully paid and nonassessable. No securities issued by the Company from the date of its incorporation to the date hereof
were issued in violation of any statutory or common law preemptive rights. There are no dividends which have accrued or been declared
but are unpaid on the capital stock of the Company. All material taxes required to be paid by the Company in connection with the
issuance and any transfers by the Company of the Company’s capital stock have been paid. All material permits or authorizations
required to be obtained from or registrations required to be effected with any Person in connection with any and all issuances
of securities of the Company from the date of the Company’s incorporation to the date hereof have been obtained or effected,
and all securities of the Company have been issued in accordance with the provisions of all applicable securities or other laws
except as could not cause a Material Adverse Effect.

 

		(c)	The Shares have been duly authorized, and upon consummation of the transactions contemplated by this Agreement, will be validly
issued, fully paid and non-assessable.

 

ARTICLE IV - REPRESENTATIONS
AND WARRANTIES OF THE SUBSCRIBER

 

The Subscriber represents and warrants to
the Company as follows:

 

4.1 Existence and Power. The
Subscriber, if not a natural person, is duly organized, validly existing and in good standing under the laws of the jurisdiction
of the Subscriber’s organization. The Subscriber has all powers required to bind it to the representations, warranties and
covenants set forth herein.

 

4.2 Authorization. The execution,
delivery and performance by the Subscriber of this Agreement and the consummation by the Subscriber of the transactions contemplated
hereby have been duly authorized, and no additional action is required for the approval of this Agreement. This Agreement has been
or, to the extent contemplated hereby, will be duly executed and delivered and constitute a valid and binding agreement of the
Subscriber, enforceable against the Subscriber in accordance with its terms, except as may be limited by bankruptcy, reorganization,
insolvency, moratorium and similar laws of general application relating to or affecting the enforcement of rights of creditors
and except that enforceability of their obligations thereunder are subject to general principles of equity (regardless of whether
such enforceability is considered in a proceeding in equity or at law).

 

4.3 Signature Page. The Subscriber
has answered all questions on the signature page and the answers thereto are true and correct as of the date hereof and will be
true and correct as of the Closing.

 

4.4 Reliance. The Subscriber,
in connection with its decision to purchase the Shares, relied only upon the Registration Statement, the Preliminary Prospectus,
the Pricing Prospectus, the Prospectus, and any representations and warranties of the Company contained herein.

 

4.5 Advice. The Subscriber understands
that nothing in this Agreement or any other materials presented to the Subscriber in connection with the purchase and sale of the
Shares contains legal, tax or investment advice. The Subscriber has consulted such legal, tax and investment advisors as it, in
its sole discretion, has deemed necessary or appropriate in the connection with its purchase of the Shares.

 

4.6 Securities Laws. The Subscriber
is acquiring the Shares as principal for its own account and not with a view to or for distributing or reselling such Shares or
any part thereof in violation of the Securities Act or any applicable state securities law, has no present intention of distributing
any of such Shares in violation of the Securities Act or any applicable state securities law and has no direct or indirect arrangement
or understandings with any other persons to distribute or regarding the distribution of such Shares in violation of the Securities
Act or any applicable state securities law (this representation and warranty not limiting the Subscriber’s right to sell
the Shares pursuant to the Registration Statement or otherwise in compliance with applicable federal and state securities laws).
The Subscriber is acquiring the Shares hereunder in the ordinary course of its business.

 

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4.8 Prospectus. The Subscriber
represents that it has received or can obtain on the Commission’s EDGAR filing system the Prospectus, which is part of the
Company’s Registration Statement, the documents incorporated by reference therein, and any free writing prospectus, prior
to or in connection with the receipt of this Agreement along with the Company’s counterpart to this Agreement.

 

ARTICLE V - CONDITIONS
TO CLOSING

 

5.1 Conditions to Obligations
of Subscriber to Effect the Closing. The Subscriber’s obligation to purchase the Shares will be subject (I) to the
accuracy of the representations and warranties made by the Company and the fulfillment of those undertakings of the Company to
be fulfilled prior to the Closing Date that are contained in this Agreement and (II) to the condition that on the Closing Date,
the Registration Statement shall be effective and no stop order shall have been issued by the Securities and Exchange Commission
with respect to the Registration Statement. The Subscriber’s obligations are expressly not conditioned on any other purchase
of the Shares or the issuance of any minimum amount of Shares by the Company.

 

5.2 Conditions to Obligations
of the Company to Effect the Closing. The obligations of the Company to effect the Closing and the transactions
contemplated by this Agreement shall be subject to the satisfaction at or prior to the Closing that the Subscriber shall deliver
or cause to be delivered to the Escrow Agent payment of the Purchase Price set forth on the Subscriber’s signature page attached
hereto, in cash by wire transfer of immediately available funds to the account of the Escrow Agent designated in Section 2.2(b)
herein.

