Document:

Document

Exhibit 4.01

															
					

SUPPLEMENTAL INDENTURE NO. 21
FROM
OKLAHOMA GAS AND ELECTRIC COMPANY
TO
BOKF, NA
TRUSTEE
_________________

DATED AS OF 
April 1, 2020
___________________________
SUPPLEMENTAL TO INDENTURE
DATED AS OF OCTOBER 1, 1995
															
					

TABLE OF CONTENTS
									
			
			
	Parties		1
	Recitals		1
			
	ARTICLE ONE		
	RELATION TO INDENTURE; DEFINITIONS		
			
	Section 1.01.	Integral Part of Indenture	3
	Section 1.02.	(a) Definitions	3
		(b) References to Articles and Sections	3
		(c) Terms Referring to this Supplemental Indenture	3
			
	ARTICLE TWO
		
	3.250% SENIOR NOTES, SERIES DUE April 1, 2030		
			
	Section 2.01.	Designation and Principal Amount	3
	Section 2.02.	Stated Maturity Date	3
	Section 2.03.	Interest Payment Dates	4
	Section 2.04.	Office for Payment	4
	Section 2.05.	Redemption Provisions	4
	Section 2.06.	Authorized Denominations	5
	Section 2.07.	Occurrence of Release Date	5
	Section 2.08.	Reopening of Notes	5
	Section 2.09.	Form of 3.250% Senior Notes, Series Due April 1, 2030	5
			
	ARTICLE THREE
		
	MISCELLANEOUS		
			
	Section 3.01.	Recitals of fact, except as stated, are statements of the Company	5
	Section 3.02.	Supplemental Indenture to be construed as a part of the Indenture	5
	Section 3.03.	(a) Trust Indenture Act to control	5
		(b) Severability of provisions contained in Supplemental Indenture and Notes	5
	Section 3.04.	References to either party in Supplemental Indenture include successors or assigns	5
	Section 3.05.	(a) Provision for execution in counterparts	5
		(b) Table of Contents and descriptive headings of Articles not to affect meaning	6
			
	Exhibit A	Form of 3.250% Senior Notes, Series Due April 1, 2030	

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SUPPLEMENTAL INDENTURE No. 21, made as of the 1st day of April, 2020 by and between OKLAHOMA GAS AND ELECTRIC COMPANY, a corporation duly organized and existing under the laws of the State of Oklahoma (the “Company”), and BOKF, NA, a national banking association duly organized and existing under the laws of the United States, as successor trustee, registrar and paying agent (the “Trustee”):
WITNESSETH:
WHEREAS, the Company has heretofore executed and delivered its Indenture (hereinafter referred to as the “Indenture”), made as of October 1, 1995; and
WHEREAS, the Company has heretofore executed and delivered its Supplemental Indenture No. 1 dated as of October 16, 1995, adding to the covenants, conditions and agreements of the Indenture certain additional covenants, conditions and agreements to be observed by the Company, and creating two series of Notes designated “7.30% Senior Notes, Series due October 15, 2025” and “6.250% Senior Notes, Series due October 15, 2000”; and
WHEREAS, the Company has heretofore executed and delivered its Supplemental Indenture No. 2 dated as of July 1, 1997, adding to the covenants, conditions and agreements of the Indenture certain additional covenants, conditions and agreements to be observed by the Company, and creating two series of Notes designated “6.65% Senior Notes, Series due July 15, 2027” and “6.50% Senior Notes, Series due July 15, 2017”; and
WHEREAS, the Company has heretofore executed and delivered its Supplemental Indenture No. 3 dated as of April 1, 1998, adding to the covenants, conditions and agreements of the Indenture certain additional covenants, conditions and agreements to be observed by the Company, and creating a series of Notes designated “6.5000% Senior Notes, Series due April 15, 2028”; and
WHEREAS, the Company has heretofore executed and delivered its Supplemental Indenture No. 4 dated as of October 15, 2000, adding to the covenants, conditions and agreements of the Indenture certain additional covenants, conditions and agreements to be observed by the Company, and creating a series of Notes designated “7.125% Senior Notes, Series due October 15, 2005”; and
WHEREAS, the Company, UMB Bank, N.A. (“UMB”) and The Bank of New York (“BONY”) have heretofore executed and delivered Supplemental Indenture No. 5 dated as of October 24, 2001, providing for the resignation of BONY and the acceptance, by UMB, of its appointment as trustee and the assumption of all duties and responsibilities of the trustee under the Indenture; and
WHEREAS, the Company has heretofore executed and delivered its Supplemental Indenture No. 6 dated as of August 1, 2004, adding to the covenants, conditions and agreements of the Indenture certain additional covenants, conditions and agreements to be observed by the Company, and creating a series of Notes designated “6.50% Senior Notes, Series due August 1, 2034”; and
WHEREAS, the Company has heretofore executed and delivered its Supplemental Indenture No. 7 dated as of January 1, 2006, adding to the covenants, conditions and agreements of the Indenture certain additional covenants, conditions and agreements to be observed by the Company, and creating two series of Notes designated “5.15% Senior Notes, Series due January 15, 2016” and “5.75% Senior Notes, Series due January 15, 2036”; and
WHEREAS, the Company has heretofore executed and delivered its Supplemental Indenture No. 8 dated as of January 15, 2008, adding to the covenants, conditions and agreements of the Indenture certain additional covenants, conditions and agreements to be observed by the Company, and creating a series of Notes designated “6.45% Senior Notes, Series due February 1, 2038”; and
WHEREAS, the Company has heretofore executed and delivered its Supplemental Indenture No. 9 dated as of September 1, 2008, adding to the covenants, conditions and agreements of the Indenture certain additional covenants, conditions and agreements to be observed by the Company, and creating a series of Notes designated “6.350% Senior Notes, Series due September 1, 2018”; and

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WHEREAS, the Company has heretofore executed and delivered its Supplemental Indenture No. 10 dated as of December 1, 2008, adding to the covenants, conditions and agreements of the Indenture certain additional covenants, conditions and agreements to be observed by the Company, and creating a series of Notes designated “8.25% Senior Notes, Series due January 15, 2019”; and
WHEREAS, the Company has heretofore executed and delivered its Supplemental Indenture No. 11 dated as of June 1, 2010, adding to the covenants, conditions and agreements of the Indenture certain additional covenants, conditions and agreements to be observed by the Company, and creating a series of Notes designated “5.85% Senior Notes, Series due June 1, 2040”; and
WHEREAS, the Company has heretofore executed and delivered its Supplemental Indenture No. 12 dated as of May 15, 2011, adding to the covenants, conditions and agreements of the Indenture certain additional covenants, conditions and agreements to be observed by the Company, and creating a series of Notes designated “5.25% Senior Notes, Series due May 15, 2041”; and
WHEREAS, the Company has heretofore executed and delivered its Supplemental Indenture No. 13 dated as of May 1, 2013, adding to the covenants, conditions and agreements of the Indenture certain additional covenants, conditions and agreements to be observed by the Company, and creating a series of Notes designated “3.900% Senior Notes, Series due May 1, 2043”; and
WHEREAS, the Company has heretofore executed and delivered its Supplemental Indenture No. 14 dated as of March 15, 2014, adding to the covenants, conditions and agreements of the Indenture certain additional covenants, conditions and agreements to be observed by the Company, and creating a series of Notes designated “4.55% Senior Notes, Series due March 15, 2044”; and
WHEREAS, the Company has heretofore executed and delivered its Supplemental Indenture No. 15 dated as of December 1, 2014, adding to the covenants, conditions and agreements of the Indenture certain additional covenants, conditions and agreements to be observed by the Company, and creating a series of Notes designated “4.000% Senior Notes, Series due December 15, 2044”; and
WHEREAS, the Company has heretofore executed and delivered its Supplemental Indenture No. 16 dated as of March 15, 2017, adding to the covenants, conditions and agreements of the Indenture certain additional covenants, conditions and agreements to be observed by the Company, and creating a series of Notes designated “4.150% Senior Notes, Series due April 1, 2047”; and
WHEREAS, the Company has heretofore executed and delivered its Supplemental Indenture No. 17 dated as of August 1, 2017, adding to the covenants, conditions and agreements of the Indenture certain additional covenants, conditions and agreements to be observed by the Company, and creating a series of Notes designated “3.85% Senior Notes, Series due August 15, 2047”; and
WHEREAS, the Company, the Trustee and UMB, as predecessor trustee, registrar and paying agent, have heretofore executed and delivered Supplemental Indenture No. 18, dated as of April 26, 2018, providing for the resignation of UMB and the acceptance, by the Trustee, of its appointment as trustee, registrar and paying agent and the assumption of all duties and responsibilities of the trustee, registrar and paying agent under the Indenture; and
WHEREAS, the Company has heretofore executed and delivered its Supplemental Indenture No. 19 dated as of August 15, 2018, adding to the covenants, conditions and agreements of the Indenture certain additional covenants, conditions and agreements to be observed by the Company, and creating a series of Notes designated “3.80% Senior Notes, Series due August 15, 2028”; and
WHEREAS, the Company has heretofore executed and delivered its Supplemental Indenture No. 20 dated as of June 1, 2019, adding to the covenants, conditions and agreements of the Indenture certain additional covenants, conditions and agreements to be observed by the Company, and creating a series of Notes designated “3.30% Senior Notes, Series due March 15, 2030”; and
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WHEREAS, Section 2.05 of the Indenture provides that Notes shall be issued in series and that a Company Order shall specify the terms of each series; and
WHEREAS, Boatmen’s First National Bank of Oklahoma was formerly the trustee under the Indenture and NationsBank, N.A. succeeded Boatmen’s First National Bank of Oklahoma as trustee pursuant to Section 9.13 of the Indenture, BONY subsequently succeeded NationsBank, N.A. as trustee pursuant to Section 9.13 of the Indenture, UMB subsequently succeeded BONY as trustee pursuant to Section 9.11 of the Indenture, and BOKF, NA has subsequently succeeded UMB as Trustee pursuant to Section 9.11 of the Indenture; and
WHEREAS, the Company has this day delivered a Company Order setting forth the terms of a series of Notes designated “3.250% Senior Notes, Series due April 1, 2030 (hereinafter sometimes referred to as the “Senior Notes due 2030”); and
WHEREAS, Section 13.01 of the Indenture provides that the Company and the Trustee may enter into indentures supplemental thereto for the purposes, among others, of establishing the form of Notes or establishing or reflecting any terms of any Note and adding to the covenants of the Company; and
WHEREAS, the execution and delivery of this Supplemental Indenture No. 21 (herein, “this Supplemental Indenture”) have been duly authorized by a resolution adopted by the Board of Directors of the Company;
NOW, THEREFORE, THIS INDENTURE WITNESSETH:
That in order to set forth the terms and conditions upon which the Senior Notes due 2030 are, and are to be, authenticated, issued and delivered, and in consideration of the premises of the purchase and acceptance of the Senior Notes due 2030 by the Holders thereof and the sum of one dollar duly paid to it by the Trustee at the execution of this Supplemental Indenture, the receipt whereof is hereby acknowledged, the Company covenants and agrees with the Trustee for the equal and proportionate benefit of the respective Holders from time to time of the Senior Notes due 2030, as follows:

ARTICLE ONE.
RELATION TO INDENTURE; DEFINITIONS

Section 1.01.This Supplemental Indenture constitutes an integral part of the Indenture.

Section 1.02. For all purposes of this Supplemental Indenture:

(a)  Capitalized terms used herein without definition shall have the meanings specified in the Indenture;

(b)  All references herein to Articles and Sections, unless otherwise specified, refer to the corresponding Articles and Sections of this Supplemental Indenture; and

(c)  The terms “hereof,” “herein,” “hereby,” “hereto,” “hereunder” and “herewith” refer to this Supplemental Indenture.

ARTICLE TWO.
3.250% SENIOR NOTES, SERIES DUE APRIL 1, 2030

Section 2.01.There shall be a series of Notes designated the “3.250% Senior Notes, Series due April 1, 2030” (the “Senior Notes due 2030”). The Senior Notes due 2030 shall be limited to $300,000,000 aggregate principal amount, except as provided in Section 2.08 hereof.

Section 2.02.Except as otherwise provided in Section 2.05 hereof, the principal amount of the Senior Notes due 2030 shall be payable on the stated maturity date of April 1, 2030.

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Section 2.03.The Senior Notes due 2030 shall be dated their date of authentication as provided in the Indenture and shall bear interest from their date at the rate of 3.250% per annum, payable semi-annually in arrears on April 1 and October 1 of each year, commencing October 1, 2020.  The Regular Record Dates with respect to such April 1 and October 1 interest payment dates shall be March 15 and September 15, respectively.  Principal and interest shall be payable to the persons and in the manner provided in Sections 2.04 and 2.12 of the Indenture.
Section 2.04.The Senior Notes due 2030 shall be payable at the corporate trust office of the Trustee and at the offices of such paying agents as the Company may appoint by Company Order in the future.
Section 2.05.At any time prior to October 1, 2029, the Company, at its option, may redeem the Senior Notes due 2030, in whole or from time to time in part, upon notice as provided in the Indenture, at a “make-whole” redemption price equal to the greater of (i) 100% of the principal amount of the Senior Notes due 2030 being redeemed or (ii) the sum of the present values of the remaining scheduled payments of principal and interest on the Senior Notes due 2030 being redeemed that would be due if the Senior Notes due 2030 matured on October 1, 2029 (not including any portion of such payments of interest accrued to the date fixed for redemption) discounted to the date fixed for redemption on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the Treasury Rate (as defined below) plus 40 basis points, plus, in each case, accrued and unpaid interest thereon to the date fixed for redemption.  At any time on or after October 1, 2029, the Company, at its option, may redeem the Senior Notes due 2030, in whole or from time to time in part, upon notice as provided in the Indenture, at a redemption price equal to 100% of the principal amount of the Senior Notes due 2030 being redeemed, plus accrued and unpaid interest thereon to the date fixed for redemption.
“Treasury Rate” means, with respect to any date fixed for redemption, the rate per annum equal to the semi-annual equivalent yield to maturity of the Comparable Treasury Issue, calculated using a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury Price for such date fixed for redemption. The Treasury Rate will be calculated on the third business day preceding the date fixed for redemption.
“Comparable Treasury Issue” means the U.S. Treasury security selected by an Independent Investment Banker as having a maturity comparable to the remaining term (“Remaining Life”) of the Senior Notes due 2030 (assuming, for this purpose, the Senior Notes due 2030 matured on October 1, 2029) that would be utilized, at the time of selection and in accordance with customary financial practice, in pricing new issues of corporate debt securities of comparable maturity to the Remaining Life of the Senior Notes due 2030, assuming, for this purpose, the Senior Notes due 2030 matured on October 1, 2029.
“Comparable Treasury Price” means (1) the average of five Reference Treasury Dealer Quotations for such date fixed for redemption, after excluding the highest and lowest Reference Treasury Dealer Quotations, or (2) if the Independent Investment Banker obtains fewer than five such Reference Treasury Dealer Quotations, the average of all such quotations.
“Independent Investment Banker” means any of Mizuho Securities USA LLC, RBC Capital Markets, LLC, and Wells Fargo Securities, LLC or another independent investment banking institution of national standing appointed by the Company.
“Primary Treasury Dealer” means a primary U.S. government securities dealer in the United States.
“Reference Treasury Dealer” means each of (1) Mizuho Securities USA LLC, RBC Capital Markets, LLC, and Wells Fargo Securities, LLC or its respective successors; provided, however, that if  Mizuho Securities USA LLC, RBC Capital Markets, LLC, or Wells Fargo Securities, LLC ceases to be a Primary Treasury Dealer, the Company will substitute therefor another Primary Treasury Dealer; and (2) any other Primary Treasury Dealer selected by the Company after consultation with an Independent Investment Banker.
“Reference Treasury Dealer Quotations” means, with respect to each Reference Treasury Dealer and any date fixed for redemption, the average, as determined by the Independent Investment Banker, of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount) quoted in 
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writing to the Independent Investment Banker at 5:00 p.m., New York City time, on the third business day preceding such date fixed for redemption.
The Senior Notes due 2030 shall not be subject to any sinking fund.
Section 2.06.The Senior Notes due 2030 shall be issued in fully registered form without coupons in a minimum denomination of $2,000 and multiples of $1,000 in excess thereof.
Section 2.07.The Release Date (as defined in the Indenture) occurred on April 6, 1998.  Accordingly, the Senior Notes due 2030 shall be issued as unsecured general obligations of the Company.  The Senior Notes due 2030, and all other Notes issued or to be issued under the Indenture, will not be secured by First Mortgage Bonds of the Company and will not be entitled to the lien of or the benefits provided by the First Mortgage, which has been extinguished.
Section 2.08.The Senior Notes due 2030 may be reopened and additional notes of the Senior Notes due 2030 may be issued in excess of the limitation set forth in Section 2.01 hereof, provided that such additional notes will contain the same terms (including the maturity date and interest payment terms) as the other Senior Notes due 2030, except for the issue date, price to public and, if applicable, first date from which interest will accrue and the initial interest payment date.  Any such additional Senior Notes due 2030, together with the other Senior Notes due 2030, shall constitute a single series for purposes of the Indenture.
Section 2.09.The Senior Notes due 2030 shall initially be in the form attached as Exhibit A hereto.

