Document:

Exhibit 10.1

 

SECURITIES PURCHASE AGREEMENT

 

THIS SECURITIES PURCHASE
AGREEMENT (this “Agreement”), dated as of August 25, 2021, is between ZK INTERNATIONAL GROUP CO., LTD (正康国际集团有限公司),
a company incorporated under the laws of the British Virgin Islands, with headquarters located at No. 678 Dingxiang Road, Binhai Industrial
Park, Economic & Technology Development Zone, Wenzhou, Zhejiang Province, China 325025 (the “Company”), and each
of the investors identified on the signature pages hereto (each a “Buyer” and collectively the “Buyers”).

 

WITNESSETH

 

WHEREAS, the parties
desire that, upon the terms and subject to the conditions contained herein, the Company shall issue and sell to the Buyer(s), as provided
herein, and the Buyer(s) shall purchase convertible debentures of up to $12,679,000 in principal in the form attached hereto as “Exhibit
A” (each a “Convertible Debenture” and collectively the “Convertible Debentures”), which
shall be convertible into ordinary shares, with no par value, of the Company (the “Ordinary Shares”) (as converted,
the “Conversion Shares”), for a total purchase price of up to $12,679,000 (the “Purchase Price”)
in the respective amounts set forth on each Buyer’s signature page hereof (the “Subscription Amount”);

 

WHEREAS, the Convertible
Debentures and the Conversion Shares are collectively referred to herein as the “Securities”; and

 

WHEREAS,
The Securities are registered on the registration statement on Form F-3 (File Number: 333-230860), declared effective by the U.S. Securities
Exchange Commission (“SEC”) on April 29, 2019 (the “Registration Statement”), and are offered and
sold pursuant to the prospectus in the form in which it appears in the Registration Statement (the “Prospectus”) and
the prospectus supplement containing information relating to the offering permitted to be omitted at the time of effectiveness of the
Registration Statement by Rule 430A of the rules and regulation of the SEC, that is filed with the SEC pursuant to Rule 424 of the Act
(the “Prospectus Supplement”).

 

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 each Buyer hereby agree as follows:

 

		1.	PURCHASE AND SALE OF CONVERTIBLE DEBENTURES.

 

(a) Purchase
of Convertible Debentures. Subject to the satisfaction (or waiver) of the conditions set forth in Sections 5 and 6 below, the
Company shall issue and sell to each Buyer, and each Buyer severally, but not jointly, agrees to purchase from the Company at the
Closing(s) (as defined below) Convertible Debentures in amounts corresponding with the Subscription Amount set forth on each
Buyer’s the signature page hereof.

 

    	 		 

     

    

 

(b) Closing Dates. The date and time of each closing of the purchase of Convertible Debentures by the Buyer(s) (each a “Closing”)
shall be 10:00 a.m., New York time, within two (2) Business Days on which the conditions to the Closing set forth in Sections 5 and 6
below are satisfied or waived (or such other date as is mutually agreed to by the Company and each Buyer) (each a “Closing Date”).
As used herein “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.

 

(c) 
Form of Payment; Deliveries. Subject to the satisfaction of the terms and conditions of this Agreement, on or prior
to each Closing Date, the Company shall deliver or cause to be delivered to each Buyer the following:

 

(i) this
Agreement duly executed by the Company;

 

(ii) the
Company’s wire instruction;

 

(iii) a
copy of the instructions to the Transfer Agent (the “Transfer Agent Instructions”);

 

(iii) the
Convertible Debentures in the respective Subscription Amount; and

 

(iv) the
Prospectus and a Prospectus Supplement.

 

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

 

(i) this
Agreement duly executed by such Buyer; and

 

(ii) such
Buyer’s Subscription Amount for the delivery of the Convertible Debenture(s).

 

		2.	BUYER’S REPRESENTATIONS AND WARRANTIES.

 

Each Buyer, severally and
not jointly, represents and warrants to the Company with respect to only itself that, as of the date hereof and as of each Closing Date:

 

(a) Investment
Purpose. The Buyer is acting solely in the capacity of an arm's length purchaser with respect to the Transaction Documents and the
transactions contemplated hereby and thereby and that no Buyer is (i) an officer or director of the Company or any of its Subsidiaries,
(ii) to its knowledge, an "affiliate" (as defined in Rule 144 promulgated under the 1933 Act (or a successor rule thereto))
of the Company or any of its Subsidiaries or (iii) a “beneficial owner” of more than 10% of the ADSs (as defined for
purposes of Rule 13d-3 of the Securities Exchange Act of 1934, as amended). No Buyer is acting as a financial advisor or fiduciary of
the Company or any of its Subsidiaries (or in any similar capacity) with respect to the Transaction Documents and the transactions contemplated
hereby and thereby, and and advice given by a Buyer or any of its representatives or agents in connection with the Transaction
Documents and the transactions contemplated hereby and thereby is merely incidental to such Buyer's purchase of the Securities. The Buyer
is acquiring the Securities for its own account for investment only and not with a view towards, or for resale in connection with, the
public sale or distribution thereof, except pursuant to sales registered or exempted under the Securities Act; provided, however, that
by making the representations herein, such Buyer reserves the right to dispose of the Securities at any time in accordance with or pursuant
to an effective registration statement covering such Securities or an available exemption under the Securities Act. Such Buyer does not
presently have any agreement or understanding, directly or indirectly, with any Person to distribute any of the Securities. “Subsidiaries”
means any Person in which the Company, directly or indirectly, owns a majority of the outstanding
capital stock having voting power or holds a majority of the equity or similar interest of such Person, and each of the foregoing, is
individually referred to herein as a “Subsidiary”. “Person” means an individual or corporation,
partnership, trust, incorporated or unincorporated association, joint venture, limited liability company, joint stock company, government
(or an agency or subdivision thereof) or other entity of any kind.

 

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(b) Information.
The Buyer and its advisors (and his or, its counsel), if any, have been furnished with all materials relating to the business,
finances and operations of the Company and information he deemed material to making an informed investment decision regarding his
purchase of the Securities, which have been requested by such Buyer. The Buyer and its advisors, if any, have been afforded the
opportunity to ask questions of the Company and its management. Neither such inquiries nor any other due diligence investigations
conducted by such Buyer or its advisors, if any, or its representatives shall modify, amend or affect such Buyer’s right to
rely on the Company’s representations and warranties contained in Section 3 below. The Buyer understands that its investment
in the Securities involves a high degree of risk. The 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.

 

(c) Organization;
Authority. Such Buyer, if applicable, 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 (as defined below) to which it is a party and otherwise to carry out its obligations
hereunder and thereunder.

 

(d) Authorization,
Enforcement. This Agreement has been duly and validly authorized, executed and delivered on behalf of such Buyer and shall
constitute the legal, valid and binding obligations of such Buyer enforceable against such Buyer in accordance with its terms,
except as such enforceability may be limited by general principles of equity or to applicable bankruptcy, insolvency,
reorganization, moratorium, liquidation and other similar laws relating to, or affecting generally, the enforcement of applicable
creditors' rights and remedies.

 

(e) No
Conflicts. The execution, delivery and performance by such Buyer of this Agreement and the consummation by such Buyer of the
transactions contemplated hereby will not (i) result in a violation of the organizational documents of such 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 such
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 such Buyer, except, in the case of clauses (ii) and (iii) above, for such conflicts, defaults, rights
or violations which could not, individually or in the aggregate, reasonably be expected to have a material adverse effect on the
ability of such Buyer to perform its obligations hereunder. 

 

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(f)
Certain Trading Activities. The Buyer has not directly or indirectly, nor has any Person acting on behalf of or pursuant to any
understanding with the Buyer, engaged in any transactions in the securities of the Company (including, without limitation, any Short
Sales (as defined below) involving the Company's securities) during the period commencing as of the time that the Buyer first
contacted the Company or the Company's agents regarding the specific investment in the Company contemplated by this Agreement and
ending immediately prior to the execution of this Agreement by such Buyer. The Buyer hereby agrees that it shall not directly or
indirectly, engage in any Short Sales involving the Company’s securities during the period commencing on the date hereof and
ending when no Convertible Debentures remain outstanding. "Short Sales" means all "short sales" as defined in
Rule 200 promulgated under Regulation SHO under the Securities Exchange Act of 1934, as amended (the “Exchange
Act”). The Buyer is aware that Short Sales and other hedging activities may be subject to applicable federal and state
securities laws, rules and regulations and the Buyer acknowledges that the responsibility of compliance with any such federal or
state securities laws, rules and regulations is solely the responsibility of the Buyer.

