Document:

CONVERTIBLE LOAN AGREEMENT

 

WISeKey International Holdings Ltd, a stock
corporation (Aktiengesellschaft) incorporated in Switzerland and registered in the commercial register of the Canton of
Zug under registration number CHE-143.782.707, with its registered office at General-Guisan-Strasse 6, 6300 Zug (the Borrower)
and Crede CG III, Ltd., a limited company incorporated in Bermuda, with registered office at Clarendon House, 2 Church Street,
Hamilton HM 11, Bermuda (the Lender; the Borrower and the Lender each a Party and together the Parties), enter
into this Convertible Loan Agreement (as amended, restated, supplemented or otherwise modified from time to time, the Agreement)
as of September 28, 2018.

 

WHEREAS

 

		(A)	The Lender intends to grant the Borrower a loan in the principal amount of USD 3,000,000 (the Loan),
convertible into registered shares, par value CHF 0.05 each (the Class B Shares), of the Borrower, subject to the terms
and conditions of this Agreement;

 

		(B)	The Borrower intends to accept the Loan, subject to the terms and conditions of this Agreement;
and

 

		(C)	This Agreement documents the terms and conditions upon which the Lender is willing to extend the
Loan to the Borrower, and the Borrower is willing to accept the Loan from the Lender.

 

Now, therefore, the Parties agree
as follows:

 

		1.	Definitions

 

Capitalized terms used in this Agreement
have the meanings assigned to such terms as set forth in the body of this Agreement and referenced on Schedule 1 to this
Agreement

 

		2.	Effective Date

 

This Agreement, and the rights and obligations
hereunder of the Parties, shall become effective subject to and upon the Borrower receiving from the Swiss Federal Tax Administration
(the SFTA) and the competent cantonal tax authority a ruling (the Tax Ruling) confirming, among other things, the
Swiss federal withholding tax neutrality of the Loan grant, the interest payment under the terms hereof, the Conversion and the
creation of reserves from capital contributions upon the Conversion if the Conversion Shares are to be created through the subscription
by an Affiliate of the Borrower of Class B Shares newly issued at par value out of the Borrower's authorized share capital and
held in treasury during the term of this Agreement (the date on which the Borrower notifies the Lender in accordance with Section
7.1 of the receipt of the Tax Ruling, the Effective Date); provided, however, that if the Tax Ruling has not been
obtained within a period of thirty-five (35) Business Days after the date hereof or if the SFTA, before the expiry of the afore-mentioned
thirty-five (35)-Business Day period, rejects the Borrower's request for a positive Tax Ruling, this Agreement and all rights and
obligations of the Parties hereunder, with the exception of the provisions pursuant to Section 6(c) and Section 7, shall lapse,
without any liability of one Party to the other Party.

 

    

    
	Convertible Loan Agreement	 2 | 12

    

 

		3.	Terms of the Loan

 

		(a)	Loan | Principal Amount. The principal amount of the Loan owed by the Borrower to the Lender
under this Agreement (the Principal Amount) shall be USD 3,000,000 (in words: three million U.S. dollar). Any amounts repaid,
in whatever form, shall reduce the Principal Amount and may not be re-borrowed.

 

		(b)	Disbursement. Subject to the satisfaction of all terms and conditions of this Agreement,
the Lender shall be required to make a disbursement of the Loan in the Principal Amount (the Disbursement) to the account
designated by the Borrower no later than 3 (in words: three) Business Days after the Effective Date (the Disbursement Date).

 

		(c)	Interest. The Principal Amount shall bear interest at the Interest Rate. The Borrower shall
pay accrued interest at the Interest Rate on the Principal Amount in arrears on the last Business Day of each calendar year quarter
(each an Interest Payment Date), with the first interest payment accrued on the outstanding Principal Amount due on December
31, 2018. The Borrower may, at its sole election, pay interest on the outstanding Principal Amount by delivering such number of
Class B Shares held in treasury (the Interest Payment Conversion Shares) as corresponds to the quotient of the relevant
interest payment amount due at the relevant Interest Payment Dante and the Interest Conversion Price. The interest accruing on
the outstanding Principal Amount of the Loan shall be calculated on the basis of a 360-day year for the actual number of days elapsed.

 

		(d)	Maturity Date. Except as otherwise provided in this Agreement, the obligations pursuant
to this Agreement shall become due and payable on the Maturity Date in accordance with the terms and conditions of this Agreement.

 

		(e)	Repayment of Principal. The Principal Amount shall be repaid through a delivery of such
number of Class B Shares, or, at the election of the Borrower, any rights (such as American Depository Shares or American Depository
Receipts) representing Class B Shares (if any) of the Borrower (the Conversion), as corresponds to the quotient of the Principal
Amount then outstanding and the Conversion Price (the Class B Shares or rights representing Class B Shares into which the Conversion
occurs hereinafter, together with the Interest Payment Conversion Shares, if any, the Conversion Shares). In order to confirm
the Conversion, the Lender shall be required to deliver to the Borrower at the relevant Conversion Date an exercise notice, duly
executed, substantially in the form set forth on Schedule 3(e) (the Exercise Notice). Upon the Conversion, any fraction
of a Class B Share shall be rounded down to the next whole Class B Share. The Conversion Shares shall be delivered to the Lender
within 2 (in words: two) Trading Days after receipt of the Exercise Notice by the Borrower.

 

		(f)	Conversion Date. The Lender may request a Conversion of the Principal Amount by delivery
of the Exercise Notice at any time after the expiry of 30 calendar days after the Disbursement Date and any time thereafter on
or before the Maturity Date (the date on which Conversion is requested by delivery of the Exercise Notice to the addressees indicated
thereon the Conversion Date, it being understood that the delivery of the relevant number of Class B Shares to the Lender
may take up to 2 (in words: two) Trading Days.