ARTICLE THREE.
MISCELLANEOUS
Section 3.01.The recitals of fact herein and in the Senior Notes due 2030 (except the Trustee’s Certificate) shall be taken as statements of the Company and shall not be construed as made by the Trustee.
Section 3.02.This Supplemental Indenture shall be construed in connection with and as a part of the Indenture.
Section 3.03.
(a)If any provision of this Supplemental Indenture limits, qualifies, or conflicts with another provision of the Indenture required to be included in indentures qualified under the Trust Indenture Act of 1939 (as enacted prior to the date of this Supplemental Indenture) by any of the provisions of Sections 310 to 317, inclusive, of said Act, such required provisions shall control.
(b)In case any one or more of the provisions contained in this Supplemental Indenture or in the notes issued hereunder should be invalid, illegal, or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions contained herein and therein shall not in any way be affected, impaired, prejudiced or disturbed thereby.
Section 3.04.Whenever in this Supplemental Indenture either of the parties hereto is named or referred to, this shall be deemed to include the successors or assigns of such party, and all the covenants and agreements in this Supplemental Indenture contained by or on behalf of the Company or by or on behalf of the Trustee shall bind and inure to the benefit of the respective successors and assigns of such parties, whether so expressed or not.

Section 3.05. 

(a)This Supplemental Indenture may be simultaneously executed in several counterparts, and all said counterparts executed and delivered, each as an original, shall constitute but one and the same instrument.

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(b)The Table of Contents and the descriptive headings of the several Articles of this Supplemental Indenture were formulated, used and inserted in this Supplemental Indenture for convenience only and shall not be deemed to affect the meaning or construction of any of the provisions hereof.

[Signature page follows]

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IN WITNESS WHEREOF, OKLAHOMA GAS AND ELECTRIC COMPANY has caused this Supplemental Indenture to be signed by its Treasurer, and attested by its Secretary or an Assistant Secretary, and BOKF, NA, as Trustee, has caused this Supplemental Indenture to be signed by its President, a Vice President or an Assistant Vice President, and attested by its Secretary, an Assistant Secretary, a Vice President or an Assistant Vice President, all as of the date first above written.

OKLAHOMA GAS AND ELECTRIC COMPANY

									
	By:	/s/ Charles B. Walworth	
		Name: Charles B. Walworth	
		Title:   Treasurer	

ATTEST:
												
			/s/ Patricia D. Horn	
			Name: Patricia D. Horn	
			Title:   Vice President - Governance, Corporate Secretary	

BOKF, NA, as Trustee

											
	By:	/s/ Rachel Redd-Singleton			
		Name: Rachel Redd-Singleton			
		Title:   Vice President			

ATTEST:

									
			/s/ Brenda Batchelor
			Name: Brenda Batchelor
			Title:   Vice President
			
			
			
			
			
			
			

[Signature page to Supplemental Indenture No. 21]

EXHIBIT A
Form of 3.250% Senior Note, Series due April 1, 2030
						
	REGISTERED	REGISTERED

THIS NOTE IS A GLOBAL NOTE REGISTERED IN THE NAME OF THE DEPOSITARY (REFERRED TO HEREIN) OR A NOMINEE THEREOF AND, UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR THE INDIVIDUAL NOTES REPRESENTED HEREBY, THIS GLOBAL NOTE MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE DEPOSITARY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY.  UNLESS THIS GLOBAL NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, TO THE TRUSTEE FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY AND ANY PAYMENT IS MADE TO CEDE & CO., ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL SINCE THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.
OKLAHOMA GAS AND ELECTRIC COMPANY
3.250% SENIOR NOTE, SERIES DUE APRIL 1, 2030
						
	CUSIP / ISIN: 678858BV2 / US678858BV24	NUMBER: R-1
	ORIGINAL ISSUE DATE(S):	PRINCIPAL AMOUNT(S):
	April 1, 2020	$300,000,000.00
	INTEREST RATE: 3.250%	MATURITY DATE: April 1, 2030

Oklahoma Gas and Electric Company, a corporation of the State of Oklahoma (the “Company”), for value received hereby promises to pay to Cede & Co. or registered assigns, the principal sum of 
THREE HUNDRED MILLION DOLLARS
on the Maturity Date set forth above, and to pay interest thereon from the Original Issue Date (or if this Global Note has two or more Original Issue Dates, interest shall, beginning on each such Original Issue Date, begin to accrue for that part of the principal amount to which that Original Issue Date is applicable) set forth above or from the most recent Interest Payment Date to which interest has been paid or duly provided for, semiannually in arrears on April 1 and October 1 of each year, commencing on October 1, 2020, at the per annum Interest Rate set forth above, until the principal hereof is paid or made available for payment.  No interest shall accrue on the Maturity Date, so long as the principal amount of this Global Note is paid on the Maturity Date.  The interest so payable and punctually paid or duly provided for on any such Interest Payment Date will, as provided in the Indenture, be paid to the Person in whose name this Global Note is registered at the close of business on the Regular Record Date for such interest, which shall be the March 15 and September 15, as the case may be, next preceding such Interest Payment Date, provided that the first Interest Payment Date for any part of this Global Note, the Original Issue Date of which is after a Regular Record Date but prior to the applicable Interest Payment Date, shall be the Interest Payment Date following the next succeeding Regular Record Date; and provided that interest payable on the Maturity Date set forth above or, if applicable, upon redemption, repayment or acceleration, shall be payable to the Person to whom principal shall be payable.  Except as otherwise provided in the Indenture (as defined below), any such interest not so punctually paid or duly provided for shall forthwith cease to be payable to the Holder on such Regular Record Date and shall be paid to the Person in whose name this Global Note is registered at the close of business on a Special Record Date for the payment of such defaulted interest to be fixed by the Trustee, notice whereof shall be given to Noteholders not more than fifteen days or fewer than ten days prior to such Special Record Date.  On or 
A-1

before 10:00 a.m., New York City time, or such other time as shall be agreed upon between the Trustee and the Depositary, of the day on which such payment of interest is due on this Global Note (other than maturity), the Trustee shall pay to the Depositary such interest in same day funds.  On or before 10:00 a.m., New York City time, or such other time as shall be agreed upon between the Trustee and the Depositary, of the day on which principal, interest payable at maturity and premium, if any, is due on this Global Note, the Trustee shall deposit with the Depositary the amount equal to the principal, interest payable at maturity and premium, if any, by wire transfer into the account specified by the Depositary.  As a condition to the payment, on the Maturity Date or upon redemption, repayment or acceleration, of any part of the principal and applicable premium of this Global Note, the Depositary shall surrender, or cause to be surrendered, this Global Note to the Trustee, whereupon a new Global Note shall be issued to the Depositary.
This Global Note is a global security in respect of a duly authorized issue of 3.250% Senior Notes, Series due April 1, 2030 (the “Notes of this Series,” which term includes any Global Notes representing such Notes) of the Company issued and to be issued under an Indenture dated as of October 1, 1995 between the Company and BOKF, NA as successor trustee (the “Trustee,” which term includes any subsequent successor Trustee under the Indenture) and indentures supplemental thereto (collectively, the “Indenture”).  Under the Indenture, one or more series of notes may be issued and, as used herein, the term “Notes” refers to the Notes of this Series and any other outstanding series of Notes.  Reference is hereby made to the Indenture for a more complete statement of the respective rights, limitations of rights, duties and immunities under the Indenture of the Company, the Trustee and the Noteholders and of the terms upon which the Notes are and are to be authenticated and delivered.  This Global Note has been issued in respect of the series designated on the first page hereof.
Each Note of this Series shall be dated and issued as of the date of its authentication by the Trustee and shall bear an Original Issue Date or Dates.  Each Note or Global Note issued upon transfer, exchange or substitution of such Note or Global Note shall bear the Original Issue Date or Dates of such transferred, exchanged or substituted Note or Global Note, as the case may be.
At any time prior to October 1, 2029, the Company, at its option, may redeem this Global Note, in whole or from time to time in part, at a “make-whole” redemption price equal to the greater of: (i) 100% of the principal amount of this Global Note being redeemed or (ii) the sum of the present values of the remaining scheduled payments of principal and interest on this Global Note being redeemed that would be due if the Global Note matured on October 1, 2029 (not including any portion of such payments of interest accrued to the date fixed for redemption) discounted to the date fixed for redemption on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the Treasury Rate (as defined below) plus 40 basis points, plus, in each case, accrued and unpaid interest thereon to the date fixed for redemption.  At any time on or after October 1, 2029, the Company, at its option, may redeem this Global Note, in whole or from time to time in part, at a redemption price equal to 100% of the principal amount of this Global Note being redeemed, plus accrued and unpaid interest thereon to the date fixed for redemption.
“Treasury Rate” means, with respect to any date fixed for redemption, the rate per annum equal to the semi-annual equivalent yield to maturity of the Comparable Treasury Issue, calculated using a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury Price for such date fixed for redemption. The Treasury Rate will be calculated on the third business day preceding the date fixed for redemption.
“Comparable Treasury Issue” means the U.S. Treasury security selected by an Independent Investment Banker as having a maturity comparable to the remaining term (“Remaining Life”) of the Notes of this Series (assuming, for this purpose, the Notes of this Series matured on October 1, 2029) that would be utilized, at the time of selection and in accordance with customary financial practice, in pricing new issues of corporate debt securities of comparable maturity to the Remaining Life of the Notes of this Series, assuming, for this purpose, the Notes of this Series matured on October 1, 2029.
“Comparable Treasury Price” means (1) the average of five Reference Treasury Dealer Quotations for such date fixed for redemption, after excluding the highest and lowest Reference Treasury Dealer Quotations, or (2) if the Independent Investment Banker obtains fewer than five such Reference Treasury Dealer Quotations, the average of all such quotations.
A-2

“Independent Investment Banker” means any of Mizuho Securities USA LLC, RBC Capital Markets, LLC, and Wells Fargo Securities, LLC or another independent investment banking institution of national standing appointed by the Company.
“Primary Treasury Dealer” means a primary U.S. government securities dealer in the United States.
“Reference Treasury Dealer” means each of (1) Mizuho Securities USA LLC,  RBC Capital Markets, LLC, and Wells Fargo Securities, LLC or its respective successors; provided, however, that if Mizuho Securities USA LLC, RBC Capital Markets, LLC, or Wells Fargo Securities, LLC ceases to be a Primary Treasury Dealer, the Company will substitute therefor another Primary Treasury Dealer; and (2) any other Primary Treasury Dealer selected by the Company after consultation with an Independent Investment Banker.
“Reference Treasury Dealer Quotations” means, with respect to each Reference Treasury Dealer and any date fixed for redemption, the average, as determined by the Independent Investment Banker, of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount) quoted in writing to the Independent Investment Banker at 5:00 p.m., New York City time, on the third business day preceding such date fixed for redemption.
Notice of redemption will be given by mail or by electronic communication (including e-mail) to Holders of Notes of this Series not less than 30 or more than 60 days prior to the date fixed for redemption, all as provided in the Indenture. In the event of redemption of this Global Note in part only, a new Global Note or Notes of like tenor and series for the unredeemed interest hereof will be issued in the name of the Noteholder hereof upon the surrender hereof.
Interest payments for this Global Note shall be computed and paid on the basis of a 360-day year of twelve 30-day months.  If any Interest Payment Date or date on which the principal of this Global Note is required to be paid is not a Business Day, then payment of principal, premium or interest need not be made on such date but may be made on the next succeeding Business Day with the same force and effect as if made on such Interest Payment Date or date on which the principal of this Global Note is required to be paid and, in the case of timely payment thereof, no interest shall accrue for the period from and after such Interest Payment Date or the date on which the principal of this Global Note is required to be paid.
The Company, at its option, and subject to the terms and conditions provided in the Indenture, will be discharged from any and all obligations in respect of the Notes (except for certain obligations including obligations to register the transfer or exchange of Notes, replace stolen, lost or mutilated Notes, maintain paying agencies and hold monies for payment in trust, all as set forth in the Indenture) if the Company deposits with the Trustee money, U.S. Government Obligations which through the payment of interest thereon and principal thereof in accordance with their terms will provide money, or a combination of money and U.S. Government Obligations, in any event in an amount sufficient, without reinvestment, to pay all the principal of and any premium and interest on the Notes on the dates such payments are due in accordance with the terms of the Notes.
If an Event of Default shall occur and be continuing, the principal of the Notes may be declared due and payable in the manner and with the effect provided in the Indenture.
The Indenture permits, with certain exceptions as therein provided, the amendment thereof and the modifications of the rights and obligations of the Company and the rights of the Noteholders under the Indenture at any time by the Company and the Trustee with the consent of the Holders of not less than a majority in principal amount of the outstanding Notes.  Any such consent or waiver by the Holder of this Global Note shall be conclusive and binding upon such Holder and upon all future Holders of this Global Note and of any Note issued upon the registration of transfer hereof or in exchange therefor or in lieu thereof whether or not notation of such consent or waiver is made upon the Note.
As set forth in and subject to the provisions of the Indenture, no Holder of any Notes will have any right to institute any proceeding with respect to the Indenture or for any remedy thereunder unless such Holder shall have previously given to the Trustee written notice of a continuing Event of Default with respect to such Notes, the Holders of not less than a majority in principal amount of the outstanding Notes affected by such Event of Default 
A-3

shall have made written request and offered reasonable indemnity to the Trustee to institute such proceeding as Trustee and the Trustee shall have failed to institute such proceeding within 60 days; provided that such limitations do not apply to a suit instituted by the Holder hereof for the enforcement of payment of the principal of and any premium or interest on this Global Note on or after the respective due dates expressed here.

No reference herein to the Indenture and to provisions of this Global Note or of the Indenture shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay the principal of and any premium and interest on this Global Note at the times, places and rates and the coin or currency prescribed in the Indenture.

As provided in the Indenture and subject to certain limitations therein set forth, this Global Note may be transferred only as permitted by the legend hereto.

If at any time the Depositary for this Global Note notifies the Company that it is unwilling or unable to continue as Depositary for this Global Note or if at any time the Depositary for this Global Note shall no longer be eligible or in good standing under the Securities Exchange Act of 1934, as amended, or other applicable statute or regulation, the Company shall appoint a successor Depositary with respect to this Global Note.  If a successor Depositary for this Global Note is not appointed by the Company within 90 days after the Company receives such notice or becomes aware of such ineligibility, the Company’s election to issue this Note in global form shall no longer be effective with respect to this Global Note and the Company will execute, and the Trustee, upon receipt of a Company Order for the authentication and delivery of individual Notes of this Series in exchange for this Global Note, will authenticate and deliver individual Notes of this Series of like tenor and terms in definitive form in an aggregate principal amount equal to the principal amount of this Global Note.

The Company may at any time and in its sole discretion determine that all Notes of this Series (but not less than all) issued or issuable in the form of one or more Global Notes shall no longer be represented by such Global Note or Notes.  In such event, the Company shall execute, and the Trustee, upon receipt of a Company Order for the authentication and delivery of individual Notes of this Series in exchange for such Global Note, shall authenticate and deliver, individual Notes of this Series of like tenor and terms in definitive form in an aggregate principal amount equal to the principal amount of such Global Note or Notes in exchange for such Global Note or Notes.

Under certain circumstances specified in the Indenture, the Depositary may be required to surrender any two or more Global Notes which have identical terms (but which may have differing Original Issue Dates) to the Trustee, and the Company shall execute and the Trustee shall authenticate and deliver to, or at the direction of, the Depositary a Global Note in principal amount equal to the aggregate principal amount of, and with all terms identical to, the Global Notes surrendered thereto and that shall indicate all Original Issue Dates and the principal amount applicable to each such Original Issue Date.

