Document:

EXHIBIT 10.2

 

SHAREHOLDER PLEDGE AGREEMENT

 

SHAREHOLDER PLEDGE
AGREEMENT (this “Agreement”), dated as of November 1, 2018, made by and among FarmNet Limited, a Cayman
Islands exempted company (the “Pledgor”), Farmmi, Inc., an exempted company incorporated under the laws of the
Cayman Islands with offices located at No. 307, Tianning Industrial Area, Lishui, Zhejiang Province, People’s Republic of
China 323000 (the “Company”) and the secured parties listed on the signature pages hereof (collectively, the
“Secured Parties” and each, individually, a “Secured Party”).

 

WITNESSETH:

 

WHEREAS, the Company
and each of the Secured Parties are parties to the Securities Purchase Agreement, dated as of November 1, 2018 (as amended, restated
or otherwise modified from time to time, the “Securities Purchase Agreement”), pursuant to which the Company
has agreed to sell, and the Secured Parties have agreed to purchase, severally and not jointly, the Notes (as defined in the Securities
Purchase Agreement) and the Warrants (as defined Securities Purchase Agreement); and

 

WHEREAS, in order to
induce the Secured Parties to purchase, severally and not jointly, the Notes and Warrants as provided for in the Securities Purchase
Agreement, the Pledgor has agreed to grant each Secured Party a separate, continuing security interest in and to the Pledged Collateral
(as defined below) in order to secure the prompt and complete payment, observance and performance of the Secured Obligations (as
defined below).

 

NOW, THEREFORE, for and
in consideration of the recitals made above and other good and valuable consideration, the receipt, sufficiency and adequacy of
which are hereby acknowledged, the parties hereto agree as follows:

 

SECTION 1.         Definitions
and Rules of Interpretation.

 

(a)          Definitions.
Reference is made to the Securities Purchase Agreement and the Notes for a statement of terms thereof. All terms used in this Agreement
which are defined in the Securities Purchase Agreement or the Notes or in Article 8 or Article 9 of the Uniform Commercial Code
as in effect from time to time in the State of New York (the “Code”) and which are not otherwise defined herein
shall have the same meanings herein as set forth therein; provided, that terms used herein which are defined in the Code
as in effect in the State of New York on the date hereof shall continue to have the same meaning notwithstanding any replacement
or amendment of such statute except as the Secured Parties holding a majority of the Secured Obligations then outstanding (the
“Required Holders”) may otherwise determine. In the event that any such term is defined in both the Securities
Purchase Agreement, the Notes and the Code, the definition of such term in the Securities Purchase Agreement or the Notes shall
control.

 

(b)          Rules
of Interpretation. Except as otherwise expressly provided in this Agreement, the following rules of interpretation apply to
this Agreement: (i) the singular includes the plural and the plural includes the singular; (ii) “or” and “any”
are not exclusive and “include” and “including” are not limiting; (iii) a reference to any agreement or
other contract includes permitted supplements and amendments; (iv) a reference to a law includes any amendment or modification
to such law and any rules or regulations issued thereunder; (v) a reference to a person includes its permitted successors and assigns;
and (vi) a reference in this Agreement to an Article, Section, Annex, Exhibit or Schedule is to the Article, Section, Annex, Exhibit
or Schedule of this Agreement.

 

     

     

    

 

SECTION 2.         Pledge
and Grant of Security Interest. As collateral security for the prompt and complete payment and due performance and observance
when due of the Secured Obligations (as defined in Section 3 hereof) when due, the Pledgor hereby pledges, charges and assigns
and grants to each Secured Party a separate, continuing security interest in, and Lien on, all of his right, title and interest
in and to the following (collectively, the “Pledged Collateral”):

 

(a)          The
Pledgor’s Ordinary Shares of the Company as set forth in Schedule I (as such Schedule is amended from time to time
in accordance with the terms hereof), and all future, issued and outstanding share capital, or other equity or investment securities
of, or partnership, membership, or joint venture interests in, the Company that are required to be pledged from time to time in
accordance with the terms hereof including without limitation, any Additional Pledged Shares required to be pledged in accordance
with Section 4(a) of this Agreement, whether now owned or hereafter acquired or arising by the Pledgor and whether or not evidenced
or represented by any share certificate, certificated security or other instrument, together with the certificates representing
such equity interests, all options and other rights, contractual or otherwise, in respect thereof and all dividends, distributions,
cash, instruments, investment property and any other property (including, but not limited to, any share dividend and any distribution
in connection with a share split) from time to time received, receivable or otherwise distributed in respect of or in exchange
for any or all of the foregoing and all cash and noncash proceeds thereof (collectively, the “Pledged Shares”);