 

		3.	REPRESENTATIONS AND WARRANTIES OF THE COMPANY.

 

Except as set forth in the
Registration Statement, Prospectus and Prospectus Supplement and the exhibits and documents incorporated by reference therein or warranty
otherwise made herein to the extent of such disclosure, the Company hereby makes the representations and warranties set forth below to
The Buyer:

 

(a) Organization
and Qualification. The Company and each of its Subsidiaries is an entity duly formed, validly existing and in good standing
under the laws of the jurisdiction in which it is incorporated or formed, and has the requisite power and authority to own its
properties and to carry on its business as now being conducted and as presently proposed to be conducted. 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 reasonably be expected to have a Material Adverse Effect (as defined
below). As used in this Agreement, “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 any other agreements or instruments to be entered into by the Company in connection herewith or therewith or (iii) the
authority or ability of the Company to perform any of its obligations under any of the Transaction Documents. “Subsidiaries”
means any Person in which the Company, directly or indirectly, owns a majority of the outstanding capital stock having voting power
or holds a majority of the equity or similar interest of such Person, and each of the foregoing, is individually referred to herein
as a “Subsidiary”.

 

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(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 Debentures, the
reservation for issuance and issuance of the Conversion Shares issuable upon conversion of the Convertible Debentures), have been
duly authorized by the Company's board of directors and no further filing, consent or authorization is required by the Company, its
board of directors or its shareholders or other governmental body. This Agreement has been, and the other Transaction Documents to
which the Company is a party will be prior to each 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.
 “Transaction Documents” means, collectively, this Agreement, the Convertible Debentures, the Transfer Agent
Instructions and each of the other agreements and instruments entered into by the Company or delivered by the Company in connection
with the transactions contemplated hereby and thereby, as may be amended from time to time.

 

(c)
Issuance of Securities. The issuance of the Securities is duly authorized and, upon issuance and payment in accordance with the
terms of the Transaction Documents the Securities shall be validly issued, fully paid and non-assessable and free from all
preemptive or similar rights, mortgages, defects, claims, liens, pledges, charges, taxes, rights of first refusal, encumbrances,
security interests and other encumbrances (collectively “Liens”) with respect to the issuance thereof. As of each
Closing Date, the Company shall have reserved from its duly authorized maximum number of Ordinary Shares not less than 100% of the
maximum number of Ordinary Shares issuable upon conversion of all Convertible Debentures (assuming for purposes hereof that (x) such
Convertible Debentures are convertible at the Conversion Price (as defined therein) as of the date of determination, (y) any such
conversion shall not take into account any limitations on the conversion of the Convertible Debentures set forth therein, including
the Floor Price). Upon issuance or conversion in accordance with the Convertible Debentures, the Conversion Shares, when issued,
will be validly issued, fully paid and non-assessable and free from all preemptive or similar rights or Liens with respect to the
issue thereof, with the holders being entitled to all rights accorded to a holder of Ordinary Shares.

 

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(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
Debentures, the Conversion Shares, and the reservation for issuance of the Conversion Shares) will not (i) result in a violation of
the articles of incorporation, bylaws, certificate of incorporation or formation, memorandum of association, articles of
association, bylaws or other organizational documents of the Company or any of its Subsidiaries, or any shares, capital stock or
other securities of the Company or any of its Subsidiaries, (ii) conflict with, or constitute 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, U.S. federal and state securities laws and regulations, the securities laws of the jurisdictions of
the Company's incorporation or in which it or its subsidiaries operate and the rules and regulations of the Nasdaq Stock Market (the
 “Principal Market”) and including all applicable laws, rules and regulations of the British Virgin Islands)
applicable to the Company or any of its Subsidiaries or by which any property or asset of the Company or any of its Subsidiaries is
bound or affected, except in the case of (ii) and (iii) for any conflict, default, right or violation that would not reasonably be
expected to result in a Material Adverse Effect.

 

(e) Consents.
The Company is not required to obtain any material consent from, authorization or order of, or make any filing or registration with
(other than any filings as may be required by any federal or state securities agencies and any filings as may be required by the
Principal Market), any Governmental Entity (as defined below) or any regulatory or self-regulatory agency or any other Person in
order for it to execute, deliver or perform any of its 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 or
any Subsidiary is required to obtain pursuant to the preceding sentence have been or will be obtained or effected on or prior to
each Closing Date, and neither the Company nor any of its Subsidiaries are aware of any facts or circumstances which might prevent
the Company or any of its Subsidiaries 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 delisting or suspension of the Ordinary Shares in the foreseeable future. The
Company has notified the Principal Market of the issuance of all of the Securities hereunder, which does not require obtaining the
approval of the shareholders of the Company or any other Person or Governmental Entity, and the Principal Market has completed its
review of the related Listing of Additional Share form. “Governmental Entity” means any nation, state, county,
city, town, village, district, or other political jurisdiction of any nature, federal, state, local, municipal, foreign, or other
government, governmental or quasi-governmental authority of any nature (including any governmental agency, branch, department,
official, or entity and any court or other tribunal), multi-national organization or body; or body exercising, or entitled to
exercise, any administrative, executive, judicial, legislative, police, regulatory, or taxing authority or power of any nature or
instrumentality of any of the foregoing, including any entity or enterprise owned or controlled by a government or a public
international organization or any of the foregoing.

 

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(f) Equity
Capitalization.

 

(i)  Authorized
and Outstanding Ordinary Shares. As of the date hereof, the authorized maximum number of Ordinary Shares of the Company consists
of (A) 50,000,000 ordinary shares of a single class with no par value each, of which, 25,638,254 are issued and outstanding.

 

(ii) Valid
Issuance; Available Shares. All of such outstanding shares are duly authorized and have been validly issued and are fully
paid and non-assessable.

 

(g) Registration
Statement and Prospectus. The Registration Statement is a “shelf registration statement” as defined
under Rule 405 of the Securities Act that has been filed with the Commission not earlier than three years prior to the date hereof;
and no notice of objection of the Commission to the use of such registration statement or any post-effective amendment thereto
pursuant to Rule 401(g)(2) under the Securities Act has been received by Seller. No order suspending the effectiveness of the
Registration Statement has been issued by the Commission, and no proceeding for that purpose or pursuant to Section 8A of the
Securities Act against Seller or related to the offering of the Shares has been initiated or threatened by the Commission; as of the
applicable effective date of the Registration Statement and any post-effective amendment thereto, the Registration Statement and any
such post-effective amendment complied and will comply in all material respects with the Securities Act, and did not and will not
contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary in order
to make the statements therein not misleading; and as of the date of the Prospectus and any amendment or supplement thereto
(including the Prospectus Supplement) and as of each Closing Date, the Prospectus and Prospectus Supplement will not contain any
untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in the light
of the circumstances under which they were made, not misleading.

 

(h) Incorporated
Documents. The documents incorporated by reference in the Registration Statement and the Prospectus, and the
Prospectus Supplement when they were filed with the Commission conformed in all material respects to the requirements of the
Exchange Act, and none of such documents contained any untrue statement of a material fact or omitted to state a material fact
necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading; and any
further documents so filed and incorporated by reference in the Registration Statement, the Prospectus, and the Prospectus
Supplement when such documents are filed with the Commission, will conform in all material respects to the requirements of the
Exchange Act and will not contain any untrue statement of a material fact or omit to state a material fact necessary to make the
statements therein, in the light of the circumstances under which they were made, not misleading.