 

ARTICLE VI - MISCELLANEOUS

 

6.1 Further Assurances. Each
party agrees to cooperate fully with the other parties and to execute such further instruments, documents and agreements and to
give such further written assurances as may be reasonably requested by any other party to better evidence and reflect the transactions
described herein and contemplated hereby and to carry into effect the intents and purposes of this Agreement, and further agrees
to take promptly, or cause to be taken, all actions, and to do promptly, or cause to be done, all things necessary, proper or advisable
under applicable law to consummate and make effective the transactions contemplated hereby, to obtain all necessary waivers, consents
and approvals, to effect all necessary registrations and filings, and to remove any injunctions or other impediments or delays,
legal or otherwise, in order to consummate and make effective the transactions contemplated by this Agreement for the purpose of
securing to the parties hereto the benefits contemplated by this Agreement.

 

6.2 Fees and Expenses. All
costs and expenses (including all legal fees) relating to this Agreement, the negotiations preceding, and the transactions contemplated
by, this Agreement shall be paid by the party incurring such costs and expenses.

 

6.3 Notices. Any and all notices
or other communications or deliveries required or permitted to be provided hereunder shall be in writing and shall be deemed given
and effective on the earliest of (a) the date of transmission, if such notice or communication is delivered via email at the email
address specified in this Section prior to 5:00 p.m. (New York City time) on a business day, (b) the next business day after the
date of transmission, if such notice or communication is delivered via facsimile at the facsimile number or email at the email
address specified in this Section on a day that is not a business day or later than 5:00 p.m. (New York City time) on any business
day, or (c) the business day following the date of mailing, if sent by U.S. nationally recognized overnight courier service such
as Federal Express with next day delivery specified. The address for such notices and communications shall be as follows:

 

If to the Subscriber at the Subscriber’s
address set forth under its name on the signature page attached hereto, or with respect to the Company, addressed to:

 

Pony Group Inc.

Engineer Experiment Building, A202

7 Gaoxin South Avenue, Nanshan District,

Shenzhen, Guangdong Province,

People’s Republic of China

Attention: President

 

    6

     

    

 

or to such other address or addresses or facsimile
number or numbers as any such party may most recently have designated in writing to the other parties hereto by such notice. Copies
of notices to the Company shall be sent to Ellenoff Grossman & Schole LLP, 1345 Avenue of the Americas, New York, New York,
10105, Attn: Richard I. Anslow, Esq., Email: ranslow@egsllp.com. Copies of notices to the Subscriber shall be sent to the address,
if any, listed on the signature pages attached hereto.

 

Unless otherwise stated above, such communications
shall be effective when they are received by the addressee thereof in conformity with this Section 6.3. Any party may change its
address for such communications by giving notice thereof to the other parties in conformity with this Section.

 

6.4 Governing Law. All
questions concerning the construction, validity, enforcement and interpretation of this Agreement shall be governed by and enforced
in accordance with the laws of the State of New York without reference to the conflicts of laws principles thereof.

 

6.5 Jurisdiction and Venue. This
Agreement shall be subject to the exclusive jurisdiction of the Federal District Court, Southern District of New York and if such
court does not have proper jurisdiction, the State Courts of New York County, New York. The parties to this Agreement agree that
any breach of any term or condition of this Agreement shall be deemed to be a breach occurring in the State of New York by virtue
of a failure to perform an act required to be performed in the State of New York and irrevocably and expressly agree to submit
to the jurisdiction of the Federal District Court, Southern District of New York and if such court does not have proper jurisdiction,
the State Courts of New York County, New York for the purpose of resolving any disputes among the parties relating to this Agreement
or the transactions contemplated hereby. The parties irrevocably waive, to the fullest extent permitted by law, any objection which
they may now or hereafter have to the laying of venue of any suit, action or proceeding arising out of or relating to this Agreement,
or any judgment entered by any court in respect hereof brought in New York County, New York, and further irrevocably waive any
claim that any suit, action or proceeding brought in Federal District Court, Southern District of New York and if such court does
not have proper jurisdiction, the State Courts of New York County, New York has been brought in an inconvenient forum. Each of
the parties hereto consents to process being served in any such suit, action or proceeding, by mailing a copy thereof to such party
at the address in effect for notices to it under this Agreement and agrees that such service shall constitute good and sufficient
service of process and notice thereof. Nothing in this Section 6.5 shall affect or limit any right to serve process in any other
manner permitted by law.

 

6.6 Successors and Assigns. This
Agreement is personal to each of the parties and may not be assigned without the written consent of the other parties.

 

6.7 Severability. If any provision
of this Agreement, or the application thereof, shall for any reason or to any extent be invalid or unenforceable, the remainder
of this Agreement and application of such provision to other persons or circumstances shall continue in full force and effect and
in no way be affected, impaired or invalidated.