 

    

    
	Convertible Loan Agreement	 3 | 12

    

 

		4.	Representations and Warranties

 

		4.1	Representations and Warranties of the Borrower

 

The Borrower represents and warrants
(sichert zu) to the Lender as of the date hereof, the Disbursement Date and the Conversion Date with reference to the facts
and circumstances then subsisting as follows:

 

		(a)	Organization. The Borrower is a stock corporation (Aktiengesellschaft) duly formed
and existing under the laws of Switzerland, and the execution, delivery and performance of this Agreement is within its organizational
powers, has been duly authorized, is not in contravention of applicable law or its articles of association and does not require
the consent or approval of any third party, including any governmental body, agency or authority.

 

		(b)	Absence of Conflicting Obligations. The execution of this Agreement and compliance with
its terms will not (i) result in a breach of any of the terms and conditions of any material agreement or instrument to which Borrower
is a party or its assets are subject, or (ii) result in the imposition of any lien, charge, or encumbrance upon any property
of Borrower pursuant to, or constituting a default under, any indenture or other agreement or instrument to which Borrower is a
party or by which it is bound.

 

		(c)	Qualification to do Business. The Borrower and each of its Affiliates has the full power
and authority to own, lease and operate its properties and assets and to conduct its business, and is lawfully qualified to do
business in those jurisdictions in which business is conducted by it.

 

		(d)	Capacity. The Borrower has full corporate power and capacity to deliver the Conversion Shares
to be delivered upon conversion of the Loan.

 

		(e)	No Winding-up. The Borrower has not taken any action, nor have any other steps been taken
or legal proceedings commenced or, so far as the Borrower is aware, threatened against it seeking to adjudicate it insolvent or
for its winding up or dissolution or for any similar or analogous proceeding in any jurisdiction, or for it to enter into any arrangement
or composition for the benefit of creditors, or for the appointment of an insolvency administrator, a receiver, administrative
receiver, examiner, trustee or similar officer.

 

		(f)	Capitalization, Shares.

 

		(i)	The share capital of the Borrower registered in the commercial register amounts to CHF 1,738,709.73,
consisting of (A) 26,769,797 Class B Shares and (B) 40,021,988 registered shares with a nominal value of CHF 0.01 each (the shares
pursuant to (A) and (B) collectively the Existing Shares);

 

		(ii)	The Class B Shares are freely tradable and admitted to trading on the SIX; all Existing Shares
have been duly and validly issued, are fully paid and non-assessable;

 

		(iii)	Other than as publicly disclosed by the Borrower, there are no securities or other rights in issue
of the Borrower or any of its subsidiaries that are convertible into or exchangeable for shares of the Borrower (it being acknowledged
by the Lender that the Borrower has issued, and will be issuing after the date hereof, options and other rights to acquire Class
B Shares in accordance with the terms of its equity compensation plans), and there are neither any claims against the Borrower
to buy nor any obligations of the Borrower or any of its subsidiaries to issue, any shares of the Borrower; other than publicly
disclosed, there are no restrictions on the transfer or voting of any of the Existing Shares of the Borrower pursuant to the Borrower’s
Articles of Association, any applicable law or any agreement to which the Borrower is a party;

 

    

    
	Convertible Loan Agreement	 4 | 12

    

 

		(iv)	Subject to compliance with the statutory provisions of Swiss corporate law, there are no restrictions
on the payment of dividends on the Existing Shares;

 

		(v)	The Conversion Shares to be delivered upon Conversion in accordance with the terms of this Agreement:

 

		(A)	will, if and when an Exercise Notice is delivered in accordance with the terms of this Agreement,
be validly issued, fully paid and non-assessable; and

 

		(B)	will, if and when an Exercise Notice is delivered in accordance with the terms of this Agreement,
rank pari passu and be fungible with the outstanding Class B Shares and/or the outstanding rights representing Class B Shares
in issue on the relevant Conversion Date;

 

		(vi)	(A) No material public statement contains an untrue statement of material fact or omits to state
a fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they
were made, not misleading in any material respect, in each case as at the date it was made; and (B) in respect of each such public
statement, when taken together with all other such public statements, no circumstances have arisen which would result in such statement
containing an untrue statement of material fact or omitting to state a fact required to be stated therein or necessary to make
the statements therein, in light of the circumstances under which they were made, not misleading in any material respect as at
each date on which this representation is made or repeated;

 

		(vii)	All expressions of intention or expectation contained in the Borrower’s public statements
are truly and honestly held and have been made on reasonable grounds after due and careful consideration and enquiry;

 

		(viii)	To the best knowledge of the Borrower as of the respective dates on which this representation is
given, no false or materially misleading information has been provided by the Borrower to the Lender or their advisors which has
not been subsequently corrected prior to the date on which this representation is given;

 

		(ix)	Except for the transactions contemplated by this Agreement, the Borrower is not aware of any price-sensitive
information required to be disclosed pursuant to the rules and regulations of the SIX with respect to the Borrower or its securities;

 

		(g)	Financial Information. The Borrower's audited consolidated financial statements for the
financial years ended on 31 December 2017 and the Borrower’s consolidated financial statements for the six months ended 30
June 2018 each give a true and fair view of the assets, the liabilities and the financial position of the Borrower and its group
as at the date as of which they were prepared (the Relevant Date) and of the results of the operations of the Borrower and
its group for the financial year or, as the case may be, period ended on the Relevant Date;

 

		(h)	Material Adverse Effect. Since 30 June 2018, there has been, save as publicly disclosed
by the Borrower as of the date of this Agreement, no Material Adverse Effect;

 

    

    
	Convertible Loan Agreement	 5 | 12

    

 

		(i)	Monitoring. The Borrower (A) makes and keeps accurate books, accounts, records which fairly
reflect the transactions and dispositions of assets of such entity and (B) maintains internal accounting controls which provide
reasonable assurance that (i) transactions are executed in accordance with management's authorisation, (ii) transactions are recorded
as necessary to permit preparation of its financial statements and to maintain accountability for its assets and (iii) access to
its assets is permitted only in accordance with management's authorization; and

 

		(j)	Stabilisation/Manipulation: Neither the Borrower nor any of its Affiliates, nor any Person
acting on its or their behalf has taken, or will take, directly or indirectly, any action which was designed to (or which might
reasonably be expected to) cause or result in or caused or resulted in the stabilisation or manipulation of the price of the Class
B Shares or any securities or other documents that embody the right to receive Class B Shares or other securities of the Issuer.