The Indenture and the Notes shall be governed by, and construed in accordance with, the laws of the State of Oklahoma.

Unless the certificate of authentication hereon has been executed by the Trustee, directly or through an Authenticating Agent by manual signature of an authorized signatory, this Global Note shall not be entitled to any benefit under the Indenture or be valid or obligatory for any purpose.

All terms used in this Global Note which are defined in the Indenture shall have the meanings assigned to them in the Indenture unless otherwise indicated herein.

[Signature page follows.]

A-4

IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed.

OKLAHOMA GAS AND ELECTRIC COMPANY

									
	By:		

												
	Dated:	Attest:		

TRUSTEE’S CERTIFICATE
    OF AUTHENTICATION

			
	This Global Note is one of the Notes of the series
herein designated, described or provided for in the
within-mentioned Indenture.

BOKF, NA, as Trustee

						
	By:	
		Authorized Officer

A-5

ABBREVIATIONS

The following abbreviations, when used in the inscription on the face of this instrument, shall be construed as though they were written out in full according to applicable laws or regulations.

																					
	TEN COM - as tenants in common		UNIF GIFT				
			MIN ACT-		Custodian		
				(Cust)		(Minor)	
							
	TEN ENT - as tenants by the entireties		Under Uniform Gifts to Minors				
							
	JT TEN - as joint tenants with right of survivor-
ship and not as tenants in common						
				State			
							
	Additional abbreviations may also be used						
	though not in the above list.						
							
							
		FOR VALUE RECEIVED the undersigned hereby sell(s),
                       assign(s) and transfer(s) unto					
							
							
	PLEASE INSERT SOCIAL SECURITY OR OTHER
IDENTIFYING NUMBER OF ASSIGNEE						
							
							
							
							
							
							
	Please print or typewrite name and address
including postal zip code of assignee						

									
	the within note and all rights thereunder, hereby
irrevocably constituting and appointing attorney to
transfer said note on the books of the Company, with full
power of substitution in the premises.		
			
	Dated		
			
			NOTICE: The signature to this assignment must
correspond with the name as written upon the face of the
within instrument in every particular, without alteration or
enlargement or any change whatever.
			
			
			
			
			

A-6

												
			Signature Guaranteed By:	
				
				
				
			(Name of Eligible Guarantor Institution as defined by
SEC Rule 17 Ad-15 (17 CFR 240.17 Ad-15))	
				
				
			By:	
				Name:
				Title:

A-7Exhibit 4.1

 

 

 

 

 

 

 

 

STOCK PURCHASE AGREEMENT

 

 

between

 

 

YUNFEI LU, AS THE BUYER,

 

 

AND

 

BOQI INTERNATIONAL MEDICAL INC., AS THE
SELLER

 

DATED

 

March 31, 2020

 

 

 

 

 

 

 

 

 

 

 

     

     

    

 

TABLE OF CONTENTS

 

	 	 	Page
	1.	DEFINITIONS.	1
	2.	SALE AND TRANSFER OF SHARES; CLOSING.	7
	2.1	Shares	7
	2.2	Purchase Price	7
	2.3	Closing	7
	2.4	Closing Obligations	7
	2.5	Method of Payment	8
	2.6	Further Assurances	8
	3.	REPRESENTATIONS AND WARRANTIES OF THE SELLER as to the Seller.	8
	3.1	Title to the Shares	8
	3.2	Authority; Noncontravention by the Seller	8
	3.3	Consents Required	8
	4.	REPRESENTATIONS AND WARRANTIES OF THE SELLER AS TO THE ACQUIRED COMPANIES	8
	4.1	Organization and Good Standing.	8
	4.2	Authority; No Conflict.	9
	4.3	Capitalization.	9
	4.4	Financial Statements	10
	4.5	Books and Records	10
	4.6	Title to Properties; Encumbrances	10
	4.7	Condition and Sufficiency of Assets	11
	4.8	Accounts Receivable	11
	4.9	Inventory	11
	4.10	No Undisclosed Liabilities	11
	4.11	Taxes.	11
	4.12	No Material Adverse Change	12
	4.13	Employee Benefits	12
	4.14	Compliance With Legal Requirements; Governmental Authorizations.	12
	4.15	Legal Proceedings; Orders.	13
	4.16	Absence of Certain Changes and Events	13
	4.17	Contracts; No Defaults.	14
	4.18	Insurance.	15
	4.19	Environmental Matters.	15
	4.20	Employees.	16
	4.21	Labor Relations; Compliance	16
	4.22	Intellectual Property.	16
	4.23	Certain Payments	17
	4.24	Disclosure.	17
	4.25	Relationships With Related Persons	17
	4.26	SEC Filings	17
	4.27	Brokers or Finders	17
	5.	REPRESENTATIONS AND WARRANTIES OF BUYER.	17
	5.1	Authority; No Conflict	17
	5.2	Certain Proceedings	18
	5.3	Investment Purpose	18
	5.4	Brokers or Finders	18
	5.5	Independent Investigation	18
	5.6	Legal Proceedings	18
	5.7	Sufficiency of Funds	18

 

    i

     

    

 

	6.	COVENANTS OF THE SELLER	19
	6.1	Access and Investigation	19
	6.2	Operation of the Business of the Acquired Companies Prior to Closing	19
	6.3	Required Approvals	19
	6.4	Notification	19
	6.5	No Negotiation	20
	6.6	Proprietary Information	20
	6.7	Public Announcements	20
	6.8	Stockholder Covenant	20
	6.9	Best Efforts	20
	6.10	Confidentiality	20
	7.	Tax Matters	20
	7.1	Responsibility for Filing Tax Returns.	20
	7.2	Cooperation on Tax Matters	21
	7.3	Sales and Transfer Taxes	21
	8.	CONDITIONS PRECEDENT TO BUYER’S OBLIGATION TO CLOSE.	21
	8.1	Accuracy of Representations.	21
	8.2	The Seller’s Performance	21
	8.3	Authorization	21
	8.4	Consents and Approvals	21
	8.5	Government Consents, Authorizations, Etc	22
	8.6	Additional Documents	22
	8.7	No Proceedings	22
	8.8	No Claim Regarding Stock Ownership or Sale Proceeds	22
	8.9	No Prohibition	22
	8.10	Absence of Material Adverse Change	23
	9.	CONDITIONS PRECEDENT TO THE SELLER’S OBLIGATION TO CLOSE.	23
	9.1	Payment of Purchase Price	23
	9.2	Additional Documents	23
	9.3	Accuracy of Representations	23
	9.4	Consents and Approvals	23
	9.5	Buyer’s Performance	23
	9.6	No Injunction	23
	10.	TERMINATION.	23
	10.1	Termination Events	23
	10.2	Effect of Termination	24
	11.	INDEMNIFICATION; REMEDIES.	24
	11.1	Survival	24
	11.2	Indemnification by the Seller	24
	11.3	Indemnification by the Buyer	25
	11.4	Procedure for Indemnification of Third Party Claims	25
	11.5	Procedure for Indemnification of Other Claims.	26
	11.6	Tax Treatment of Indemnification Payments	26
	11.7	Exclusive Remedies	26
	12.	GENERAL PROVISIONS.	26
	12.1	Expenses	26
	12.2	Public Announcements	27
	12.3	Confidentiality	27
	12.4	Notices	27
	12.5	Further Assurances	28
	12.6	Waiver	28
	12.7	Entire Agreement and Modification	28
	12.8	Assignments, Successors, and no Third-Party Rights	29
	12.9	Severability	29
	12.10	Section Headings, Construction	29
	12.11	Time of Essence	29
	12.12	Governing Law; Waiver of Jury Trial; Jurisdiction.	30
	12.13	Counterparts; Facsimile and Electronic Signatures	31
	12.14	Representation by Counsel	31

 

    ii

     

    

 

STOCK PURCHASE AGREEMENT

 

THIS STOCK PURCHASE
AGREEMENT (this “Agreement”) is made as of March 31, 2020 by YUNFEI LU, a citizen of the PRC (“the
Buyer”) and BOQI INTERNATIONAL MEDICAL INC., a Delaware corporation (the “Seller”).

 

RECITALS

 

Immediately prior to
the Closing, the Seller owns all the issued and outstanding shares (the “Shares”) of capital stock of NF ENERGY SAVING
INVESTMENT LIMITED, a company organized under the laws of the British Virgin Islands (“Parent”).

 

Immediately prior to
the Closing, Parent owns all the issued and outstanding shares of capital stock of NF ENERGY EQUIPMENT LIMITED, a company organized
under the laws of Hong Kong (“HoldCo”).

 

Immediately prior to
the Closing, Holdco owns all the issued and outstanding shares of capital stock of LIAONING NENGFA WEIYE ENERGY TECHNOLOGY CO.,
LTD., a company organized under the laws of the PRC (the “Company”).

 

The Seller desires
to sell to the Buyer, and the Buyer desires to purchase from the Seller the Shares for the consideration and on the terms set forth
in this Agreement.

 

AGREEMENT

 

The parties, intending
to be legally bound, agree as follows:

 

		1.	DEFINITIONS.

 

For purposes of this
Agreement, the following terms have the meanings specified or referred to in this Section 1:

 

“Accounts Receivable”
as defined in Section 4.8.

 

“Acquired
Companies” Parent, HoldCo, the Company and all Subsidiaries of the Company, collectively.

 

“Applicable Contract”
any Contract (a) under which any Acquired Company has or may acquire any rights, (b) under which any Acquired Company
has or may become subject to any obligation or liability, or (c) by which any Acquired Company or any of the assets owned
or used by it is or may become bound.

 

“Benefit Plan”
any “employee benefit plan,” as that term is defined in ERISA regardless of whether such plan is subject to ERISA,
that is maintained or contributed to by any Acquired Company or the Seller for the benefit of the Acquired Companies’ employees
or with respect to which any Acquired Company has or may have any liability.

 

“Best Efforts”
the efforts that a prudent Person desirous of achieving a result would use in similar circumstances to ensure that such result
is achieved as expeditiously as possible.

 

“Breach” a “Breach”
of a representation, warranty, covenant, obligation, or other provision of this Agreement or any instrument delivered pursuant
to this Agreement will be deemed to have occurred if there is or has been (a) any inaccuracy in or breach of, or any failure
to perform or comply with, such representation, warranty, covenant, obligation, or other provision, or (b) any claim (by any
Person) or other occurrence or circumstance that is or was inconsistent with such representation, warranty, covenant, obligation,
or other provision, and the term “Breach” means any such inaccuracy, breach, failure, claim, occurrence, or circumstance.

 

    1

     

    

 

“Business Day”
means any day except Saturday, Sunday or any other day on which the commercial banks located in the United States are authorized
or required by Law to be closed for business.

 

“Buyer” as defined
in the first paragraph of this Agreement.

 

“Closing” as
defined in Section 2.3.

 

“Closing Date”
as defined in Section 2.3.

 

“Company” as
defined in the first paragraph of this Agreement.

 

“Confidential Information”
means all non-public, confidential or proprietary information of the Acquired Companies, including Intellectual Property.

 

“Consent” any
approval, consent, ratification, waiver, or other authorization (including any Governmental Authorization).

 

“Contemplated Transactions”
means the purchase of the Shares by the Buyer and the other transactions contemplated by this Agreement.

 

“Contract” any
agreement, contract, obligation, promise, or undertaking (whether written or oral and whether express or implied) that is
legally binding.

 

“Direct Claim”
as defined in Section 11.4 (c).

 

“Encumbrance”
any charge, claim, community property interest, condition, equitable interest, lien, option, pledge, security interest, right of
first refusal, or restriction of any kind, including any restriction on use, voting, transfer, receipt of income, or exercise of
any other attribute of ownership.

 

“Environment”
soil, land surface or subsurface strata, surface waters (including navigable waters, ocean waters, streams, ponds, drainage basins,
and wetlands), groundwaters, drinking water supply, stream sediments, ambient air (including indoor air), plant and animal life,
and any other environmental medium or natural resource.

 

“Environmental Law”
any Legal Requirement that requires or relates to:

 

(a) advising
appropriate authorities, employees, and the public of intended or actual releases of pollutants or hazardous substances or materials,
violations of discharge limits, or other prohibitions and of the commencements of activities, such as resource extraction or construction,
that could have significant impact on the Environment;

 

(b) preventing
or reducing to acceptable levels the release of pollutants or hazardous substances or materials into the Environment;

 

(c) reducing
the quantities, preventing the release, or minimizing the hazardous characteristics of wastes that are generated;

 

    2

     

    

 

(d) assuring
that products are designed, formulated, packaged, and used so that they do not present unreasonable risks to human health or the
Environment when used or disposed of;

 

(e) protecting
resources, species, or ecological amenities;

 

(f) reducing
to acceptable levels the risks inherent in the transportation of hazardous substances, pollutants, oil, or other potentially harmful
substances;

 

(g) cleaning
up pollutants that have been released, preventing the Threat of Release, or paying the costs of such clean up or prevention; or

 

(h) making
responsible parties pay private parties, or groups of them, for damages done to their health or the Environment, or permitting
self-appointed representatives of the public interest to recover for injuries done to public assets.

 

“ERISA” means
the Employee Retirement Income Security Act of 1974, as amended.

 

“Facilities”
any real property, leaseholds, or other interests currently or formerly owned or operated by any Acquired Company and any buildings,
plants, structures, or equipment (including motor vehicles, tank cars, and rolling stock) currently or formerly owned or operated
by any Acquired Company.

 

“Governmental Authorization”
any approval, consent, license, permit, waiver, or other authorization issued, granted, given, or otherwise made available by or
under the authority of any Governmental Body or pursuant to any Legal Requirement.

 

“Governmental Body”
any:

 

(a) nation,
state, county, city, town, village, district, or other jurisdiction of any nature;

 

(b) federal,
state, local, municipal, foreign, or other government;

 

(c) governmental
or quasi-governmental authority of any nature (including any governmental agency, branch, department, official, or entity and any
court or other tribunal);

 

(d) multi-national
organization or body; or

 

(e) body
exercising, or entitled to exercise, any administrative, executive, judicial, legislative, police, regulatory, or taxing authority
or power of any nature.

 

“Governmental Order”
means any order, writ, judgment, injunction, decree, stipulation, determination or award entered by or with any Governmental Body.

 

“Hazardous Activity”
the distribution, generation, handling, importing, management, manufacturing, processing, production, refinement, Release, storage,
transfer, transportation, treatment, or use (including any withdrawal or other use of groundwater) of Hazardous Materials
in, on, under, about, or from the Facilities or any part thereof into the Environment, and any other act, business, operation,
or thing that increases the danger, or risk of danger, or poses an unreasonable risk of harm to persons or property on or off the
Facilities, or that may affect the value of the Facilities or the Acquired Companies.

 

“Hazardous Materials”
any waste or other substance that is listed, defined, designated, or classified as, or otherwise determined to be, hazardous, radioactive,
or toxic or a pollutant or a contaminant under or pursuant to any Environmental Law, including any admixture or solution thereof,
and specifically including petroleum and all derivatives thereof or synthetic substitutes therefor and asbestos or asbestos-containing
materials.

 

    3

     

    

 

“Intellectual Property”
as defined in Section 4.22.

 

“Knowledge” an
individual will be deemed to have “Knowledge” of a particular fact or other matter if:

 

(a) such
individual is actually aware of such fact or other matter; or

 

(b) a
prudent individual could be expected to discover or otherwise become aware of such fact or other matter in the course of conducting
a reasonably comprehensive investigation concerning the existence of such fact or other matter.

 

A Person (other than
an individual) will be deemed to have “Knowledge” of a particular fact or other matter if any individual who is
a key employee or is serving, or who has at any time served, as a director, officer, partner, executor, or trustee of such Person
(or in any similar capacity) has, or at any time had, Knowledge of such fact or other matter.

 

“Latest Balance Sheet”
as defined in Section 4.4.

 

“Legal Requirement”
any federal, state, local, municipal, foreign, international, multinational, or other administrative order, constitution, law,
ordinance, principle of common law, regulation, statute, or treaty.