 

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(i) Registration
Compliance; No Stop Order. No order suspending the effectiveness of the Registration Statement shall be in effect,
and no proceeding for such purpose, pursuant to Rule 401(g)(2) or pursuant to Section 8A under the Securities Act shall be pending
before or threatened by the Commission; the Prospectus and the Prospectus Supplement shall have been timely filed with the
Commission under the Securities Act and in accordance with Section 4(a) hereof; and all requests by the Commission for additional
information shall have been complied with to the reasonable satisfaction of the Representatives.

 

		4.	COVENANTS.

 

(a)              
Reporting Status. For the period beginning on the date hereof, and ending 6 months after the date on which all the Convertible
Debentures are no longer outstanding (the “Reporting Period”), the Company shall use its best efforts to file on a
timely basis all reports required to be filed with the SEC pursuant to the Exchange Act, and the Company shall not terminate its status
as an issuer required to file reports under the Exchange Act even if the Exchange Act or the rules and regulations thereunder would no
longer require or otherwise permit such termination.

 

(b)              
Use of Proceeds. Neither the Company nor any Subsidiary will, directly or indirectly, use the proceeds of the transactions
contemplated herein to repay any loans to any executives or employees of the Company.

 

(c)              
Listing. To the extent applicable, the Company shall promptly secure the listing or designation for quotation (as the case
may be) of all of the Underlying Securities (as defined below) upon each national securities exchange and automated quotation system,
if any, upon which the Ordinary Shares are then listed or designated for quotation (as the case may be, each an “Eligible Market”),
subject to official notice of issuance, and shall use reasonable efforts to maintain such listing or designation for quotation (as the
case may be) of all Underlying Securities from time to time issuable under the terms of the Transaction Documents on such Eligible Market
for the Reporting Period. Neither the Company nor any of its Subsidiaries shall take any action which could be reasonably expected to
result in the delisting or suspension of the Ordinary Shares on an Eligible Market during the Reporting Period. The Company shall pay
all fees and expenses in connection with satisfying its obligations under this Section 4(c). “Underlying Securities”
means the (i) the Conversion Shares, and (ii) any Ordinary Shares of the Company issued or issuable with respect to the Conversion Shares,
including, without limitation, (1) as a result of any share split or sub-division, share dividend, recapitalization, exchange or similar
event or otherwise and (2) shares of the Company into which the Ordinary Shares are converted or exchanged without regard to any limitations
on conversion of the Convertible Debentures.

 

(d)               Reservation
of Shares. So long as any of the Convertible Debentures 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 the lesser of (a) 19.99% of 25,638,254 and (b)
100% of the maximum number of Ordinary Shares issuable upon conversion of all the Convertible Debentures then outstanding (assuming
for purposes hereof that (x) the Convertible Debentures are convertible at the Conversion Price then in effect, and (y) any such
conversion shall not take into account any limitations on the conversion of the Convertible Debentures, including the Floor Price)
(the “Required Reserve Amount”); provided that at no time shall the number of Ordinary Shares reserved
pursuant to this Section 4(e) be reduced other than proportionally in connection with any conversion and/or redemption, or reverse
share split or sub-division. If at any time the number of Ordinary Shares authorized and reserved for issuance is not sufficient to
meet the Required Reserved Amount, the Company will promptly take all corporate action necessary to authorize and reserve a
sufficient number of shares, including, without limitation and to the extent required by applicable law and/or under its memorandum
and articles of association, calling a meeting of shareholders to authorize additional shares to meet the Company's obligations
pursuant to the Transaction Documents, in the case of an insufficient number of authorized shares, recommending that shareholders
vote in favor of an increase in such authorized number of shares sufficient to meet the Required Reserved Amount.

 

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(e)  Conduct
of Business. The business of the Company and its Subsidiaries shall not be conducted in violation of any law, ordinance or
regulation of any Governmental Entity, except where such violations would not reasonably be expected to result, either individually
or in the aggregate, in a Material Adverse Effect.

 

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

 

The obligation of the Company
hereunder to issue and sell the Convertible Debentures to each Buyer at each Closing is subject to the satisfaction, at or before each
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 each Buyer with prior written notice thereof:

 

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

 

(b) Such
Buyer and each other Buyer shall have delivered to the Company the Purchase Price for the Convertible Debentures being purchased by
such Buyer at each Closing by wire transfer of immediately available funds.

 

(c) The
representations and warranties of such Buyer shall be true and correct in all material respects as of the date when made and as of
each 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 specific date), and such 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 such Buyer at or prior to such Closing Date.

 

		6.	CONDITIONS TO EACH BUYER'S OBLIGATION TO PURCHASE.

 

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

 

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(a)
 The Company shall have duly executed and delivered to such Buyer each of the Transaction Documents to which it is a party and
the Company shall have duly executed and delivered to such Buyer such aggregate principal amount of Convertible Debentures as set forth
thereof.

 

(b) The
Ordinary Shares (A) shall be designated for quotation or listed (as applicable) on the Principal Market and (B) shall not have been
suspended, as of each Closing Date, by the SEC or the Principal Market from trading on the Principal Market.

 

(c) The
Company and its Subsidiaries shall have delivered to such Buyer such other documents, instruments or certificates relating to the
transactions contemplated by this Agreement as such Buyer or its counsel may reasonably request.

 

		7.	TERMINATION.

 

In the event
that the Closing shall not have occurred with respect to all the Buyers within five (5) Business Days after the total purchase price have
been delivered by all the Buyers to the Company due to Company’s failure to deliver the Transaction Documents or satisfy the conditions
to each Closing, then such Buyer shall have the right to terminate its obligations under this Agreement with respect to itself at any
time on or after the close of business on such date without liability of such Buyer to any other party; provided, however, (i) the
right to terminate this Agreement under this Section 7 shall not be available to such Buyer if the failure of the transactions contemplated
by this Agreement to have been consummated by such date is the result of such Buyer's breach of this Agreement and (ii) the abandonment
of the sale and purchase of the Convertible Debentures shall be applicable only to such Buyer providing such written notice, provided
further that no such termination shall affect any obligation of the Company under this Agreement to reimburse such Buyer for the expenses
described herein. Nothing contained in this Section 7 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.

 

		8.	MISCELLANEOUS.

 

(a) Governing
Law; Jurisdiction; Jury Trial. All questions concerning the construction, validity, enforcement and interpretation of
this Agreement 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. The Company hereby irrevocably submits to the exclusive jurisdiction
of the state and federal courts sitting in The City of New York, Borough of Manhattan, for the adjudication of any dispute hereunder
or in connection herewith or under any of the other Transaction Documents or with any transaction contemplated hereby or thereby,
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 any Buyer from bringing suit or taking other legal action against
the Company in any other jurisdiction to collect on the Company's obligations to such Buyer or to enforce a judgment or other court
ruling in favor of such 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 UNDER ANY OTHER TRANSACTION DOCUMENT OR IN CONNECTION WITH OR ARISING OUT OF
THIS AGREEMENT, ANY OTHER TRANSACTION DOCUMENT OR ANY TRANSACTION CONTEMPLATED HEREBY OR THEREBY.

 

(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) Entire
Agreement, Amendments. This Agreement supersedes all other prior oral or written agreements between the Buyer, the Company,
their affiliates and persons acting on their behalf with respect to the matters discussed herein, and this Agreement and the
instruments referenced herein contain the entire understanding of the parties with respect to the matters covered herein and therein
and, except as specifically set forth herein or therein, neither the Company nor any Buyer makes any representation, warranty,
covenant or undertaking with respect to such matters. No provision of this Agreement may be waived or amended other than by an
instrument in writing signed by the party to be charged with enforcement.

