Document:

Exhibit 10.1

 

Dated
the 8th day of May 2020

 

HOW
KOK CHOONG

 

AND

 

AGAPE
ATP Corporation

 

	 

        SHARE
        EXCHANGE AGREEMENT

        in
        respect of approximately 99.99% of the issued share capital of

        AGAPE
        SUPERIOR LIVING SDN. BHD.

         

 

    	 

    	 

    

 

TABLE
OF CONTENTS

 

	Clause	 	Headings	 	Page
	 	 	 	 	 
	1.	 	DEFINITIONS AND
    INTERPRETATION	 	2
	2.	 	SALE AND PURCHASE
    OF SALE SHARE	 	4
	3.	 	CONSIDERATION	 	5
	4.	 	CONDITIONS PRECEDENT	 	5
	5.	 	COMPLETION	 	6
	6.	 	REPRESENTATIONS
    AND WARRANTIES	 	7
	7.	 	FURTHER ASSURANCE	 	8
	8.	 	RESTRICTIONS
    ON COMMUNICATION AND ANNOUNCEMENTS	 	9
	9.	 	PARTIAL INVALIDITY	 	9
	10.	 	COSTS AND EXPENSES	 	9
	11.	 	ASSIGNMENT	 	9
	12.	 	CONTINUING EFFECT
    OF AGREEMENT	 	9
	13.	 	GENERAL	 	10
	14.	 	NOTICES	 	10
	15.	 	COUNTERPARTS	 	11
	16.	 	LAW AND JURISDICTION	 	11
	SCHEDULE 1 PARTICULARS OF THE COMPANY	 	13
	SCHEDULE 2 VENDOR WARRANTIES	 	14
	SCHEDULE 3 PURCHASER WARRANTIES	 	23

 

    	 

    	 

    

 

THIS
AGREEMENT is made on the 8th day of May 2020

 

BETWEEN

 

	(1)	How
    Kok Choong, with Malaysia identity card number 6312******** whose address is situated 260 Jalan Impian Gemilang, Saujana
    Impian, 43000 Kajang, Selangor Darul Ehsan, Malaysia (“Mr. How”) (the “Vendor”); and
	 	 
	(2)	Agape
    ATP Corporation, a company incorporated in Nevada, United States, whose
    registered office is situated at 1645 Village Center Circle, Suite 170, Las Vegas, Nevada, United States, 89134 (the “Purchaser”).

 

WHEREAS:

 

	(A)	As
    at the date of this Agreement, the Company (particulars of which are set out in Schedule 1) has an issued share capital of
    9,590,598 issued and fully paid shares. The Company is owned as to approximately 99.99% by the Vendor.
	 	 
	(B)	As
    at the date of this Agreement, the Purchaser is a company whose shares are listed and traded on the OTC Market.
	 	 
	(C)	The
    Vendor has agreed to sell, and the Purchaser has agreed to purchase, the Sale Share upon the terms and conditions set out
    in this Agreement.
	 	 
	(D)	Upon
    Completion, the Company will be owned as to approximately 99.99% by the Purchaser.

 

NOW
IT IS HEREBY AGREED as follows:

 

	1.	DEFINITIONS
    AND INTERPRETATION

 

	1.1	In
    this Agreement (including the Recitals and the Schedules), the following expressions shall, unless the context otherwise requires,
    have the following meanings:

 

	 	“Agreement”
	this
share exchange agreement (including its Recitals and Schedules), as may be amended or supplemented from time to time;

	 	 	 
	 	“business
day”
	a
day (other than Saturday) on which banks are open in Malaysia for general banking business;

	 	 	 
	 	“Company”
	Agape
Superior Living Sdn. Bhd., a company incorporated in Malaysia with limited liability, particulars of which are set out in Schedule
1;

	 	 	 
	 	“Completion”
	completion
of the sale and purchase of the Sale Share pursuant to Clause 5;

	 	 	 
	 	“Completion
Date”
	three
(3) business days following the date on which all the Conditions Precedent are fulfilled or waived (as the case may be);

	 	 	 
	 	“Conditions
Precedent”
	the
conditions precedent set out in Clause 4;

 

    	2

    	 

    

 

	 	“Consideration”
	has
the meaning ascribed to it in Clause 3.1;

	 	 	 
	 	“Consideration
Shares”
	has
the meaning ascribed to it in Clause 3.2;

	 	 	 
	 	“Encumbrance”
	any
option, right to acquire, right of pre-emption, mortgage, charge, pledge, lien, hypothecation, title retention, right of set off,
counterclaim, trust arrangement or other security or any equity or restriction;

	 	 	 
	 	“HKIAC”	Hong
Kong International Arbitration Centre;

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

	 	 	 
	 	“Long
Stop Date”
	December
31, 2020 or such later date as may be agreed between the Vendor and the Purchaser;

	 	 	 
	 	“Malaysia”	Malaysia;

	 	 	 
	 	“MYR”	Ringgit,
the lawful currency of Malaysia;

	 	 	 
	 	“Management
Accounts”
	the
unaudited management accounts of the Company comprising the income statement for such period up to the Management Accounts Date
and the balance sheet as at the Management Accounts Date;

	 	 	 
	 	“Management
Accounts Date”
	March
31, 2020;

	 	 	 
	 	“OTC
Market”
	The
OTC Market – Pink Sheets, an over-the-counter market provided and operated by the OTC Markets Group in the USA;

	 	 	 
	 	“Parties”
	parties
to this Agreement and a “Party” means any one of them;

	 	 	 
	 	“Purchaser
Warranties”
	the
representations, warranties and undertakings made by the Purchaser and contained in Clause 6 and Schedule 3;

	 	 	 
	 	“Sale
        Share”

         
	9,590,596
shares in the share capital of the Company, representing approximately 99.99% of its issued share capital as at the date of this
Agreement;

	 	 	 
	 	“Taxation”

         
	all
forms of tax, rate, levy, duty, charge, impost, fee, deduction or withholding of any nature now or hereafter imposed, levied,
collected, withheld or assessed by any taxing or other authority in any part of the world and includes any interest, additional
tax, penalty or other charge payable or claimed in respect thereof;

	 	 	 
	 	“USA”	the
United States of America;

	 	 	 
	 	“US$”	United
States dollars, the lawful currency of the USA;

	 	 	 
	 	“Vendor
Warranties”
	the
representations, warranties and undertakings made by the Vendor and contained in Clause 6 and Schedule 2;

	 	 	 
	 	“Warranties”
	the
Vendor Warranties and the Purchaser Warranties; and

	 	 	 
	 	“%”	per
    cent.

 

    	3

    	 

    

 

	1.2	In
    this Agreement:

 

	 	(a)	references
    to costs, charges, remuneration or expenses shall include any value added tax, turnover tax or similar tax charged in respect
    thereof;
	 	 	 
	 	(b)	references
    to any action, remedy or method of judicial proceedings for the enforcement of rights of creditors shall include, in respect
    of any jurisdiction other than Malaysia, references to such action, remedy or method of judicial proceedings for the enforcement
    of rights of creditors available or appropriate in such jurisdiction as shall most nearly approximate thereto;
	 	 	 
	 	(c)	words
    denoting the singular number only shall include the plural number also and vice versa;
	 	 	 
	 	(d)	words
    denoting one gender only shall include the other genders and the neuter and vice versa;
	 	 	 
	 	(e)	words
    denoting persons only shall include firms and corporations and vice versa;
	 	 	 
	 	(f)	references
    to any provision of any statute shall be deemed also to refer to any modification or re-enactment thereof or any instrument,
    order or regulation made thereunder or under such modification or re-enactment; and
	 	 	 
	 	(g)	references
    to any document in the agreed form is to such document which has been initialed by the parties for identification.

 

	1.3	Headings
    shall be ignored in construing this Agreement.
	 	 
	1.4	The
    Recital and the Schedules are part of this Agreement and shall have effect accordingly.

 

	2.	SALE
    AND PURCHASE OF SALE SHARE

 

Subject
to the terms and conditions of this Agreement, the Vendor, as legal and beneficial owner, shall sell the Sale Share to the Purchaser
and the Purchaser shall purchase the same from the Vendor free from all Encumbrances and third party rights of any kind and together
with all rights now or hereafter attaching thereto including the right to receive all dividends and distributions declared, made
or paid on or after the Completion Date.

 

    	4

    	 

    

 

	3.	CONSIDERATION

 

	3.1	The
    aggregate consideration (the “Consideration”) of the Sale Share to be paid by the Purchaser to the Vendor
    is MYR7,429,346 (equivalent to US$1,714,003 adopting the exchange rate of US$1.00 = MYR4.3345),which was determined based
    on the net asset carrying value of the Company as at March 31, 2020 and shall be satisfied by:-

 

	 	(a)	the
    offset of the Consideration whereby the Purchaser has a loan receivable of MYR2,845,578 (equivalent to US$656,495) as of March
    31, 2020 due from the Vendor;
	 	 	 
	 	(b)	the
    allotment and issue of the Consideration Shares (hereinafter defined) by the Purchaser on the Completion Date;

 

	3.2	The
    Purchaser shall allot and issue 162,694 shares (the “Consideration Shares”) with a par value US$0.0001
    to Mr. How (or his nominee(s)), representing approximately 0.0432% of the total issued and outstanding shares in the Purchaser
    after the issuance of the Consideration Shares which was valued at US$1,057,508 based on the closing price US$6.50 of the
    Purchaser as quoted on the OTC Market on March 31, 2020.

 

	4.	CONDITIONS
    PRECEDENT
	 	 
	4.1	Completion
    shall be conditional upon the fulfillment of the following Conditions Precedent:

 

	 	(a)	save
    and except as disclosed by the Vendor, all Vendor Warranties being true, accurate and not misleading at all material aspects
    at all times between the date hereof and the Completion Date (as though they had been made on such dates by reference to the
    facts and circumstances then subsisting);
	 	 	 
	 	(b)	there
    having been no material adverse change, or any development likely to involve a prospective material adverse change, in the
    condition (financial, operational or otherwise) or in the earnings, business affairs or business prospects, assets or liabilities
    of the Company, whether or not arising in the ordinary course of business since the date of this Agreement;
	 	 	 
	 	(c)	save
    and except as disclosed by the Vendor, all loans or amounts due by the Company to its shareholder, director or any other third
    party creditors having been fully waived or settled, save for the liabilities incurred in the ordinary course of business
    after the date of this Agreement and before Completion;
	 	 	 
	 	(d)	The
    OTC Market having completed the review of this Agreement and having granted the approval and the permission to deal in, the
    Consideration Shares, if required under OTC Market continued listing rules and regulations; and
	 	 	 
	 	(e)	all
    necessary consents, approvals, permits and/or authorizations in respect of the transactions contemplated under this Agreement
    having been obtained.

 

	4.2	Any
    or all Conditions Precedent may be waived by the Parties by written consent.
	 	 
	4.3	Each
    Party undertakes to the other Party to use its best endeavors to ensure that the Conditions Precedent in Clause 4.1 are fulfilled
    as early as practicable and in any event not later than the Long Stop Date.
	 	 
	4.4	Each
    Party undertakes to provide all reasonable assistance to the other Party to fulfill the Conditions Precedent in Clause 4.1
    in accordance with Clause 4.3.
	 	 
	4.5	If
    the Conditions Precedent have not been fulfilled or waived (as the case may be) on or before the Long Stop Date, this Agreement
    will lapse and become null and void and the Parties will be released from all obligations hereunder, save for liabilities
    for any antecedent breaches hereof.