 

		4.2	Representations and Warranties
of the Lender

 

The Lender represents and warrants
(sichert zu) to the Borrower as of the date hereof, the Disbursement Date and the Conversion Date with reference to the
facts and circumstances then subsisting as follows as follows:

 

		(a)	Organization. The Lender is a limited company duly formed and existing under the laws of
Bermuda, and the execution, delivery and performance of this Agreement is within its organizational powers, has been duly authorized,
is not in contravention of applicable law or its articles of association and does not require the consent or approval of any third
party, including any governmental body, agency or authority.

 

		(b)	Swiss Federal Withholding Tax. The Lender is considered one (1) creditor only for Swiss
federal withholding tax purposes.

 

		5.	Conditions Precedent to Disbursement

 

Notwithstanding any other terms
of this Agreement, the Lender shall not be required to make the Disbursement unless all of the following conditions are met at
or prior to the Disbursement Date of the Loan:

 

		(a)	Continued Listing. The Class B Shares continue to be listed on the SIX and the Borrower
continues to satisfy the prerequisites for a continued listing on the SIX.

 

		(b)	Representations True. The Borrower’s representations
and warranties (Zusicherungen) in this Agreement are in all material respects true as of the Disbursement Date, unless the
applicable representation or warranty is made as of a specific date, in which case the representation was true and correct in all
material respects as of that date.

 

		(c)	Compliance With Covenants. The Borrower shall have complied with its covenants and obligations
under this Agreement in all material respects.

 

		(d)	No Event of Default. No Event of Default under this Agreement exists.

 

    

    
	Convertible Loan Agreement	 6 | 12

    

 

		6.	Other Covenants and Agreements

 

		(a)	Option to Acquire Class B Shares. The Borrower and the Lender shall, on or before the Disbursement
Date, with effect as of and subject to the Disbursement, execute the option agreement in the form attached hereto as Schedule
6(a).

 

		(b)	Payments. All payments with respect to this Agreement to be made in cash shall be made to
the Lender by wire transfer of immediately available funds denominated in U.S. dollars to an account as specified by the Lender
reasonably prior to the maturity for any payment hereunder.

 

		(c)	Expenses. Each Party bears its own costs incurred in connection with this Agreement; provided,
however, that the Borrower shall be responsible and liable to the Lender for the payment of the Legal Expenses.

 

		(d)	Tax Indemnity. The Borrower shall indemnify the Lender for any withholding or deduction
for or on account of, any taxes, duties, assessments or governmental charges of whatever nature imposed, levied, collected, withheld
or assessed by or on behalf of Switzerland, or any political subdivision or any authority thereof or therein having power to tax,
in connection with the issuance and/or delivery of the Conversion Shares.

 

		(e)	Lender Trading Limitation. For as long as the Lender holds any Conversion Shares, the Lender
undertakes to limit on any Trading Day its, its Affiliates' or any related Person's trading in any of the Class B Shares or rights
representing Class B Shares to 20% or less of the daily trading volume in Class B Shares or rights representing Class B Shares
on and as reported by the SIX or, as the case may be, on and as reported by any other stock exchange.

 

		7.	General Provisions

 

		7.1	Notices

 

		(a)	All notices or other communications to be given under or in connection with this Agreement shall
be in writing and delivered by hand or sent (postage prepaid) by registered, certified or express mail (return receipt requested),
courier, facsimile or by electronic transmission in .pdf format or similar format as follows:

 

	 	 	Marianne Acosta
	 	 	 
	if to the Lender:	 	 
	 	 	 
	 	 	Crede Capital Group, LLC

        11601 Wilshire Blvd, Suite 1100

        Los Angeles, CA 90025

        Tel: +1 (310) 444-4346

        E-Mail: Macosta@CredeCG.com

        Fax: +1 (310) 444-4394

 

	with a copy to:	 	Michael
Wachs
	 	 	Crede Capital Group, LLC,

        211 East 43rd Street -4th Floor,

        NY, NY 10017

        Tel: +1 (646) 278-6785

        E-Mail: michael@credecg.com

        Fax: +1 (212) 732-1131

 

    

    
	Convertible Loan Agreement	 7 | 12

    

 

	if to the Borrower:	 	Peter Ward,
Chief Financial Officer
	 	 	WISeKey International Holding
Ltd Chief Financial Officer

General-Guisan-Strasse
6, 6300 Zug

Switzerland

E-mail:
peter.ward@wisekey.com

Fax: +41 22 594 30 01

 

	with a copy to:	 	David Oser
	 	 	Homburger
AG 

Prime
Tower

Hardstrasse
201

8005
Zurich, Switzerland

E-Mail:
david.oser@homburger.ch

Fax: +41 43 222 15 00

 

		(b)	Notices delivered by hand shall be deemed delivered when actually delivered. Notices given by courier
shall be deemed delivered on the date delivery is promised by the courier. Notices given by facsimile or by electronic transmission
shall be deemed given on the date of receipt (if a Business Day), otherwise the first Business Day following receipt; provided
that a notice delivered by facsimile or electronic transmission shall only be effective if such notice is also delivered by hand,
registered mail, or given by courier on or before two (2) Business Days after its delivery by facsimile or electronic transmission.