 

“Material Adverse Effect”:
means any event, occurrence, fact, condition or change that is materially adverse to (a) the business, results of operations, financial
condition or assets of any Acquired Company, or (b) the ability of the Seller to consummate the transactions contemplated hereby;
provided, however, that “Material Adverse Effect” shall not include any event, occurrence, fact, condition or
change, directly or indirectly, arising out of or attributable to: (i) general economic or political conditions; (ii) conditions
generally affecting the industries in which the Acquired Companies operate; (iii) any changes in financial, banking or securities
markets in general, including any disruption thereof and any decline in the price of any security or any market index or any change
in prevailing interest rates; (iv) acts of war (whether or not declared), armed hostilities or terrorism, or the escalation or
worsening thereof; (v) any action required or permitted by this Agreement or any action taken (or omitted to be taken) with the
written consent of or at the written request of the Buyer; (vi) any matter of which the Buyer is aware on the date hereof; (vii)
any changes in applicable Laws or accounting rules (including GAAP) or the enforcement, implementation or interpretation thereof;
(viii) the announcement, pendency or completion of the transactions contemplated by this Agreement, including losses or threatened
losses of employees, customers, suppliers, distributors or others having relationships with the Acquired Companies; (ix) any natural
or man-made disaster or acts of God; or (x) any failure by any Acquired Company to meet any internal or published projections,
forecasts or revenue or earnings predictions (provided that the underlying causes of such failures (subject to the other provisions
of this definition) shall not be excluded).

 

“NASDAQ” the
NASDAQ Stock Market or any of its successor entities.

 

“Occupational Safety and Health
Law” any Legal Requirement designed to provide safe and healthful working conditions and to reduce occupational safety
and health hazards, and any program, whether governmental or private (including those promulgated or sponsored by industry associations
and insurance companies), designed to provide safe and healthful working conditions.

 

    4

     

    

 

“Order” any award,
decision, injunction, judgment, order, ruling, subpoena, or verdict entered, issued, made, or rendered by any court, administrative
agency, or other Governmental Body or by any arbitrator.

 

“Ordinary Course of Business”
an action taken by a Person will be deemed to have been taken in the “Ordinary Course of Business” only if:

 

(a) such
action is consistent with the past practices of such Person and is taken in the ordinary course of the normal day-to-day operations
of such Person;

 

(b) such
action is not required to be authorized by the board of directors of such Person (or by any Person or group of Persons exercising
similar authority) and is not required to be specifically authorized by the parent company (if any) of such Person; and

 

(c) such
action is similar in nature and magnitude to actions customarily taken, without any authorization by the board of directors (or
by any Person or group of Persons exercising similar authority), in the ordinary course of the normal day-to-day operations of
other Persons that are in the same line of business as such Person.

 

“Organizational Documents”
(a) the articles or certificate of incorporation and the bylaws of a corporation; (b) the partnership agreement and any
statement of partnership of a general partnership; (c) the limited partnership agreement and the certificate of limited partnership
of a limited partnership; (d) any charter or similar document adopted or filed in connection with the creation, formation,
or organization of a Person; and (e) any amendment to any of the foregoing.

 

“Person” any
individual, corporation (including any non-profit corporation), general or limited partnership, limited liability company, joint
venture, estate, trust, association, organization, labor union, or other entity or Governmental Body.

 

“PRC” the People’s
Republic of China (excluding, the Hong Kong Special Administrative Region, the Macau Special Administrative Region and Taiwan).

 

“Proceeding”
any action, arbitration, audit, hearing, investigation, litigation, or suit (whether civil, criminal, administrative, investigative,
or informal) commenced, brought, conducted, or heard by or before, or otherwise involving, any Governmental Body or arbitrator.

 

“Proprietary Rights Agreement”
as defined in Section 4.20(b).

 

“Related Person”
with respect to a particular individual:

 

(a) each
other member of such individual’s Family;

 

(b) any
Person that is directly or indirectly controlled by such individual or one or more members of such individual’s Family;

 

(c) any
Person in which such individual or members of such individual’s Family hold (individually or in the aggregate) a Material
Interest; and

 

(d) any
Person with respect to which such individual or one or more members of such individual’s Family serves as a director, officer,
partner, executor, or trustee (or in a similar capacity).

 

    5

     

    

 

With respect to a specified
Person other than an individual:

 

(a) any
Person that directly or indirectly controls, is directly or indirectly controlled by, or is directly or indirectly under common
control with such specified Person;

 

(b) any
Person that holds a Material Interest in such specified Person;

 

(c) each
Person that serves as a director, officer, partner, executor, or trustee of such specified Person (or in a similar capacity);

 

(d) any
Person in which such specified Person holds a Material Interest;

 

(e) any
Person with respect to which such specified Person serves as a general partner or a trustee (or in a similar capacity); and

 

(f) any
Related Person of any individual described in clause (b) or (c).

 

For purposes of this
definition, (a) the “Family” of an individual includes (i) the individual, (ii) the individual’s
spouse and former spouses, (iii) any other natural person who is related to the individual or the individual’s spouse
within the second degree, and (iv) any other natural person who resides with such individual, and (b) “Material
Interest” means direct or indirect beneficial ownership (as defined in Rule 13d-3 under the Securities Exchange Act of
1934) of voting securities or other voting interests representing at least 5% of the outstanding voting power of a Person
or equity securities or other equity interests representing at least 5% of the outstanding equity securities or equity interests
in a Person.

 

“Release” any
spilling, leaking, emitting, discharging, depositing, escaping, leaching, dumping, or other releasing into the Environment, whether
intentional or unintentional.

 

“Representative”
with respect to a particular person, any director, officer, employee, agent, consultant, advisor, or other representative of such
Person, including legal counsel, accountants, and financial advisors.

 

“Securities Act”
the Securities Act of 1933 or any successor law, and regulations and rules issued pursuant to that Act or any successor law.

 

“Seller” as defined
in the first paragraph of this Agreement.

 

“Shares” as defined
in the Recitals of this Agreement.

 

“Straddle Period”
as defined in Section 7.1.

 

“Subsidiary”
with respect to any Person (the “Owner”), any corporation or other Person of which securities or other interests
having the power to elect a majority of that corporation’s or other Person’s board of directors or similar governing
body, or otherwise having the power to direct the business and policies of that corporation or other Person (other than securities
or other interests having such power only upon the happening of a contingency that has not occurred) are held by the Owner
or one or more of its Subsidiaries; when used without reference to a particular Person, “Subsidiary” means a Subsidiary
of the Company.

 

“Tax” any tax
(including any income tax, capital gains tax, value-added tax, sales tax, property tax, gift tax, or estate tax), levy, assessment,
tariff, duty (including any customs duty), deficiency, or other fee, and any related charge or amount (including any fine, penalty,
interest, or addition to tax), imposed, assessed, or collected by or under the authority of any Governmental Body or payable pursuant
to any tax-sharing agreement or any other Contract relating to the sharing or payment of any such tax, levy, assessment, tariff,
duty, deficiency, or fee.

 

    6

     

    

 

“Tax Return”
any return (including any information return), report, statement, schedule, notice, form, or other document or information filed
with or submitted to, or required to be filed with or submitted to, any Governmental Body in connection with the determination,
assessment, collection, or payment of any Tax or in connection with the administration, implementation, or enforcement of or compliance
with any Legal Requirement relating to any Tax.

 

“Third-Party Claim”
as defined in Section 11.4(a).

 

“Threat of Release”
a substantial likelihood of a Release that may require action in order to prevent or mitigate damage to the Environment that may
result from such Release.

 

“Threatened”
a claim, Proceeding, dispute, action, or other matter will be deemed to have been “Threatened” if any demand or statement
has been made (orally or in writing) or any notice has been given (orally or in writing), or if any other event has occurred
or any other circumstances exist, that would lead a prudent Person to conclude that such a claim, Proceeding, dispute, action,
or other matter is likely to be asserted, commenced, taken, or otherwise pursued in the future.

 

		2.	SALE AND TRANSFER OF SHARES; CLOSING.

 

2.1 Shares.
Subject to the terms and conditions of this Agreement, at the Closing, the Seller will sell and transfer the Shares to the Buyer,
and the Buyer will purchase the Shares from the Seller for the consideration specified in Section 2.2.

 

2.2 Purchase Price.
The aggregate purchase price for the Shares shall be USD $10,000,000.00 (the “Purchase Price”), determined based on
the net value of the total assets of the Company as shown on the Company’s financial report as of September 30, 2019, payable
in cash at the Closing.

 

2.3 Closing.
The purchase and sale (the “Closing”) provided for in this Agreement will take place at such place as agreed
upon by the parties and on such date which is no later than two business days after the date that all closing conditions set forth
in Sections 8 and 9 have been satisfied or waived, or on such other date as the Buyer and the Seller shall mutually
agree (the “Closing Date”). The Closing may also be consummated by facsimile, electronically and by other means
satisfactory to the Buyer, the Seller and their respective counsel. The Closing shall be deemed to occur as of midnight on the
Closing Date.

 

2.4 Closing
Obligations. At the Closing:

 

(a) The
Seller will deliver to the Buyer (i) certificates representing all of the Shares, duly endorsed in blank or with a fully executed
stock power attached, or duly executed instrument of share transfer with respect to the Shares, all in proper form for transfer
and in form and substance satisfactory to the Buyer; (ii) evidence that the register of members of Parent has been updated to reflect
the Buyer owns, beneficially and on the record, all of the Shares; and (iii) all other agreements, documents, instruments or certificates
required to be delivered by the Seller at or prior to the Closing pursuant to Section 8.6; and

 

(b) The
Buyer will deliver the Purchase Price and all agreements, documents, instruments or certificates required to be delivered by the
Buyer at or prior to the Closing pursuant to Section 9.2.

 

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2.5 Method
of Payment. All payments under this Agreement shall be made by wire transfer of immediately available funds to an account designated
in writing by the Seller to the Buyer no later than 5 Business Days prior to the Closing Date.

 

2.6 Further
Assurances. Following the Closing, each of the parties hereto shall, and shall cause their respective Affiliates to, execute
and deliver such additional documents, instruments, conveyances and assurances, and take such further actions as may be reasonably
required to carry out the provisions hereof and give effect to the transactions contemplated by this Agreement.

 

		3.	REPRESENTATIONS AND WARRANTIES OF THE SELLER AS TO ITSELF

 

The Seller represents
and warrants to the Buyer as to itself as follows:

 

3.1 Title
to the Shares. The Seller is the lawful owner, of record and beneficially, of all of the Shares, free and clear of all Encumbrances
whatsoever. Except for this Agreement, there are no agreements or understandings between the Seller and any other Person with respect
to the acquisition, disposition or voting of or any other matters pertaining to any of the capital stock of Parent or any other
Acquired Company and no restriction on the voting rights and other incidents of record or beneficial ownership pertaining thereto.
There are no Proceedings or Orders pending or, to the Knowledge of the Seller, threatened by or against the Seller relating to
its Shares.

 

3.2 Authority;
Noncontravention by the Seller. The Seller is a corporation validly existing, and in good standing under the laws of the State
of Delaware. The Seller has all requisite power and authority to execute, deliver and perform the Seller’s obligations under
this Agreement and to consummate the transactions contemplated hereby. The execution, delivery and performance by the Seller of
this Agreement, and the consummation of the transactions contemplated hereby, have been duly and validly authorized by all requisite
action on the part of the Seller, and this Agreement has been duly and validly executed and delivered by the Seller, and constitutes
a valid and binding obligation of the Seller, enforceable against the Seller in accordance with its terms.

 

3.3 Consents
Required. Except as otherwise set forth specifically in this Agreement, no consent, permit, approval, Order or authorization
of or by, registration, declaration or filing with, or notification to any Governmental Body is required by or with respect to
the Seller in connection with the execution and delivery of this Agreement and consummation by the Seller of the transactions contemplated
hereby.

 

		4.	REPRESENTATIONS AND WARRANTIES OF THE SELLER AS TO THE ACQUIRED COMPANIES

 

The Seller represents
and warrants to the Buyer as to the Acquired Companies as follows:

 

4.1 Organization
and Good Standing.

 

(a) Each
Acquired Company is validly existing, and in good standing under the laws of its jurisdiction of formation, with full corporate
power and authority to conduct its business as it is now being conducted, to own or use the properties and assets that it purports
to own or use, and to perform all of its obligations in the Ordinary Course of Business and under its contracts. Each Acquired
Company is duly qualified to do business as a foreign company and is in good standing under the laws of each country, territory
or other jurisdiction in which either the ownership or use of the properties owned or used by it, or the nature of the activities
conducted by it, requires such qualification.

 

(b) The
Seller has delivered to the Buyer copies of the Organizational Documents of each Acquired Company, as currently in effect.

 

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4.2 Authority;
No Conflict.

 

(a) Neither
the execution and delivery of this Agreement nor the consummation or performance of any of the Contemplated Transactions will,
directly or indirectly (with or without notice or lapse of time):

 

(i) contravene,
conflict with, or result in a violation of (A) any provision of the Organizational Documents of the Acquired Companies, or
(B) any resolution adopted by the board of directors or the stockholders of any Acquired Company;

 

(ii) contravene,
conflict with, or result in a violation of, or give any Governmental Body or other Person the right to challenge any of the Contemplated
Transactions or to exercise any remedy or obtain any relief under, any Legal Requirement or any Order to which any Acquired Company
or the Seller, or any of the assets owned or used by any Acquired Company, may be subject, except where such contravention would
not have a Material Adverse Effect;

 

(iii) contravene,
conflict with, or result in a violation of any of the terms or requirements of, or give any Governmental Body the right to revoke,
withdraw, suspend, cancel, terminate, or modify, any Governmental Authorization that is held by any Acquired Company or that otherwise
relates to the business of, or any of the assets owned or used by, any Acquired Company, except where such contravention would
not have a Material Adverse Effect;

 

(iv) cause
the Buyer or any Acquired Company to become subject to, or to become liable for the payment of, any Tax, except where such liability
would not have a Material Adverse Effect;

 

(v) cause
any of the assets owned by any Acquired Company to be reassessed or revalued by any taxing authority or other Governmental Body,
except where such reassessment or revaluation would not have a Material Adverse Effect;

 

(vi) contravene,
conflict with, or result in a violation or breach of any provision of, or give any Person the right to declare a default or exercise
any remedy under, or to accelerate the maturity or performance of, or to cancel, terminate, or modify, any Applicable Contract;
or

 

(vii) result
in the imposition or creation of any Encumbrance upon or with respect to any of the assets owned or used by any Acquired Company.

 

Except as otherwise
set forth specifically in this Agreement, neither the Seller nor any Acquired Company is or will be required to give any notice
to or obtain any consent from any Person in connection with the execution and delivery of this Agreement or the consummation or
performance of any of the Contemplated Transactions.

 

4.3 Capitalization.
The Seller is and will be on the Closing Date the record and beneficial owner and holder of the Shares, free and clear of all
Encumbrances. With the exception of the Shares (which are owned by the Seller), all of the outstanding equity securities and
other securities of each Acquired Company are owned of record and beneficially by one or more of the Acquired Companies, free
and clear of all Encumbrances. No legend or other reference to any purported Encumbrance appears upon any certificate
representing equity securities of any Acquired Company. All the outstanding equity securities of each Acquired Company have
been duly authorized and validly issued and are fully paid and nonassessable. There are no Contracts relating to the
issuance, sale, or transfer of any equity securities or other securities of any Acquired Company. None of the outstanding
equity securities or other securities of any Acquired Company was issued in violation of the Securities Act or any other
Legal Requirement. No Acquired Company owns, or has any Contract to acquire, any equity securities or other securities of any
Person (other than Acquired Companies) or any direct or indirect equity or ownership interest in any other business.

 

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4.4 Financial
Statements. The Seller has delivered to the Buyer the audited consolidated balance sheets of the Acquired Companies as at December
31, 2018 (the “Latest Balance Sheet”) and December 31, 2017, and the related consolidated statements of income, changes
in stockholders’ equity, and cash flow for each of the fiscal years then ended, including the notes thereto. Such financial
statements and notes fairly present the financial condition and the results of operations, changes in stockholders’ equity,
and cash flow of the Acquired Companies as at the respective dates of and for the periods referred to in such financial statements.
The financial statements referred to in this Section 4.4 reflect the consistent application of such accounting principles
throughout the periods involved.