 

(b)          all
present and future increases, profits, combinations, reclassifications, and substitutes and replacements for all or part of the
foregoing Pledged Shares heretofore described;

 

(c)          all
investment property, financial assets, securities, share capital, other equity interests, share options and commodity contracts
of the Pledgor, all notes, debentures, bonds, promissory notes or other evidences of indebtedness payable or owing to the Pledgor,
and all other assets now or hereafter received or receivable with respect to the foregoing Pledged Shares;

 

(d)          all
security entitlements of the Pledgor in any and all of the foregoing Pledged Shares; and

 

(e)          all
products and proceeds (including proceeds of proceeds) of any and all of the foregoing Pledged Shares;

 

in each case, wherever located, whether
now owned or hereafter acquired or arising by the Pledgor and howsoever his interest therein may arise or appear (whether by ownership,
security interest, Lien, claim or otherwise).

 

     

     

    

 

SECTION 3.        Security
for Secured Obligations. The security interest created hereby in the Pledged Collateral constitutes continuing collateral security
for the prompt and complete payment and due performance and observance of all of the following Secured Obligations (the “Secured
Obligations”):

 

(a)          all
liabilities, obligations, or undertakings owing by the Company to the Secured Parties of any kind or description arising out of
or outstanding under, advanced or issued pursuant to, or evidenced by the Securities Purchase Agreement, the Notes or any of the
other Transaction Documents, and

 

(b)          all
liabilities, obligations, or undertakings owing by Pledgor to the Secured Parties under this Agreement, in each case with respect
to the foregoing liabilities, obligations or undertakings, irrespective of whether for the payment of money, whether direct or
indirect, absolute or contingent, liquidated or unliquidated, determined or undetermined, due or to become due, voluntary or involuntary,
whether now existing or hereafter arising, and including all interest, costs, indemnities, fees (including attorney’s fees),
and expenses (including interest, costs, indemnities, fees, and expenses that, but for the provisions of the Bankruptcy Code, would
have accrued irrespective of whether a claim therefor is allowed) and any and all other amounts which Company or Pledgor is required
to pay pursuant to any of the foregoing, by law, or otherwise.

 

SECTION 4.         Delivery
of the Pledged Collateral.

 

(a)          The
fair market value of the Pledged Shares held by any Secured Party as of any time of determination shall equal the product of (i)
the aggregate number of Ordinary Shares pledged to such Secured Party hereunder and (ii) the quotient of (x) the sum of the two
(2) lowest VWAP (as defined in the Notes) of the Ordinary Shares during the five (5) Trading Day period immediately prior to such
time of determination, divided by (y) two (2) (subject to adjustment for any share splits, share dividends, share combinations,
recapitalizations and similar events during such measuring period) (the “Pledged Share Value”) and shall at
all times equal or exceed the aggregate principal amount outstanding under the Note (whether or not then due and payable) of such
Secured Party. The Pledgor shall, within five (5) Business Days following the receipt of notice from such Secured Party that the
Pledged Share Value is less than the aggregate principal amount outstanding under the Note of such Secured Party, deliver additional
shares (“Additional Pledged Shares”) to such Secured Party in accordance with the terms of this Section 4
such that the Pledged Share Value (taking into account the fair market value of such Additional Pledged Shares) shall be no less
than the aggregate principal amount outstanding under the Note.

 

     

     

    

 