 

		7.2	Entire Agreement

 

This Agreement, including the
Schedules, Annexes and any other documents referred to herein, constitutes the entire agreement and understanding among the Parties
with respect to the subject matter hereof, and supersedes all prior oral or written agreements and understandings of the Parties
relating to such subject matter.

 

		7.3	Amendment and Waiver

 

This Agreement may only be modified
or amended by a document signed by both Parties. Compliance with any term or provision contained in this Agreement by the Party
that was or is obligated to comply or perform with such term or provision may only be waived by a document signed by the Party
waiving such compliance.

 

		7.4	No Assignment

 

The Lender shall not have the
right to assign this Agreement or any rights or obligations hereunder without the prior written consent of the Borrower.

 

		7.5	Confidentiality

 

The Lender agrees to keep all
information under or in connection with this Agreement confidential and not to disclose such information to anyone other than its
agents, Affiliates, and counsel, as long as it remains non-public, save to the extent required by law, regulation, administrative
or court order. For the avoidance of doubt, nothing in this Agreement shall limit the Borrower from complying with its applicable
disclosure obligations based on applicable law and regulations, including stock exchange regulations.

 

    

    
	Convertible Loan Agreement	 8 | 12

    

 

		7.6	Severability

 

If any part or provision of this
Agreement or the application of any such part or provision to any Person or circumstance shall be held to be invalid, illegal or
unenforceable in any respect by any competent arbitral tribunal, court, governmental or administrative authority, (a) such invalidity,
illegality or unenforceability shall not affect any other part or provision of this Agreement or the application of such part or
provision to any other Person or circumstances, and (b) the Parties shall endeavour to negotiate a substitute provision that best
reflects the economic intentions of the Parties without being invalid, illegal or unenforceable, and shall execute all agreements
and documents required for its implementation.

 

		7.7	Counterparts; Delivery by Electronic Transmission

 

This Agreement may be executed
and delivered by each party in separate counterparts, each of which when so executed and delivered shall be deemed an original
and all of which taken together shall constitute one and the same Agreement. This Agreement and any other transaction document
relating to this Agreement, and any amendments hereto or thereto, to the extent signed and delivered by means of a facsimile machine
or other electronic transmission (e.g., email delivery in .pdf format or similar format), shall be treated in all manner and respects
as an original contract and shall be considered to have the same binding legal effects as if it were the original signed version
thereof delivered in person.

 

		8.	Governing Law and Jurisdiction

 

		(a)	Governing Law. This Agreement and any claim, controversy or dispute arising out of or related
to this Agreement, any of the transactions contemplated hereby, the relationship of the Parties hereunder, or the interpretation
and enforcement of the rights and duties of the Parties, whether arising in contract, tort or otherwise, shall be governed by and
construed in accordance with the substantive laws of Switzerland.

 

		(b)	Jurisdiction. The exclusive place of jurisdiction for any dispute, claim or controversy
arising under, out of or in connection with or related to this Agreement (or subsequent amendments thereof), including, without
limitation, disputes, claims or controversies regarding its existence, validity, interpretation, performance, breach or termination,
shall be the city of Zurich, Switzerland.

 

[Signatures on the Next Page]

 

    

    
	Convertible Loan Agreement	 9 | 12

    

 

IN WITNESS WHEREOF, the Borrower and the
Lender, each by its duly authorized officers, have executed this Agreement as of the day and year first written above.

 

	
        WISeKey International Holding
Ltd.

	 	
        

        

	 	 	 
	/s/ Carlos Moreira	 	/s/ Peter Ward
	Carlos Moreira	 	Peter Ward
	Chief Executive Officer | Chairman of the Board of Directors	 	Chief Financial Officer | Member of the Board of Directors
	 	 	 
	
        Crede CG III, Ltd.
	 	 
	 	 	 
	/s/	 	 

 

    

    
	Convertible Loan Agreement	 10 | 12

    

 

Schedule 1 | Definitions

 

A.       Terms Defined
in the Body of the Agreement 

 

 

	Agreement	1	 	Interest Conversion VWAP Period	12
	Borrower	1	 	Interest Payment Conversion Shares	2
	Class B Shares	1, 14	 	Interest Payment Date	2
	Conversion	2	 	Lender	1
	Conversion Date	3	 	Loan	1
	Conversion Shares	2	 	Parties	1
	Converted Amount	14	 	Party	1
	Convertible Loan Agreement	14	 	Principal Amount	2
	Convertible Note	14	 	Relevant Date	5
	Disbursement	2	 	SFTA	1
	Disbursement Date	2	 	Share Conversion VWAP Period	11
	Effective Date	1	 	Tax Ruling	1
	Exercise Notice	2	 	VWAP	11
	Existing Shares	4	 	 	 

 

 

B.       Other
Definitions

 

As used in this Agreement in capitalized
form, the following terms shall have the following meaning:

 

Affiliate shall mean a Person that
exercises Control over a second Person, or is under Control by it, or is under common Control by the same Person.

 

Business Day means a day (other
than a Saturday, Sunday or public holiday) when banks in Zurich, Switzerland, are open for business.

 

Control shall be deemed to exist
if a Person (either alone or with its Affiliates) owns more than half of the voting rights or equity capital of a Person, or is
otherwise able to exercise a controlling influence over another Person.

 

Conversion Price shall mean 93%
of the average of the two lowest daily volume-weighted average prices of the Class B Shares (VWAP) quoted on the SIX during
the 10 (in words: ten) Trading Days immediately preceding the relevant Conversion Date or, as the case may be, the date on which
an Event of Default occurs (any such period the Share Conversion VWAP Period), disregarding for purposes of determining
the Conversion Price any Trading Day during the Share Conversion VWAP Period on which the Lender, any of its Affiliates or any
Person related to the Lender or its Affiliates has effected any trade in Class B Shares or securities related to Class B Shares,
converted into U.S. dollars at the exchange rate on the relevant Conversion Date, using as exchange rate the exchange rate reported
by Bloomberg at 9 a.m. Swiss time on the Conversion Date.