 

4.5 Books and Records.
The books of account, minute books, stock record books, and other records of the Acquired Companies, all of which have been made
available to the Buyer, are complete and correct and have been maintained in accordance with sound business practices and the
requirements of Section 13(b)(2) of the Securities Exchange Act of 1934, as amended (regardless of whether or not the Acquired
Companies are subject to that Section), including the maintenance of an adequate system of internal controls. The minute books
of the Acquired Companies contain accurate and complete records of all meetings held of, and corporate action taken by, the stockholders,
the Boards of Directors, and committees of the Boards of Directors of the Acquired Companies, and no meeting of any such stockholders,
Board of Directors, or committee has been held for which minutes have not been prepared and are not contained in such minute books.
At the Closing, all of those books and records will be in the possession of the Acquired Companies.

 

4.6 Title to Properties;
Encumbrances. The Seller has delivered or made available to the Buyer copies of the deeds and other instruments (as recorded) by
which the Acquired Companies acquired all real property, leaseholds, or other interests owned by it, and copies of all title insurance
policies, opinions, abstracts, and surveys in the possession of the Seller or the Acquired Companies and relating to such property
or interests. The Acquired Companies have good and valid title to all the properties and assets (whether real, personal, or mixed
and whether tangible or intangible) that they purport to own located in the facilities owned or operated by the Acquired
Companies or reflected as owned in the books and records of the Acquired Companies, including all of the properties and assets
reflected in the Latest Balance Sheet (except for personal property sold since the date of the Latest Balance Sheet, as the case
may be, in the Ordinary Course of Business), and all of the properties and assets purchased or otherwise acquired by the Acquired
Companies since the date of the Latest Balance Sheet (except for personal property acquired and sold since the date of the Balance
Sheet in the Ordinary Course of Business and consistent with past practice). All material properties and assets reflected in the
Latest Balance Sheet are free and clear of all Encumbrances and are not, in the case of real property, subject to any rights of
way, building use restrictions, exceptions, variances, reservations, or limitations of any nature except, with respect to all
such properties and assets, (a) mortgages or security interests shown on the Latest Balance Sheet as securing specified liabilities
or obligations, with respect to which no default (or event that, with notice or lapse of time or both, would constitute a default) exists,
(b) mortgages or security interests incurred in connection with the purchase of property or assets after the date of the
Latest Balance Sheet (such mortgages and security interests being limited to the property or assets so acquired), with respect
to which no default (or event that, with notice or lapse of time or both, would constitute a default) exists, (c) liens
for current taxes not yet due, and (d) with respect to real property, (i) minor imperfections of title, if any, none
of which is substantial in amount, materially detracts from the value or impairs the use of the property subject thereto, or impairs
the operations of any Acquired Company, and (ii) zoning laws and other land use restrictions that do not impair the present
or anticipated use of the property subject thereto. All buildings, plants, and structures owned by the Acquired Companies lie
wholly within the boundaries of the real property owned by the Acquired Companies and do not encroach upon the property of, or
otherwise conflict with the property rights of, any other Person.

 

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4.7 Condition and
Sufficiency of Assets. The buildings, plants, structures, and equipment of the Acquired Companies are structurally sound,
are in good operating condition and repair, and are adequate for the uses to which they are being put, and none of such buildings,
plants, structures, or equipment of is in need of maintenance or repairs except for ordinary, routine maintenance and repairs
that are not material in nature or cost. The building, plants, structures, and equipment of the Acquired Companies are sufficient
for the continued conduct of the Acquired Companies’ businesses after the Closing in substantially the same manner as conducted
prior to the Closing.

 

4.8 Accounts Receivable.
All accounts receivable of the Acquired Companies that are reflected on the Latest Balance Sheet or on the accounting records
of the Acquired Companies as of the Closing Date (collectively, the “Accounts Receivable”) represent or will
represent valid obligations arising from sales actually made or services actually performed in the Ordinary Course of Business.

 

4.9 Inventory.
All inventory of the Acquired Companies, whether or not reflected in the Latest Balance Sheet, consists of a quality and quantity
usable and salable in the Ordinary Course of Business, except for obsolete items and items of below-standard quality, all of which
have been written off or written down to net realizable value in the Latest Balance Sheet or on the accounting records of the
Acquired Companies as of the Closing Date, as the case may be. The quantities of each item of inventory (whether raw materials,
work-in-process, or finished goods) are not excessive, but are reasonable in the present circumstances of the Acquired Companies.

 

4.10 No Undisclosed
Liabilities. The Acquired Companies have no liabilities, obligations or commitments of any type required to be reflected on
a balance sheet prepared in accordance with GAAP, except (i) those which are adequately reflected or reserved against in the Balance
Sheet as of the Balance Sheet Date; and (ii) those which have been incurred in the Ordinary Course of Business since the Balance
Sheet Date and which are not material in amount.

 

4.11 Taxes.

 

(a) The
Acquired Companies have filed or caused to be filed on a timely basis through the date hereof all Tax Returns that are or were
required to be filed by or with respect to any of them, either separately or as a member of a group of corporations, pursuant to
applicable Legal Requirements. The Seller has delivered or made available to the Buyer copies of all such Tax Returns filed for
its three most recent completed Tax years. The Acquired Companies have paid, or made provision for the payment of, all Taxes that
have or may have become due pursuant to those Tax Returns or otherwise, or pursuant to any assessment received by the Seller or
any Acquired Company.

 

(b) The
charges, accruals, and reserves with respect to Taxes on the respective books of each Acquired Company are adequate and are at
least equal to that Acquired Company’s liability for Taxes. There exists no proposed tax assessment against any Acquired
Company except as disclosed in the Latest Balance Sheet.

 

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(c) All
Taxes that any Acquired Company is or was required by Legal Requirements to withhold or collect have been duly withheld or collected
and, to the extent required, have been paid to the proper Governmental Body or other Person.

 

(d) All
Tax Returns filed by (or that include on a consolidated basis) any Acquired Company are true, correct, and complete. There
is no tax sharing agreement that will require any payment by any Acquired Company after the date of this Agreement.

 

(e) To
the Knowledge of the Seller, no Acquired Company has received any notice that any of its Tax Returns has been examined by any Governmental
Body within the past 6 years.

 

4.12 No Material
Adverse Change. Since the date of the Latest Balance Sheet, there has not been any material adverse change in the business,
operations, properties, prospects, assets, or condition of any Acquired Company, and no event has occurred or circumstance exists
that may result in such a material adverse change.

 

4.13 Employee Benefits.
The Seller has delivered to the Buyer a complete list of each Benefit Plan. With respect to each Benefit Plan, the Acquired Companies
have heretofore made available to the Buyer correct and complete copies of each of the following documents: (a) the Benefit
Plan and all related documents (including all amendments thereto), (b) the three most recent Form 5500 annual reports, if
applicable, including all attachments thereto, filed with the Department of Labor with respect to each such Benefit Plan, (c) the
summary plan description prepared for each such Benefit Plan (including all amendments thereto) and (d) all Contracts
with third-party administrators, actuaries, investment managers, consultants or other independent contractors related to each
such Benefit Plan. Each Benefit Plan has been administered and operated in material compliance with its terms, and the requirements
of all applicable Legal Requirements, including ERISA and including applicable Legal Requirements relating to the form or content
of the Benefit Plan. No Benefit Plan is a “multiemployer plan” (within the meaning of Section 3(37) of ERISA) or
a “multiple employer” plan (within the meaning of Section 4063 or 4064 of ERISA).

 

4.14 Compliance
With Legal Requirements; Governmental Authorizations.

 

(a) Each
Acquired Company is in compliance with each Legal Requirement that is applicable to it or to the conduct or operation of its business
or the ownership or use of any of its assets, except where the failure to be in compliance would not have a Material Adverse Effect;

 

(b) No
event has occurred or circumstance exists that (with or without notice or lapse of time) (A) may constitute or result
in a violation by any Acquired Company of, or a failure on the part of any Acquired Company to comply with, any Legal Requirement,
or (B) may give rise to any obligation on the part of any Acquired Company to undertake, or to bear all or any portion of
the cost of, any remedial action of any nature;

 

(c) No
Acquired Company has received any notice or other communication (whether oral or written) from any Governmental Body or any
other Person regarding (A) any actual, alleged, possible, or potential violation of, or failure to comply with, any Legal
Requirement, or (B) any actual, alleged, possible, or potential obligation on the part of any Acquired Company to undertake,
or to bear all or any portion of the cost of, any remedial action of any nature;

 

(d) Each
Governmental Authorization held or required to be held by any Acquired Company or that otherwise relates to the business of, or
to any of the assets owned or used by, any Acquired Company is valid and in full force and effect;

 

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(e) Each
Acquired Company has been and is in full compliance with all of the terms and requirements of each Governmental Authorization held
or required to be held by it or that otherwise relates to the business of, or to any of the assets owned or used by it;

 

(f) No
event has occurred or circumstance exists that may (with or without notice or lapse of time) (A) constitute or result
directly or indirectly in a violation of or a failure to comply with any term or requirement of any Governmental Authorization
held or required to be held by an Acquired Company or that otherwise relates to the business of, or to any of the assets owned
or used by, it, or (B) result directly or indirectly in the revocation, withdrawal, suspension, cancellation, or termination
of, or any modification to, any Governmental Authorization held or required to be held by an Acquired Company or that otherwise
relates to the business of, or to any of the assets owned or used by it;

 

(g) No
Acquired Company has received any notice or other communication (whether oral or written) from any Governmental Body or any
other Person regarding (A) any actual, alleged, possible, or potential violation of or failure to comply with any term or
requirement of any Governmental Authorization, or (B) any actual, proposed, possible, or potential revocation, withdrawal,
suspension, cancellation, termination of, or modification to any Governmental Authorization; and

 

(h) All
applications required to have been filed for the renewal of the Governmental Authorizations referred to above have been duly filed
on a timely basis with the appropriate Governmental Bodies, and all other filings required to have been made with respect to such
Governmental Authorizations have been duly made on a timely basis with the appropriate Governmental Bodies.

 

The Acquired Companies
have been granted all of the Governmental Authorizations necessary to permit the Acquired Companies to lawfully conduct and operate
their businesses in the manner they currently conduct and operate such businesses and to permit the Acquired Companies to own and
use their assets in the manner in which they currently own and use such assets.

 

4.15 Legal
Proceedings; Orders.

 

(a) There
are no actions, suits, claims, investigations or other legal proceedings pending or, to the Seller’s and the Acquired Companies’
Knowledge, threatened against or by any of the Acquired Companies affecting any of its properties or assets (or by or against the
Seller or any Affiliate thereof and relating to any Acquired Company), which if determined adversely to the Seller, would result
in a Material Adverse Effect.

 

(b) There
are no outstanding Governmental Orders and no unsatisfied judgments, penalties or awards against or affecting any Acquired Company
or any of its properties or assets which would have a Material Adverse Effect.

 

4.16 Absence of
Certain Changes and Events. Since the date of the Latest Balance Sheet until the date of this Agreement, the Acquired Companies
have operated in the Ordinary Course of Business in all material respects and there has not been, with respect to any of the Acquired
Companies, any:

 

(a) Event,
occurrence or development that has had a Material Adverse Effect;

 

(b) material
amendment to the Organizational Documents of any Company;

 

(c) split,
combination or reclassification of any shares of its capital stock;

 

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(d) issuance,
sale or disposition of any of its capital stock, or grant of any options, warrants, or other rights to purchase or obtain any of
its capital stock;

 

(e) declaration
or payment of any dividends or distributions on or in respect of any of its capital stock or redemption, purchase or acquisition
of its capital stock;

 

(f) material
change in any method of accounting or accounting practice of the Acquired Companies, except as required by GAAP or applicable Law
or as disclosed in the notes in the Financial Statements;

 

(g) incurrence,
assumption or guarantee of any indebtedness for borrowed money in an aggregate amount exceeding $500,000 except unsecured current
obligations and liabilities incurred in the ordinary course of business; 

 

(h) sale
or other disposition of any of the assets shown or reflected on the Balance Sheet, except in the ordinary course of business and
except for any assets having an aggregate value of less than $500,000;

 

(i) increase
in the compensation of its Employees, other than as provided for in any written agreements or in the ordinary course of business;

 

(j) adoption,
amendment or modification of any Benefit Plan, the effect of which in the aggregate would increase the obligations of the Acquired
Companies by more than 5% percent of its existing annual obligations to such plans;

 

(k) acquisition
by merger or consolidation with, or by purchase of a substantial portion of the assets or stock of, or by any other manner, any
business or any Person or any division thereof for consideration in excess of $500,000;

 

(l) adoption
of any plan of merger, consolidation, reorganization, liquidation or dissolution or filing of a petition in bankruptcy under any
provisions of federal or state bankruptcy Law or consent to the filing of any bankruptcy petition against it under any similar
Law; or

 

(m) any
agreement, whether oral or written, by any Acquired Company, to do any of the foregoing, or any action or omission that would result
in any of the foregoing.

 

4.17 Contracts;
No Defaults. The Seller has delivered to the Buyer copies, including all schedules, exhibits and amendments, of all
Contracts to which an Acquired Company is a party or to which the business of an Acquired Company is subject involving either
(a) obligations (contingent or otherwise) of, or the possibility of payments to, an Acquired Company in excess of
$10,000.00 (the “Material Contracts”), (b) actual or purported restrictions on the ability of the
Acquired Companies to compete in any line of business or with any Person or in any geographic area during any period of time,
or (c) actual or purported restrictions on the prices the Acquired Companies may charge for its products or services.
Each Material Contract is valid and binding on the applicable Acquired Company in accordance with its terms and is in full
force and effect. No Acquired Company is in material breach or violation of any Material Contract and no event has occurred
which, with the giving of notice or the passage of time, would result in a default or violation thereunder. To the
Seller’ and the Acquired Companies’ Knowledge, no other party to any Material Contract is in material breach or
violation of that Contract and no event has occurred which, with the giving of notice or the passage of time, would result in
a default or violation thereunder. The Seller and the Acquired Companies have no reason to believe that there is a reasonable
likelihood that any party to any Material Contract will be unable to or will choose to not comply with the terms of any
Material Contract. No Acquired Company has received from any party to a Material Contract any notice of any intention to
terminate any Material Contract. All Contracts of the Acquired Companies relating to the sale, design, manufacture, or
provision of products or services by the Acquired Companies have been entered into in the Ordinary Course of Business and
have been entered into without the commission of any act alone or in concert with any other Person, or any consideration
having been paid or promised, that is or would be in violation of any Legal Requirement.

 

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4.18 Insurance.
The Seller has delivered to the Buyer: true and complete copies of all policies of insurance to which any Acquired Company is
a party or under which any Acquired Company, or any director of any Acquired Company, is a named insured or otherwise the
beneficiary of coverage. Such insurance policies are in full force and effect on the date of this Agreement and all premiums
due on such insurance policies have been paid, except as would not have a Material Adverse Effect.

 

4.19 Environmental
Matters.

 

(a) Except
as would not have a Material Adverse Effect, to the Seller’s Knowledge, the Acquired Companies are in compliance with all
Environmental Laws and have not, and the Seller has not, received from any Person any (i) Environmental Notice or Environmental
Claim, or (ii) written request for information pursuant to Environmental Law, which, in each case, either remains pending or unresolved,
or is the source of ongoing obligations or requirements as of the Closing Date.

 

(b) The
Acquired Companies have obtained and are in material compliance with all Environmental Permits necessary for the ownership, lease,
operating or use of the business or assets of the Acquired Companies;

 

(c) Except
as would not have a Material Adverse Effect, to the Seller’s Knowledge, there has been no Release of Hazardous Materials
in contravention of Environmental Laws with respect to the business or assets of any of the Acquired Companies or any Real Property
currently owned, operated or leased by any Acquired Company, and neither the Acquired Companies nor the Seller has received an
Environmental Notice that any Real Property currently owned, operated or leased in connection with the business of the Acquired
Companies (including soils, groundwater, surface water, buildings and other structure located on any such real property) has been
contaminated with any Hazardous Material which would reasonably be expected to result in an Environmental Claim against, or a violation
of Environmental Laws or term of any Environmental Permit by, the Seller or the Acquired Companies.

 

(d) The
Seller has delivered any and all environmental reports, studies, audits, records, sampling data, site assessments and other similar
documents with respect to the business or assets of the Acquired Companies or any currently owned, operated or leased Real Property
which are in the possession or control of the Seller or the Acquired Companies.

 

(e) The
representations and warranties set forth in this Section 4.19 are the Seller’s sole and exclusive representations
and warranties regarding environmental matters.

 

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4.20 Employees.