 

(e)  Notices.
Any notices, consents, waivers or other communications required or permitted to be given under the terms of this Agreement must be
in writing by letter and email and will be deemed to have been delivered: upon the later of (A) either (i) receipt, when delivered
personally or (ii) one (1) Business Day after deposit with an overnight courier service with next-day international delivery
specified, in each case, properly addressed to the party to receive the same and (B) receipt, when sent by electronic mail. The
addresses and e-mail addresses for such communications shall be:

 

    	 	10	 

     

    

 

	If to the Company, to:	ZK INTERNATIONAL GROUP CO., LTD (正康国际集团有限公司)
	 	
    No. 678 Dingxiang Road, Binhai Industrial Park

    Economic & Technology Development Zone

    Wenzhou, Zhejiang Province

    People’s Republic of China 325025

    Attn: Jiancong Huang

    Telephone: +86-577-86852999

    Email: zjzk@cn-zk.cn

     

     

	With Copy to:	
    Ortoli Rosenstadt LLP

    366 Madison Avenue, 3rd Floor

    New York, NY 10017

    Telephone:  212-588-0022

    Attn: Mengyi “Jason” Ye, Esq.

    E-Mail:  jye@orllp.legal

	 	 
	If to a Buyer, to its address and e-mail address as set forth on the signature page hereof.
	 	 

or to such other address, 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) Business Days prior to the effectiveness of such change. Written confirmation of receipt (A) given by the recipient of such notice,
consent, waiver or other communication, (B) electronically generated by the sender's e-mail service provider containing the time, date,
recipient e-mail address or (C) provided by an overnight courier service shall be rebuttable evidence of personal service, receipt by
facsimile or receipt from an overnight courier service in accordance with clause (i), (ii) or (iii) above, respectively

 

(f) Successors and
Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their respective successors and
assigns, including any purchasers of any of the Convertible Debentures (but excluding any purchasers of Underlying Securities,
unless pursuant to a written assignment by such Buyer). The Company shall not assign this Agreement or any rights or obligations
hereunder without the prior written consent of the Buyer. In connection with any transfer of any or all of its Securities, a Buyer
may assign all, or a portion, of its rights and obligations hereunder in connection with such Securities without the consent of the
Company, in which event such assignee shall be deemed to be a Buyer hereunder with respect to such transferred Securities.

 

(g) No
Strict 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.

 

 

[REMAINDER PAGE
INTENTIONALLY LEFT BLANK]

 

    	 	11	 

     

    

 

IN WITNESS WHEREOF,
each Buyer and the Company have caused their respective signature page to this Securities Purchase Agreement to be duly executed as of
the date first written above.

 

 

	 	COMPANY:

 

	 
	 	ZK INTERNATIONAL GROUP CO., LTD

(正康国际集团有限公司)

	 
	 	 	 	 
	 	By:		 
	 	Name:	Jiancong Huang	 
	 	Title:	Chief Executive Officer and Chairman of the Board	 
	 	 	 	 

 

    	 	12	 

     

    

 

IN WITNESS WHEREOF, each Buyer and the Company
have caused their respective signature page to this Securities Purchase Agreement to be duly executed as of the date first written above.

 

	
     

     

     
	 	 
	(Amount of Subscription in USD)	 	(Name of Buyer – Please type or print)
	
     

     

     
	 	 
	 	 	(Signature and, if applicable, Office)
	
     

     

     
	 	 
	 	 	(Address of Buyer)
	
     

     

     
	 	 
	
     

     

     
	 	(City, State/Province, Zip code/Postal Code of Buyer)
	
     

     

     
	 	 
	 	 	(Country of Buyer)
	
     

     

     
	 	 
	 	 	(Email Address of Buyer)

 

    	 	13	 

     

    

 

EXHIBIT A

 

FORM OF CONVERTIBLE DEBENTURES

 

    	 	14EX-10.5

 Exhibit 10.5 

KNOWLTON DEVELOPMENT CORPORATION, INC. 

AMENDED AND RESTATED STOCK OPTION PLAN 
  

	1.	 PURPOSE 

This Amended and Restated Stock Option Plan (as it may be further amended from time to time, this ”Plan”) provides a
means whereby Knowlton Development Corporation, Inc. (previously named Knowlton Development Parent, Inc.), a corporation incorporated under the BCBCA (as defined herein) (the “Company”) may provide financial reward, through the
grant of options to purchase common shares in the share capital of the Company (“Shares”), to eligible persons who have contributed or are expected to contribute to the development of the Company, and to allow them to directly
benefit from the Company’s growth, development and financial success. 
  

	2.	 INTERPRETATION 

The following terms as used in this Plan will have the respective meanings set forth below unless the context otherwise requires: 

“Affiliate” means, with respect to any Person, any other Person who, directly or indirectly (including through one or more
intermediaries), controls, is controlled by, or is under common control with, such Person, including any partner, member, shareholder or other equity holder of such Person or manager, director, officer or employee of such Person; provided, that the
term “Affiliate” shall exclude any portfolio company of any Sponsors or their Affiliates. For purposes of this definition, “control,” when used with respect to any specified Person, shall mean (i) the power, direct or
indirect, to direct or cause the direction of the management and policies of such Person, whether through ownership of voting securities or partnership or other ownership interests, by contract or otherwise, or (ii) the ownership or voting
control, directly or indirectly, of securities which carry the right to cast more than 50% of the votes or similar rights of decision that may be cast to elect the board of directors or any similar managing body of such Person where such votes or
rights are sufficient, if exercised, to elect a majority of the board of directors or similar managing body of such Person; and the terms “controlling” and “controlled” shall have correlative meanings; 

“Associate”, where used to indicate a relationship with a Participant, means (i) any domestic partner of that
Participant, and (ii) the spouse of that Participant and that Participant’s children (whether by birth or adoption), as well as that Participant’s relatives and that Participant’s spouse’s relatives, in each case if they
share that Participant’s residence; 
 “BCBCA” means the Business Corporations Act (British Columbia); 

“Board” means the board of directors of the Company or any committee thereof designated by the Board, including the
compensation committee, to administer this Plan in accordance with Section 5 of this Plan; 
 “Cause” has the meaning
set forth below, except with respect to any Optionee who is engaged by the Company or one of its Affiliates pursuant to an effective written Service agreement in which there is a definition of “Cause” or an equivalent term, in which event
the definition of “Cause” as set forth in such Service agreement shall be deemed to be the definition of “Cause” herein solely for such Optionee and only for so long as such Service agreement remains effective. In all other
events, the term “Cause” means, to the extent permissible under applicable laws, that the Optionee: (a) is convicted of or indicted for, or pleads guilty or no contest to, a felony or crime involving moral turpitude; (b) commits
any act of fraud, misappropriation of funds, embezzlement or dishonesty; (c) engages in illicit use of controlled substances, which use interferes with the Optionee’s performance of the Optionee’s duties to the Company or any of its

 
Subsidiaries; (d) fails to substantially perform the Optionee’s duties to the Company or any of its Subsidiaries (after notice to the Optionee of the same, with a single 15-day opportunity to cure with respect to matters that, by their nature, are capable of being cured); (e) breaches any material provision of such Optionee’s Service agreement, Option Agreement, or any
other agreement with the Company or any of its Subsidiaries; (f) commits willful and dishonest misconduct in the performance of the duties to the Company or any of its Subsidiaries that has or could reasonably be expected to result in financial
or reputational harm to the Company or any of its Subsidiaries; or (g) materially breaches any provision of any restrictive covenant protective of the Company or any of its Subsidiaries; provided that the Company provides notice to the Optionee
of the occurrence of any such breach with a single 15-day opportunity to cure with respect to matters that, by their nature, are capable of being cured; 

“Code” means the U.S. Internal Revenue Code of 1986, as amended from time to time; 

“Company Notice” has the meaning set forth in subsection 7(a)(ii); 

“Cornell” means CC KDC Co-Invest LP (Cayman); 

“Disability” has the meaning set forth below, except with respect to any Optionee who is engaged by the Company or one of its
Affiliates pursuant to an effective written Service agreement in which there is a definition of “Disability” or an equivalent term, in which event the definition of “Disability” as set forth in such Service agreement shall be
deemed to be the definition of “Disability” herein solely for such Optionee and only for so long as such Service agreement remains effective. In all other events, the term “Disability” means: any medical condition whatsoever that
leads to (i) an Employee’s absence from his or her usual job functions for a continuous period of six months, without such Employee being able to resume functions on a full time basis at the expiration of such period and which, in light of
the position held by the Employee, the parties agree would cause undue hardship to the Company or the relevant Subsidiary which cannot be accommodated (and unsuccessful attempts to return to work for periods of fewer than 28 days will not interrupt
the calculation of such six-month period), (ii) an Employee’s absence from his or her usual job functions for 270 days in the aggregate during any period of 365 consecutive days, or (iii) a
determination by a court of competent jurisdiction that such Employee is unable to manage his or her own affairs; 
 “Effective
Date” has the meaning set forth in Section 12; 
 “Election Deadline” has the meaning set forth in
subsection 7(a)(ii); 
 “Employee” means an Optionee who is an employee of the Company or the relevant Subsidiary; 