 

Event of Default means any of the
following events: (i) the Borrower’s Class B Shares are delisted from the SIX, or (ii) the Borrower's inability, or the admission
by the Borrower of its inability, to pay its debt as they fall due (zahlungsunfähig), the Borrower's suspension of,
or threat to suspend, payments on any of its debt, the Borrower's over-indebtedness (Überschul-dung) not cured within
the applicable grace period, or the initiation against the Borrower or the initiation by the Borrower of: (1) bankruptcy proceedings
(Konkurs) ending with the opening of bankruptcy (Konkurseröffnung), (2) proceedings leading to a provisional
or a definitive composition moratorium (provisorische oder definitive Nachlassstundung) if such moratorium is granted, (3)
proceedings leading to an emergency moratorium (Notstundung), (4) proceedings for a postponement of bankruptcy pursuant
to Article 725a of the Swiss Code of Obligations (Konkursaufschub) or (5) any proceeding pursuant to Article 731b of the
Swiss Code of Obligations if the judge orders any such measures.

 

    

    
	Convertible Loan Agreement	 11 | 12

    

 

Legal Expenses means all documented
legal fees reasonably incurred by Lender in connection with this Agreement up to an amount of USD 30,000.

 

Interest Conversion Price shall
mean 93% of the average of the two lowest daily volume-weighted average prices quoted on the SIX during the 10 (in words: ten)
Trading Days immediately preceding the relevant Interest Payment Date (the Interest Conversion VWAP Period), disregarding
for purposes of determining the Interest Conversion Price any Trading Day during the Interest Conversion VWAP Period on which the
Lender, any of its Affiliates or any Person related to the Lender or its Affiliates has effected any trade in Class B Shares or
securities related to Class B Shares, converted into U.S. dollars at the exchange rate on the relevant Interest Payment Date, using
as exchange rate the exchange rate reported by Bloomberg at 9 a.m. Swiss time on the Interest Payment Date.

 

Interest Rate means a per annum
rate of interest equal to ten percent (10%).

 

Material Adverse Effect shall mean
an event, change or occurrence which, individually or together with any other event, change or occurrence, could have a material
adverse effect on the business, assets, liabilities or financial position of the Borrower and its assets taken as a whole.

 

Maturity Date shall mean the two-year
anniversary date of the date hereof (or if such date is not a Business Day, the next Business Day) or, in the event of an Event
of Default, the date on which the Event of Default occurred (or if such date is not a Business Day, the next Business Day).

 

Person means any individual, sole
proprietorship, partnership, joint venture, trust, limited liability company, unincorporated organization, association, corporation,
government, or any agency or political division thereof, or any other entity.

 

SIX means SIX Swiss Exchange Ltd.
and the stock exchange operated by it.

 

Trading Days means any day that
is a trading day on the SIX Swiss Exchange.

 

    

    
	Convertible Loan Agreement	 12 | 12

    

 

Schedule 3(e) | Form of Exercise Notice

 

Ladies and Gentlemen:

 

The undersigned is the holder of a convertible
instrument (the Convertible Note) granted to it by the Borrower on September ______, 2018, pursuant to the terms of the
convertible loan agreement (the Convertible Loan Agreement), such Convertible Note representing the right of the Lender
to purchase and receive from the Borrower, and the obligation of the Borrower to issue to the Lender, a specified number of registered
shares, par value CHF 0.05 each (the Class B Shares), at an issue price per Class B Share corresponding to the Conversion
Price of CHF _____ by way of set-off with the Principal Amount. A copy of the Convertible Note as included in the Convertible Loan
Agreement is attached hereto as Annex 1.

 

Capitalized terms shall have the meaning
set forth in the Convertible Loan Agreement dated as of September ______, 2018.

 

We hereby exercise the right to Conversion
pursuant to Section 3(e) of the Convertible Loan Agreement in respect of the Principal Amount, corresponding to CHF _____ (the
Converted Amount). We hereby declare to set off the Converted Amount with our obligation to pay in the aggregate issue price
of CHF ______ for _____ Class B Shares (such number of Class B Shares calculated by dividing the Converted Amount by Conversion
Price (i.e., CHF _____).

 

[We hereby confirm that neither we, any
of our Affiliates or any Person related to us or our Affiliates has, during the Share Conversion VWAP Period, effected any trade
in Class B Shares or securities related to Class B Shares.] [We [or, as applicable: one of our Affiliates, a Person related to
us or our Affiliates] has effected a trade in Class B Shares or securities related to Class B Shares on the following Trading Days
during the Share Conversion VWAP Period: [■]. The Conversion Price used in this Exercise Period has therefore been determined,
in compliance with the requirements pursuant to the Convertible Loan Note as outlined in the "Conversion Price" definition,
without any regard to any such Trading Day(s).]

 

The newly issued Class B Shares shall
be delivered via Euroclear to: ______________________________

 

Yours sincerely,

 

	Crede CG III, Ltd.Warrant Agreement	 
	 	 
	
        dated as of September 28, 2018
	 
	 	 
	
        by and between
	 
	 	 
	
        WISeKey International Holdings Ltd

        General-Guisan-Strasse 6, 6300 Zug, Switzerland
	
        (hereinafter the Company)

         

	 	 
	
        and
	 
	 	 
	
        Crede CG III, Ltd.

        Clarendon House, 2 Church Street, Hamilton HM 11, Bermuda

         
	
        (hereinafter the Warrant Holder)

         

        (the Company and the Warrant Holder
each a Party and together the Parties)

	 	 
	
        regarding the grant by the Company of the
Warrant Right (as defined herein)

 

    

    
	Warrant Agreement	 2  | 10

    

 

WHEREAS

 

		A.	The Company is a Swiss stock corporation (Aktiengesellschaft), registered with the commercial
register of the Canton of Zug, Switzerland, under identification number CHE- 143.782.707 and with registered office at General-Guisan-Strasse
6, 6300 Zug, Switzerland.