 

(a) The
Seller has provided to the Buyer a complete and accurate list of the following information for each employee, officer or director
of the Acquired Companies, including each employee on leave of absence or layoff status: employer; name; job title; current compensation
paid or payable and any change in compensation since January 1, 2017; vacation accrued; and service credited for purposes of vesting
and eligibility to participate under any Acquired Company’s pension, retirement, profit-sharing, thrift-savings, deferred
compensation, stock bonus, stock option, cash bonus, employee stock ownership (including investment credit or payroll stock ownership),
severance pay, insurance, medical, welfare, or vacation plan or any other employee benefit plan).

 

(b) No
employee or director of any Acquired Company is a party to, or is otherwise bound by, any agreement or arrangement, including any
confidentiality, noncompetition, or proprietary rights agreement, between such employee or director and any other Person (“Proprietary
Rights Agreement”) that in any way adversely affects or will affect (i) the performance of his duties as an employee
or director of the Acquired Companies, or (ii) the ability of any Acquired Company to conduct its business, including any
Proprietary Rights Agreement with the Seller or the Acquired Companies by any such employee or director. To the Seller’ Knowledge,
no director, officer, or other key employee of any Acquired Company intends to terminate his employment with such Acquired Company.

 

4.21 Labor Relations;
Compliance.

 

(a) No
Acquired Company is a party to any collective bargaining or other agreement with a labor organization representing any of its Employees.
Since January 1, 2019 there has not been, nor, to the Seller’s Knowledge, has there been any threat of, any strike, slowdown,
work stoppage, lockout, concerted refusal to work overtime or other similar labor activity or dispute affecting any Acquired Company.

 

(b) Each
Acquired Company is in compliance with all applicable Laws pertaining to employment and employment practices to the extent they
relate to employees of such Acquired Company, except to the extent non-compliance would not result in a Material Adverse Effect.
Except as would not have a Material Adverse Effect, there are no actions, suits, claims, investigations or other legal proceedings
against the Acquired pending, or to the Seller’s Knowledge, threatened to be brought or filed, by or with any Governmental
Authority or arbitral tribunal in connection with the employment or termination of employment of any current or former employee
of the Acquired Company, including, without limitation, any claim relating to unfair labor practices, employment discrimination,
harassment, retaliation, equal pay or any other employment related matter arising under applicable Laws.

 

4.22 Intellectual
Property.

 

(a) Intellectual
Property means any and all of the following arising pursuant to the Laws of any jurisdiction throughout the world: (i) trademarks,
service marks, trade names, and similar indicia of source or origin, all registrations and applications for registration thereof,
and the goodwill connected with the use of and symbolized by the foregoing; (ii) copyrights and all registrations and applications
for registration thereof; (iii) trade secrets and know-how; (iv) patents and patent applications; (v) internet domain name registrations;
and (vi) other intellectual property and related proprietary rights.

 

(b) Except
as would not have a Material Adverse Effect, to the Seller’s Knowledge (i) the conduct of any Acquired Company’s business
as currently conducted does not infringe, misappropriate or otherwise violate the Intellectual Property of any Person; and (ii)
no Person is infringing, misappropriating or otherwise violating the Acquired Companies’ Intellectual Property. This Section
4.22(b) constitutes the sole representation and warranty of the Seller under this Agreement with respect to any actual or alleged
infringement, misappropriation or violation of Intellectual Property.

 

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4.23 Certain Payments.
No Acquired Company or director, officer, agent, or employee of any Acquired Company, or to the Seller’s or the Acquired
Companies’ Knowledge any other Person associated with or acting for or on behalf of any Acquired Company, has directly or
indirectly (a) made any contribution, gift, bribe, rebate, payoff, influence payment, kickback, or other payment to any Person,
private or public, regardless of form, whether in money, property, or services (i) to obtain favorable treatment in securing
business, (ii) to pay for favorable treatment for business secured, (iii) to obtain special concessions or for special
concessions already obtained, for or in respect of any Acquired Company or any Affiliate of an Acquired Company, or (iv) in
violation of any Legal Requirement, (b) established or maintained any fund or asset that has not been recorded in the books
and records of the Acquired Companies.

 

4.24 Disclosure.
There is no fact known to the Seller that has specific application to the Seller or any Acquired Company (other than general economic
or industry conditions) and that materially adversely affects or, as far as the Seller can reasonably foresee, materially
threatens, the assets, business, prospects, financial condition, or results of operations of the Acquired Companies (on a consolidated
basis) that has not been set forth in this Agreement.

 

4.25 Relationships
With Related Persons. Neither the Seller or any Related Person of the Seller or of any Acquired Company has, or since the
first day of the next to last completed fiscal year of the Acquired Companies has had, any interest in any property (whether real,
personal, or mixed and whether tangible or intangible), used in or pertaining to the Acquired Companies businesses. Neither the
Seller nor any Related Person of the Seller or of any Acquired Company is, or since the first day of the next to last completed
fiscal year of the Acquired Companies has owned (of record or as a beneficial owner) an equity interest or any other financial
or profit interest in, a Person that has (i) had business dealings or a material financial interest in any transaction with
any Acquired Company other than business dealings or transactions conducted in the Ordinary Course of Business with the Acquired
Companies at substantially prevailing market prices and on substantially prevailing market terms, or (ii) engaged in competition
with any Acquired Company with respect to any line of the products or services of such Acquired Company (a “Competing
Business”) in any market presently served by such Acquired Company except for less than one percent of the outstanding
capital stock of any Competing Business that is publicly traded on any recognized exchange or in the over-the-counter market.
Neither the Seller nor any Related Person of the Seller or of any Acquired Company is a party to any Contract with, or has any
claim or right against, any Acquired Company.

 

4.26 SEC Filings.
To the Seller’s Knowledge, the Seller has filed or furnished to, as applicable, the SEC all material reports, schedules,
forms (except Forms 3, 4 and 5), statements and other material documents required to be filed by it with the SEC pursuant to the
reporting requirements of the Securities Exchange Act of 1934, as amended, since January 1, 2016.

 

4.27 Brokers or
Finders. The Seller and its agents have incurred no obligation or liability, contingent or otherwise, for brokerage or finders’
fees or agents’ commissions or other similar payment in connection with this Agreement.

 

		5.	REPRESENTATIONS AND WARRANTIES OF BUYER.

 

The Buyer represents
and warrants to the Seller as follows:

 

5.1 Authority;
No Conflict.

 

(a) This
Agreement constitutes the legal, valid, and binding obligation of the Buyer, enforceable against the Buyer in accordance with its
terms. The Buyer has the absolute and unrestricted right, power, and authority to execute and deliver this Agreement and to perform
its obligations under this Agreement.

 

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(b) Neither the
execution and delivery of this Agreement by the Buyer nor the consummation or performance of any of the Contemplated
Transactions by the Buyer will give any Person the right to prevent, delay, or otherwise interfere with any of the
Contemplated Transactions pursuant to: (i) any provision of the Buyer’s Organizational Documents; (ii) any
resolution adopted by the boardof directors or the stockholders of the Buyer; (iii) any Legal Requirement or Order
to which the Buyer may be subject or bound.

 

(c) No
consent, permit, approval, Order or authorization of or by, registration, declaration or filing with, or notification to any Governmental
Body is required by or with respect to the Buyer in connection with the execution and delivery of this Agreement and consummation
by the Buyer of the transactions contemplated hereby or thereby, except for such filings as may be required to be made to the NASDAQ.

 

5.2 Certain Proceedings.
There is no pending Proceeding that has been commenced against the Buyer and that challenges, or may have the effect of preventing,
delaying, making illegal, or otherwise interfering with, any of the Contemplated Transactions. To the Buyer’s Knowledge,
no such Proceeding has been Threatened.

 

5.3 Investment
Purpose. The Buyer is acquiring the Shares solely for its own account for investment purposes and not with a view to, or for
offer or sale in connection with, any distribution thereof. The Buyer acknowledges that the Shares are not registered under the
Securities Act of 1933, as amended, or any state securities laws, and that the Shares may not be transferred or sold except pursuant
to the registration provisions of the Securities Act of 1933, as amended or pursuant to an applicable exemption therefrom and
subject to state securities laws and regulations, as applicable. The Buyer is able to bear the economic risk of holding the Shares
for an indefinite period (including total loss of its investment), and has sufficient knowledge and experience in financial and
business matters so as to be capable of evaluating the merits and risk of its investment.

 

5.4 Brokers or
Finders. The Buyer and its officers and agents have incurred no obligation or liability, contingent or otherwise, for brokerage
or finders’ fees or agents’ commissions or other similar payment in connection with this Agreement and will indemnify
and hold the Seller harmless from any such payment alleged to be due by or through the Buyer as a result of the action of the
Buyer or its officers or agents.

 

5.5 Independent
Investigation. The Buyer has conducted its own independent investigation, review and analysis of the business, results of
operations, prospects, condition (financial or otherwise) or assets of the Acquired Companies, and acknowledges that it has been
provided adequate access to the personnel, properties, assets, premises, books and records, and other documents and data of the
Seller and the Acquired Companies for such purpose. The Buyer acknowledges and agrees that: (a) in making its decision to enter
into this Agreement and to consummate the transactions contemplated hereby, The Buyer has relied solely upon its own investigation
and the express representations and warranties of the Seller set forth in Article 3 of this Agreement; and (b) none of the Seller,
or any other Person has made any representation or warranty as to the Seller, the Acquired Companies’ or this Agreement,
except as expressly set forth in Article 3 of this Agreement.

 

5.6 Legal Proceedings.
There are no actions, suits, claims, investigations or other legal proceedings pending or, to the Buyer’s knowledge, threatened
against or by the Buyer or any Affiliate of the Buyer that challenge or seek to prevent, enjoin or otherwise delay the transactions
contemplated by this Agreement.

 

5.7 Sufficiency
of Funds. The Buyer has sufficient cash on hand or other sources of immediately available funds to enable it to make payment
of the Purchase Price and consummate the transactions contemplated by this Agreement.

 

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		6.	COVENANTS OF THE SELLER

 

6.1 Access
and Investigation. From the date hereof until the Closing, the Seller shall, and shall cause each Acquired Company to: (a)
afford the Buyer and its Representatives reasonable access to and the right to inspect all of the Real Property, properties, assets,
premises, books and records, contracts, agreements and other documents and data related to the Acquired Companies’; (b)
furnish the Buyer and its Representatives with such financial, operating and other data and information related to the Acquired
Companies as the Buyer or any of its Representatives may reasonably request; and (c) instruct the Representatives of the Seller
and the Acquired Companies to cooperate with the Buyer in its investigation of the Acquired Companies; provided, however,
that any such investigation shall be conducted during normal business hours upon reasonable advance notice to the Seller, under
the supervision of the Seller’s personnel and in such a manner as not to interfere with the normal operations of the Acquired
Companies.

 

6.2 Operation
of the Business of the Acquired Companies Prior to the Closing. From the date hereof until the Closing, except as otherwise
provided in this Agreement or consented to in writing by the Buyer (which consent shall not be unreasonably withheld or delayed),
the Seller shall, and shall cause the Acquired Companies to: (a) conduct the business of each Acquired Company in the Ordinary
Course of Business; and (b) use commercially reasonable efforts to maintain and preserve intact the current organization, business
and franchise of each Acquired Company and to preserve the rights, franchises, goodwill and relationships of its Employees, customers,
lenders, suppliers, regulators and others having business relationships with each Acquired Company. From the date hereof until
the Closing Date, except as consented to in writing by the Buyer (which consent shall not be unreasonably withheld or delayed),
the Seller shall not cause or permit any Acquired Company to take any action that would cause any of the changes, events or conditions
described in Section 4.16 to occur.

 

6.3 Required
Approvals. As promptly as practicable after the date of this Agreement, the Seller will, and will cause the Acquired Companies
to, obtain any consents and approvals of, or effect the notification of or filing with, each Person, whether private or governmental,
whose consent or approval is required in order to permit the consummation of the Contemplated Transactions, to obtain any consent
that may be required from a party to an agreement with an Company that may give such party a right to cancel such agreement as
a result of the Contemplated Transactions. Between the date of this Agreement and the Closing Date, the Seller will, and will
cause the Acquired Companies to, cooperate with the Buyer with respect to all consents, approvals or filings that the Buyer elects
to make or obtain or is required by Legal Requirements to make or obtain in connection with the Contemplated Transactions.

 

6.4 Notification.
Between the date of this Agreement and the Closing Date, each Seller will promptly notify the Buyer in writing if the Seller or
any Acquired Company becomes aware of any fact or condition that causes or constitutes a Breach of the Seller’s or the Acquired
Companies’ representations and warranties as of the date of this Agreement, or if the Seller or any Acquired Company becomes
aware of the occurrence after the date of this Agreement of any fact or condition that would (except as expressly contemplated
by this Agreement) cause or constitute a Breach of any such representation or warranty had such representation or warranty
been made as of the time of occurrence or discovery of such fact or condition. During the same period, the Seller will promptly
notify the Buyer of the occurrence of any Breach of any covenant of the Seller in this Section 6 or of the occurrence of
any event that may make the satisfaction of the conditions in Section 8 impossible or unlikely.

 

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6.5 No
Negotiation. Until such time, if any, as this Agreement is terminated pursuant to Section 10, the Seller will not,
and will cause each Acquired Company and each of their Representatives not to, directly or indirectly solicit, initiate, or encourage
any inquiries or proposals from, discuss or negotiate with, provide any non-public information to, or consider the merits of any
unsolicited inquiries or proposals from, any Person (other than the Buyer) relating to any transaction involving the sale
of the business or assets (other than in the Ordinary Course of Business) of any Acquired Company, or any of the capital
stock of any Acquired Company, or any merger, consolidation, business combination, or similar transaction involving any Acquired
Company.

 

6.6 Proprietary
Information. All confidential or proprietary information or work product relating to the Acquired Companies or business of
the Acquired Companies that is known to the Seller as of the Closing Date shall be the sole property of the Buyer and the Acquired
Companies. The Seller shall not use or disclose such information or work product except for the benefit of the Buyer or the Acquired
Companies and their respective successors and assigns, and the Seller shall take reasonable steps to protect such information
and work product from misuse, loss, theft or accidental disclosure.

 

6.7 Public
Announcements. Unless otherwise required by applicable Law or stock exchange requirements (based upon the reasonable advice
of counsel), no party to this Agreement shall make any public announcements in respect of this Agreement or the transactions contemplated
hereby or otherwise communicate with any news media without the prior written consent of the other party (which consent shall
not be unreasonably withheld or delayed), and the parties shall cooperate as to the timing and contents of any such announcement.

 

6.8 Stockholder
Covenant. The Seller shall not (i) sell, transfer, assign, tender, create an Encumbrance upon or otherwise dispose of,
or enter into any contract, option or other arrangement with respect to the sale, transfer, assignment, tender, Encumbrance or
other disposition of any of the Shares or (ii) grant any proxies with respect to any of the Shares, deposit any of the Shares
into a voting trust or enter into a voting or option agreement with respect to any of the Shares.

 

6.9 Best
Efforts. Between the date of this Agreement and the Closing Date, the Seller will use its Best Efforts to cause the conditions
in Section 8 to be satisfied.

 

6.10 Confidentiality.
The Buyer acknowledges and agrees that the Confidentiality Agreement remains in full force and effect and, in addition, covenants
and agrees to keep confidential, in accordance with the provisions of the Confidentiality Agreement, information provided to the
Buyer pursuant to this Agreement. If this Agreement is, for any reason, terminated prior to the Closing, the Confidentiality Agreement
and the provisions of this Section 6.10 shall nonetheless continue in full force and effect.

 

		7.	Tax MAtters

 

7.1 Responsibility
for Filing Tax Returns.

 

(a) The
Seller shall prepare, or cause to be prepared, in a timely manner, all income Tax Returns of the Acquired Companies that are due
after the Closing with respect to any taxable period ending prior to or ending on and including the Closing Date; provided, however,
that any such Tax Return shall be prepared by treating items on that Tax Return in a manner consistent with the prior Tax Returns
of any Acquired Company. The Seller shall deliver to the the Buyer draft copies of each such Tax Return prior to the date for filing
that Tax Return. The Seller shall make all changes in each such Tax Return reasonably requested by the Buyer. The Buyer shall cause
each such Tax Return to be appropriately signed and filed, and the Seller shall pay to the Acquired Companies any Taxes due from
that Acquired Company on that Tax Return.