“Exercise Price” has the meaning set forth in subsection 6(b); 

“Fair Market Value” of a Share means: 
  

	 	(i)	 (A) the closing price of a Share on the TSX where value is determined in Canadian dollars for the grant or
payment of an Option or (B) the closing price of a Share on the NYSE where value is determined in U.S. dollars for the grant or payment of an Option, in each case on the trading day immediately preceding the date of determination (or, if there
is no reported sale on such date, on the last preceding date on which any reported sale occurred); 

  

	 	(ii)	 if the Shares are not listed on both the TSX and the NYSE, then as calculated in paragraph (i) by
reference to the price on the stock exchange on which the Shares are listed (if more than one, then using the exchange on which a majority of Shares are traded); or 

  
 - 2 - 

	 	(iii)	 if the Shares are not listed on any stock exchange, the fair market value as determined by the Board in its
sole discretion; 

 “Governmental Entity” means any (i) governmental or public department, central
bank, court, commission, board, bureau, agency, commissioner, minister, governor-in-council, cabinet, tribunal or instrumentality whether international, multinational,
national, federal, provincial, state, municipal, local or other, (ii) subdivision or authority of any of the above, or (iii) quasi-governmental or private body exercising any regulatory, expropriation or taxing authority under or for the
account of any of the above; 
 “Insider” means a “reporting insider” as defined in National Instrument 55-104 – Insider Reporting Requirements and Exemptions and includes Associates and affiliates (as such term is defined in Part 1 of the TSX Company Manual) of such “reporting insider”; 

“Legal Representative” means, in respect of the death of an Optionee, the administrator, executor or liquidator of the
Optionee’s estate and, in respect of Disability of the Optionee, any Person appointed pursuant to a “living will” or mandate in case of Disability or by Court order to administer the Optionee’s estate or assets; 

“NYSE” means the New York Stock Exchange; 

“Option” means an option to purchase Shares granted pursuant to the terms of this Plan; 

“Option Agreement” has the meaning set forth in Section 6; 

“Optioned Shares” means, in respect of an Option, the total number of Shares which an Optionee may purchase pursuant to that
Option; 
 “Optionee” means a Person to whom an Option has been granted pursuant to this Plan; 

“Participant” has the meaning set forth in subsection 4(a); 

“Person” is to be interpreted broadly and includes an individual, partnership, company, corporation, trust, unincorporated
association, joint venture or other entity or Governmental Entity, and pronouns are to have a similarly extended meaning; 

“Proposed Closing Date” has the meaning set forth in subsection 7(a)(ii); 

“Sale of the Company” means (i) a sale of all or substantially all of the assets of the Company to an un-Affiliated third party; (ii) a sale resulting in more than 50% of the Shares being held by an un-Affiliated third party of any Sponsors; or (iii) a merger,
consolidation, recapitalization or reorganization of the Company with or into an un-Affiliated third party after which more than 50% of the Shares are held by an
un-Affiliated third party; 
 “Share Compensation Arrangement” means a stock option,
stock option plan, employee stock purchase plan, long-term incentive plan or any other compensation or incentive mechanism involving the issuance or potential issuance of Shares to one or more full-time Employees, directors, Insiders, or consultants
of the Company or a Subsidiary of the Company, including a Share purchase from treasury by a full-time Employee, director, Insider, or consultant which is financially assisted by the Company or a Subsidiary of the Company by way of a loan, guarantee
or otherwise; 
 “Shares” has the meaning set forth in Section 1; 

  
 - 3 - 

 “Section 409A” means Section 409A of the Code
together with all regulations, guidance, compliance programs and other interpretative authority thereunder; 
 “Service”
means the Optionee’s service as an employee, director or independent contractor with the Company or any of its Subsidiaries; 

“Sponsors” means Cornell and Caisse de dépôt et placement du Québec; 

“Subsidiaries” means, with respect to any Person, any other Person of which a majority of the outstanding shares or other
equity interests having the power to vote for all of the directors or comparable managers are owned, directly or indirectly, by the first Person; 

“Tax Act” means the Income Tax Act (Canada) and the regulations thereunder, as amended; 

“Termination Date” means, without regard to any period corresponding to a notice of termination of employment or engagement,
payment in lieu of any notice of termination of employment or engagement, termination pay, severance pay, termination fees, payment in lieu of resignation notice or any indemnity or damages for termination of employment or engagement that is given
or that ought to have been given, whether pursuant to applicable law, common law, civil law, contract or further to a judgment rendered by a tribunal of competent jurisdiction, as well as any period of salary continuance or deemed employment or
engagement in respect of such termination of employment (further to reinstatement or otherwise) or engagement: (i) the date on which the Optionee’s Service is terminated by the Company or the relevant Subsidiary for any reason;
(ii) the date on which the Optionee voluntarily terminates his or her Service for any reason; (iii) the date of death of the Optionee; or (iv) the date on which the Optionee is deemed to be incapacitated in accordance with the
definition of Disability; 
 “TSX” means the Toronto Stock Exchange; and 

“Withholding Obligations” has the meaning set forth in subsection 9(a). 

As used in this Plan, words importing the singular number only will include the plural and vice versa and words importing gender will include
both genders, unless the context clearly requires otherwise. 
  

	3.	 SHARES AVAILABLE UNDER PLAN 

The maximum number of Shares issuable under this Plan is [●]1 Shares, which
represents the Shares issuable upon exercise of Options outstanding as of [●], 2021, being the date that this Plan is amended and restated, which, when delivered in accordance with the terms and conditions of any Option Agreement and this
Plan, shall be validly issued, fully paid and non-assessable. The Board will not grant any additional Options under this Plan. If any Option is forfeited, cancelled, expires, terminates or otherwise lapses or
is settled in cash, in whole or in part, without the delivery of Shares, then the Shares covered by such forfeited, expired, terminated or lapsed Option shall not become available for grant under this Plan or otherwise. 

 

	4.	 ELIGIBILITY 

  

	 	(a)	 Options may be granted to Employees or contractors or consultants of the Company or the relevant Subsidiary
(each a “Participant”). A Person may be granted more than one Option under this Plan. 

  

	 	(b)	 Subject to subsection 6(f) and subsection 11(i), (i) the maximum number of Shares issuable from treasury to
Participants who are Insiders, at any time, under this Plan and 

  

	1 	 Note: Amount to reflect the stock split.

  
 - 4 - 

	 	
any other proposed or established Share Compensation Arrangement, shall not exceed ten percent (10%) of the Shares issued and outstanding from time to time (calculated on a non-diluted basis); and (ii) the maximum number of Shares issued from treasury to Participants who are Insiders, within any one-year period, under this Plan and any other
proposed or established Share Compensation Arrangement, shall not exceed ten percent (10%) of the Shares issued and outstanding from time to time (calculated on a non-diluted basis). Any Option granted
pursuant to the Plan, or securities issued under the any other Share Compensation Arrangement, prior to a Participant becoming an Insider, shall be excluded for the purposes of the limits set out in this subsection 4(b). 

 

	5.	 ADMINISTRATION 

 

	 	(a)	 This Plan will be administered by, and under the supervision of, the Board. 

 

	 	(b)	 The Board will have the power to: 

 

	 	(i)	 [Reserved] 

  

	 	(ii)	 determine the time or times when, and the manner in which, each Option will be vested and exercisable and the
duration of the exercise term; and 

  

	 	(iii)	 determine the other terms and conditions of Options, subject to and in accordance with the terms of this Plan.