 

		B.	As of the date hereof, the Company’s share capital registered in the commercial register
of the Canton of Zug, Switzerland, consists of (i) 26,769,797 registered shares, par value CHF 0.05 each (including any newly issued
registered shares with a nominal value of CHF 0.05, the Class B Shares) and (ii) 40,021,988 registered shares with a nominal
value of CHF 0.01 each. The Class B Shares are listed on the SIX (ISIN: CH0314029270).

 

		C.	The Warrant Holder is a limited company incorporated in Bermuda, with registered office at Clarendon
House, 2 Church Street, Hamilton HM 11, Bermuda, and is providing financing to the Company under the terms of a certain convertible
loan agreement, dated as of September 26, 2018 (the Convertible Loan Agreement) executed by and between the Parties concurrently
with this warrant agreement (the Agreement).

 

		D.	As provided under the Convertible Loan Agreement, the Parties wish to enter into this Agreement
to provide for the terms and conditions pursuant to which the Warrant Holder is entitled to acquire Class B Shares in the Company
based on a warrant right granted by the Company to the Warrant Holder.

 

Now, therefore, the Parties agree
as follows:

 

		1.	Definitions

 

Capitalized terms used in this
Agreement have the meanings assigned to such terms as set forth in the body of this Agreement and referenced in Annex 1
to this Agreement.

 

		2.	Warrant Grant

 

		(a)	The Company hereby grants the Warrant Holder the right (such right, the Warrant Right) to
acquire, upon delivery by the Warrant Holder of the Exercise Notice in accordance with Section 3, 408,247 Class B Shares (such
Class B Shares, subject to the adjustments pursuant to the terms of Section 6, the Warrant Shares) at the Exercise Price
during the Exercise Period.

 

		(b)	The Warrant Right shall be deemed granted subject to the Convertible Loan Agreement becoming effective
pursuant to the terms thereof (such date hereinafter referred to as the Effective Date), with effect as of the Effective
Date. If the Convertible Loan Agreement does not become effective pursuant to its terms, this Agreement and all rights and obligations
of the Parties hereunder, with the exception of the provisions pursuant to Section 7, shall lapse, without any liability of one
Party to the other Party.

 

    

    
	Warrant Agreement	 3  | 10

    

 

		(c)	The Warrant may be exercised at any date and time between effective Disbursement pursuant to the
terms of the Convertible Loan Agreement and the close of business on the third anniversary of the Effective Date (the Exercise
Period).

 

		(d)	The Parties agree that the Company grants the Warrant Holder the Warrant Right as additional consideration
for the Warrant Holder’s provision of financing under the terms of the Convertible Loan Agreement and accordingly, no additional
consideration shall be due and payable by the Warrant Holder to the Company in respect of the grant of the Warrant Right hereunder.

 

		3.	Warrant Exercise

 

		(a)	In order to exercise the Warrant Right, the Warrant Holder shall:

 

		(i)	submit to the Company (and/or to such other office, agency or bank of the Company as the Company
may designate by giving written notice to the Warrant Holder) during the Exercise Period an exercise notice substantially in the
form as set forth in Annex 2 (the Exercise Notice); and

 

		(ii)	pay a USD amount by wire transfer of immediately available funds corresponding to the result of
(A) the Exercise Price, multiplied by (B) the number of the Warrant Shares (the Aggregate Exercise Price) to the
account of the Company held with a Swiss bank, as notified to the Warrant Holder by the Company.

 

		(b)	The Company shall deliver any objection to the Exercise Notice within two (2) Trading Days after
receipt of the Exercise Notice, after which the Parties shall agree in good faith on any issue raised by the Company within another
two (2) Trading Days.

 

		4.	Issue and Delivery of the Warrant Shares

 

		(a)	As soon as reasonably practicable after receipt of the Exercise Notice and the receipt of the Aggregate
Exercise Price, but in no event later than two (2) Trading Days after the receipt of the Exercise Notice and the receipt of the
Aggregate Exercise Price, the Company shall (or cause its transfer agent or other agent to) deliver via Euroclear the Warrant Shares
to the Warrant Holder by crediting the deposit account of the Warrant Holder (as designed by the Warrant Holder) and register the
Warrant Holder, subject to applicable general limitations in the Company’s Articles of Association as in effect from time
to time, in the Company’s share register for the number of Warrant Shares to which the Warrant Holder is entitled pursuant
to the terms of this Agreement and the Exercise Notice.

 

		(b)	The Company may deliver the Warrant Shares at its discretion out of the Company’s conditional
share capital or out of Class B Shares held by it or any of its subsidiaries in treasury. No fractional shares shall be issued
under this Agreement.

 

		(c)	The Company represents and warrants that the Warrant Shares when delivered to the Warrant Holder
in accordance with the terms of this Agreement shall be freely transferable and fully fungible with the Class B Shares outstanding
at that time.

 

    

    
	Warrant Agreement	 4  | 10

    

 

		(d)	The Company shall indemnify the Warrant Holder for any withholding or deduction for or on account
of, any taxes, duties, assessments or governmental charges of whatever nature imposed, levied, collected, withheld or assessed
by or on behalf of Switzerland, or any political subdivision or any authority thereof or therein having power to tax, in connection
with the issuance and/or delivery of the Warrant Shares.

 

		5.	Availability of Share Capital

 

As long as the Warrant Right
remains exercisable under this Agreement, the Company shall at all times have reserved a sufficient number of Class B Shares under
its conditional share capital (bedingtes Aktienkapital) and/or hold, directly or indirectly through one of its subsidiaries,
Class B Shares in treasury deliverable for purposes of this Agreement. The Company represents that all Warrants Shares issuable
and/or deliverable hereunder will, subject to and upon submission of the Exercise Notice and payment of the Aggregate Exercise
Price as set forth in Section 3(a)(ii), be duly authorized, validly issued, fully paid and non-assessable.