 

    	5

    	 

    

 

	5.	COMPLETION
	 	 
	5.1	Completion
    shall take place at  Lots 1705-1708, Level 17, Tower 2, Faber Towers, Jalan Desa Bahagia, Taman Desa, 58100 Kuala Lumpur
    Malaysia on or before 5 p.m. on the Completion Date (or at such other place, on such other time and/or day as the Parties
    may agree).
	 	 
	5.2	At
    Completion, the Vendor shall:

 

	 	(a)	deliver
    or cause to be delivered to the Purchaser and/or its nominee:

 

	 	(i)	evidence
    reasonably satisfactory to the Purchaser that the Conditions Precedent in Clause 4.1 (which are applicable to the Vendor)
    of this Agreement have been fulfilled;
	 	 	 
	 	(ii)	the
    instrument(s) of transfer and the bought and sold notes of the Sale Share duly executed by the Vendor as registered holders
    thereof in favour of the Purchaser together with the related share certificate(s);

 

	 	(iii)	(1)	all
    statutory records and minute books (which shall be duly written up to date as at Completion) and accounting records including
    certificate of incorporation and business registration certificates, business licence, governmental approval letters and certificates
    (if any), common seal, authorized chops, share certificate books and other statutory records of the Company;
	 	 	 	 
	 	 	(2)	all
    tax returns and assessments of the Company (if applicable) (receipted where the due dates for payment fell on or before the
    Completion Date);
	 	 	 	 
	 	 	(3)	copies
    of all correspondence, if any, with its lawyers, accountants, tax or revenue departments, all other documents and correspondence,
    if any, relating to the business affairs of the Company; and all title deeds, evidence of ownership and documents relating
    to assets owned by the Company;

 

provided
that the above shall be deemed to have been delivered if they are located at the registered office or principal place of business
of the Company;

 

	 	(iv)	such
    other documents as may be reasonably required by the Purchaser to, among other things, give good title to the Sale Shares
    free from all Encumbrances and third party rights of any kind and to enable the Purchaser or its nominees to become the registered
    holder thereof; and
	 	 	 
	 	(v)	a
    certified true copy of the resolutions of the sole director of the Company approving the matters set out in Clause 5.2(b);

 

    	6

    	 

    

 

	 	(b)	procure
    that the following businesses shall be approved in the sole director’s resolutions of the Company:

 

	 	(i)	the
    director of the Company shall approve the transfer of the Sale Share and the Purchaser or its nominee shall be duly registered
    as the holder of the Sale Share in the register of members of the Company;
	 	 	 
	 	(iii)	the
    director of the Company shall resolve that the share certificate in respect of the Sale Share be duly issued and delivered
    to the Purchaser and/or its nominee; and
	 	 	 
	 	(iv)
    	the
    director of the Company shall approve the director to do all such acts and things and to sign any documents reasonably required
    to give effect to the transaction as contemplated under this Agreement;

 

	5.3	At
    Completion, against compliance with the provisions of Clause 5.2, the Purchaser shall deliver or cause to be delivered to
    the Vendor:

 

	 	(a)	a
    certified copy of the resolutions passed by the board of directors of the Purchaser approving the execution and performance
    of this Agreement;
	 	 	 
	 	(b)	evidence
    reasonably satisfactory to the Vendor that the Conditions Precedent in Clause 4.1 (which are applicable to the Purchaser)
    of this Agreement have been fulfilled;
	 	 	 
	 	(c)
    	the
    instrument(s) of transfer and the bought and sold notes of the Sale Share duly executed by the Purchaser or its nominee;
	 	 	 
	 	(d)	the
    share certificates and other documents as may be reasonably required to give good title to the Consideration Shares free from
    all Encumbrances and third party rights of any kind and to enable the Vendor or his respective nominee(s) to become the registered
    holders thereof;
	 	 	 
	 	(e)	such
    other documents as may be reasonably required by the Vendor to, among other things, give good title to the Purchaser’s
    shares, free from all Encumbrances and third party rights of any kind and to enable the Vendor or his nominee(s) to become
    the registered holder thereof;

 

	6.	REPRESENTATIONS
    AND WARRANTIES
	 	 
	6.1	The
    Purchaser hereby represents, warrants and undertakes to the Vendor in the terms set out in this Clause 6 and Schedule 3 subject
    to the matters disclosed or provided in this Agreement.
	 	 
	6.2	The
    Vendor hereby represents, warrants and undertakes to the Purchaser in the terms set out in this Clause 6 and Schedule 2 subject
    to the matters disclosed or provided in this Agreement.
	 	 
	6.3	The
    Purchaser shall be deemed to have given all the Purchaser Warranties on the basis that such Purchaser Warranties will at all
    times from the date of this Agreement up to and including the Completion Date be true, complete and accurate in all respects
    and such Purchaser Warranties shall have effect as if given at Completion as well as the date of this Agreement.

 

    	7

    	 

    

 

	6.4	The
    Vendor shall be deemed to have given all the Vendor Warranties on the basis that such Vendor Warranties will at all times
    from the date of this Agreement up to and including the Completion Date be true, complete and accurate in all respects and
    such Vendor Warranties shall have effect as if given at Completion as well as the date of this Agreement.
	 	 
	6.5	The
    Vendor agrees and acknowledges that the Purchaser is entering into this Agreement in reliance on the Vendor Warranties.
	 	 
	6.6	The
    Purchaser agrees and acknowledges that the Vendor is entering into this Agreement in reliance on the Purchaser Warranties.
	 	 
	6.7	None
    of the Warranties shall be limited or restricted by reference to or inference from the terms of any other Warranties or any
    other term of this Agreement.
	 	 
	6.8	If
    any Party fails to perform any of its obligations in any material respect (including its obligation at Completion) under this
    Agreement or breaches any of the terms or Warranties set out in this Agreement in any material respect prior to Completion,
    then without prejudice to all and any other rights and remedies available at any time to a non-defaulting Party (including
    but not limited to the right to damages for any loss suffered by that Party), any non-defaulting Party may by notice either
    require the defaulting Party to perform such obligations or, insofar as the same is practicable, remedy such breach or to
    the extent it relates to the failure of the defaulting Party to perform any of its obligations on or prior to Completion in
    any material respect, treat the defaulting Party as having repudiated this Agreement and rescind the same. The rights conferred
    upon the respective Parties by the provisions of this Clause 6 are additional to and do not prejudice any other rights the
    respective Parties may have. Failure to exercise any of the rights herein conferred shall not constitute a waiver of any such
    rights.
	 	 
	6.9	The
    Vendor undertakes to indemnify and keep fully indemnified the Purchaser against, and hold the Purchaser harmless immediately
    upon demand in respect of, any and all claims that the Purchaser may suffer or face as a result of or in connection with (a)
    any inaccuracy of any of the Vendor Warranties; or (b) any breach of the Vendor Warranties by the Vendor, provided that the
    maximum aggregate liability of the Vendor in respect of all claims shall not exceed the amount of the Consideration.
	 	 
	6.10	The
    Purchaser undertakes to indemnify and keep fully indemnified the Vendor against, and hold the Vendor harmless immediately
    upon demand in respect of, any and all claims that the Vendor may suffer or face as a result of or in connection with (a)
    any inaccuracy of any of the Purchaser Warranties; or (b) any breach of the Purchaser Warranties by the Purchaser, provided
    that the maximum aggregate liability of the Purchaser in respect of all claims shall not exceed the amount of the Consideration.
	 	 
	7.	FURTHER
    ASSURANCE
	 	 
	 	Each
    Party undertakes to the other Party to execute or procure to be executed all such documents and to do or procure to be done
    all such other acts and things as may be reasonable and necessary to give all Parties the full benefit of this Agreement.

 

    	8

    	 

    

 

	8.	RESTRICTIONS
    ON COMMUNICATION AND ANNOUNCEMENTS
	 	 
	8.1	Each
    of the Parties undertakes to the other Party that it shall not at any time after the date of this Agreement divulge or communicate
    to any person other than to its professional advisers, or when required by law or any rule of any relevant stock exchange
    body, or to its respective officers or employees whose province it is to know the same any confidential information concerning
    the business, accounts, finance or contractual arrangements or other dealings, transactions or affairs of the other which
    may be within or may come to its knowledge in connection with the transactions contemplated by this Agreement and it shall
    use its best endeavors to prevent the publication or disclosure of any such confidential information concerning such matters.  This
    restriction shall not apply to information or knowledge which is or which properly comes into the public domain, through no
    fault of any of the Parties or to information or knowledge which is already known to any of the Parties at the time of its
    receipt.
	 	 
	8.2	If
    any Party is required by law or any rule of any relevant stock exchange or regulatory body to make any announcement in connection
    with this Agreement, the other Party agrees to supply all relevant information relating to itself that is within its knowledge
    or in its possession as may be reasonably necessary or as may be required by any exchange and regulatory body to be included
    in the announcement.
	 	 
	9.	PARTIAL
    INVALIDITY
	 	 
	 	If,
    at any time, any provision of this Agreement is or becomes illegal, invalid or unenforceable in any respect in any jurisdiction,
    the legality, validity and enforceability in other jurisdictions or of the remaining provisions of this Agreement shall not
    be affected or impaired thereby.
	 	 
	10.	COSTS
    AND EXPENSES
	 	 
	10.1	Each
    Party shall bear its own costs of and incidental to the preparation, negotiation and settlement of this Agreement (including,
    without limitation, legal fees and expenses relating to this Agreement).
	 	 
	10.2	The
    Purchaser shall be responsible for and shall pay all stamp duty and registration fees payable on or pursuant to this Agreement
    and the transfer of the Sale Shares.
	 	 
	11.	ASSIGNMENT
	 	 
	 	No
    Party shall assign any of its rights or obligations under this Agreement without the written consent of the other Party.
	 	 
	12.	CONTINUING
    EFFECT OF AGREEMENT
	 	 
	 	Any
    provision of this Agreement which is capable of being performed after Completion but which has not been performed at or before
    Completion shall remain in full force and effect notwithstanding Completion.

 

    	9

    	 

    

 

	13.	GENERAL
	 	 
	13.1	This
    Agreement supersedes all and any previous agreements, arrangements or understanding between the Parties relating to the matters
    referred to in this Agreement and all such previous agreements, understanding or arrangements (if any) shall cease and determine
    with effect from the date hereof and neither Party shall have any claim in connection therewith.
	 	 
	13.2	This
    Agreement constitutes the entire agreement between the Parties with respect to its subject matter (no Party having relied
    on any representation or warranty made by the other Party which is not contained in this Agreement). No variation of this
    Agreement shall be effective unless made in writing and signed by all Parties.
	 	 
	13.3	Time
    shall be of the essence of this Agreement but no failure by any Party to exercise, and no delay on its part in exercising
    any right hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any right under this Agreement
    preclude any other or further exercise of it or the exercise of any right or prejudice or affect any right against the other.
    The rights and remedies provided in this Agreement are cumulative and not exclusive of any rights or remedies provided by
    law.
	 	 
	13.4	No
    delay or failure by a Party to exercise or enforce (in whole or in part) any right provided by this Agreement or by law shall
    operate as a release or waiver, or in any way limit that Party’s ability to further exercise or enforce that, or any
    other, right. A waiver of any breach of any provision of this Agreement shall not be effective, or implied, unless that waiver
    is in writing and is signed by the Party against whom that waiver is claimed. In the event of a default by either Party in
    the performance of its obligations under this Agreement, the non-defaulting Party shall have the right to obtain specific
    performance of the defaulting Party’s obligations. Such remedy shall be in addition to any other remedies provided under
    this Agreement or at law.
	 	 