(b)          In
accordance with the terms and conditions set forth in the Securities Purchase Agreement, the Pledgor shall deliver to each of the
Secured Parties as of date hereof a certificate or certificates representing the Pledged Shares to be initially held by such Security
Party in such amounts as set forth on Schedule I attached hereto accompanied by duly executed instruments of transfer or
assignment or undated share powers executed in blank with medallion guarantees, all in form and substance reasonably satisfactory
to such Secured Party. As of any given date, with respect to all other promissory notes, certificates and instruments constituting
Pledged Collateral from time to time or required to be pledged to the Secured Parties pursuant to the terms of this Agreement or
the Securities Purchase Agreement, including without limitation, any Additional Pledged Shares required to be pledged in accordance
with Section 4(a) above (collectively the “Additional Collateral”) such amount equal to a fraction (i) the numerator
of which is the principal amount of such Secured Party’s Note on such given date and (ii) the denominator of which is the
aggregate principal amount of all Notes outstanding as of such given date (the “Secured Party Pro Rata Amount”)
of such Additional Collateral shall be delivered to each Secured Party promptly upon receipt thereof by or on behalf of the Pledgor.
All such promissory notes, certificates and instruments shall be held by each Secured Party pursuant hereto and shall be delivered
in suitable form for transfer by delivery or shall be accompanied by duly executed instruments of transfer or assignment or undated
share powers executed in blank, all in form and substance reasonably satisfactory to the Secured Parties. If any Pledged Collateral
consists of uncertificated securities, unless the immediately following sentence is applicable thereto, the Pledgor shall cause
the applicable Secured Party (or its designated custodian, nominee or other designee) to become the registered holder thereof,
or cause each issuer of such securities to agree in an authenticated record (in form and substance satisfactory to the applicable
Secured Party) that it will comply with instructions originated by the applicable Secured Party (or its designated custodian, nominee
or other designee), with respect to such securities without further consent by the Pledgor. If any Pledged Collateral consists
of security entitlements, the Pledgor shall transfer the applicable Secured Party Pro Rata Amount of such security entitlements
to each Secured Party (or its designated custodian, nominee or other designee) or cause the applicable securities intermediary
to agree that it will comply with entitlement orders by such Secured Party (or its designated custodian, nominee or other designee)
without further consent by the Pledgor.

 

(c)          Promptly
upon the receipt by the Pledgor of any Additional Collateral and contemporaneously with any delivery of Additional Pledged Shares
in accordance with Section 4(a), a Pledge Amendment, duly executed by the Pledgor, in substantially the form of Annex I
hereto (a “Pledge Amendment”), shall be delivered to each Secured Party, in respect of the Additional Collateral
which is or are to be pledged pursuant to this Agreement and the Securities Purchase Agreement, which Pledge Amendment shall from
and after delivery thereof constitute part of Schedule I hereto. The Pledgor hereby authorizes each Secured Party to attach
each Pledge Amendment to this Agreement and agrees that all promissory notes, certificates or instruments listed on any Pledge
Amendment shall for all purposes hereunder constitute Pledged Collateral and the Pledgor shall be deemed upon delivery thereof
to have made the representations and warranties set forth in Section 6 with respect to such Additional Collateral.

 

(d)          If
the Pledgor shall receive, by virtue of the Pledgor’s being or having been an owner of any Pledged Collateral, any (i) share
certificate (including, without limitation, any certificate representing a share dividend or distribution in connection with any
increase or reduction of capital, reclassification, merger, consolidation, sale of assets, combination of shares, share split,
spin-off or split-off), promissory note or other instrument, (ii) option or right, whether as an addition to, substitution for,
or in exchange for, any Pledged Collateral, or otherwise, (iii) dividends payable in cash (except such dividends permitted
to be retained by the Pledgor pursuant to Section 8 hereof) or in securities or other property or (iv) dividends, distributions,
cash, instruments, investment property and other property in connection with a partial or total liquidation or dissolution or in
connection with a reduction of capital, capital surplus or paid-in surplus (collectively, the “Distribution Collateral”),
the Pledgor shall hold such Distribution Collateral in trust for the benefit of the Secured Parties, shall segregate it from the
Pledgor’s other property and shall deliver the applicable Secured Party Pro Rata Amount of such Distribution Collateral forthwith
(but in any event within five (5) Business Days) to each Secured Party in the exact form received, with any necessary endorsement
and/or appropriate share powers duly executed in blank, to be held by the each Secured Party as Pledged Collateral and as further
collateral security for the Secured Obligations.

 

     

     

    

 

(e)          So
long as no Event of Default (as defined in the Notes) has occurred or is continuing, on the later to occur of (i) the final Adjustment
Date (as defined in the Notes) and (ii) the last business day of each fiscal quarter of the Company beginning with the fiscal quarter
ended December 31, 2018, if both (x) the number of Ordinary Shares issuable pursuant to the Notes and Warrants then outstanding
of a Secured Party is less than the number of Pledged Shares then held by such Secured Party and (y) the Pledged Share Value of
the Pledged Shares held by such Secured Party exceeds 110% of the Secured Obligations of such Secured Party then outstanding (whether
or not then due and payable), then no later than the tenth (10th) Trading Day following receipt of written notice from the Pledgor,
such Secured Party shall release such number of Pledged Shares to the Pledgor equal to the difference of (A) the number of Pledged
Shares then held by such Secured Party and (B) the number of Ordinary Shares issuable pursuant to the Notes and Warrants then outstanding
of such Secured Party.