 

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(b) The
Buyer shall after the Closing prepare and file, or cause to be prepared and filed, Tax Returns of the Acquired Companies for any
period beginning prior to the Closing Date and ending after the Closing Date (a “Straddle Period”). Any such
Tax Return shall be prepared by treating items on that Tax Return in a manner consistent with the prior Tax Returns of the Acquired
Companies. The Buyer shall deliver to the Seller draft copies of each such Tax Return at least thirty (30) days prior to the
date for filing that Tax Return. The Buyer shall make all changes in each such Tax Return reasonably requested by the Seller. The
Seller shall pay to the Acquired Companies the Taxes due for the period prior to and including the Closing Date from that Acquired
Company on that Tax Return.

 

7.2 Cooperation
on Tax Matters. Commencing on the Closing Date, the Buyer, on the one hand, and the Seller, on the other hand, shall cooperate
fully, as and to the extent reasonably requested by the other party, in connection with the filing and execution of Tax Returns
and any audit, litigation or other proceeding with respect to Taxes, in each case, in respect of any period ending prior to or
on the Closing Date or any Straddle Period.

 

7.3 Sales
and Transfer Taxes. All sales and transfer Taxes (including all stock transfer Taxes, if any) incurred in connection
with this Agreement and the transactions contemplated hereby and thereby will be borne by the Seller, and the Seller shall, at
the Seller’ own expense, file all necessary Tax Returns and other documentation with respect to all such sales and transfer
Taxes.

 

		8.	CONDITIONS PRECEDENT TO BUYER’S OBLIGATION TO CLOSE.

 

The Buyer’s obligation
to purchase the Shares and to take the other actions required to be taken by the Buyer at the Closing is subject to the satisfaction,
at or prior to the Closing, of each of the following conditions (any of which may be waived by the Buyer, in whole or in part):

 

8.1 Accuracy
of Representations. All of the Seller’s representations and warranties in this Agreement (considered collectively), and
each of those representations and warranties (considered individually)(without giving effect to any qualification contained therein
as to materiality, including the phrases “material”, “in all material respects” and “material adverse
change”), must have been accurate in all material respects as of the date of this Agreement, and must be accurate in all
material respects as of the Closing Date as if made on the Closing Date.

 

8.2 The
Seller’ Performance. All of the covenants and obligations that the Seller is required to perform or to comply with pursuant
to this Agreement at or prior to the Closing (considered collectively), and each of these covenants and obligations (considered
individually), must have been duly performed and complied with in all material respects.

 

8.3 Authorization.
All action necessary to authorize the execution, delivery and performance of this Agreement by the Seller and the consummation
of the transactions contemplated hereby, shall have been duly and validly taken by each of them, and each Seller Party shall have
full power and authority or capacity to enter into this Agreement and to consummate the transactions contemplated hereby on the
terms provided herein.

 

8.4 Consents
and Approvals. The Buyer shall have received duly executed copies of all consents and approvals required for or in connection
with the execution and delivery by the Seller of this Agreement, for the consummation of the transactions contemplated hereby,
and the continued conduct of the business of the Acquired Companies as previously conducted, each in form and substance satisfactory
to the Buyer.

 

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8.5 Government
Consents, Authorizations, Etc. All consents, authorizations, orders and approvals of, filings or registrations with and the
expiration of all waiting periods imposed by, any third Person, including any Governmental Body, which are required for or in
connection with the execution and delivery by the parties of this Agreement and the consummation by the parties of the transactions
contemplated hereby and in order to permit or enable the Acquired Companies to conduct their business after the Closing in substantially
the same manner as previously conducted shall have been obtained or made, in form and substance reasonably satisfactory to the
Buyer, and shall be in full force and effect.

 

8.6 Additional
Documents. Each of the following documents must have been delivered to the Buyer:

 

(a) A
certificate executed by the Seller representing and warranting to the Buyer that the Seller’s representations and warranties
in this Agreement was accurate in all respects as of the date of this Agreement and is accurate in all respects as of the Closing
Date as if made on the Closing Date.

 

(b) A
copy of the Parent’s current memorandum and articles of association.

 

(c) A
copy of resolutions of the Parent’s board of directors approving the updating of Parent’s register of members, to reflect
the Buyer’s ownership of all the Shares.

 

(d) A
copy of the Parent’s certificate of incumbency.

 

(e) A
copy of the Parent’s good standing certificate.

 

(f) A
copy of the resolutions of the Seller’s board of directors approving the execution and delivery of this Agreement and the
consummation of the transactions contemplated hereby by the Seller.

 

(g) such
other documents as the Buyer may reasonably request for the purpose of (i) evidencing the accuracy of any of the Seller’
representations and warranties, (ii) evidencing the performance by the Seller of, or the compliance by the Seller with, any
covenant or obligation required to be performed or complied with by the Seller, (iii) evidencing the satisfaction of any condition
referred to in this Section 8, or (iv) otherwise facilitating the consummation or performance of any of the Contemplated
Transactions.

 

8.7 No
Proceedings. Since the date of this Agreement, there must not have been commenced or Threatened against the Buyer, or against
any Person affiliated with the Seller, any Proceeding (a) involving any challenge to, or seeking damages or other relief
in connection with, any of the Contemplated Transactions, or (b) that may have the effect of preventing, delaying, making
illegal, or otherwise interfering with any of the Contemplated Transactions.

 

8.8 No
Claim Regarding Stock Ownership or Sale Proceeds. There must not have been made or Threatened by any Person any claim asserting
that such Person (a) is the holder or the beneficial owner of, or has the right to acquire or to obtain beneficial ownership
of, any stock of, or any other voting, equity, or ownership interest in, any of the Acquired Companies, or (b) is entitled
to all or any portion of the Purchase Price payable for the Shares.

 

8.9 No
Prohibition. Neither the consummation nor the performance of any of the Contemplated Transactions will, directly or indirectly
(with or without notice or lapse of time), materially contravene, or conflict with, or result in a material violation of, or cause
the Buyer or any Person affiliated with the Buyer to suffer any material adverse consequence under, (a) any applicable Legal
Requirement or Order, or (b) any Legal Requirement or Order that has been published, introduced, or otherwise proposed by
or before any Governmental Body.

 

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8.10 Absence
of Material Adverse Change. Since the date of this Agreement, in the reasonable judgment of the Buyer, there shall have been
no material adverse change in the assets, financial condition, operating results, customer, supplier or employee relations or
liabilities of the Acquired Companies including any material casualty loss or damage to the assets of any Acquired Company, whether
or not covered by insurance.

 

		9.	CONDITIONS PRECEDENT TO THE SELLER’s OBLIGATION TO CLOSE.

 

The Seller’ obligation
to sell the Shares and to take the other actions required to be taken by the Seller at the Closing is subject to the satisfaction,
at or prior to the Closing, of each of the following conditions (any of which may be waived by the Seller, in whole or in part):

 

9.1 Payment
of Purchase Price. The Buyer shall have delivered to the Seller the Purchase Price by wire transfer of same day funds.

 

9.2 Additional
Documents. The following document must have been delivered to the Seller:

 

(a) A
certificate executed by the Buyer to the effect that, except as otherwise stated in such certificate, each of the Buyer’s
representations and warranties in this Agreement was accurate in all respects as of the date of this Agreement and is accurate
in all respects as of the Closing Date as if made on the Closing Date.

 

9.3 Accuracy
of Representations. All of the Buyer’s representations and warranties in this Agreement (considered collectively), and
each of these representations and warranties (considered individually), must have been accurate in all material respects as of
the date of this Agreement and must be accurate in all material respects as of the Closing Date as if made on the Closing Date.

 

9.4 Consents
and Approvals. The Seller shall have obtained all consents and approvals required for or in connection with the execution
and delivery by the Seller of this Agreement, for the consummation of the transactions contemplated hereby.

 

9.5 Buyer’s
Performance. All of the covenants and obligations that the Buyer is required to perform or to comply with pursuant to this
Agreement at or prior to the Closing (considered collectively), and each of these covenants and obligations (considered individually),
must have been performed and complied with in all material respects.

 

9.6 No
Injunction. There must not be in effect any Legal Requirement or any injunction or other Order that (a) prohibits the
sale of the Shares by the Seller to the Buyer, and (b) has been adopted or issued, or has otherwise become effective, since
the date of this Agreement.

 

		10.	TERMINATION.

 

10.1 Termination
Events. This Agreement may, by notice given prior to or at the Closing, be terminated:

 

(a) by
either the Buyer or the Seller if a material Breach of any provision of this Agreement has been committed by the other party and
such Breach has not been waived;

 

(b) (i)
by the Buyer if any of the conditions in Section 8 has not been satisfied as of the Closing Date or if satisfaction of such
a condition is or becomes impossible (other than through the failure of the Buyer to comply with its obligations under this Agreement) and
the Buyer has not waived such condition on or before the Closing Date; or

 

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(ii) by
the Seller, if any of the conditions in Section 9 has not been satisfied of the Closing Date or if satisfaction of such
a condition is or becomes impossible (other than through the failure of the Seller to comply with their obligations under this
Agreement) and the Seller has not waived such condition on or before the Closing Date;

 

(c) by
mutual consent of the Buyer and the Seller; or

 

(d) either
by the Buyer or by the Seller if the Closing has not occurred (other than through the failure of any party seeking to terminate
this Agreement to comply fully with its obligations under this Agreement) on or before January 1, 2021 or such later date
as the parties may agree upon.

 

10.2 Effect
of Termination. Each party’s right of termination under Section 10.1 is in addition to any other rights it may
have under this Agreement or otherwise, and the exercise of a right of termination will not be an election of remedies. If this
Agreement is terminated pursuant to Section 10.1, all further obligations of the parties under this Agreement will terminate,
except that the obligations in Sections 12.1 and 12.3 will survive; provided, however, that if this Agreement is
terminated by a party because of the Breach of the Agreement by the other party or because one or more of the conditions to the
terminating party’s obligations under this Agreement is not satisfied as a result of the other party’s failure to
comply with its obligations under this Agreement, the terminating party’s right to pursue all legal remedies will survive
such termination unimpaired.

 

		11.	INDEMNIFICATION; REMEDIES.

 

11.1 Survival.
Subject to the limitations and other provisions of this Agreement, the representations and warranties contained herein shall survive
the Closing and shall remain in full force and effect until the date that is one year from the Closing Date. None of the covenants
or other agreements contained in this Agreement shall survive the Closing Date other than those which by their terms contemplate
performance after the Closing Date, and each such surviving covenant and agreement shall survive the Closing for the period contemplated
by its terms. Notwithstanding the foregoing, any claims asserted in good faith with reasonable specificity (to the extent known
at such time) and in writing by notice from the non-breaching party to the breaching party prior to the expiration date of the
applicable survival period shall not thereafter be barred by the expiration of such survival period and such claims shall survive
until finally resolved.

 

11.2 Indemnification
by the Seller. Subject to the terms and conditions of this Article 11, the Seller shall indemnify the Buyer against, and shall
hold the Buyer harmless from and against, any and all Losses incurred or sustained by, or imposed upon, the Buyer, based upon,
arising out of, with respect to, or by reason of:

 

(a) Any
inaccuracy in or breach of any of the representations or warranties of the Seller contained in this Agreement; or

 

(b) Any
breach or non-fulfillment of any covenant, agreement or obligation to be performed by the Seller pursuant to this Agreement.

 

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11.3 Indemnification
by the Buyer. Subject to the other terms and conditions of this Article 11, the Buyer shall indemnify the Seller against,
and shall hold the Seller harmless from and against, any and all Losses incurred or sustained by, or imposed upon, the Seller
based upon, arising out of, with respect to or by reason of:

 

(a) Any
inaccuracy in or breach of any of the representations or warranties of the Buyer contained in this Agreement; or

 

(b) Any
breach or non-fulfillment of any covenant, agreement or obligation to be performed by the Buyer pursuant to this Agreement.

 

 

11.4 Procedure
for Indemnification of Third Party Claims.

 

(a) If
any indemnified party receives notice of the assertion or commencement of any action, suit, claim or other legal proceeding made
or brought by any Person who is not a party to this Agreement or an Affiliate of a party to this Agreement or a Representative
of the foregoing (a “Third-Party Claim”) against such indemnified party with respect to which the indemnifying
party is obligated to provide indemnification under this Agreement, the indemnified party shall give the indemnifying party prompt
written notice thereof. The failure to give such prompt written notice shall not, however, relieve the indemnifying party of its
indemnification obligations, except and only to the extent that the indemnifying party forfeits rights or defenses by reason of
such failure. Such notice by the indemnified party shall describe the Third-Party Claim in reasonable detail, shall include copies
of all material written evidence thereof and shall indicate the estimated amount, if reasonably practicable, of the Loss that has
been or may be sustained by the indemnified party. The indemnifying party shall have the right to participate in, or by giving
written notice to the indemnified party, to assume the defense of any Third-Party Claim at the indemnifying party’s expense
and by the indemnifying party’s own counsel, and the indemnified party shall cooperate in good faith in such defense. In
the event that the indemnifying party assumes the defense of any Third-Party Claim, subject to Section 11.4(b), it shall
have the right to take such action as it deems necessary to avoid, dispute, defend, appeal or make counterclaims pertaining to
any such Third-Party Claim in the name and on behalf of the indemnified party. The indemnified party shall have the right, at its
own cost and expense, to participate in the defense of any Third-Party Claim with counsel selected by it subject to the indemnifying
party’s right to control the defense thereof. If the indemnifying party elects not to compromise or defend such Third-Party
Claim or fails to promptly notify the indemnified party in writing of its election to defend as provided in this Agreement, the
indemnified party may, subject to Section 11.4(b), compromise, defend such Third-Party Claim and seek indemnification for
any and all Losses based upon, arising from or relating to such Third-Party Claim. The Seller and the Buyer shall cooperate with
each other in all reasonable respects in connection with the defense of any Third-Party Claim, including making available records
relating to such Third-Party Claim and furnishing, without expense (other than reimbursement of actual out-of-pocket expenses)
to the defending party, management employees of the non-defending party as may be reasonably necessary for the preparation of the
defense of such Third-Party Claim.

 

(b) Notwithstanding
any other provision of this Agreement, the indemnifying party shall not enter into settlement of any Third-Party Claim without
the prior written consent of the indemnified party (which consent shall not be unreasonably withheld or delayed), except as provided
in this Section 11.4(b). If a firm offer is made to settle a Third-Party Claim without leading to liability or the creation
of a financial or other obligation on the part of the indemnified party and provides, in customary form, for the unconditional
release of each indemnified party from all liabilities and obligations in connection with such Third-Party Claim and the indemnifying
party desires to accept and agree to such offer, the indemnifying party shall give written notice to that effect to the indemnified
party. If the indemnified party fails to consent to such firm offer within ten days after its receipt of such notice, the indemnified
party may continue to contest or defend such Third-Party Claim and in such event, the maximum liability of the indemnifying party
as to such Third-Party Claim shall not exceed the amount of such settlement offer. If the indemnified party fails to consent to
such firm offer and also fails to assume defense of such Third-Party Claim, the indemnifying party may settle the Third-Party Claim
upon the terms set forth in such firm offer to settle such Third-Party Claim. If the indemnified party has assumed the defense
pursuant to Section 11.4(a), it shall not agree to any settlement without the written consent of the indemnifying party
(which consent shall not be unreasonably withheld or delayed).

 

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(c) Direct
Claims. Any claim by an indemnified party on account of a Loss which does not result from a Third-Party Claim (a “Direct
Claim”) shall be asserted by the indemnified party giving the indemnifying party prompt written notice thereof. The
failure to give such prompt written notice shall not, however, relieve the indemnifying party of its indemnification obligations,
except and only to the extent that the indemnifying party forfeits rights or defenses by reason of such failure. Such notice by
the indemnified party shall describe the Direct Claim in reasonable detail, shall include copies of all material written evidence
thereof and shall indicate the estimated amount, if reasonably practicable, of the Loss that has been or may be sustained by the
indemnified party. The indemnifying party shall have 30 days after its receipt of such notice to respond in writing to such Direct
Claim. During such 30-day period, the indemnified party shall allow the indemnifying party and its professional advisors to investigate
the matter or circumstance alleged to give rise to the Direct Claim, and whether and to what extent any amount is payable in respect
of the Direct Claim and the indemnified party shall assist the indemnifying party’s investigation by giving such information
and assistance (including access to the Acquired Companies’ premises and personnel and the right to examine and copy any
accounts, documents or records) as the indemnifying party or any of its professional advisors may reasonably request. If the indemnifying
party does not so respond within such 30-day period, the indemnifying party shall be deemed to have rejected such claim, in which
case the indemnified party shall be free to pursue such remedies as may be available to the indemnified party on the terms and
subject to the provisions of this Agreement.