	14.	NOTICES
	 	 
	14.1	Any
    notice claim, demand, court process, document or other communication to be given under this Agreement (collectively “communication”
    in this Clause) shall be in writing in the English language and may be served or given personally or sent to the e-mail address
    (if any) of the relevant Party and marked for the attention and/or copied to such other person as specified in Clause 14.4.
	 	 
	14.2	A
    change of address or e-mail address of the person to whom a communication is to be addressed or copied pursuant to this Agreement
    shall not be effective until five days after a written notice of change has been served in accordance with the provisions
    of this Clause 14 on the other Party with specific reference in such notice that such change is for the purposes of this Agreement.
	 	 
	14.3	All
    communications shall be served by the following means and the addressee of a communication shall be deemed to have received
    the same within the time stated adjacent to the relevant means of despatch:

 

	Means of despatch	 	Time of deemed receipt
	Local mail or courier	 	24 hours
	E-mail	 	on despatch
	Air courier/Speedpost	 	3 days
	Airmail	 	7 days

 

    	10

    	 

    

 

	14.4	The
    initial addresses and e-mail addresses of the Parties for the service of communications, the person for whose attention such
    communications are to be marked and the person to whom a communication is to be copied are as follows:

 

If
to the Vendor:

 

Mr.
How:

 

	 	Address	:	c/o
    Lots 1705 – 1708, Level 17, Tower 2, Faber Towers, Jalan Desa Bahagia, Taman Desa, 58100 Kuala Lumpur, Malaysia.
	 	E-mail	:	[●]
	 	Attention	:	How
    Kok Choong 

 

If
to the Purchaser:

 

	 	Address	:	1645
    Village Center Circle, Suite 170, Las Vegas, Nevada, United States, 89134
	 	E-mail	:	[●]
	 	Attention	:	How
    Kok Choong

 

	14.5	A
    communication served in accordance with this Clause 14 shall be deemed sufficiently served and in proving service and/or receipt
    of a communication it shall be sufficient to prove that such communication was left at the addressee’s address or that
    the envelope containing such communication was properly addressed and posted or despatched to the addressee’s address.
    In the case of communication by e-mail, such communication shall be deemed properly transmitted upon the receipt of the sent
    confirmation by the e-mail account of the sender.
	 	 
	14.6	Nothing
    in this Clause shall preclude the service of communication or the proof of such service by any mode permitted by law.
	 	 
	15.	COUNTERPARTS
	 	 
	 	This
    Agreement may be executed in any number of counterparts, and this has the same effect as if the execution on the counterparts
    were on a single copy of this Agreement.
	 	 
	16.	LAW
    AND JURISDICTION
	 	 
	16.1	This
    Agreement shall be governed by and construed in accordance with the laws of Hong Kong.
	 	 
	16.2	All
    claims or disputes arising out of or in connection with this Agreement, including any dispute as to its existence, validity,
    termination, or enforceability thereof, and any dispute relating to any non-contractual obligations arising out of or in connection
    with it (for the purpose of this Clause, a “Dispute”) shall be notified in writing to the other Party.
    The notification must set out brief details of the nature of the Dispute. In case of a Dispute, the Parties shall use all
    their reasonable efforts to reach an amicable settlement within thirty (30) days following the above-mentioned notification  If
    the Parties fail to reach such an amicable settlement within the said thirty-day period, any Party to that Dispute may refer
    the dispute to arbitration administered by the HKIAC in accordance with the HKIAC Administered Arbitration Rules in force
    at that time. The seat of arbitration shall be in Hong Kong. The Parties to the arbitration shall jointly appoint a single
    arbitrator and the award rendered by that arbitrator shall be final and binding on them. If the Parties are unable to agree
    to the appointment of the arbitrator, then any Party to the Dispute may refer the matter to the HKIAC for nomination of an
    arbitrator for such purpose. Judgment upon the arbitration award may be rendered in any court of competent jurisdiction or
    application may be made to such court for a judicial acceptance of the award and an order of enforcement, as the case may
    be.

 

    	11

    	 

    

 

IN
WITNESS whereof this Agreement has been duly executed on the date first above written.

 

	VENDOR	 	 	 
	 	 	 	 
	SIGNED
    by How Kok Choong	 	)	 
	in
    the presence of : Vincent Tan Inn Shen	 	)	 
	 	 	 	 
	PURCHASER	 	 	 
	 	 	 	 
	SIGNED
    by How Kok Choong	 	)	 
	for
    and on behalf of	 	)	 
	AGAPE
    ATP CORPORATION	 	)	 
	in
    the presence of : Ku Suat Hong	 	)	 

 

    	12

    	 

    

 

SCHEDULE
1

PARTICULARS OF THE COMPANY

 

	1.

         
	Company
                                         name

         
	:	Agape
                                         Superior Living Sdn. Bhd.

         

	2.	Company
    registration number	:	200301021968
    (624388-V)
	 	 	 	 
	3.	Date
    of incorporation	:	8th
    August 2003
	 	 	 	 
	4.	Place
    of incorporation	:	Malaysia
	 	 	 	 
	5.	Address
    of registered office	:	Lot
    4.81, 4th Floor, Wisma Central, Jalan Ampang, Kuala Lumpur 50450, Malaysia
	 	 	 	 
	6.	Issued
    share capital	:	9,590,598
    issued and fully paid share
	 	 	 	 
	7.	Shareholder
                                         (number of shares and shareholding %)
	:	How
                                         Kok Choong (9,590,596 shares)

        

        

	 	 	 	 
	 	 	 	Lor
    Keat Yoon (1 share)
	 	 	 	 
	 	 	 	Lim
    Ah Yew @ Lim Soo Yew (1 share)
	 	 	 	 
	8.	Director	:	How
    Kok Choong

 

 

    	13

    	 

    

 

SCHEDULE
2

VENDOR WARRANTIES

 

	1.	General

 

	1.1	The
    contents of the Recitals of and Schedule 1 to this Agreement are true and accurate.

 

	1.2	All
    information given by the Vendor or his agents or professional advisers to the Purchaser or its employees, agents or professional
    advisers relating to the business, activities, affairs, or assets or liabilities of the Company was, when given, and is now
    true, accurate and complete in all respects.

 

	1.3	There
    are no material facts or circumstances, in relation to the assets, business or financial condition of the Company which have
    not been exhaustively, expressly and fairly disclosed in writing to the Purchaser or its employees, agents or professional
    advisers, and which, if disclosed, might reasonably have been expected to affect the decision of the Purchaser to enter into
    this Agreement.

 

	1.4	The
    execution and performance of this Agreement will not conflict with or result in a breach of or be a reason for the termination
    or variation of any agreement or obligation to which the Company is now a party or any of the Company or its assets are or
    may be bound or affected or be in violation of any law, rule or regulation of any governmental, administrative or regulatory
    body or any order, injunction or decree of any judicial, administrative, regulatory or governmental body affecting the Company.

 

	2.	Organization,
    Authority and Power

 

	2.1	The
    Company is a company duly incorporated and validly existing under the laws of the Malaysia. All issued shares in the Company
    are duly authorized, validly issued and fully paid up and none of such shares (where applicable) has been issued in violation
    of the Companies Act 1965 and/or Companies Act 2016 (as the case may be) or the terms of any agreement by which the Company
    or its shareholders were or are bound, if any.

 

	2.2	The
    Vendor has, on the date of this Agreement and on Completion, full and unfettered rights, power and authority to enter into
    this Agreement and assume all of his obligations hereunder and no further actions or proceedings are necessary on his part
    in connection with the execution, delivery and performance by them of this Agreement.

 

	2.3	This
    Agreement constitutes valid and legally binding obligations on the part of the Vendor enforceable in accordance with its terms.

 

	2.4	The
    Vendor is the legal and beneficial owner of the Sale Share and is entitled to sell and transfer the Sale Share and pass the
    full legal and beneficial ownership thereof with all rights thereto to the Purchaser or its nominee(s) on the terms of this
    Agreement. The Sale Share is issued and fully paid and is beneficially owned by the Vendor free from all Encumbrances. The
    Sale Share constitutes approximately 99.99% of the issued share capital of the Company.

 

    	14

    	 

    

 

	3.	Records
    and taxation

 

	3.1	The
    Company has duly made up all requisite books of account (reflecting in accordance with generally accepted accounting principles
    for all the financial transactions of the Company), minutes books, registers and records in compliance with all applicable
    laws and regulatory requirements and these and all other deeds and documents (properly stamped where necessary) belonging
    to or which ought to be in its possession and its seal are in its possession.

 

	3.2	All
    the accounts, books, ledgers, financial and other records of whatsoever kind, of the Company are in its possession, have been
    fully, properly and accurately kept and completed, do not contain any material inaccuracies or discrepancies of any kind and
    give and reflect a true and fair view of its trading transactions, and its financial, contractual and trading position.

 

	3.3	The
    Company has duly complied with its obligations to account to the relevant tax authorities and all other authorities for all
    amounts for which it is or may become accountable in respect of Taxation relating to its business.

 

	3.4	All
    returns in connection with Taxation that should have been filed by the Company have been filed correctly and on a proper basis
    in accordance with all applicable laws and regulatory requirements and there are no facts known or which would on reasonable
    enquiry be known to the Company or the director which may give rise to any dispute or to any claim for any Taxation or the
    deprivation of any relief or advantage that might have been available.

 

	3.5	The
    Company is not and does not expect to be involved in any dispute in relation to Taxation and no authority concerned has investigated
    or indicated that it intends to investigate into the tax affairs of the Company.

 

	3.6	The
    Company has no liability in respect of Taxation (whether actual or contingent) nor any liability for interest, penalties or
    charges imposed in relation to any Taxation arising or deemed to arise in any accounting period ending on or before the Management
    Accounts Date that is not provided for in full in the Management Accounts, and in particular, has no outstanding liability
    for:

 

	 	(i)	Taxation
    in any part of the world assessable or payable by reference to any profit, gain, income or distribution earned, received,
    paid, arising or deemed to arise on or at any time prior to the Management Accounts Date or in respect of any period ending
    on or before the Management Accounts Date; or

 

	 	(ii)	purchase,
    value added, sales or other similar tax in any part of the world referable to transaction effected on or before the Management
    Accounts Date,

 

that
is not provided for in the Management Accounts.

 

	3.7	Since
    the Management Accounts Date up to and inclusive of the Completion Date:

 

	 	(i)	the
    Company has not been involved in any transaction outside the ordinary course of business which has given or may give rise
    to a liability to Taxation on the Company (or would have given or might give rise to such a liability but for the availability
    of any relief, allowance, deduction or credit);

 

	 	(ii)	no
    accounting period or year of assessment of the Company has ended;

 

    	15

    	 

    

 

	 	(iii)	no
    disposal has taken place or other event occurred which will or may have the effect of crystallizing a liability to Taxation
    which should have been included in the provision for deferred Taxation contained in the Management Accounts if such a disposal
    or other event had been planned or predicted at the date on which the Management Accounts were drawn up;

 

	 	(iv)	no
    payment has been made by the Company which will not be deductible for profits tax (or its equivalent) purposes either in computing
    the profits of the Company or in computing the profits tax chargeable on the Company;

 

	 	(v)	no
    event has occurred with the result that the Company has or will become liable to pay or bear a liability in respect of Taxation
    directly or primarily charged against, or attributable to, another person, firm or company; and

 

	 	(vi)	the
    Company has not paid or become liable to pay any penalty in connection with any Taxation or otherwise paid any Taxation after
    its due date for payment or become liable to pay any Taxation the due date for payment of which has passed or will become
    prospectively liable to pay any Taxation the due date for payment of which will fall within 30 days after the date of this
    Agreement.