 

SECTION 5.         Taxes.

 

(a)          All
payments made by the Pledgor hereunder or under any other Transaction Document shall be made in accordance with the terms of the
respective Transaction Document and shall be made without set-off, counterclaim, deduction or other defense. All such payments
shall be made free and clear of and without deduction for any present or future taxes, levies, imposts, deductions, charges or
withholdings, and all liabilities with respect thereto, excluding taxes imposed on the net income of any Secured Party by the jurisdiction
in which such Secured Party is organized or where it has its principal lending office (all such nonexcluded taxes, levies, imposts,
deductions, charges, withholdings and liabilities, collectively or individually, “Taxes”). If the Pledgor shall
be required to deduct or to withhold any Taxes from or in respect of any amount payable hereunder or under any other Transaction
Document:

 

(i)          the
amount so payable shall be increased to the extent necessary so that after making all required deductions and withholdings (including
Taxes on amounts payable to any Secured Party pursuant to this sentence) each Secured Party receives an amount equal to the sum
it would have received had no such deduction or withholding been made,

 

(ii)         the
Pledgor shall make such deduction or withholding,

 

(iii)        the
Pledgor shall pay the full amount deducted or withheld to the relevant taxation authority in accordance with applicable law, and

 

(iv)        as
promptly as possible thereafter, the Pledgor shall send the Secured Parties an official receipt (or, if an official receipt is
not available, such other documentation as shall be satisfactory to the Secured Parties, as the case may be) showing payment. 
In addition, the Pledgor agrees to pay any present or future stamp or documentary taxes or any other excise or property taxes,
charges or similar levies that arise from any payment made hereunder or from the execution, delivery, registration or enforcement
of, or otherwise with respect to, this Agreement or any other Transaction Document (collectively, “Other Taxes”).

 

     

     

    

 

(b)          The
Pledgor hereby indemnifies and agrees to hold each Secured Party and all of its officers, directors, Affiliates, employees, attorneys,
consultants) (each an “Indemnified Party”) harmless from and against Taxes or Other Taxes (including, without
limitation, any Taxes or Other Taxes imposed by any jurisdiction on amounts payable under this Section 5) paid by any
Indemnified Party  as a result of any payment made hereunder or from the execution, delivery, registration or enforcement
of, or otherwise with respect to, this Agreement or any other Transaction Document, and any liability (including penalties, interest
and expenses for nonpayment, late payment or otherwise) arising therefrom or with respect thereto, whether or not such Taxes or
Other Taxes were correctly or legally asserted.  This indemnification shall be paid within 30 days from the date on which
such Secured Party makes written demand therefor, which demand shall identify the nature and amount of such Taxes or Other Taxes.

 

(c)          If
the Pledgor fails to perform any of its obligations under this Section 5, the Pledgor shall indemnify each Indemnified
Party for any taxes, interest or penalties that may become payable as a result of any such failure. The obligations of the Pledgor
under this Section 5 shall survive the termination of this Pledge Agreement and the payment of the Obligations and
all other amounts payable hereunder.

 

SECTION 6.         Representations
and Warranties. The Pledgor represents and warrants as follows:

 

(a)          The
Pledgor has all requisite power and authority to execute, deliver and perform its obligations under this Agreement. This Agreement
has been duly executed and delivered by the Pledgor and constitutes a legal, valid and binding obligation of the Pledgor, enforceable
against the Pledgor in accordance with its terms, except (a) as such enforceability may be limited by applicable bankruptcy, insolvency,
reorganization, fraudulent conveyance, moratorium or similar laws now or hereafter in effect relating to, or affecting generally,
the enforcement of creditors’ and other obligees’ rights and (b) where the remedy of specific performance or other
forms of equitable relief may be subject to certain equitable defenses and principles and to the discretion of the court before
which the proceeding may be brought.

 

(b)          The
Pledged Shares have been duly authorized and validly issued, are fully paid and nonassessable and the holders thereof are not entitled
to any preemptive first refusal or other similar rights. All other shares constituting Pledged Collateral will be, when issued,
duly authorized and validly issued, fully paid and nonassessable.

 

(c)          The
Pledgor is and will be at all times the sole legal and beneficial owner of the Pledged Collateral free and clear of any Lien, security
interest, option or other charge or encumbrance except for the security interest and Lien created by this Agreement or any Permitted
Liens. No other Persons other than the Secured Parties has control or possession of all or any part of the Pledged Collateral,
except as permitted by this Agreement.