  

	 	(c)	 [Reserved] 

  

	 	(d)	 [Reserved] 

  

	 	(e)	 The Board may interpret this Plan and, in its sole discretion, prescribe, amend or rescind any rules and
regulations necessary or appropriate for the administration of this Plan and make such other determinations and take such actions in connection with the administration of this Plan as it deems necessary or advisable. 

 

	 	(f)	 Any such interpretation or determination so made will be final, binding and conclusive. 

 

	 	(g)	 Each member of the Board and any delegate appointed by the Board for the purposes of this Plan will be
indemnified and held harmless by the Company against any cost or expense (including counsel fees) reasonably incurred by him or her, or any liability (including any sum paid in settlement of a claim with the approval of the Company) arising out of
any act or omission to act in connection with this Plan unless arising out of such member’s or Person’s own fraud, criminal or willful misconduct or bad faith, to the extent permitted by applicable law. Such indemnification will be in
addition to any rights of indemnification such member may otherwise have as a director of the Company or may otherwise have as an officer of the Company or any of its Affiliates, as applicable. 

 

	 	(h)	 The Board may delegate all or any of its powers and duties hereunder to a committee of the Board, subject to
such limitations as it may impose. 

  
 - 5 - 

	6.	 TERMS AND CONDITIONS 

Each Option granted under this Plan will be evidenced by an option agreement (each, an “Option Agreement”), in such
form as may be approved by the Board in its sole discretion, which will be subject to the following express terms and conditions and to such other terms and conditions as set out in the Option Agreement as the Board may deem appropriate: 

 

	 	(a)	 Conditions to Exercise. Options will become exercisable when (and to the extent) vested and upon the
satisfaction of such other conditions to exercise (if any) as the Board may determine and as are set out in the Option Agreements. Notwithstanding anything to the contrary in this Plan or any Option Agreement, (i) the term of each Option will
not exceed 10 years from the date of grant of such Option, and (ii) to the extent an Option is not previously exercised as to all of the Shares subject thereto, and, if the Fair Market Value of one Share is greater than the exercise price then
in effect, then the Option shall be deemed automatically exercised immediately before its expiration, and the Company will effect a “net exercise” of the Option under which the Company will reduce the number of Shares otherwise issuable to
the Participant upon such exercise by the number of Shares with an aggregate Fair Market Value that equals the sum of the aggregate Exercise Price and any Withholding Obligation, the whole in accordance with applicable securities laws and policies
adopted by the Company. 

  

	 	(b)	 Exercise Price. Subject to adjustment in accordance with this Plan, the purchase price of each Share
subject to an Option (with respect to such Option, its “Exercise Price”) will be not less than the Fair Market Value of a Share as at the date of grant of the Option. 

 

	 	(c)	 Payment of Exercise Price. The Exercise Price of any Share in respect of which an Option is exercised
will be paid in cash or an equivalent thereof (e.g., by certified cheque payable to the Company), unless otherwise permitted by the Board in its sole discretion. Subject to approval of the Board in its sole discretion, Optionees may elect, in lieu
of exercising Options, to surrender such Options to the Company in consideration of a payment to be satisfied by the Company issuing a number of Shares to the Optionee equal to the number of Optioned Shares in respect of such surrendered Options,
less the number of Shares having an aggregate Fair Market Value at that time equal to the aggregate Exercise Price in respect of such surrendered Options, subject to Section 9. In the event of such a surrender, the Company will duly and timely
file an election in respect thereof under subsection 110(1.1) of the Tax Act, where applicable. 

  

	 	(d)	 Vesting Periods. Each Option will vest over such period and/ or upon the occurrence of certain events as
the Board may determine, in its sole discretion, and as set out in the corresponding Option Agreement. If an Optionee purchases fewer Shares than such Optionee is entitled to purchase under an Option, then any remaining portion of Shares will remain
available for purchase, subject to the terms of the Option Agreement. 

  

	 	(e)	 Obligation to Issue Shares. The Company’s obligation to issue Optioned Shares to an Optionee
pursuant to the exercise of an Option may be subject to: 

  

	 	(i)	 completion of such registration or other qualifications of such Optioned Shares or obtaining approval of such
governmental authority or stock exchange as the Company shall determine to be necessary or advisable in connection with the authorization, issuance or sale of the Optioned Shares; and 

 

	 	(ii)	 [Reserved] 

  

	 	(iii)	 [Reserved] 

  

	 	(iv)	 the receipt from the Optionee of such representations, agreements and undertakings as to future dealings in
such Optioned Shares as may be necessary to comply with applicable laws. 

  

	 	(f)	 Adjustments in Event of Change in Shares. If there is any change in the issued and outstanding capital
of the Company by reason of any recapitalization, reorganization, arrangement, merger, amalgamation, dissolution, dividend (other than an ordinary 

  
 - 6 - 

	 	
dividend), stock dividend, or a consolidation, subdivision, reclassification, split, combination or exchange of shares, or any similar change affecting the Shares or the share capital of the
Company, the number and kind of shares which after such change may be optioned and sold under this Plan, the number and kind of shares or other securities subject to outstanding Options, the Exercise Price of Options and/ or any other term of the
Options, including, without limitation, vesting terms or performance targets, shall be appropriately adjusted consistent with such change in such manner as the Board, in its sole discretion, deems equitable to prevent substantial dilution or
enlargement of the rights granted to, or available for, participants in this Plan. 

  

	 	(g)	 No Fractional Shares. Except as otherwise determined by the Board, the Company shall not be obligated to
issue fractional Shares upon the exercise of Options; provided that, notwithstanding the foregoing, no cash shall be paid in respect of a fractional Share in connection with an Option granted to a Participant who is subject to Canadian taxation, and
the Committee shall be entitled to round the number of Shares subject to such Option down to the nearest whole number without further compensation payable to the Participant. 

 

	 	(h)	 Certificates. All certificates for Shares or other securities delivered under this Plan (whether in
physical or electronic form, as appropriate) will be subject to stock transfer orders, legends and other restrictions that the Board deems necessary or advisable, including restrictions under any applicable securities law, or any rules, regulations
and other requirements of the regulatory authorities or any stock exchanges or automated quotation system on which the Shares may be listed. 

  

	 	(i)	 Non-transferability. Other than by will or by the laws of
succession or as specifically provided under this Plan, no Option may be sold, transferred, assigned, alienated, pledged, encumbered, given as security, or be subject to attachment, change, anticipation, execution, garnishment, sequestration, or
other seizure under any legal or other process. Any transaction purporting to effect such a prohibited result is void. During the lifetime of the Optionee, an Option will be exercisable only by such Optionee and for such Optionee’s sole
beneficial interest. 

  

	7.	 SALE OF THE COMPANY 

 

	 	(a)	 Upon the Company entering into or otherwise becoming aware of a transaction which, if completed, would result
in a Sale of the Company: 

  

	 	(i)	 Early Vesting. The Board may, in its sole discretion, accelerate the vesting and/ or waive any
conditions to the exercise of all or any portion of outstanding Options so that such outstanding Options will be fully vested and exercisable upon (or prior to) the completion of the Sale of the Company and on such conditions as the Board may
determine. 

  

	 	(ii)	 Company Notice. The Board may provide notice to Optionees of the proposed Sale of the Company (the
“Company Notice”) setting out the proposed closing date for such transaction (the “Proposed Closing Date”) and the details of any acceleration of vesting and/ or waiver of any conditions to the exercise of such
Optionee’s Options. Prior to the election deadline specified in the Company Notice (the “Election Deadline”), an Optionee may give irrevocable notice in writing to the Company of his or her election to exercise or not to
exercise any vested and exercisable Options. Subject to the sole discretion of the Board, the Company Notice may also provide that the Optionee may elect to surrender any vested and exercisable Options to the Company in consideration for a cash
payment equal to the difference between the Fair Market Value of the Optioned Shares in respect of such Options and the aggregate Exercise Price of such 

  
 - 7 - 

	 	
Options, subject to Section 9, whereupon such Options will be deemed to have been cancelled. In the event of such a surrender, the Company will duly and timely file an election in respect
thereof under subsection 110(1.1) of the Tax Act, where applicable. If the Optionee elects to not exercise or surrender any Options, or if no such notice is received by the Company by the Election Deadline, all Options held by such Optionee
will terminate and expire immediately prior to the closing of the Sale of the Company. 