 

	3.8	The
    Company has within the time limits prescribed by the relevant legislation duly paid all tax (including provisional tax), made
    all returns, given all notices, supplied all other information required to be supplied to the Inland Revenue Board of Malaysia
    and any other relevant governmental authority (including any governmental authority of a foreign jurisdiction) and all such
    information was and remains complete and accurate in all material respects and all such returns and notices were and remain
    complete and accurate in all material respects and were made on a proper basis and do not reveal any transactions which may
    be the subject of any dispute with the Inland Revenue Board of Malaysia or other relevant authorities and the Company is not
    and has not in the last six years been the subject of an Inland Revenue Board of Malaysia (or equivalent foreign tax authority)
    investigation or field audit or other dispute regarding tax or duty recoverable from the Company or regarding the availability
    of any relief from Taxation or duty to the Company.

 

	3.9	The
    Company has duly submitted all claims and disclaimers which have been assumed to have been made for the purpose of the Management
    Accounts.

 

	3.10	There
    are no material and/or unusual arrangements, agreements or undertakings, between the Company and the Inland Revenue Board
    of Malaysia, or any foreign tax authorities, regarding or affecting the Taxation treatment of the Company.

 

	3.11	The
    Company has kept sufficient records in either English or Malay:

 

	 	(i)	of
    its income and expenditure to enable the assessable profits of its trade, profession or business to be readily ascertained
    in compliance with and for the period mentioned in Income Tax Ac 1967 or other similar legislation;

 

	3.12	The
    Company has duly complied with all requirements to deduct or withhold Taxation from any payments it has made and has accounted
    in full to the appropriate authorities for all amounts so deducted or withheld.

 

    	16

    	 

    

 

	4.	Corporate
    Status

 

	4.1	The
    Company has all requisite corporate power and authority to own its assets and to carry on its business as currently conducted
    and is duly qualified to do business and is in good standing as a foreign corporation in each jurisdiction where the ownership
    or operation of its assets or the conduct of its business requires such qualification.

 

	4.2	No
    events or omissions have occurred whereby the constitution, subsistence or corporate status of the Company has been or is
    likely to be adversely affected.

 

	4.3	No
    order for the appointment of a liquidator has been made and as receiver has been appointed over the whole or any part of the
    assets of the Company.

 

	4.4	No
    order has been made, or petition presented, or resolution passed for the winding up of the Company, nor has any distress,
    execution or other process been levied in respect of the Company which remains undischarged; nor is there any unfulfilled
    or unsatisfied judgment or court order outstanding against the Company.

 

	4.5	Save
    as contemplated under and this Agreement, as at the Completion Date, there are no pre-emptive or other outstanding rights,
    options, warrants, conversion rights or agreements or commitments of any character relating to the authorized and issued,
    unissued or treasury shares or equity interest of the Company and the Company has not issued any debt securities, other securities,
    rights or obligations which are convertible into or exchangeable for, or giving any person a right to subscribe for or acquire,
    capital or equity interest of the Company, and no such securities or obligations evidencing such rights are outstanding.

 

	4.6	The
    Company is duly incorporated, validly existing and in good standing under the laws of the Malaysia and has all requisite corporate
    or similar power and authority to own and operate its properties and assets and to carry on its business as presently conducted
    and is duly qualified to do business.

 

	5.	Management
    Accounts

 

	5.1	The
    Company has no liability for Taxation of any kind, which has not been provided for in the Management Accounts.

 

	5.2	Due
    provision has been made in the Management Accounts for any capital commitment undertaken or authorized at the Management Accounts
    Date as may be appropriate and for any bad or doubtful debt due and payable to the Company in its own right.

 

	5.3	The
    Company is not a member of any partnership or unincorporated company or association.

 

	5.4	Since
    the Management Accounts Date up to and inclusive of Completion Date:

 

	 	(i)	there
    has been no material adverse change in the financial position or business or prospects of the Company and the Company has
    entered into transactions and incurred liabilities only in the ordinary course of business;

 

	 	(ii)	the
    Company has not declared, paid or made nor is proposing to declare, pay or make any dividend or other distribution;

 

	 	(iii)	the
    business of the Company has been carried on in the ordinary and usual course and in the same manner (including nature and
    scope) as in the past, no fixed asset or stock has been written up nor any debt written off and no unusual or abnormal contract
    has been entered into by the Company; and

 

    	17

    	 

    

 

	 	(iv)	no
    asset of the Company has been acquired or disposed of on capital account, or has been agreed to be acquired or disposed of,
    otherwise than in the ordinary course of business and the Company has not disposed of or parted with possession of any of
    its property assets (including know how) or stock in trade or made any payments and no contract involving expenditure by it
    on capital account has been entered into by the Company and no liability has been created or has otherwise arisen (other than
    in the ordinary course of business as previously carried on).

 

	5.5	The
    Management Accounts have been properly complied by the director of the Company on the basis which is consistent with the accounting
    policies consistently applied and are accurate in all respects and show a true and fair view of the state of affairs of the
    Company and of its results and profits for the financial period ending on the Management Accounts Date and:

 

	 	(a)	depreciation
    of the fixed assets of the Company has been made at a rate sufficient to write down the value of such assets to nil not later
    than the end of their useful working lives;

 

	 	(b)	the
    Management Accounts disclose and make full provision or reserve for all actual liabilities;

 

	 	(c)	the
    Management Accounts disclose and make proper provision or reserve for or note all contingent liabilities, capital or burdensome
    commitments;

 

	 	(d)	the
    bases and policies of accounting of the Company (including depreciation) adopted for the purpose of preparing the Management
    Accounts are the same as those adopted for the purpose of preparing the audited accounts of the Company for each of the preceding
    accounting periods since the date of incorporation;

 

	 	(e)	the
    profits and losses of the Company shown in the Management Accounts and for the preceding accounting periods have not in any
    material respect been affected by any unusual or exceptional item or by any other matter which has rendered such profits or
    losses unusually high or low; and

 

	6.	Business,
    etc. 

 

	6.1	The
    Company has not given or permitted to be outstanding any powers of attorney or authority (expressed or implied) to any party
    to enter into any contracts, commitments or transactions (other than the usual authority conferred on its director in respect
    of the ordinary course of business) or pursuant to the banking facilities granted to the Company.

 

	6.2	The
    Company has not entered into any contracts, commitments or transactions other than on an arms-length basis nor breached or
    defaulted under any contracts, commitments or transactions.

 

	6.3	There
    are no existing circumstances which indicate that as a result of the consummation of this Agreement:

 

	 	(i)	the
    existing level of business of the Company may be substantially reduced; and

 

	 	(ii)	the
    Company will lose the benefit of any right or privilege which it enjoys.

 

    	18

    	 

    

 

	6.4	Compliance
    with the terms of this Agreement does not and will not:

 

	 	(i)	conflict
    with, or result in the breach of, or constitute a default under, any of the terms, conditions or provisions of any agreement
    or instrument to which the Company is a party, or any Encumbrance, lease, contract, order, judgment, award, injunction, regulation
    or other restriction or obligation of any kind or character by which or to which any asset of the Company is bound or subject;

 

	 	(ii)	relieve
    any person from any obligation to the Company (whether contractual or otherwise), or enable any person to determine any obligation,
    or any right or benefit enjoyed by the Company, or to exercise any right, whether under an agreement with, or otherwise in
    respect of, the Company;

 

	 	(iii)	result
    in the creation, imposition, crystallization or enforcement of any Encumbrances whatsoever on any of the assets of the Company;
    or

 

	 	(iv)	result
    in any present or future indebtedness of the Company becoming due, or capable of being declared due and payable, prior to
    its stated maturity.

 

	6.5	The
    Company has, at all times, carried on its business and conducted its affairs in all respects in accordance with the provisions
    of the Companies Act 1965 and/or Companies Act 2016 (as the case may be) for the time being in force and any other documents
    to which it is, or has been, a party.

 

	6.6	The
    Company is empowered and duly qualified to carry on business in all jurisdictions in which it now carries on business.

 

	6.7	The
    Company is not a party to any undertaking or assurances given to any court or governmental agency, which is still in force.

 

	6.8	The
    Company has conducted and is conducting its business in all respects in accordance with all applicable laws and regulations,
    whether of Malaysia or elsewhere.

 

	6.9	The
    Company is not in breach of any of the terms or conditions of any of the licences or consents.

 

	6.10	The
    Company is not a party to any contract, transaction, arrangement or liability which:

 

	 	(i)	is
    of an unusual or abnormal nature, or outside the ordinary and proper course of business; or

 

	 	(ii)	cannot
    readily be fulfilled or performed by it on time without undue, or unusual, expenditure of money, effort or personnel.

 

	6.11	No
    notice, demand or claim of default under any agreement, instrument or arrangement to which the Company is a party has been
    received by the Company and is outstanding against it and there is nothing whereby any such agreement, instrument or arrangement
    may be prematurely terminated or rescinded by any other party.

 

    	19

    	 

    

 

	7.	Corporate
    Records and Procedures etc. 

 

	7.1	No
    resolution of any kind of the shareholders of the Company has been passed (other than resolutions relating to the business
    at annual general meetings which was not special business) without disclosure in writing to the Purchaser.

 

	7.2	The
    Company has fully and punctually observed and complied with its obligations under the relevant companies legislations and
    the relevant statutes and all returns, particular resolutions and other documents (if any) required to be filed have been
    properly and punctually filed.

 

	7.3	The
    register of members of the Company is and will at Completion be correct. There has been no notice of any proceedings to rectify
    the register, and there are no circumstances which might lead to any application for rectification of the register, nor will
    there be any such circumstances at or before Completion.

 

	8.	Director

 

Other
than the director set out in Schedule 1, the Company has no other director.

 

	9.	Dispute,
    Claims and Litigation

 

	9.1	The
    Company is not engaged in any litigation, administrative, mediation or arbitration proceedings, as plaintiff or defendant;
    there are no non-compliance, investigation, inquiry or enforcement proceedings pending or threatened, either by or against
    the Company; and no circumstances exist which are likely to give rise to any litigation, administrative, mediation or arbitration
    proceedings.

 

	9.2	There
    is no dispute with any revenue, or other official, department or other regulatory authority in Malaysia or elsewhere, in relation
    to the affairs of the Company, and the Company and the Vendor is not aware of any facts which may give rise to any dispute.

 

	9.3	No
    order has been made, or petition presented, or resolution passed for the winding up of the Company; nor has any distress,
    execution or other process been levied in respect of the Company which remains undischarged; nor is there any unfulfilled
    or unsatisfied judgment or court order outstanding against the Company.

 

	9.4	The
    Company has conducted its business and dealt with its assets in all material respects in accordance with all applicable legal
    and administrative requirements in any jurisdiction.

 

	9.5	The
    Company has not committed any criminal act or material breach of contract or statutory duty or any tortious or other unlawful
    act.

 

	9.6	No
    unsatisfied judgment is outstanding against the Company.

 

	10.	Liabilities

 

	10.1	The
    Company does not have, as at the Management Accounts Date, any material liabilities or financial commitment except as disclosed
    in the Management Accounts.

 

    	20

    	 

    

 

	11.	Agents
    

 

	11.1	There
    are in force no powers of attorney or any special authorities given by the Company other than those given in the ordinary
    course of business.

 

	11.2	Other
    than in the ordinary course of business, the Company has not ever entered into an agreement under which any person has been
    given representative or agency rights or powers.