 

     

     

    

 

(d)          The
exercise by any Secured Party of any of its rights and remedies hereunder will not contravene any law or any contractual restriction
binding on or affecting the Pledgor or any of the properties of the Pledgor and will not result in or require the creation of any
Lien, security interest or other charge or encumbrance upon or with respect to any of the properties of the Pledgor other than
pursuant to this Agreement and the other Transaction Documents, as defined in the Securities Purchase Agreement, the “Transaction
Documents”).

 

(e)          No
authorization or approval or other action by, and no notice to or filing with, any governmental authority is required to be obtained
or made by the Pledgor for (i) the due execution, delivery and performance by the Pledgor of this Agreement, (ii) the grant by
the Pledgor, or the perfection, of the security interest and Lien purported to be created hereby in the Pledged Collateral or (iii)
the exercise by any Secured Party of any of its rights and remedies hereunder, except as may be required in connection with any
sale of any Pledged Collateral by laws affecting the offering and sale of securities generally.

 

(f)          This
Agreement creates a valid security interest and Lien in favor of the Secured Parties in the Pledged Collateral, as security for
the Secured Obligations. Each Secured Party having possession of the certificates representing the Pledged Shares and all other
certificates, instruments and cash constituting Pledged Collateral from time to time results in the perfection of such security
interest and Lien. Such security interest and Lien is, or in the case of Pledged Collateral in which the Pledgor obtains rights
after the date hereof, will be, a perfected first priority Lien, subject only to the Permitted Liens. All action necessary or desirable
to perfect and protect such security interest and Lien has been duly taken, except for such Secured Party’s having possession
of certificates, instruments and cash constituting Pledged Collateral after the date hereof. Each Secured Party has a perfected
first priority Lien in all Pledged Collateral that are uncertificated securities (if any) pledged to it hereunder that are in existence
on the date hereof.

 

(g)          Pledgor’s
legal name (as it appears on the Pledgor’s passport) and address of all residences, each as in effect on the date hereof,
are indicated next to his name in Schedule I. Schedule I also lists the Pledgor’s legal name and address of
all residences at any time during the four months preceding the date hereof, if different from those referred to in the preceding
sentence.

 

(h)          All
information set forth herein, including the schedules annexed hereto, and all information contained in any documents, schedules
and lists previously delivered to any Secured Party relating to the Pledged Collateral, is accurate and complete.

 

     

     

    

 

(i)           Pledgor
(i) has adequate means to obtain on a continuing basis (A) from the Company, information concerning the Company and its financial
condition and affairs and (B) from other reliable sources, such other information as he deems material in deciding to provide this
Agreement (“Other Information”), and has full and complete access to the Company’s books and records and
to such Other Information; (ii) is not relying on any Secured Party or its employees, officers, directors, agents or other representatives
or Affiliates, to provide any such information, now or in the future; (iii) has been furnished with, and reviewed the terms of,
the Transaction Documents as he has requested, is executing this Agreement freely and deliberately, and understands the obligations
and financial risk undertaken by providing this Agreement; (iv) has relied solely on his own independent investigation, appraisal
and analysis of the Company, its financial condition and affairs, the Other Information, and such other matters as he deems material
in deciding to provide this Agreement and is fully aware of the same; and (v) has not depended or relied on any Secured Party or
its employees, officers, directors, agents or other representatives or Affiliates, for any information whatsoever concerning the
Company or its financial condition and affairs or any other matters material to Pledgor’s decision to provide this Agreement,
or for any counseling, guidance, or special consideration or any promise therefor with respect to such decision. Pledgor agrees
that no Secured Party has any duty or responsibility whatsoever, now or in the future, to provide to Pledgor any information concerning
the Company or its financial condition and affairs, or any Other Information, other than as expressly provided herein, and that,
if such Pledgor receives any such information from any Secured Party or its employees, officers, directors, agents or Affiliates,
such Pledgor will independently verify the information and will not rely on such Secured Party or its employees, officers, directors,
agents or other representatives or Affiliates, with respect to such information.