 

		6.	Adjustments

 

		(a)	If at any time during which the Warrant Right remains outstanding and unexpired, the Class B Shares
are split, subdivided or combined into a different number of shares or securities of the same class, the number of Warrant Shares
to which the Warrant Holder is entitled upon exercise of the Warrant Right shall be proportionately increased in case of a split
or subdivision, and conversely, the number of Warrant Shares issuable upon exercise of the Warrant Right shall be proportionately
decreased in case of a combination.

 

		(b)	If at any time during which the Warrant Right remains outstanding and unexpired, the Company, by
reclassification of shares or otherwise, changes any of the Class B Shares into the same or a different number of shares or securities
of any other class or classes, the Warrant Right shall, upon effectiveness of such reclassification, represent the right to purchase
such number and kind of shares or securities as would have been issuable and/or deliverable as the result of such change with respect
to the shares or securities that were subject to the purchase rights under the Warrant Right immediately prior to such reclassification
or other change and the number of Warrant Shares shall therefore be adjusted, to the extent required, to maintain the entitlements
under the Warrant Right as at the time the Warrant Right has been granted.

 

		(c)	In the event of a merger, combination or reorganization of the Company, as a result of which an
entity other than the Company becomes the listed parent of the current group headed by the Company (including in case of a combination
with a listed company through a reverse merger or otherwise), the Company shall undertake reasonable best efforts to procure, to
the extent in its power, that the Warrant Right is replaced by warrants or similar rights of the new (listed) parent that confer
substantially the same rights.

 

    

    
	Warrant Agreement	 5  | 10

    

 

		(d)	For the avoidance of doubt, if at any time during which the Warrant Right remains outstanding and
unexpired the Company:

 

		(i)	increases its ordinary share capital; and/or

 

		(ii)	increases or creates additional authorized share capital and/or conditional share capital; and/or

 

		(iii)	issues new conversion, exchange, option or other exercise rights that are not covered by existing
or newly created ordinary share capital, authorized share capital and/or conditional share capital,

 

the number of Warrant Shares issuable and/or deliverable
upon exercise of the Warrant Right shall not be adjusted.

 

		(e)	Irrespective of any protection rights set forth in this Section 5, article 653d para. 2 of the
Swiss Code of Obligations shall remain reserved.

 

		7.	General Provisions

 

		7.1	Taxes

 

The issuance and/or delivery
of Warrant Shares shall be made without charge to the Warrant Shares of any issue or transfer tax in respect of the issuance and/or
delivery of such Warrant Shares (other than, for the avoidance of doubt, standard banking costs customarily charged to the recipient
of securities), all of which taxes shall be paid by the Company.

 

		7.2	Notices

 

		(a)	All notices or other communications to be given under or in connection with this Agreement shall
be in writing and delivered by hand or sent (postage prepaid) by registered, certified or express mail (return receipt requested),
courier, facsimile or by electronic transmission in .pdf format or similar format as follows:

 

	if to the Warrant Holder:	
        Marianne Acosta

        Crede Capital Group,
LLC

        11601 Wilshire Blvd,
Suite 1100

        Los Angeles, CA 90025

        Tel: +1 (310) 444-4346

        E-Mail: Macosta@CredeCG.com

        Fax: +1 (310) 444-4394

 

	with a copy to:	
        Michael Wachs

        Crede Capital Group,
LLC,

        211 East 43rd Street
-4th Floor,

        NY, NY 10017

        Tel: +1 (646) 278-6785

        E-Mail: michael@credecg.com

        Fax: +1 (212) 732-1131

 

    

    
	Warrant Agreement	 6  | 10

    

 

	if to the Company:	
        Peter Ward, Chief Financial Officer

        WISeKey International Holding Ltd

        Chief Financial Officer

        General-Guisan-Strasse 6, 6300 Zug

        Switzerland

        E-mail: peter.ward@wisekey.com 

        Fax: +41 22 594 30 01

 

	with a copy to:	
        David Oser

        Homburger AG

        Prime Tower

        Hardstrasse 201

        8005 Zurich, Switzerland

        E-Mail: david.oser@homburger.ch

        Fax: +41 43 222 15 00

 

		(b)	Notices delivered by hand shall be deemed delivered when actually delivered. Notices given by courier
shall be deemed delivered on the date delivery is promised by the courier. Notices given by facsimile or by electronic transmission
shall be deemed given on the date of receipt (if a Business Day), otherwise the first Business Day following receipt; provided
that a notice delivered by facsimile or electronic transmission shall only be effective if such notice is also delivered by hand,
registered mail, or given by courier on or before two (2) Business Days after its delivery by facsimile or electronic transmission.

 

		7.3	Entire Agreement

 

This Agreement, including the
Schedules, Annexes and any other documents referred to herein, constitutes the entire agreement and understanding among the Parties
with respect to the subject matter hereof, and supersedes all prior oral or written agreements and understandings of the Parties
relating to such subject matter.

 

		7.4	Amendment and Waiver

 

This Agreement may only be modified
or amended by a document signed by both Parties. Compliance with any term or provision contained in this Agreement by the Party
that was or is obligated to comply or perform with such term or provision may only be waived by a document signed by the Party
waiving such compliance.

 

		7.5	No Assignment

 

The Warrant Holder shall not
have the right to assign this Agreement or any rights or obligations hereunder without the prior written consent of the Company.

 

    

    
	Warrant Agreement	 7  | 10

    

 

		7.6	Confidentiality

 

The Warrant Holder agrees to
keep all information under or in connection with this Agreement confidential and not to disclose such information to anyone other
than its agents, Affiliates, and counsel, as long as it remains non-public, save to the extent required by law, regulation, administrative
or court order. For the avoidance of doubt, nothing in this Agreement shall limit the Company from complying with its applicable
disclosure obligations based on applicable law and regulations, including stock exchange regulations.