 

	12.	Acquisition
    of the Consideration Shares

 

	12.1	The
    Vendor understands that the Consideration Shares are “restricted securities” and have not been registered under
    the Securities Act of 1933, as amended (the “Securities Act”) or any applicable state securities law and
    are acquiring the Consideration Shares as principal for their own account and not with a view to or for distributing or reselling
    the Consideration Shares or any part thereof in violation of the Securities Act, have no present intention of distributing
    any of such Consideration Shares in violation of the Securities Act and have no direct or indirect arrangement or understandings
    with any other persons to distribute or regarding the distribution of such Consideration Shares in violation of the Securities
    Act. The Vendor understands that the Consideration Shares may only be disposed of in compliance with the Securities Act. In
    connection with any transfer of the Consideration Shares other than pursuant to an effective registration statement, Agape
    ATP Corporation (“Agape USA”) may require the transferor thereof to provide Agape USA with an opinion of
    counsel selected by the transferor and reasonably acceptable to Agape USA, the form and substance of which opinion shall be
    reasonably satisfactory to Agape USA, to the effect that such transfer does not require registration of such transferred Consideration
    Shares under the Securities Act.

 

	12.2	The
    Vendor hereby represents that he is satisfied himself as to the full observance of the laws of his jurisdiction in connection
    with any invitation to subscribe for the Consideration Shares, including (i) the legal requirements within their jurisdiction
    for the acquisition of the Consideration Shares, (ii) any foreign exchange restrictions applicable to such purchase, (iii)
    any governmental or other consents that may need to be obtained, and (iv) the income tax and other tax consequences, if any,
    that may be relevant to the purchase, holding, redemption, sale, or transfer of the Consideration Shares. The Vendor’s
    beneficial ownership of the Consideration Shares will not violate any applicable securities or other laws of the Vendor’s
    jurisdiction.

 

	12.3	The
    Vendor, either alone or together with his or her representatives, have such knowledge, sophistication and experience in business
    and financial matters so as to be capable of evaluating the merits and risks of the acquisition of the Consideration Shares,
    and have so evaluated the merits and risks. The Vendor is able to bear the economic risk of the Consideration Shares and,
    at the present time, are able to afford a complete loss of the Consideration Shares.

 

	12.4	The
    Vendor is not, to their knowledge, acquiring the Consideration Shares as a result of any advertisement, article, notice or
    other communication regarding the Consideration Shares published in any newspaper, magazine or similar media or broadcast
    over television or radio or presented at any seminar or any other general solicitation or general advertisement.

 

	12.5	The
    Vendor acknowledge that he has had the opportunity to review any and all documents and has been afforded (i) the opportunity
    to ask such questions as they have deemed necessary of, and to receive answers from, representatives of Agape USA concerning
    the Consideration Shares; and (ii) access to information about Agape USA and its financial condition, results of operations,
    business, properties, management and prospects sufficient to enable it to evaluate the transaction. The Vendor acknowledges
    and agrees that Agape USA has not provided the Vendor with any information or advice with respect to the Consideration Shares
    nor is such information or advice necessary or desired.

 

    	21

    	 

    

 

	12.6	Neither
    the Vendor nor any person acting on their behalves has engaged, nor will engage, in any directed selling efforts to a U.S.
    Person (as defined in the Securities Act) with respect to the Consideration Shares and the Vendor and any person acting on
    their behalves has complied and will comply with the “offering restrictions” requirements of Regulation S. The
    transactions contemplated hereby have not been pre-arranged with a buyer located in the United States or with a U.S. Person,
    and are not part of a plan or scheme to evade the registration requirements of the Securities Act. Neither the Vendor nor
    any person acting on their behalves has undertaken or carried out any activity for the purpose of, or that could reasonably
    be expected to have the effect of, conditioning the market in the United States, its territories or possessions, for any of
    the Consideration Shares. The Vendor agrees not to cause any advertisement of the Consideration Shares to be published in
    any newspaper or periodical or posted in any public place and not to issue any circular relating to the Consideration Shares,
    except such advertisements that include the statements required by Regulation S, and only offshore and not in the U.S. or
    its territories, and only in compliance with any local applicable securities laws.

 

	12.7	The
    Vendor understands that the Consideration Shares and any securities issued in respect of or exchange for the Consideration
    Shares, may be notated with one or all of the following legends, as applicable:

 

“THIS
SECURITY HAS NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER
THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT
PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION
NOT SUBJECT TO THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT.”

 

“THESE
SECURITIES ARE BEING OFFERED TO INVESTORS WHO ARE NOT U.S. PERSONS (AS DEFINED IN REGULATION S UNDER THE SECURITIES ACT OF 1933,
AS AMENDED (“THE SECURITIES ACT”) AND WITHOUT REGISTRATION WITH THE UNITED STATES SECURITIES AND EXCHANGE COMMISSION
UNDER THE SECURITIES ACT IN RELIANCE UPON REGULATION S PROMULGATED UNDER THE SECURITIES ACT. TRANSFER OF THESE SECURITIES IS PROHIBITED,
EXCEPT IN ACCORDANCE WITH THE PROVISIONS OF REGULATION S PROMULGATED UNDER THE SECURITIES ACT, PURSUANT TO REGISTRATION UNDER
THE SECURITIES ACT, OR PURSUANT TO AVAILABLE EXEMPTION FROM REGISTRATION. HEDGING TRANSACTIONS MAY NOT BE CONDUCTED UNLESS IN
COMPLIANCE WITH THE SECURITIES ACT.”

 

    	22

    	 

    

 

SCHEDULE
3

PURCHASER WARRANTIES

 

	1.	The
    Purchaser has, on the date of this Agreement and on Completion, full and unfettered right, power and authority to enter into
    this Agreement and assume all of its obligations hereunder and no further actions or proceedings are necessary on its part
    in connection with the execution, delivery and performance by it of this Agreement.

 

	2.	The
    Purchaser is a company duly incorporated and validly existing under the laws of the state of Nevada, United States.

 

	3.	This
    Agreement constitutes valid and legally binding obligations on the part of the Purchaser enforceable in accordance with its
    terms.

 

	4.	All
    information given by the Purchaser or its agents or professional advisers to the Vendor or their employees, agents or professional
    advisers was, when given, and is now true, accurate and complete in all respects.

 

	5.	Subject
    to the fulfillment of the Conditions Precedent, all necessary consents, authorizations and approvals of and all necessary
    registrations and filings with any governmental or regulatory agency or body required in the state of Nevada, United States
    for or in connection with this Agreement and the performance of the terms thereof have been obtained or made or will have
    been obtained or made by Completion.

 

	6.	All
    the Consideration Shares to be issued and allotted by the Purchaser to the Vendor will be duly authorized, validly issued
    and fully paid up and none of such shares will be issued in violation of the bylaws of the Purchaser or the terms of any agreement
    or laws and regulations by which the Purchaser or its shareholders were or are bound, if any.

 

    	23EX-10.1

 Exhibit 10.1 
  

			
		
	Paycheck Protection Program Term Note	  	

		
	$1,537,300.00	  	May 08, 2020

 FOR VALUE RECEIVED, BAUDAX BIO INC (the “Borrower”), with an address at 490 LAPP ROAD, MALVERN,
PENNSYLVANIA 19355-1212, promises to pay to the order of PNC BANK, NATIONAL ASSOCIATION (the “Bank”), in lawful money of the United States of America in immediately available funds at its offices located at 222 Delaware
Avenue, Wilmington, Delaware 19801, Attn: Business Banking, or at such other location as the Bank may designate from time to time, the principal sum of $1,537,300.00 (the “Facility”), together with interest accruing on the
outstanding principal balance from the date hereof, all as provided below. This Note is being issued pursuant to the Coronavirus Aid, Relief, and Economic Security Act’s (the “CARES Act”) (P.L.
116-136) Paycheck Protection Program (the “Program”). 

1.    Rate of Interest. Amounts outstanding under this Note will bear interest at a rate per annum (“Fixed
Rate”) which is at all times equal to 1.00%. Interest will be calculated based on the actual number of days that principal is outstanding over a year of 360 days. In no event will the rate of interest hereunder exceed the maximum rate
allowed by law. 
 2.    Structure; Payment Terms. During the period (the “Deferral Period”)
beginning on the date of this Note and ending on the 6 month anniversary of the date of this Note (the “Deferral Expiration Date”), interest on the outstanding principal balance will accrue at the Fixed Rate, but neither principal
nor interest shall be due and payable during the Deferral Period. On the Deferral Expiration Date, the outstanding principal of the Facility that is not forgiven under the Program (the “Conversion Balance”) shall convert to an
amortizing term loan payable as set forth below. 
 On the 15th day of the 7th month following the date of this Note (the “First Payment
Date”), all accrued interest that is not forgiven under the Program shall be due and payable. Additionally, on the First Payment Date, and continuing on the 15th day of each month thereafter until the 2nd anniversary of the date of this
Note (the “Maturity Date”), equal installments of principal shall be due and payable, each in an amount determined by dividing the Conversion Balance by 18 (the “Monthly Principal Amount”). Interest shall be payable
at the same times as the Monthly Principal Amount. Any outstanding principal and accrued interest shall be due and payable in full on the Maturity Date. 

If any payment under this Note shall become due on a day other than a Business Day, such payment shall be made on the next succeeding Business Day and such
extension of time shall be included in computing interest in connection with such payment. “Business Day” shall mean any day other than a Saturday or Sunday or a legal holiday on which commercial banks are authorized or required by
law to be closed for business in the State of Delaware. The Borrower hereby authorizes the Bank to charge the Borrower’s deposit account at the Bank for any payment when due. Payments received will be applied to charges, fees and expenses
(including attorneys’ fees), accrued interest and principal in any order the Bank may choose, in its sole discretion. 

3.    Forgiveness of the Facility. All or a portion of this Facility may be forgiven in accordance with the Program
requirements. The amount of forgiveness shall be calculated (and may be reduced) in accordance with the requirements of the Program, including the provisions of Section 1106 of the CARES Act. Not more than 25% of the amount forgiven can be
attributable to non-payroll costs. 
 4.    Late Payments; Default Rate. If
the Borrower fails to make any payment of principal, interest or other amount coming due pursuant to the provisions of this Note within fifteen (15) calendar days of the date due and payable, the Borrower also shall pay to the Bank a late
charge equal to the lesser of five percent (5%) of the amount of such payment or $100.00 (the “Late Charge”). Such fifteen (15) day period shall not be construed in 

  
 PPP – Term Note
April 2020 

 
any way to extend the due date of any such payment. Upon maturity, whether by acceleration, demand or otherwise, and at the Bank’s option upon the occurrence of any Event of Default (as
hereinafter defined) and during the continuance thereof, each advance outstanding under this Note shall bear interest at a rate per annum (based on the actual number of days that principal is outstanding over a year of 360 days) which shall be five
percentage points (5.00%) in excess of the interest rate in effect from time to time under this Note but not more than the maximum rate allowed by law (the “Default Rate”). The Default Rate shall continue to apply whether or not
judgment shall be entered on this Note. Both the Late Charge and the Default Rate are imposed as liquidated damages for the purpose of defraying the Bank’s expenses incident to the handling of delinquent payments, but are in addition to, and
not in lieu of, the Bank’s exercise of any rights and remedies hereunder, under the other Loan Documents (as defined below) or under applicable law, and any fees and expenses of any agents or attorneys which the Bank may employ. In addition,
the Default Rate reflects the increased credit risk to the Bank of carrying a loan that is in default. The Borrower agrees that the Late Charge and Default Rate are reasonable forecasts of just compensation for anticipated and actual harm incurred
by the Bank, and that the actual harm incurred by the Bank cannot be estimated with certainty and without difficulty. As used in this Note, “Loan Documents” means, individually and collectively, this Note, together with all other
agreements and documents executed and/or delivered in connection with this Note or referred to in this Note, as amended, modified or renewed from time to time. 