 

SECTION 7.         Covenants
as to the Pledged Collateral. So long as any Secured Obligations shall remain outstanding, the Pledgor will, unless the Required
Holders, shall otherwise consent in writing:

 

(a)          keep
adequate records concerning the Pledged Collateral and permit the Secured Parties, or any designees or representatives thereof
at any time or from time to time during reasonable hours after prior written notice to examine and make copies of and abstracts
from such records;

 

(b)          at
the Pledgor’s expense, promptly deliver to each Secured Party a copy of each material notice or other material communication
received by the Pledgor in respect of the Pledged Collateral;

 

(c)          at
the Pledgor’s expense, defend each Secured Party’s right, title and security interest in and to the Pledged Collateral
against the claims of any Person;

 

(d)          at
the Pledgor’s expense, at any time and from time to time, promptly execute and deliver all further instruments and documents
and take all further action that may be necessary or desirable or that any Secured Party may reasonably request in order to (i) perfect
and protect, or maintain the perfection of, the security interest and Lien purported to be created hereby, (ii) enable such Secured
Party to exercise and enforce its rights and remedies hereunder in respect of the Pledged Collateral or (iii) otherwise effect
the purposes of this Agreement, including, without limitation, delivering to such Secured Party irrevocable proxies in respect
of the Pledged Collateral;

 

(e)          not
sell, assign (by operation of law or otherwise), exchange or otherwise dispose of any Pledged Collateral or any interest therein
except as expressly permitted by the Securities Purchase Agreement or the Notes;

 

(f)          not
permit, create or suffer to exist any Lien, upon or with respect to any Pledged Collateral except for the Lien created hereby or
for any Permitted Lien;

 

     

     

    

 

(g)          not
make or consent to any amendment or other modification or waiver with respect to any Pledged Collateral, organizational documents
of the Company or enter into any agreement or permit to exist any restriction with respect to any Pledged Collateral;

 

(h)          except
as expressly permitted by the Securities Purchase Agreement, not permit the issuance of (i) any additional shares of any class
of share capital, partnership interests, member interests or other equity of the Company, (ii) any securities convertible
voluntarily by the holder thereof or automatically upon the occurrence or non-occurrence of any event or condition into, or exchangeable
for, any such shares of share capital or (iii) any warrants, options, contracts or other commitments entitling any Person to purchase
or otherwise acquire any such shares of share capital;

 

(i)          not
change his name or principal residence without giving the Secured Parties at least thirty (30) days prior written notice thereof;

 

(j)          not
issue any share certificate, certificated security or other instrument to evidence or represent any share capital, any partnership
interest or membership interest described in Schedule I hereto; and

 

(k)          not
take or fail to take any action which would in any manner impair the validity or enforceability of each Secured Party’s security
interest in and Lien on any Pledged Collateral.

 

SECTION 8.         Voting
Rights, Dividends, Etc. in Respect of the Pledged Collateral.

 

(a)          So
long as no Event of Default shall have occurred and be continuing:

 

(i)          the
Pledgor may exercise any and all voting and other consensual rights pertaining to any Pledged Collateral for any purpose not inconsistent
with the terms of this Agreement, the Securities Purchase Agreement or the Notes;

 

(ii)         the
Pledgor may receive and retain any and all dividends, interest or other distributions paid in respect of the Pledged Collateral
to the extent permitted by the Securities Purchase Agreement; provided, however, that any and all (A) dividends and
interest paid or payable other than in cash in respect of, and instruments and other property received, receivable or otherwise
distributed in respect of or in exchange for, any Pledged Collateral, (B) dividends and other distributions paid or payable in
cash in respect of any Pledged Collateral in connection with a partial or total liquidation or dissolution or in connection with
a reduction of capital, capital surplus or paid-in surplus, and (C) cash paid, payable or otherwise distributed in redemption of,
or in exchange for, any Pledged Collateral, together with any dividend, distribution, interest or other payment which at the time
of such dividend, distribution, interest or other payment was not permitted by the Securities Purchase Agreement, shall be, and
shall forthwith (but in any event within five (5) Business Days) be delivered to each Secured Party in proportion to their Secured
Party Pro Rata Amount to hold as, Pledged Collateral and shall, if received by the Pledgor, be received in trust for the benefit
of such Secured Party, shall be segregated from the other property or funds of the Pledgor, and shall be forthwith (but in any
event within five (5) Business Days) delivered to such Secured Party in the exact form received with any necessary indorsement
and/or appropriate share powers duly executed in blank, to be held by such Secured Party as Pledged Collateral and as further collateral
security for the Secured Obligations; and

 

     

     

    

 

(iii)        each
Secured Party will execute and deliver (or cause to be executed and delivered) to the Pledgor all such proxies and other instruments
as the Pledgor may reasonably request for the purpose of enabling the Pledgor to exercise the voting and other rights which it
is entitled to exercise pursuant to paragraph (i) of this Section 8(a) and to receive the dividends, distributions, interest
and other payments which it is authorized to receive and retain pursuant to paragraph (ii) of this Section 8(a), in each
case, to the extent that such Secured Party has possession of such Pledged Collateral.