 

6.8 Entire Agreement. This
Agreement and the other agreements and instruments referenced herein constitute the entire understanding and agreement of the parties
with respect to the subject matter hereof and supersedes all prior agreements and understandings.

 

    7

     

    

 

6.9 Other Remedies. Except as
otherwise provided herein, any and all remedies herein expressly conferred upon a party shall be deemed cumulative with and not
exclusive of any other remedy conferred hereby or by law, or in equity on such party, and the exercise of any one remedy shall
not preclude the exercise of any other.

 

6.10 Amendment and Waivers. Any
term or provision of this Agreement may be amended, and the observance of any term of this Agreement may be waived (either generally
or in a particular instance and either retroactively or prospectively) only by a writing signed by the Company and the Subscriber.
The waiver by a party of any breach hereof or default in the performance hereof shall not be deemed to constitute a waiver of any
other default or any succeeding breach or default

 

6.11 No Waiver. The failure
of any party to enforce any of the provisions hereof shall not be construed to be a waiver of the right of such party thereafter
to enforce such provisions.

 

6.12 Construction of Agreement;
Knowledge. For purposes of this Agreement, the term “knowledge,” when used in reference to a corporation
means the knowledge of the directors and executive officers of such corporation assuming such persons shall have made inquiry that
is customary and appropriate under the circumstances to which reference is made, and when used in reference to an individual means
the knowledge of such individual assuming the individual shall have made inquiry that is customary and appropriate under the circumstances
to which reference is made. Whenever any form of the word “include” is used in this Agreement, it shall be interpreted
as if it were followed by the phrase “without limitation”.

 

6.13 Counterparts. This Agreement
may be executed in any number of counterparts, each of which shall be an original as against any party whose signature appears
thereon and all of which together shall constitute one and the same instrument. This Agreement shall become binding when one or
more counterparts hereof, individually or taken together, shall bear the signatures of all of the parties reflected hereon as signatories.
In the event that any signature is delivered by facsimile or other electronic image transmission technology, such signature shall
create a valid and binding obligation of the party executing (or on whose behalf such signature is executed) with the same force
and effect as if such signature page were an original thereof.

 

6.14 No Third Party Beneficiary.
Nothing expressed or implied in this Agreement is intended, or shall be construed, to confer upon or give any person other
than the parties hereto and their respective heirs, personal representatives, legal representatives, successors and permitted assigns,
any rights or remedies under or by reason of this Agreement.

 

6.15 Waiver of Trial by Jury.
THE PARTIES HERETO IRREVOCABLY WAIVE TRIAL BY JURY IN ANY SUIT, ACTION OR PROCEEDING RELATING TO THIS AGREEMENT OR THE TRANSACTIONS
CONTEMPLATED HEREBY.

 

[Signature Pages Follow]

 

    8

     

    

 

IN WITNESS WHEREOF, the parties hereto have
executed this Agreement as of the date first above written.

 

COMPANY:

 

PONY GROUP INC.

 

By: _____________________________________

 

The undersigned hereby executes and delivers
the Subscription Agreement to which this signature page is attached, which, together with all counterparts of the Agreement and
signature page of the Company, shall constitute one and the same document in accordance with the terms of the Agreement.

 

Print Subscriber Name:

 

By: ________________________________________________________________________

 

Name: ______________________________________________________________________

 

Title: _______________________________________________________________________

 

Address: ____________________________________________________________________

 

Telephone: __________________________________________________________________

 

Facsimile: ___________________________________________________________________

 

SSN/EIN: ____________________________________________________________________

 

Number of Shares Subscribed: ____________________________________________________

 

Purchase Price per Share: $0.10

 

Aggregate Purchase Price: $_______________________________________________________

 

     

     

    

 

Subscriber Questionnaire

 

1. The exact name that your shares are to
be registered in. You may use a nominee name if appropriate:

 

_____________________________________________________________________________________________

 

2. The relationship between the Subscriber
and the registered holder listed in response to item 1 above:

 

_____________________________________________________________________________________________

 

3. The mailing address of the registered holder
listed in response to item 1 above:

 

_____________________________________________________________________________________________

 

_____________________________________________________________________________________________

 

4. The Social Security Number or Tax Identification
Number of the registered holder listed in the response to item 1 above:

 

_____________________________________________________________________________________________

 

5. Name of DTC Participant (custodial agent
or broker-dealer at which the account or accounts to be credited with the Shares are maintained); please include the name and telephone
number of the contract person at the custodial agent or broker-dealer:

 

_____________________________________________________________________________________________

 

_____________________________________________________________________________________________

 

_____________________________________________________________________________________________

 

6. DTC Participant Number:

 

_____________________________________________________________________________________________

 

7. Name of Account at DTC Participant being
credited with the Shares:

 

_____________________________________________________________________________________________

 

8. Account Number at DTC Participant being
credited with the Shares:

 

_____________________________________________________________________________________________

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