5.    Prepayment. The Borrower shall have the right to prepay any amounts outstanding under this Note at any time and
from time to time, in whole or in part, without penalty. 
 6.    Increased Costs; Yield Protection. On written
demand, together with written evidence of the justification therefor, the Borrower agrees to pay the Bank all direct costs incurred, any losses suffered or payments made by the Bank as a result of any Change in Law (hereinafter defined), imposing
any reserve, deposit, allocation of capital or similar requirement (including without limitation, Regulation D of the Board of Governors of the Federal Reserve System) on the Bank, its holding company or any of their respective assets relative to
the Facility. “Change in Law” means the occurrence, after the date of this Note, of any of the following: (a) the adoption or taking effect of any law, rule, regulation or treaty, (b) any change in any law, rule,
regulation or treaty or in the administration, interpretation, implementation or application thereof by any governmental authority or (c) the making or issuance of any request, rule, guideline or directive (whether or not having the force of
law) by any governmental authority; provided that notwithstanding anything herein to the contrary, (x) the Dodd-Frank Wall Street Reform and Consumer Protection Act and all requests, rules, guidelines or directives thereunder or issued in
connection therewith and (y) all requests, rules, guidelines or directives promulgated by the Bank for International Settlements, the Basel Committee on Banking Supervision (or any successor or similar authority) or the United States or foreign
regulatory authorities, in each case pursuant to Basel III, shall in each case be deemed to be a “Change in Law”, regardless of the date enacted, adopted or issued. 

7.    Representations, Warranties and Covenants. 

(a)    The Borrower hereby represents and warrants that, if not a natural person, the Borrower is duly organized,
validly existing and in good standing under the laws of the state of its incorporation or organization and has the power and authority to own and operate its assets and to conduct its business as now or proposed to be carried on, and is duly
qualified, licensed and in good standing to do business in all jurisdictions where its ownership of property or the nature of its business requires such qualification or licensing. 

(b)    The Borrower certifies, acknowledges and agrees that the certifications contained in the Paycheck Protection
Program Certification and the Program application delivered to the Bank are true and correct, which certifications are hereby incorporated herein by this reference as if set forth herein. 

(c)    The Borrower covenants and agrees that the Borrower will do all things necessary to (i) if not a
natural person, (A) maintain, renew and keep in full force and effect its organizational existence and all rights, permits and franchises necessary to enable it to continue its business as currently conducted; and (B) continue in operation
in substantially the same manner as at present, to the extent permitted by applicable law (including 

  
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PPP – Term Note April 2020 

 
without limitation any statute, ordinance, rule or regulation relating to employment practices, pension benefits or environmental, occupational and health standards and controls); and
(ii) comply with all laws applicable to the Borrower and to the operation of its business (including without limitation any statute, ordinance, rule or regulation relating to employment practices, pension benefits or environmental, occupational
and health standards and controls). 
 (d)    The Borrower represents and warrants that (i) the Borrower has
full power, authority and capacity to enter into the transactions provided for in this Note and the other Loan Documents; (ii) if not a natural person, all necessary action to authorize the execution and delivery of this Note and the other Loan
Documents has been properly taken; (iii) this Note and the other Loan Documents, when executed and delivered by the Borrower, will constitute the legal, valid and binding obligations of the Borrower enforceable in accordance with their terms;
(iv) if not a natural person, the Borrower is and will continue to be duly authorized to perform all of the terms and provisions of this Note and the other Loan Documents; (v) there does not exist, either before or after giving effect to
the terms of this Note, any default or violation by the Borrower of or under any of the terms, conditions or obligations of any of its governing documents; and (vi) the Borrower does not require the consent of any party with respect to this
Note, the other Loan Documents or the Facility except for such consents that have been obtained. 
 (e)    The
Borrower covenants and agrees to take all such additional actions and promptly provide to the Bank all additional documents, statements and information as the Bank may require from time to time, in its discretion, in connection with the SBA’s
requirements or requests under or in respect of the Program or the general standard operating procedures of the SBA. 

(f)    The Borrower authorizes and directs the Bank to disburse the proceeds of the Facility and to direct payments
due under the Facility in accordance with the Disbursement and Payment Authorization Instructions attached to this Note as Exhibit A. 

8.    Other Loan Documents. Notwithstanding any provision to the contrary in any Loan Document or any other
collateral security documents that may have been or may in the future be executed and delivered to the Bank, or an agent acting on behalf of the Bank, to secure any obligations of the Borrower to the Bank, this Note is not intended to be secured by
real property, and the applicability of any lien on such real property to secure this Note is expressly disclaimed by the Bank. 

9.    Events of Default. The occurrence of any of the following events will be deemed to be an “Event of
Default” under this Note: (i) the nonpayment of any principal, interest or other indebtedness under this Note when due; (ii) the occurrence of any event of default or any default and the lapse of any notice or cure period, or the
Borrower’s failure to observe or perform any covenant or other agreement, under or contained in any Loan Document; (iii) the filing by or against the Borrower of any proceeding in bankruptcy, receivership, insolvency, reorganization,
liquidation, conservatorship or similar proceeding (and, in the case of any such proceeding instituted against the Borrower, such proceeding is not dismissed or stayed within 30 days of the commencement thereof, provided that the Bank shall not be
obligated to advance additional funds hereunder during such period); (iv) any assignment by the Borrower for the benefit of creditors, or any levy, garnishment, attachment or similar proceeding is instituted against any property of the Borrower held
by or deposited with the Bank; (v) the commencement of any foreclosure or forfeiture proceeding, execution or attachment against any collateral securing the obligations of the Borrower to the Bank; (vi) the entry of a final judgment
against the Borrower and the failure of the Borrower to discharge the judgment within ten (10) days of the entry thereof; (vii) any change in the Borrower’s equity ownership (if not a public company), or any merger, consolidation,
division or other reorganization of, with or by the Borrower, or the sale or other transfer of all or any substantial part of the Borrower’s property or assets, except as otherwise permitted by the Bank; (viii) any change in the
Borrower’s business, assets, operations, financial condition or results of operations that has or could reasonably be expected to have any material adverse effect on the Borrower; (ix) the Borrower ceases doing business as a going concern;
(x) any representation or warranty made by the Borrower to the Bank in any Loan Document or any other documents now or in the future evidencing or securing the obligations of the Borrower to the Bank, is false,

  
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PPP – Term Note April 2020 

 
erroneous or misleading in any material respect; (xi) the death, incarceration, indictment or legal incompetency of any individual Borrower or, if the Borrower is a partnership or limited
liability company, the death, incarceration, indictment or legal incompetency of any individual general partner or member; or (xii) failure of the Borrower to notify the Bank within ten (10) days of any change of the Borrower’s
address. 
 Upon the occurrence of an Event of Default: (a) the Bank shall be under no further obligation to make advances hereunder; (b) if an
Event of Default specified in clause (iii) or (iv) above shall occur, the outstanding principal balance and accrued interest hereunder together with any additional amounts payable hereunder shall be immediately due and payable without demand or
notice of any kind; (c) if any other Event of Default shall occur, the outstanding principal balance and accrued interest hereunder together with any additional amounts payable hereunder, at the Bank’s option and without demand or notice
of any kind, may be accelerated and become immediately due and payable; (d) at the Bank’s option, this Note will bear interest at the Default Rate from the date of the occurrence of the Event of Default; and (e) the Bank may exercise
from time to time any of the rights and remedies available under the Loan Documents or under applicable law. The Borrower acknowledges that upon the occurrence of an Event of Default, SBA, as defined below, may be required to pay the Lender under
the SBA guarantee, and SBA may then seek recovery on the Facility (to the extent any balance remains after loan forgiveness). 

10.    Right of Setoff. In addition to all rights of setoff against the Borrower’s money, securities or other
property given to the Bank by law, the Bank shall have, with respect to the Borrower’s obligations to the Bank under this Note and to the extent permitted by law, a contractual right of setoff against all of the Borrower’s deposits,
moneys, securities and other property now or hereafter in the possession of or on deposit with, or in transit to, the Bank or any other direct or indirect subsidiary of The PNC Financial Services Group, Inc., whether held in a general or special
account or deposit, whether held jointly with someone else, or whether held for safekeeping or otherwise, excluding, however, all IRA, Keogh, and trust accounts. Every such right of setoff may be exercised without demand upon or notice to the
Borrower upon the occurrence of an Event of Default. Every such right of setoff shall be deemed to have been exercised immediately upon the occurrence of an Event of Default hereunder without any action of the Bank, although the Bank may enter such
setoff on its books and records at a later time. 
 11.    Financial and Other Information. Within forty five
(45) days after the Bank’s request, the Borrower agrees to deliver any financial and other business and ownership information concerning the Borrower that the Bank may request from time to time, such as annual and interim financial
statements (all of which shall be prepared in accordance with generally accepted accounting principles), federal income tax returns. The Borrower also agrees to deliver to the Bank, promptly upon the Bank’s request, certification(s) of
beneficial owners in the form requested by the Bank (as executed and delivered to the Bank on or prior to the date of this Note and updated from time to time, the “Certification of Beneficial Owners”). If the Borrower was required
to execute and deliver to the Bank a Certification of Beneficial Owners, (a) the Borrower represents and warrants, as of the date of this Note and as of the date each updated Certification of Beneficial Owners is provided to the Bank, that the
information in the Certification of Beneficial Owners is true, complete and correct, and (b) the Borrower agrees to provide confirmation of the accuracy of the information set forth in the Certification of Beneficial Owners, or deliver a new
Certification of Beneficial Owners in form and substance acceptable to the Bank, as and when requested by the Bank and/or when any individual identified on the most recent Certification of Beneficial Owners provided to the Bank as a controlling
party and/or a direct or indirect individual owner has changed. The Borrower further agrees to provide such other information and documentation as may reasonably be requested by the Bank from time to time for purposes of compliance by the Bank with
applicable laws (including without limitation the USA PATRIOT Act and other “know your customer” and anti-money laundering rules and regulations), and any policy or procedure implemented by the Bank to comply therewith. Additionally, the
Borrower will keep books and records in a manner satisfactory to the Bank and allow the Bank and SBA to inspect and audit books, records and papers relating to the Borrower’s financial or business condition. 

12.    Anti-Money Laundering/International Trade Law Compliance. The Borrower represents and warrants to the Bank, as
of the date of this Note, the date of each advance of proceeds under the Facility, the date 

  
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PPP – Term Note April 2020 

 
of any renewal, extension or modification of the Facility, and at all times until the Facility has been terminated and all amounts thereunder have been indefeasibly paid in full, that:
(a) no Covered Entity (i) is a Sanctioned Person; (ii) has any of its assets in a Sanctioned Country or in the possession, custody or control of a Sanctioned Person; or (iii) does business in or with, or derives any of its
operating income from investments in or transactions with, any Sanctioned Country or Sanctioned Person in violation of any law, regulation, order or directive enforced by any Compliance Authority; (b) the proceeds of the Facility will not be
used to fund any operations in, finance any investments or activities in, or, make any payments to, a Sanctioned Country or Sanctioned Person in violation of any law, regulation, order or directive enforced by any Compliance Authority; (c) the
funds used to repay the Facility are not derived from any unlawful activity; and (d) each Covered Entity is in compliance with, and no Covered Entity engages in any dealings or transactions prohibited by, any laws of the United States,
including but not limited to any Anti-Terrorism Laws. Borrower covenants and agrees that it shall immediately notify the Bank in writing upon the occurrence of a Reportable Compliance Event. 