  

	 	(iii)	 Deemed Exercise; Assumption or Replacement of Options by Successor. Notwithstanding the foregoing, the
Board may, in its sole discretion, deal with Options in any manner it deems fair in good faith in light of the circumstances of any proposed Sale of the Company. Without limiting the generality of the foregoing, the Board may, without any action or
consent required on the part of any Optionee, (i) deem the vested and exercisable portion of any Options to have been exercised and the resulting Shares tendered for sale in a Sale of the Company, in which case the Company may apply a portion
of the Optionee’s proceeds from the closing of the Sale of the Company to the Exercise Price payable by that Optionee for the exercise of his or her Options, (ii) exchange Options for options to purchase shares in the capital of the
acquiror or any Company which results from an amalgamation, merger arrangement or similar transaction involving the Company made in connection with a Sale of the Company, and (iii) terminate Options that are unvested or not yet exercisable or
with an Exercise Price greater than the Fair Market Value of the Optioned Shares. 

  

	8.	 TERMINATION OF EMPLOYMENT 

 

	 	(a)	 Disability or Death. Unless otherwise provided in an Option Agreement, in the event of an
Optionee’s termination of Service, as the case may be, as a result of Disability or death, the Optionee (or his or her Legal Representative) may exercise any Options that were vested and exercisable at the Termination Date and the right to
exercise such Options terminates on the earlier of: (i) the first anniversary of the Termination Date; and (ii) the date on which the particular Option expires pursuant to this Plan; provided that any Options not exercised on or prior to
such date shall immediately expire and be cancelled without consideration. Any Options held by the Optionee that were not vested and exercisable at the Termination Date shall immediately expire and be cancelled on such date without consideration, or
at a time as may be determined by the Board, in its sole discretion. 

  

	 	(b)	 Termination without Cause. Unless otherwise provided in an Option Agreement, in the event of an
Optionee’s termination of Service by the Company or the relevant Subsidiary without Cause, any Options held by the Optionee that were vested and exercisable at the Termination Date shall continue to be exercisable by the Optionee until the
earlier of: (i) the date that is 90 days after the Termination Date; and (ii) the date on which the particular Option expires pursuant to this Plan; provided that any Options not exercised on or prior to such date shall immediately expire
and be cancelled without consideration. Any Options held by the Optionee that were not vested and exercisable at the Termination Date shall immediately expire and be cancelled on such date without consideration, or at a time as may be determined by
the Board, in its sole discretion. 

  

	 	(c)	 Termination with Cause. Unless otherwise provided in an Option Agreement, in the event of an
Optionee’s termination of Service by the Company or the relevant Subsidiary with Cause or the Optionee resigns at a time when grounds for Cause exist, any Options held by the Optionee, whether or not vested and exercisable at the Termination
Date, shall immediately expire and be cancelled on such date without consideration. 

  
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	 	(d)	 Resignation. Unless otherwise provided in an Option Agreement, in the event of an Optionee’s
resignation from Service, or termination of Service for any reason other than the termination events described in Sections 8(a), (b) and (c) hereof, any Options held by the Optionee that remain outstanding after such termination and were vested
and exercisable at the Termination Date shall continue to be exercisable by the Optionee until the earlier of (i) the date that is 30 days after the Termination Date; and (ii) the date on which the particular Option expires pursuant to
this Plan; provided that any Options not exercised on or prior to such date shall immediately expire and be cancelled without consideration. Any Options held by the Optionee that were not vested and exercisable at the Termination Date shall
immediately expire and be cancelled on such date without consideration, or at a time as may be determined by the Board, in its sole discretion. 

  

	9.	 WITHHOLDING TAXES 

 

	 	(a)	 The Company or its Affiliates may withhold from any amount payable to an Optionee, either under this Plan or
otherwise, such amounts as are required by law to be withheld or deducted as a consequence of such Optionee’s exercise or surrender of Options or other participation in this Plan (“Withholding Obligations”). The Company or its
Affiliate will have the right, in its discretion, to satisfy any Withholding Obligations by: 

  

	 	(i)	 retaining the amount necessary to satisfy the Withholding Obligations from any amount which would otherwise be
delivered, provided or paid to the Optionee, whether under this Plan or otherwise; 

  

	 	(ii)	 requiring the Optionee, as a condition of exercise of any Options to: 

 

	 	(A)	 remit the amount of any such Withholding Obligations to the Company or its Affiliates in advance; or

  

	 	(B)	 reimburse the Company or its Affiliates for any such Withholding Obligations; and/or 

 

	 	(iii)	 making such other arrangements as the Company or its Affiliates may reasonably require. 

 

	10.	 COMPLIANCE WITH SECTION 409A OF THE CODE 

 

	 	(a)	 General. The Company intends that the Plan and all Options be construed to avoid the imposition of
additional taxes, interest and penalties pursuant to Section 409A. Notwithstanding the Company’s intention, in the event any Option is subject to such additional taxes, interest or penalties pursuant to Section 409A, the Board may, in
its sole discretion and without an Optionee’s prior consent, amend the Plan and/ or Options, adopt policies and procedures or take any other actions (including amendments, policies, procedures and actions with retroactive effect) as are
necessary or appropriate to (a) exempt the Plan and/ or any Option from the application of Section 409A, (b) preserve the intended tax treatment of any such Option or (c) comply with the requirements of Section 409A,
including, without limitation, any such regulations, guidance, compliance programs and other interpretative authority that may be issued after the date of the grant. In no event shall the Company or any of its Subsidiaries or Affiliates be liable
for any additional tax, interest or penalties that may be imposed on an Optionee under Section 409A or for any damages for failing to comply with Section 409A. 

 

	 	(b)	 Payments to Specified Employees. Notwithstanding any contrary provision in the Plan or any Option
Agreement, any payments of nonqualified deferred compensation (within the meaning of Section 409A) that are otherwise required to be made under the Plan to a 

  
 - 9 - 

	 	
“specified employee” (as defined under Section 409A) as a result of his or her separation from service (other than a payment that is not subject to Section 409A) shall be
delayed for the first six months following such separation from service (or, if earlier, until the date of death of the specified employee) and shall instead be paid on the day that immediately follows the end of such
six-month period or as soon as administratively practicable thereafter. Any remaining payments of nonqualified deferred compensation shall be paid without delay and at the time or times such payments are
otherwise scheduled to be made. 

  

	 	(c)	 Separation from Service. A termination of service shall not be deemed to have occurred for purposes of
any provision of the Plan or any Option Agreement providing for the payment of any amounts or benefits that are considered nonqualified deferred compensation under Section 409A upon or following a termination of service unless such termination
is also a “separation from service” within the meaning of Section 409A and the payment thereof prior to a “separation from service” would violate Section 409A. For purposes of any such provision of the Plan or any
Option Agreement relating to any such payments or benefits, references to a “termination,” “termination of employment,” “termination of service” or like term shall mean “separation from service.”

  

	 	(d)	 Separate Payments. For purposes of Section 409A, an Optionee’s right to receive any
installment payments pursuant to this Plan or any Option granted hereunder shall be treated as a right to receive a series of separate and distinct payments. For the avoidance of doubt, each applicable tranche of Shares subject to vesting under any
Option shall be considered a right to receive a series of separate and distinct payments. 

  

	11.	 MISCELLANEOUS 

 

	 	(a)	 No Rights as Shareholder. No Optionee will have any rights as a shareholder with respect to any Optioned
Shares prior to the date of issuance of such Shares by the Company to the Optionee pursuant to the terms of this Plan. 