 

11.5 Procedure
For Indemnification Other Claims. A claim for indemnification for any matter not involving a third-party claim may be asserted
by notice to the party from whom indemnification is sought.

 

11.6 Tax
Treatment of Indemnification Payments. All indemnification payments made under this Agreement shall be treated by the parties
as an adjustment to the Purchase Price for Tax purposes, unless otherwise required by Law.

 

11.7 Exclusive
Remedies. The Parties acknowledge and agree that their sole and exclusive remedy with respect to any and all claims (other
than claims arising from intentional fraud on the part of the party hereto in connection with the transactions contemplated by
this Agreement) for any breach of any representation, warranty, covenant, agreement or obligation set forth herein or otherwise
relating to the subject matter of this Agreement, shall be pursuant to the indemnification provisions set forth in this Article
11. In furtherance of the foregoing, each party hereby waives, to the fullest extent permitted under Law, any and all rights,
claims and causes of action for any breach of any representation, warranty, warranty, covenant, agreement or obligation set forth
herein or otherwise relating to the subject matter of this Agreement it may have against the other parties hereto and their Affiliates
and each of their respective Representatives arising under or based upon any Law, except pursuant to the indemnification provisions
set forth in this Article 11. Nothing in this Section 11.7 shall limit any Person’s right to seek and obtain
any remedy on account of intentional fraud by any party hereto.

 

		12.	GENERAL PROVISIONS.

 

12.1 Expenses.
Except as otherwise expressly provided in this Agreement, each party to this Agreement will bear its respective expenses incurred
in connection with the preparation, execution, and performance of this Agreement and the Contemplated Transactions, including
all fees and expenses of agents, representatives, counsel, and accountants. In the event of termination of this Agreement, the
obligation of each party to pay its own expenses will be subject to any rights of such party arising from a breach of this Agreement
by another party.

 

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12.2 Public
Announcements. Any public announcement or similar publicity with respect to this Agreement or the Contemplated Transactions
will be issued, if at all, at such time and in such manner as the Buyer determines. Unless consented to by the Buyer in advance
or required by Legal Requirements, prior to the Closing, the Seller shall, and shall cause the Acquired Companies to, keep this
Agreement strictly confidential and may not make any disclosure of this Agreement to any Person. The Seller and the Buyer will
consult with each other concerning the means by which the Acquired Companies’ employees, customers, and suppliers and others
having dealings with the Acquired Companies will be informed of the Contemplated Transactions, and the Buyer will have the right
to be present for any such communication.

 

12.3 Confidentiality.
Between the date of this Agreement and the Closing Date, the Buyer and the Seller will maintain in confidence, and will cause
the directors, officers, employees, agents, and advisors of the Buyer and the Acquired Companies to maintain in confidence, any
written, oral, or other information obtained in confidence from another party or an Company in connection with this Agreement
or the Contemplated Transactions, unless (a) such information is already known to such party or to others not bound by a
duty of confidentiality or such information becomes publicly available through no fault of such party, (b) the use of such
information is necessary or appropriate in making any filing or obtaining any consent or approval required for the consummation
of the Contemplated Transactions, or (c) the furnishing or use of such information is required by legal proceedings. If the
Contemplated Transactions are not consummated, each party will return or destroy as much of such written information as the other
party may reasonably request. Whether or not the Closing takes place, the Seller waives, and will upon the Buyer’s request
cause the Acquired Companies to waive, any cause of action, right, or claim arising out of the access of the Buyer or its representatives
to any trade secrets or other confidential information of the Acquired Companies except for the intentional competitive misuse
by the Buyer of such trade secrets or confidential information.

 

12.4 Notices.
All notices, amendments, waivers, or other communications under this Agreement shall be in writing and shall be deemed to be sufficient
if delivered personally, sent electronically, sent by nationally-recognized overnight or second day delivery courier or mailed
by registered or certified mail (return receipt requested), postage prepaid, to the parties at the following addresses (or at
such other address for a party as shall be specified by like notice):

 

(a) If
to the Seller, to:

 

	Name/Company:	BOQI International Medical Inc.
	Address:	Room 3601, Building A, Harbour View Palace, No. 2 Wuwu Road, Zhongshan District, Dalian, Liaoning Province, P.R. China, 116000.
	Attention:	Mr. Tiewei Song
	Telephone:	+86 18804085858
	Email:	18804085858@139.com

 

with a copy to:

 

	Name/Company:	Carter Ledyard & Milburn LLP
	Address:	2 Wall Street New York, New York  10005-2072
	Attention:	Pang Zhang-Whitaker, Esq.
	Telephone:	212.238.8844
	Facsimile:	212.732.3232
	Email:	zhang@clm.com

 

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(b) If
to the Buyer, to:

 

	Name:	Yunfei Lu
	Address:	4A1002, zone 7, one city center, Longhua district, Shenzhen, Guangdong Province, China
	Attention:	Yunfei Lu
	Telephone:	+86 13591785353
	Email:	367108282@qq.com

 

with a copy to:

 

	Name/Company:	Liaoning New Century Law Firm
	Address:	Block N, 15th floor, Liyuan building, 16 Mingze Street, Zhongshan District, Dalian city, Liaoning province, China
	Attention:	Minghao Zhu
	Telephone:	+86 13052768118
	Email:	1195832654@qq.com

 

All such notices and other communications
shall be deemed to have been delivered and received (i) in the case of personal delivery or delivery electronically, on the
date of that delivery if delivered during business hours on a Business Day or, if not delivered during business hours on a Business
Day, the first Business Day thereafter, (ii) in the case of delivery by nationally-recognized overnight or second day delivery
courier, on the Business Day delivered, and (iii) in the case of mailing, on the sixth Business Day following that mailing.
A copy of any notice or other communication sent electronically shall also be sent on the same day by registered or certified mail
(return receipt requested) or by nationally recognized overnight or second day delivery courier.

 

12.5 Further
Assurances. The parties agree (a) to furnish upon request to each other such further information, (b) to execute
and deliver to each other such other documents, and (c) to do such other acts and things, all as the other party may reasonably
request for the purpose of carrying out the intent of this Agreement and the documents referred to in this Agreement.

 

12.6 Waiver.
The rights and remedies of the parties to this Agreement are cumulative and not alternative. Neither the failure nor any delay
by any party in exercising any right, power, or privilege under this Agreement or the documents referred to in this Agreement
will operate as a waiver of such right, power, or privilege, and no single or partial exercise of any such right, power, or privilege
will preclude any other or further exercise of such right, power, or privilege or the exercise of any other right, power, or privilege.
To the maximum extent permitted by applicable law, (a) no claim or right arising out of this Agreement or the documents referred
to in this Agreement can be discharged by one party, in whole or in part, by a waiver or renunciation of the claim or right unless
in writing signed by the other party; (b) no waiver that may be given by a party will be applicable except in the specific
instance for which it is given; and (c) no notice to or demand on one party will be deemed to be a waiver of any obligation
of such party or of the right of the party giving such notice or demand to take further action without notice or demand as provided
in this Agreement or the documents referred to in this Agreement.

 

12.7 Entire
Agreement and Modification. This Agreement supersedes all prior agreements between the parties with respect to its subject
matter and constitutes (along with the documents referred to in this Agreement) a complete and exclusive statement of the
terms of the agreement between the parties with respect to its subject matter. This Agreement may not be amended except by a written
agreement executed by the party to be charged with the amendment.

 

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12.8 Assignments,
Successors, and no Third-Party Rights. Neither party may assign any of its rights under this Agreement without the prior consent
of the other parties, except that the Buyer may assign any of its rights under this Agreement to any Subsidiary of the Buyer.
Subject to the preceding sentence, this Agreement will apply to, be binding in all respects upon, and inure to the benefit of
the successors and permitted assigns of the parties. Nothing expressed or referred to in this Agreement will be construed to give
any Person other than the parties to this Agreement any legal or equitable right, remedy, or claim under or with respect to this
Agreement or any provision of this Agreement. This Agreement and all of its provisions and conditions are for the sole and exclusive
benefit of the parties to this Agreement and their successors and assigns.

 

12.9 Severability.
If any provision of this Agreement is held invalid or unenforceable by any court of competent jurisdiction, the other provisions
of this Agreement will remain in full force and effect. Any provision of this Agreement held invalid or unenforceable only in
part or degree will remain in full force and effect to the extent not held invalid or unenforceable.

 

12.10 Section
Headings, Construction.

 

(a) All
words used in this Agreement will be construed to be of such gender or number as the circumstances require. Unless otherwise expressly
provided, the word “including” does not limit the preceding words or terms. The words “herein”, “hereof”,
“hereunder”, “hereby”, “hereto”, “hereinafter”, and other words of similar import
refer to this Agreement as a whole, including any schedules and exhibits, as the same may from time to time be amended, modified,
supplemented or restated, and not to any particular article, section, subsection, paragraph, subparagraph or clause contained in
this Agreement. All references to articles, sections, subsections, clauses, paragraphs, schedules and exhibits mean such provisions
of this Agreement and the schedules and exhibits attached to this Agreement, except where otherwise stated. The title of and the
article, section and paragraph headings in this Agreement are for convenience of reference only and shall not govern or affect
the interpretation of any of the terms or provisions of this Agreement.

 

(b) Where
specific language is used to clarify by example a general statement contained herein, such specific language shall not be deemed
to modify, limit or restrict in any manner the construction of the general statement to which it relates. The language used in
this Agreement has been chosen by the parties to express their mutual intent, each party has been represented by legal counsel
with respect to, and has had substantial input in, the drafting of this Agreement, and no rule of strict construction shall be
applied against any party. Unless expressly provided otherwise, the measure of a period of one month or year for purposes of this
Agreement shall be that date of the following month or year corresponding to the starting date, provided that if no corresponding
date exists, the measure shall be that date of the following month or year corresponding to the next day following the starting
date. For example, one month following February 18 is March 18, and one month following March 31 is May 1.

 

(c) References
to “dollars” or “$” mean United States Dollars.

 

12.11 Time
of Essence. With regard to all dates and time periods set forth or referred to in this Agreement, time is of the essence.

 

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12.12 Governing
Law; Waiver of Jury Trial; Jurisdiction.

 

(a) All
questions concerning the construction, interpretation and validity of this Agreement shall be governed by and construed and enforced
in accordance with the domestic laws of the State of Delaware, without giving effect to any choice or conflict of law provision
or rule (whether in the State of Delaware or any other jurisdiction) that would cause the application of the laws of any jurisdiction
other than the State of Delaware. In furtherance of the foregoing, the internal law of the State of Delaware shall control the
interpretation and construction of this Agreement, even if under the State of Delaware’s choice of law or conflict of law
analysis, the substantive law of some other jurisdiction would ordinarily or necessarily apply.

 

(b) BECAUSE
DISPUTES ARISING IN CONNECTION WITH COMPLEX FINANCIAL TRANSACTIONS ARE MOST QUICKLY AND ECONOMICALLY RESOLVED BY AN EXPERIENCED
AND EXPERT PERSON AND THE PARTIES WISH APPLICABLE LAWS TO APPLY (RATHER THAN ARBITRATION RULES), THE PARTIES DESIRE THAT THEIR
DISPUTES BE RESOLVED BY A JUDGE APPLYING SUCH APPLICABLE LAWS. THEREFORE, TO ACHIEVE THE BEST COMBINATION OF THE BENEFITS OF THE
JUDICIAL SYSTEM, EACH PARTY HERETO IRREVOCABLY WAIVES ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, SUIT OR PROCEEDING BASED UPON OR
ARISING OUT OF THIS AGREEMENT OR THE RELATED DOCUMENTS OR ANY DEALINGS BETWEEN THE PARTIES HERETO RELATING TO THE SUBJECT MATTER
HEREOF OR THEREOF. THE SCOPE OF THIS WAIVER IS INTENDED TO BE ALL-ENCOMPASSING OF ANY AND ALL DISPUTES THAT MAY BE FILED IN ANY
COURT AND THAT RELATE TO THE SUBJECT MATTER OF THIS AGREEMENT OR THE RELATED DOCUMENTS, INCLUDING, CONTRACT CLAIMS, TORT CLAIMS,
BREACH OF DUTY CLAIMS, AND ALL OTHER COMMON LAW AND STATUTORY CLAIMS. EACH PARTY HERETO ACKNOWLEDGES THAT THIS WAIVER IS A MATERIAL
INDUCEMENT TO ENTER INTO THIS AGREEMENT. EACH PARTY HAS REVIEWED THIS WAIVER WITH ITS RESPECTIVE LEGAL COUNSEL, AND KNOWINGLY AND
VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH SUCH LEGAL COUNSEL. IN THE EVENT OF LITIGATION, THIS AGREEMENT
MAY BE FILED AS A WRITTEN CONSENT TO A TRIAL BY THE COURT.

 

(c) EACH
PARTY HEREBY IRREVOCABLY AND UNCONDITIONALLY SUBMITS FOR HIMSELF OR ITSELF AND HIS OR ITS PROPERTY, TO THE JURISDICTION OF ANY
DELAWARE STATE COURT OR FEDERAL COURT OF THE UNITED STATES OF AMERICA SITTING IN NEW CASTLE COUNTY IN THE STATE OF DELAWARE, AND,
EFFECTIVE AS OF THE CLOSING, TO THE JURISDICTION OF ANY OTHER COURT IN ANY OTHER JURISDICTION IN WHICH AN ACTION IS BROUGHT AGAINST
A PARTY TO THIS AGREEMENT BY A THIRD PARTY ASSERTING A CLAIM AGAINST WHICH THE DEFENDANT IS ENTITLED UNDER THIS AGREEMENT TO BE
INDEMNIFIED, IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE RELATED DOCUMENTS OR FOR RECOGNITION
OR ENFORCEMENT OF ANY JUDGMENT. EACH PARTY HEREBY IRREVOCABLY AND UNCONDITIONALLY AGREES THAT ALL CLAIMS IN RESPECT OF ANY SUCH
ACTION OR PROCEEDING MAY BE HEARD AND DETERMINED IN ANY SUCH DELAWARE STATE OR FEDERAL COURT. EACH PARTY AGREES THAT A FINAL JUDGMENT
IN ANY SUCH ACTION OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY
OTHER MANNER PROVIDED BY LAW.

 

(d) EACH
PARTY IRREVOCABLY AND UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT SUCH PARTY MAY LEGALLY AND EFFECTIVELY DO SO, ANY OBJECTION
THAT SUCH PARTY MAY HAVE OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY SUIT, ACTION OR PROCEEDING ARISING OUT OF OR RELATING
TO THIS AGREEMENT OR THE RELATED DOCUMENTS IN ANY DELAWARE STATE OR FEDERAL COURT SITTING IN NEW CASTLE COUNTY IN THE STATE OF
DELAWARE OR SUCH OTHER COURT AS IS PROVIDED FOR IN THE PRECEDING PARAGRAPH. EACH PARTY IRREVOCABLY WAIVES TO THE FULLEST EXTENT
PERMITTED BY LAW, THE DEFENSE OF AN INCONVENIENT FORUM TO THE MAINTENANCE OF SUCH ACTION OR PROCEEDING IN ANY SUCH COURT.

 

    30

     

    

 

12.13 Counterparts;
Facsimile and Electronic Signatures. This Agreement may be executed in two or more counterparts, each of which shall be deemed
an original but all of which together shall constitute one and the same instrument. Facsimile and electronic counterpart signatures
to this Agreement shall be acceptable and binding.

 

12.14 Representation
by Counsel. Each of the parties hereto has been represented or has had the opportunity to be represented by legal counsel
of their own choice.

 

[Signature Pages Follow]

 

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

 

BUYER:

 

	
        BUYER:
	 
	 	 
	YUNFEI LU 	 
	 	 
	/s/ Yunfei Lu 	 
	 	 
	SELLER:	 
	BOQI INTERNATIONAL MEDICAL, INC. 	 
	 	 
	By:	/s/
    Tiewei Song	 
	Name: 	Tiewei Song	 
	Title	Chief Executive Officer

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