As used herein: “Anti-Terrorism Laws” means any laws relating to terrorism, trade sanctions programs and embargoes, import/export licensing,
money laundering, or bribery, all as amended, supplemented or replaced from time to time; “Compliance Authority” means each and all of the (a) U.S. Treasury Department/Office of Foreign Assets Control, (b) U.S. Treasury
Department/Financial Crimes Enforcement Network, (c) U.S. State Department/Directorate of Defense Trade Controls, (d) U.S. Commerce Department/Bureau of Industry and Security, (e) U.S. Internal Revenue Service, (f) U.S. Justice
Department, and (g) U.S. Securities and Exchange Commission; “Covered Entity” means the Borrower, its affiliates and subsidiaries, all guarantors, pledgors of collateral, all owners of the foregoing, and all brokers or other
agents of the Borrower acting in any capacity in connection with the Facility; “Reportable Compliance Event” means that any Covered Entity becomes a Sanctioned Person, or is indicted, arraigned, investigated or custodially detained,
or receives an inquiry from regulatory or law enforcement officials, in connection with any Anti-Terrorism Law or any predicate crime to any Anti-Terrorism Law, or self-discovers facts or circumstances implicating any aspect of its operations with
the actual or possible violation of any Anti-Terrorism Law; “Sanctioned Country” means a country subject to a sanctions program maintained by any Compliance Authority; and “Sanctioned Person” means any individual
person, group, regime, entity or thing listed or otherwise recognized as a specially designated, prohibited, sanctioned or debarred person or entity, or subject to any limitations or prohibitions (including but not limited to the blocking of
property or rejection of transactions), under any order or directive of any Compliance Authority or otherwise subject to, or specially designated under, any sanctions program maintained by any Compliance Authority. 

13.    Release and Indemnity. The Borrower agrees to indemnify each of the Bank, each legal entity, if any, who
controls, is controlled by or is under common control with the Bank, and each of their respective directors, officers and employees (the “Indemnified Parties”), and to defend and hold each Indemnified Party harmless from and against
any and all claims, damages, losses, liabilities and expenses (including all fees and charges of internal or external counsel with whom any Indemnified Party may consult and all expenses of litigation and preparation therefor) which any Indemnified
Party may incur or which may be asserted against any Indemnified Party by any person, entity or governmental authority (including the Borrower or any person or entity claiming derivatively on behalf of the Borrower), in connection with or arising
out of the Program or relating to the matters referred to in this Note or in the other Loan Documents or the use of any advance hereunder, whether (a) arising from or incurred in connection with any breach of a representation, warranty or
covenant by the Borrower, or (b) arising out of or resulting from any suit, action, claim, proceeding or governmental investigation, pending or threatened, whether based on statute, regulation or order, or tort, or contract or otherwise, before
any court or governmental authority; provided, however, that the foregoing indemnity shall not apply to any claims, damages, losses, liabilities and expenses solely attributable to an Indemnified Party’s gross negligence or willful misconduct.
The release and indemnity agreements contained in this paragraph shall survive the termination of this Note, payment of any advance hereunder and the assignment of any rights hereunder. The Borrower may participate at its expense in the defense of
any such action or claim. 
 14.    Miscellaneous. All notices, demands, requests, consents, approvals and other
communications required or permitted hereunder (“Notices”) must be in writing (except as may be agreed otherwise above with respect to 

  
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PPP – Term Note April 2020 

 
borrowing requests or as otherwise provided in this Note) and will be effective upon receipt. Notices may be given in any manner to which the parties may agree. Without limiting the foregoing,
first-class mail, postage prepaid, facsimile transmission and commercial courier service are hereby agreed to as acceptable methods for giving Notices. In addition, the parties agree that Notices may be sent electronically to any electronic address
provided by a party from time to time. Notices may be sent to a party’s address as set forth above or to such other address as any party may give to the other for such purpose in accordance with this paragraph. No delay or omission on the
Bank’s part to exercise any right or power arising hereunder will impair any such right or power or be considered a waiver of any such right or power, nor will the Bank’s action or inaction impair any such right or power. The Bank’s
rights and remedies hereunder are cumulative and not exclusive of any other rights or remedies which the Bank may have under other agreements, at law or in equity. No modification, amendment or waiver of, or consent to any departure by the Borrower
from, any provision of this Note will be effective unless made in a writing signed by the Bank, and then such waiver or consent shall be effective only in the specific instance and for the purpose for which given. Notwithstanding the foregoing, the
Bank may modify this Note for the purposes of completing missing content or correcting erroneous content, without the need for a written amendment, provided that the Bank shall send a copy of any such modification to the Borrower (which notice may
be given by electronic mail). The Borrower agrees to pay on demand, to the extent permitted by law, all costs and expenses incurred by the Bank in the enforcement of its rights in this Note and in any security therefor, including without limitation
reasonable fees and expenses of the Bank’s counsel. If any provision of this Note is found to be invalid, illegal or unenforceable in any respect by a court, all the other provisions of this Note will remain in full force and effect. The
Borrower and all other makers and indorsers of this Note hereby forever waive presentment, protest, notice of dishonor and notice of non-payment. The Borrower also waives all defenses based on suretyship or
impairment of collateral. If this Note is executed by more than one Borrower, the obligations of such persons or entities hereunder will be joint and several. This Note shall bind the Borrower and its heirs, executors, administrators, successors and
assigns, and the benefits hereof shall inure to the benefit of the Bank and its successors and assigns; provided, however, that the Borrower may not assign this Note in whole or in part without the Bank’s written consent and the
Bank at any time may assign this Note in whole or in part. 
 This Note has been delivered to and accepted by the Bank and will be deemed to be made in the
State of Delaware. THIS NOTE WILL BE INTERPRETED AND THE RIGHTS AND LIABILITIES OF THE BANK AND THE BORROWER DETERMINED IN ACCORDANCE WITH (I) FEDERAL REGULATIONS, AND (II) TO THE EXTENT NOT PREEMPTED BY
FEDERAL LAWS OR REGULATIONS, THE LAWS OF THE STATE OF DELAWARE, EXCLUDING ITS CONFLICT OF LAWS RULES, INCLUDING WITHOUT LIMITATION THE ELECTRONIC TRANSACTIONS ACT (OR EQUIVALENT) IN EFFECT IN THE STATE OF DELAWARE (OR, TO THE EXTENT CONTROLLING, THE
LAWS OF THE UNITED STATES OF AMERICA, INCLUDING WITHOUT LIMITATION THE ELECTRONIC SIGNATURES IN GLOBAL AND NATIONAL COMMERCE ACT). The Borrower hereby irrevocably consents to the exclusive jurisdiction of any state or federal court in the
State of Delaware; provided that nothing contained in this Note will prevent the Bank from bringing any action, enforcing any award or judgment or exercising any rights against the Borrower individually, against any security or against any property
of the Borrower within any other county, state or other foreign or domestic jurisdiction. The Borrower acknowledges and agrees that the venue provided above is the most convenient forum for both the Bank and the Borrower. The Borrower waives any
objection to venue and any objection based on a more convenient forum in any action instituted under this Note. 

15.    Commercial Purpose. The Borrower represents that the indebtedness evidenced by this Note is being incurred by
the Borrower solely for the purpose of acquiring or carrying on a business, professional or commercial activity, and not for personal, family or household purposes. 

16.    USA PATRIOT Act Notice. To help the government fight the funding of terrorism and money laundering activities,
Federal law requires all financial institutions to obtain, verify and record information that identifies each Borrower that opens an account. What this means: when the Borrower opens an account, the Bank will ask for the business name, business
address, taxpayer identifying number and other information that will allow the Bank to identify the Borrower, such as organizational documents. For some businesses and organizations, the Bank may also need to ask for identifying information and
documentation relating to certain individuals associated with the business or organization. 

  
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PPP – Term Note April 2020 

 17.    Authorization to Obtain Credit Reports. By signing below,
each person, who is signing in his or her individual capacity, requests and provides written authorization to the Bank or its designee (and any assignee or potential assignee hereof) to obtain such individual’s personal credit profile from one
or more national credit bureaus. This authorization extends to obtaining a credit profile in (i) considering an application for credit that is evidenced, guaranteed or secured by this document, (ii) assessing creditworthiness and
(iii) considering extensions of credit, including on an ongoing basis, as necessary for the purposes of (a) update, renewal or extension of such credit or additional credit, (b) reviewing, administering or collecting the resulting
account and (c) reporting on the repayment and satisfaction of such credit obligations. By signing below, such individual further ratifies and confirms his or her prior requests and authorizations with respect to the matters set forth herein. For
the avoidance of doubt, this provision does not apply to persons signing below in their capacities as officers or other authorized representatives of entities, organizations or governmental bodies. 

18.    Electronic Signatures and Records. Notwithstanding any other provision herein, the Borrower agrees that this
Note, the Loan Documents, any amendments thereto, and any other information, notice, signature card, agreement or authorization related thereto (each, a “Communication”) may, at the Bank’s option, be in the form of an
electronic record. Any Communication may, at the Bank’s option, be signed or executed using electronic signatures. For the avoidance of doubt, the authorization under this paragraph may include, without limitation, use or acceptance by the Bank
of a manually signed paper Communication which has been converted into electronic form (such as scanned into PDF format) for transmission, delivery and/or retention. 

19.    Depository. Unless the Bank otherwise agrees, the Borrower will establish and maintain with the Bank the
Borrower’s primary depository accounts. 
 20.    Federal Law. When the U.S. Small Business Administration
(“SBA”) is the holder, this Note will be interpreted and enforced under federal law, including SBA regulations. The Bank or SBA may use state or local procedures for filing papers, recording documents, giving notice, foreclosing
liens, and other purposes. By using such procedures, SBA does not waive any federal immunity from state or local control, penalty, tax, or liability. As to this Note, the Borrower may not claim or assert against SBA any local or state law to deny
any obligation, defeat any claim of SBA, or preempt federal law. 
 21.    DISPUTE RESOLUTION. 

(a)    WAIVER OF JURY TRIAL. FOR ANY DISPUTE THAT IS NOT ARBITRATED, AND TO THE EXTENT PERMITTED BY APPLICABLE
LAW, THE BORROWER AND THE BANK IRREVOCABLY WAIVES ANY AND ALL RIGHTS THE BORROWER OR THE BANK MAY HAVE TO A TRIAL BY JURY IN ANY ACTION, PROCEEDING OR CLAIM OF ANY NATURE RELATING TO THIS NOTE, ANY DOCUMENTS EXECUTED IN CONNECTION WITH THIS NOTE OR
ANY TRANSACTION CONTEMPLATED IN ANY OF SUCH DOCUMENTS. THE BORROWER ACKNOWLEDGES THAT THE FOREGOING WAIVER IS KNOWING AND VOLUNTARY. 

(b)    ARBITRATION OF DISPUTES. The Borrower or the Bank may elect to submit any and all disputes
arising out of or relating to the Loan Documents or any breach thereof (a “Dispute”) to binding arbitration 

(i)    Arbitration. Any arbitration shall be conducted pursuant to and in accordance with the AAA
Commercial Arbitration Rules and, where applicable, the Supplementary Rules for Large, Complex Commercial Disputes, and judgment upon the award rendered by the arbitrator may be entered in any court having jurisdiction thereof. Such arbitration
shall be conducted in a mutually acceptable location. Except as expressly set forth below, the procedures specified herein shall be the sole and exclusive procedures for the resolution of Disputes; provided, however, that the Borrower or the Bank
may seek provisional or ancillary remedies, such as preliminary injunctive relief, from a court having jurisdiction, before, during or after the pendency of any arbitration proceeding. The institution and maintenance of any action for such judicial
relief, or pursuit of provisional or ancillary remedies, shall not constitute a 

  
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PPP – Term Note April 2020 

 
waiver of the right or obligation of any party to submit any claim or dispute to arbitration. Nothing herein shall in any way limit or modify any remedies available to the Bank under the Loan
Documents or otherwise at law or in equity. 
 (ii)    Motion Practice. In any arbitration
hereunder, the arbitrator(s) shall decide any pre-hearing motions which are substantially similar to pre-hearing motions to dismiss for failure to state a claim or
motions for summary adjudication. 
 (iii)    Discovery. Discovery shall be limited to the pre-hearing exchange of all documents which the Borrower and the Bank intend to introduce at the hearing and any expert reports prepared by any expert who will testify at the hearing. 