 

(b)          Upon
the occurrence and during the continuance of an Event of Default (as defined in the Notes) (an “Event of Default”),
:

 

(i)          all
rights of the Pledgor to exercise the voting and other consensual rights which he would otherwise be entitled to exercise pursuant
to paragraph (i) of subsection (a) of this Section 8, and to receive the dividends, distributions, interest and other
payments which he would otherwise be authorized to receive and retain pursuant to paragraph (ii) of subsection (a) of this
Section 8, shall cease, and all such rights shall thereupon become vested in each Secured Party which shall thereupon
have the sole right to exercise such voting and other consensual rights and to receive and hold as Pledged Collateral such dividends,
distributions, interest and other payments;

 

(ii)         without
limiting the generality of the foregoing, each Secured Party may at his option exercise any and all rights of conversion, exchange,
subscription or any other rights, privileges or options pertaining to any of the Pledged Collateral as if it were the absolute
owner thereof, including, without limitation, the right to exchange, in its discretion, any and all of the Pledged Collateral upon
the merger, consolidation, reorganization, recapitalization or other adjustment of any issuer of the Pledged Collateral or upon
the exercise by any issuer of the Pledged Collateral of any right, privilege or option pertaining to any Pledged Collateral, and,
in connection therewith, to deposit and deliver any and all of the Pledged Collateral with any committee, depository, transfer
agent, registrar or other designated agent upon such terms and conditions as the Secured Parties may determine; and

 

(iii)        all
dividends, distributions, interest and other payments which are received by the Pledgor contrary to the provisions of paragraph
(i) of this Section 8(b) shall be received in trust for the benefit of the Secured Parties, shall be segregated from other
funds of the Pledgor, and shall be forthwith paid over to the Secured Parties in proportion to the applicable Secured Party Pro
Rata Amount as Pledged Collateral in the exact form received with any necessary indorsement and/or appropriate share powers duly
executed in blank, to be held by such Secured Party as Pledged Collateral and as further collateral security for the Secured Obligations.

 

     

     

    

 

SECTION 9.         Additional
Provisions Concerning the Pledged Collateral.

 

(a)          The
Pledgor hereby (i) authorizes the Secured Parties to file one or more financing or continuation statements, and amendments thereto,
relating to the Pledged Collateral, without the signature of the Pledgor where permitted by law, (ii) ratifies such authorization
to the extent that the Secured Parties has filed any such financing or continuation statements, or amendments thereto, without
the signature of the Pledgor prior to the date hereof and (iii) authorizes each Secured Party to execute any agreements, instruments
or other documents in the Pledgor’s name and to file such agreements, instruments or other documents that are related to
the security interest and Lien of each Secured Party in the Pledged Collateral or as provided under Article 8 or Article 9 of the
Code or any other applicable uniform commercial code or other law in any appropriate filing office. Notwithstanding anything to
the contrary contained herein, no Secured Party shall have any responsibility for the preparing, recording, filing, re-recording,
or re-filing of any financing statement (amendments and continuation statements) or other instrument in any public office.

 

(b)          The
Pledgor hereby irrevocably appoints each Secured Party as his attorney-in-fact and proxy, with full authority in the place and
stead and in his name or otherwise, from time to time in the Secured Parties’ discretion to take any action and to execute
any instrument which the Secured Parties may deem necessary or advisable to accomplish the purposes of this Agreement (subject
to the rights of the Pledgor under Section 8(a) hereof), including, without limitation, to receive, indorse and collect
all instruments made payable to the Pledgor representing any dividend, interest payment or other distribution in respect of any
Pledged Collateral and to give full discharge for the same. This power is coupled with an interest and is irrevocable until the
termination of this Agreement.

 

(c)          If
the Pledgor fails to perform any agreement or obligation contained herein, each Secured Party may perform, or cause performance
of, such agreement or obligation, and the expenses of such Secured Party incurred in connection therewith shall be payable by the
Pledgor pursuant to Section 11 hereof and shall be secured by the Pledged Collateral.