 

		7.7	Severability

 

If any part or provision of this
Agreement or the application of any such part or provision to any Person or circumstance shall be held to be invalid, illegal or
unenforceable in any respect by any competent arbitral tribunal, court, governmental or administrative authority, (a) such invalidity,
illegality or unenforceability shall not affect any other part or provision of this Agreement or the application of such part or
provision to any other Person or circumstances, and (b) the Parties shall endeavor to negotiate a substitute provision that best
reflects the economic intentions of the Parties without being invalid, illegal or unenforceable, and shall execute all agreements
and documents required for its implementation.

 

		7.8	Counterparts; Delivery by Electronic Transmission

 

This Agreement may be executed
and delivered by each party in separate counterparts, each of which when so executed and delivered shall be deemed an original
and all of which taken together shall constitute one and the same Agreement. This Agreement and any other transaction document
relating to this Agreement, and any amendments hereto or thereto, to the extent signed and delivered by means of a facsimile machine
or other electronic transmission (e.g., email delivery in .pdf format or similar format), shall be treated in all manner and respects
as an original contract and shall be considered to have the same binding legal effects as if it were the original signed version
thereof delivered in person.

 

		8.	Governing Law and Jurisdiction

 

		(a)	This Agreement and any claim, controversy or dispute arising out of or related to this Agreement,
any of the transactions contemplated hereby, the relationship of the Parties hereunder, or the interpretation and enforcement of
the rights and duties of the Parties, whether arising in contract, tort or otherwise, shall be governed by and construed in accordance
with the substantive laws of Switzerland.

 

		(b)	The exclusive place of jurisdiction for any dispute, claim or controversy arising under, out of
or in connection with or related to this Agreement (or subsequent amendments thereof), including, without limitation, disputes,
claims or controversies regarding its existence, validity, interpretation, performance, breach or termination, shall be the city
of Zurich, Switzerland

 

[Signatures on the Next Page]

 

    

    
	Warrant Agreement	 8  | 10

    

 

IN WITNESS WHEREOF, the Company and the
Warrant Holder, each by its duly authorized officers have executed this Agreement as of the day and year first written above.

 

	WISeKey International Holding Ltd.	 	 
	 	 	 
	/s/ Carlos Moreira	 	/s/ Peter Ward
	Carlos Moreira	 	Peter Ward
	Chief Executive Officer and Chairman

        of the Board of Directors
	 	Chief Financial Officer and Member

        of the Board of Directors

 

	Crede CG III, Ltd.	 	 
	 	 	 
	/s/	 	 

 

    

    
	Warrant Agreement	 9  | 10

    

 

Annex 1 | Definitions

 

		A.	Terms Defined in the Body of the Agreement

 

	Aggregate Exercise Price	3	 	Exercise Period	3
	Agreement	2	 	Parties	1
	Class B Shares	2, 12	 	Party	1
	Company	1	 	Warrant Agreement	12
	Convertible Loan Agreement	2	 	Warrant Holder	1
	Effective Date	2	 	Warrant Right	2, 12
	Exercise Notice	3	 	Warrant Shares	2

 

B.       Other
Definitions

 

As used in this Agreement in
capitalized form, the following terms shall have the following meaning:

 

Affiliate shall mean a
Person that exercises Control over a second Person, or is under Control by it, or is under common Control by the same Person.

 

Business Day means a day
(other than a Saturday, Sunday or public holiday) when banks in Zurich, Switzerland, are open for business.

 

Control shall be deemed
to exist if a Person (either alone or with its Affiliates) owns more than half of the voting rights or equity capital of a Person,
or is otherwise able to exercise a controlling influence over another Person.

 

Exercise Price shall be
CHF 3.84, such Exercise Price reflecting an agreed 7% premium based on current trading prices quoted on the SIX in the week leading
up to the execution of this Agreement.

 

Person means any individual,
sole proprietorship, partnership, joint venture, trust, limited liability company, unincorporated organization, association, corporation,
government, or any agency or political division thereof, or any other entity.

 

SIX means SIX Swiss Exchange
Ltd. and the stock exchange operated by it.

 

Trading Days means any
day that is a trading day on the SIX.

 

    

    
	Warrant Agreement	 10  | 10

    

 

Peter Ward, Chief Financial Officer

WISeKey International Holding Ltd

Chief Financial Officer

General-Guisan-Strasse 6, 6300 Zug

Switzerland

E-mail: peter.ward@wisekey.com

 

[bank designated by the Lender]

 

Annex 2 | Form of Exercise Notice

 

Ladies and Gentlemen:

 

The undersigned is the holder of a warrant
right (the Warrant Right) granted to it by the Company on September 26, 2018 pursuant to the terms of the warrant agreement
(the Warrant Agreement), such Warrant Right representing the right of the undersigned to purchase and receive from the Company,
and the obligation of the Company to issue and/or deliver to the Warrant Holder, ______ registered shares, par value CHF
0.05 each (the Class B Shares), subject to and upon payment by the Warrant Holder of the Aggregate Exercise Price to the
Company or the bank designated by the Company by wire transfer of immediately available funds. A copy of the Warrant Agreement
is attached hereto as Annex 2.1.

 

Capitalized terms shall have the meaning
set forth in the Warrant Agreement dated as of September 26, 2018.

 

We refer to the conditional share capital
of the Company pursuant to article 4b of the Articles of Association of the Company and hereby exercise our Warrant Right pursuant
to Section 2 of the Warrant Agreement. Concurrently with such exercise, we confirm that irrevocable instructions in relation to
the payment of the Aggregate Exercise Payment by wire transfer in immediately avail- able funds have been made to the following
bank account of the Company: _____

 

The newly issued Class B Shares shall
be delivered via Euroclear to: _____

 

Yours sincerely,

 

	Crede CG III, Ltd.	 	 
	 	 	 
	/s/

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