(iv)    Sequential Hearing Days. At the administrative conference conducted by the AAA, the
Borrower and the Bank and the AAA shall determine how to ensure that the hearing is started and completed on sequential hearing days. Potential arbitrators shall be informed of the anticipated length of the hearing and they shall not be subject to
appointment unless they agree to abide by the parties’ intent that, absent exigent circumstances, the hearing shall be conducted on sequential days. 

(v)    Award. The award of the arbitrator(s) shall be accompanied by a statement of the reasons
upon which such award is based. 
 (vi)    Fees and Expenses. The Borrower and the Bank shall
each bear equally all fees and costs and expenses of the arbitration, and each shall bear its own legal fees and expenses and the costs of its experts and witnesses; provided, however, that if the arbitration panel shall award to a party
substantially all relief sought by such party, then, notwithstanding any applicable governing law provisions, the other party shall pay all costs, fees and expenses incurred by the prevailing party and such costs, fees and expenses shall be included
in such award. 
 (vii)    Confidentiality of Disputes. The entire procedure shall be
confidential and none of the parties nor arbitrator(s) may disclose the existence, content, or results of any arbitration hereunder without the written consent of all parties to the Dispute, except (i) to the extent disclosure is required to
enforce any applicable arbitration award or may otherwise be required by law and (ii) that either party may make such disclosures to its regulators, auditors, accountants, attorneys and insurance representatives. No conduct, statements,
promises, offers, views, or opinions of any party involved in an arbitration hereunder shall be discoverable or admissible for any purposes in litigation or other proceedings involving the parties to the Dispute and shall not be disclosed to anyone
not an agent, employee, expert, witness, or representative for any of such parties. 

(viii)    CLASS ACTION WAIVER. THE BORROWER HEREBY WAIVES, WITH RESPECT TO ANY DISPUTE:
(I) THE RIGHT TO PARTICIPATE IN A CLASS ACTION, PRIVATE ATTORNEY GENERAL ACTION OR OTHER REPRESENTATIVE ACTION IN COURT OR IN ARBITRATION, EITHER AS A CLASS REPRESENTATIVE OR CLASS MEMBER; AND (II) THE RIGHT TO
JOIN OR CONSOLIDATE CLAIMS WITH CLAIMS OF ANY OTHER PERSON. The foregoing waiver is referred to herein as the “class action waiver”. The Bank and the Borrower agree that no arbitrator shall have authority to conduct any
arbitration in violation of the class action waiver or to issue any relief that applies to any person or entity other than the Borrower and/or the Bank individually. The parties acknowledge that this class action waiver is material and essential to
the arbitration of any claims and is non-severable from this Dispute Resolution section. If the class action waiver is voided, found unenforceable, or limited with respect to any claim for which the Borrower
seeks class-wide relief, then this Dispute Resolution section (except for this sentence) shall be null and void with respect to such claim, subject to the right to appeal the limitation or invalidation of the class action waiver. However, this
Dispute Resolution section shall remain valid with respect to all other 

  
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PPP – Term Note April 2020 

 claims and Disputes. The parties acknowledge and agree that under no circumstances will a
class action be arbitrated. 
 (ix)    Applicability of Federal Arbitration Act. This Note
evidences transaction(s) in interstate commerce, and thus the Federal Arbitration Act governs the interpretation and enforcement of this Dispute Resolution section. 

REMAINDER OF PAGE INTENTIONALLY LEFT BLANK 

  
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PPP – Term Note April 2020 

 If the Borrower is a legal entity, the undersigned certifies to the Bank that the undersigned
(individually and collectively if more than one, the “Authorized Representative”) is and was authorized and directed to (i) execute and deliver, including to electronically execute and deliver, in the name of and on behalf of the Borrower,
this Note and any other documents executed in connection with this Note or the Facility, all in such form as may be requested by the Bank or required under the Program and any of which may contain a provision waiving the right to trial by jury;
(ii) execute and deliver to or in favor of, including to electronically execute and deliver to or in favor of, the Bank any amendments, modifications, renewals or supplements of or to any of the foregoing agreements, documents or instruments;
(iii) take any other action requested, required or deemed advisable by the Bank in order to effectuate the foregoing; and (iv) delegate the foregoing duties to other representatives of the Borrower. The undersigned further certifies that
the Authorized Representative holds the office, title or status with the Borrower specified below the Authorized Representative’s signature. 

The Borrower acknowledges that it has read and understands all the provisions of this Note, including the waiver of jury trial, arbitration and class
action waiver, and has been advised by counsel as necessary or appropriate, or has elected not to seek the advice of counsel. 
 WITNESS the due
execution hereof as a document under seal, as of the date first written above, with the intent to be legally bound hereby. 

BAUDAX BIO INC 

(SEAL) 
 By: /s/
Ryan Lake 
 Ryan Lake, Chief Financial Officer 
  

  
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PPP – Term Note April 2020 

 EXHIBIT A 

TO PAYCHECK PROTECTION PROGRAM TERM NOTE 

DISBURSEMENT AND PAYMENT AUTHORIZATION INSTRUCTIONS 

Loan Disbursement Authorization: 
 Borrower authorizes and
directs the Bank to disburse the proceeds of the Facility as directed below. Each authorized representative of the Borrower is authorized to make this request, the Bank is entitled to rely conclusively on the below instructions to make disbursements
in the amount and manner specified. 
 Disbursements 

Disburse the proceeds of the Facility into the Borrower’s demand deposit account with PNC Bank, Account No. 8511708197. 

Automatic Payment Authorization Under Facility: 
 The
Borrower irrevocably authorizes and directs the Bank to charge any deposit account identified above and maintained at the Bank (or such other account at the Bank as the undersigned may designate to the Bank in writing from time to time) for all
payments of principal and interest due or fees on the Facility, and to debit such account for the amount of such payments on the date each payment is due. The Borrower acknowledges and agrees that, to the extent there are insufficient funds in any
such account to pay the required amounts when due, the Borrower shall immediately pay to the Bank all sums remaining unpaid. This authorization supplements, and does not limit, the Bank’s rights under the promissory note(s) and other documents
evidencing or securing the Facility. The Bank is entitled to rely conclusively on this authorization until this authorization is terminated by the Bank or the Borrower, and the Bank has had a reasonable time to act thereon. 

 

  
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PPP – Term Note April 2020 

 

 
 Paycheck Protection Program Certification 

May 08, 2020 
 BAUDAX BIO INC (the “Borrower”)
has applied to PNC Bank, National Association (the “Bank”) for a Small Business Association (“SBA”) 7(a) Paycheck Protection Program loan (the “PPP Loan”). 

The below signer understands that the statements made in this certification are part of the agreement with the Bank and that the Bank will rely on these
statements when deciding whether or not to make the PPP Loan. 
 I certify, acknowledge and agree that (a) if the Borrower is not a natural person, I
am an authorized officer of the Borrower and am authorized on behalf of the Borrower to certify to the statements provided below, and (b) if the Borrower is a natural person, the undersigned certifies to the statements below, and (c) in
either case, the following are true and correct statements: 
  

	 	1.	 The Borrower was in operation on February 15, 2020 and, if Borrower is not a self-employed worker or
independent contractor, had employees for whom it paid salaries and payroll taxes. 

  

	 	2.	 The uncertainty of current economic conditions makes necessary the PPP Loan request to support the ongoing
operations of the Borrower. 

  

	 	3.	 The proceeds of the PPP Loan will be used to retain workers and maintain payroll or make mortgage interest
payments, lease payments, and utility payments; and at least 75 percent of the proceeds of the PPP Loan will be used for payroll expenses. If the funds are knowingly used for unauthorized purposes, the federal government may hold the
undersigned and the Borrower legally liable such as for charges of fraud. 

  

	 	4.	 Documentation verifying the number of full-time equivalent employees on the Borrower’s payroll as well as
the dollar amounts of payroll costs, covered mortgage interest payments, covered rent payments, and covered utilities for the eight week period following the disbursement of the PPP Loan will be provided to the Bank. 

 

	 	5.	 The Borrower understands and agrees that loan forgiveness may be provided if the Borrower uses all of the loan
proceeds for documented payroll costs, covered mortgage interest payments, covered rent payments, and covered utilities. The actual amount forgiven will be determined in accordance with the requirements of the Program, including the provisions of
Section 1106 of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) (P.L. 116-136), and in no event may more than 25 percent of the forgiven amount be attributable to non-payroll costs. 

  

	 	6.	 The Borrower does not have any other PPP Loan applications pending and will not apply for another PPP Loan.
During the period beginning on February 15, 2020 and ending on December 31, 2020 Borrower has not received and will not receive another PPP Loan. 

  

	 	7.	 The Borrower shall notify the Bank if the Borrower received an SBA Economic Injury Disaster Loan
(“EIDL”) between January 31, 2020 and April 3, 2020 and the proceeds of such EIDL were or are used to retain workers and maintain payroll; in such circumstances the proceeds of the PPP Loan must be used to refinance any
such EIDL. 

  

	 	8.	 The information provided in the PPP Loan application and the information provided in all supporting documents
and forms is true and accurate in all material respects. Each of the undersigned understands that knowingly making a false statement to obtain a guaranteed loan from SBA is punishable under the law, including under 18 USC 1001 and 3571 by
imprisonment of not more than five years and/or a fine of up to $250,000; under 15 USC 645 by imprisonment of not more than two years and/or a fine of not more than $5,000; and, if submitted to a federally insured institution, under 18 USC 1014 by
imprisonment of not more than thirty years and/or a fine of not more than $1,000,000. 

  
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Paycheck Protection Program Certification April 2020 

	 	9.	 The Borrower acknowledges that the Bank will confirm the eligible PPP Loan amount using the Borrower’s
information that it has submitted, including without limitation, tax returns and tax transcripts (collectively, the “Tax Information”). The Borrower affirms that the Tax Information is identical to that submitted to the Internal
Revenue Service. The Borrower also understands, acknowledges, and agrees that the Bank can share the Borrower’s Tax Information with (i) the SBA’s authorized representatives, including authorized representatives of the SBA Office of
Inspector General, (ii) the Bank’s affiliates, and its and their respective directors, officers, employees, agents and advisors (the “Representatives”), and (iii) any actual or potential owners of a credit facility
extended by the Bank or its Representatives to the Borrower, any acquirers of any beneficial or other interest in such credit facility, guarantor, servicers or service providers for such parties, and their successors and/or assigns (the
“Other Loan Participants”) for the purpose of (w) compliance with SBA loan program requirements and all SBA reviews, (x) originating, maintaining, managing, monitoring, servicing, selling, insuring, and securitizing a
credit facility; (y) enforcing any of its rights or remedies under the loan documents applicable to such credit facility (including, without limitation, in connection with any collection action related thereto) or (z) as otherwise
permitted by applicable laws, including state and federal privacy and data security laws, or if required to do so by legal process, regulation or law, or in defense of any claims or causes of action against the Bank or any of its Representatives.

 BAUDAX BIO INC 

(SEAL) 
 By: /s/
Ryan Lake 
 Ryan Lake, Chief Financial Officer 
  

  
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Paycheck Protection Program Certification April 2020

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