  

	 	(b)	 No Employment Rights. Neither this Plan nor any Option will confer upon any Optionee any right with
respect to continuance of Service with the Company or any of its Affiliates, or interfere in any way with the right of the Company or its applicable Affiliate to terminate any Optionee’s Service at any time and for any reason in accordance with
applicable law. The Optionee waives any and all right to compensation or damages in consequence of termination of Service (whether lawfully or unlawfully) or otherwise for any reason whatsoever insofar as those rights arise or may arise from the
Optionee ceasing to have Options, rights, or be entitled to any payment, under this Plan, including in respect of any Options which may have been issued or have vested after the Termination Date. 

 

	 	(c)	 No Guarantees Regarding Tax Treatment. Optionees (or their beneficiaries) shall be responsible for all
taxes with respect to any Options under the Plan. The Board and the Company make no guarantees to any Person regarding the tax treatment of Options or payments made under the Plan. Neither the Board nor the Company has any obligation to take any
action to prevent the assessment of any tax on any Person with respect to any Option under the Tax Act, Section 409A of the Code, Section 457A of the Code or otherwise, and none of the Company, any of its Subsidiaries or Affiliates, or any
of their employees, representatives, shareholders or investors shall have any liability to an Optionee with respect thereto. 

  

	 	(d)	 Conditions and Restrictions on Shares. The Board may impose such conditions or restrictions on any
Shares received in connection with an Option as it may deem advisable or desirable. These restrictions may include, but shall not be limited to, requirements that the Optionee: (i) hold the Shares received for a specified period of time or
(ii) represent and warrant in writing that the Optionee is acquiring the Shares for investment and without any present intention to sell or distribute such Shares. The certificates for Shares (if any) may include any legend that the Board deems
appropriate to reflect any conditions and restrictions applicable to such Shares. 

  
 - 10 - 

	 	(e)	 No Constraint on Corporate Action. Nothing in the Plan shall be construed to: (i) limit, impair or
otherwise affect the Company’s right or power to make adjustments, reclassifications, reorganizations or changes of or to its capital or business structure or to merge or consolidate, or dissolve, liquidate, sell or transfer all or any part of
its business or assets; or (ii) limit the right or power of the Company to take any action that it deems to be necessary or appropriate. 

  

	 	(f)	 Accounts and Statements. The Company will maintain records of the details of each Option granted to each
Optionee under this Plan, including the date of the grant, the Exercise Price, vesting conditions, number of Shares in respect of which the Option has been exercised, and number of Shares which Optionee may still purchase under an Option.

  

	 	(g)	 Confidentiality. Optionees are required to keep confidential the contents of this Plan and the terms of
any Option Agreement, corporate information and materials and any information packages relating thereto. 

  

	 	(h)	 Severability. If any provision of this Plan is ever held illegal or invalid for any reason, such
illegality or invalidity will not affect the remaining parts or provisions of this Plan and this Plan will be construed, administered and enforced as if such illegal or invalid provision had never been included in this Plan. 

 

	 	(i)	 Amendment or Termination. 

 

	 	(i)	 Amendment or Termination of the Plan; Terms of Options. Except to the extent prohibited by applicable
law and unless otherwise expressly provided in an Option Agreement or in this Plan, the Board may amend, alter, suspend, discontinue or terminate the Plan or any portion thereof, at any time, and the Board may waive any conditions or rights under,
amend any terms of, or amend, alter, suspend, discontinue or terminate any Option theretofore granted, prospectively or retroactively, without the consent of any relevant holder of such Options, at any time; provided, however, that:

  

	 	(A)	 such action shall require the prior approval, if required, of the shareholders of the Company or of any stock
market or exchange on which the Shares are quoted or traded; and 

  

	 	(B)	 subject to Section 6(f), Section 7 and Section 8, no such action shall materially adversely
affect the rights of any affected Participant or holder or beneficiary under any Option theretofore granted under the Plan without the consent of such person, except to the extent any such action is made to cause the Plan or Option to comply with
applicable law, stock market or exchange rules and regulations or accounting or tax rules and regulations. 

 The Board
shall be authorized to make adjustments in the terms and conditions of, and the criteria included in, Options in recognition of events (including the events described in Section 6(f)) affecting the Company, or the financial statements of the
Company, or of changes in applicable laws, regulations or accounting principles, whenever the Board determines that such adjustments are appropriate in order to prevent dilution or enlargement of the benefits or potential benefits intended to be
made available under the Plan. 

  
 - 11 - 

	 	(ii)	 Automatic Termination of the Plan. This Plan will automatically terminate on the date on which all
Options issued under the Plan have either been exercised, cancelled or forfeited. 

  

	 	(iii)	 Shareholder Approval. Notwithstanding Section 11(i)(i), shareholder approval in accordance with
applicable stock exchange rules shall be required for any of the following: 

  

	 	(A)	 any increase to the maximum number of Shares issuable under the Plan, except in the event of an adjustment
pursuant to Section 6(f); 

  

	 	(B)	 except in the event of an adjustment pursuant to Section 6(f), amending or modifying the terms of an
Option to lower the exercise price or hurdle price; 

  

	 	(C)	 except in the event of an adjustment pursuant to Section 6(f), cancelling any Option and granting a
replacement Option or other awards having a lower exercise price or hurdle price; 

  

	 	(D)	 any extension of the term of an Option beyond the original expiry date, to the extent such amendment benefits
an Insider; 

  

	 	(E)	 any amendment which increases limits on Shares that may be issuable to Insiders as set forth in
Section 4(b); and 

  

	 	(F)	 any amendment to the amendment provisions of this Plan that reduces the range of amendments which require
shareholder approval under this Section. 

  

	 	(iv)	 Permitted Amendments. Without limiting the generality of Section 11(i)(i) but subject to
Section 11(i)(iii), the Board may in its absolute discretion and without shareholder approval make the following amendments to the Plan or any portion thereof or the terms of any outstanding Option: 

 

	 	(A)	 any amendment to the vesting provision or performance criteria, if applicable, or assignability provisions of
the Options; 

  

	 	(B)	 any amendment to the expiration date of an Option that does not extend the terms of the Option past the
original date of expiration of such Option; 

  

	 	(C)	 any amendment regarding the effect of termination of a Participant’s employment or engagement;

  

	 	(D)	 any amendment which accelerates the date on which any Option may be exercised under the Plan;

  

	 	(E)	 any amendment to the eligibility criteria under the Plan; 

 

	 	(F)	 any amendment necessary to comply with applicable law, stock market or exchange rules and regulations or
accounting or tax rules and regulations; 

  
 - 12 - 

	 	(G)	 any amendment of a “housekeeping” nature, including to clarify the meaning of an existing provision
of the Plan, correct or supplement any provision of the Plan that is inconsistent with any other provision of the Plan, correct any grammatical or typographical errors or amend the definitions in the Plan; 

 

	 	(H)	 any amendment regarding the administration of the Plan; 

 

	 	(I)	 any amendment to add or amend provisions a form of financial assistance, or “clawback” or recoupment;
and 

  

	 	(J)	 any other amendment that does not require the approval of the shareholders of the Company under
Section 11(i)(iii). 

  

	 	(j)	 Duration of Plan. Unless sooner terminated as provided in Section 11(i), this Plan shall terminate
on the tenth (10th) anniversary of the Effective Date. 

  

	 	(k)	 Governing Law. This Plan will be governed by and construed in accordance with the laws of the state of
Delaware and the laws of the United States applicable therein. 

  

	 	(l)	 Headings. The division of this Plan into subsections and clauses and the insertion of headings are for
convenience of reference only and will not affect the construction or interpretation of this Plan. 

  

	 	(m)	 Notice. Any notice required or permitted to be given pursuant to the terms of this Plan will be given by
delivery, email or registered mail to the address or email address of the recipient shown in the records of the Company, or by delivery or registered mail to the Company at its registered office, and will be deemed to have been received when
delivered or on the third day of uninterrupted postal service after mailing, as the case may be. Any inadvertent failure by the Company to give notice to any Optionee or Optionees pursuant to this Plan will not invalidate any action proposed to be
taken by the Company in connection with such notice. 

  

	12.	 EFFECTIVE DATE 

This Plan is effective as of April 6, 2019 (the “Effective Date”). 

  
 - 13 -

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