 

     

     

    

 

(d)          Other
than the exercise of reasonable care to assure the safe custody of the Pledged Collateral while held hereunder, no Secured Party
shall have any duty or liability to preserve rights pertaining thereto and shall be relieved of all responsibility for the Pledged
Collateral upon surrendering it or tendering surrender of it to any of the Pledgor. Each Secured Party shall be deemed to have
exercised reasonable care in the custody and preservation of the Pledged Collateral in its possession if the Pledged Collateral
is accorded treatment substantially equal to that which such Secured Party accords its own property, it being understood that no
Secured Party shall have responsibility for (i) ascertaining or taking action with respect to calls, conversions, exchanges, maturities,
tenders or other matters relating to any Pledged Collateral, whether or not such Secured Party has or is deemed to have knowledge
of such matters, or (ii) taking any necessary steps to preserve rights against any parties with respect to any Pledged Collateral.
Each Secured Party agrees that, with respect to any Pledged Collateral at any time or times in its possession and in which any
other Secured Party has a Lien, the Secured Party in possession of any such Pledged Collateral shall be the bailee of each other
Secured Party solely for purposes of perfecting (to the extent not otherwise perfected) each other Secured Party’s Lien in
such Pledged Collateral, provided that no Secured Party shall be obligated to obtain or retain possession of any such Pledged Collateral.
Without limiting the generality of the foregoing, Secured Parties and Pledgor hereby agree that any Secured Party that is in possession
of any Pledged Collateral at such time as the Secured Obligations owing to such Secured Party have been paid in full in cash may
deliver such Pledged Collateral to the Company or, if requested by any other Secured Party prior to such delivery, may deliver
such Pledged Collateral (unless otherwise restricted by applicable law or court order and subject in all events to the receipt
of an indemnification of all liabilities arising from such delivery) to the requesting Secured Party, without recourse to or representation
or warranty by the Secured Party in such possession. No later than the third business day after the Company’s receipt of
such Pledged Collateral, the Company shall deliver to each Secured Party with Secured Obligations then outstanding the applicable
Secured Party Pro Rata Amount of such Pledged Collateral.

 

(e)          The
powers conferred on each Secured Party hereunder are solely to protect its interest in the Pledged Collateral and shall not impose
any duty upon it to exercise any such powers. Except for the safe custody of any Pledged Collateral in its possession and the accounting
for monies actually received by it hereunder, no Secured Party shall have any duty as to any Pledged Collateral or as to the taking
of any necessary steps to preserve rights against prior parties or any other rights pertaining to any Pledged Collateral.

 

(f)          Upon
the occurrence and during the continuation of any default or Event of Default, each Secured Party may at any time in its discretion
(i) without notice to the Pledgor, transfer or register in the name of such Secured Party or any of its nominees any or all of
the Pledged Collateral, subject only to the revocable rights of the Pledgor under Section 8(a) hereof, and (ii) exchange
certificates or instruments constituting Pledged Collateral for certificates or instruments of smaller or larger denominations.

 

SECTION 10.      Remedies
Upon Event of Default. If any Event of Default shall have occurred and be continuing:

 

(a)          Each
Secured Party may exercise in respect of the Pledged Collateral, in addition to other rights and remedies provided for herein or
otherwise available to it, all of the rights and remedies of a secured party on default under the Code then in effect in the State
of New York; and without limiting the generality of the foregoing and without notice except as specified below, sell the Pledged
Collateral or any part thereof in one or more parcels at public or private sale, at any exchange or broker’s board or elsewhere,
at such price or prices and on such other terms as such Secured Party may deem commercially reasonable. The Pledgor agrees that,
to the extent notice of sale shall be required by law, at least ten (10) days’ notice to any of the Pledgor of the time and
place of any public sale or the time after which any private sale is to be made shall constitute reasonable notification. No Secured
Party shall be obligated to make any sale of Pledged Collateral regardless of notice of sale having been given. Each Secured Party
may adjourn any public or private sale by such Secured Party from time to time by announcement at the time and place fixed therefor,
and such sale may, without further notice, be made at the time and place to which it was so adjourned.

 

     

     

    

 

(b)          The
Pledgor recognizes that it may be impracticable to effect a public sale of all or any part of the Pledged Shares or any other securities
constituting Pledged Collateral and that each Secured Party may, therefore, determine to make one or more private sales of any
such securities to a restricted group of purchasers who will be obligated to agree, among other things, to acquire such securities
for its own account, for investment and not with a view to the distribution or resale thereof. The Pledgor acknowledges that any
such private sale may be at prices and on terms less favorable to the seller than the prices and other terms which might have been
obtained at a public sale and, notwithstanding the foregoing, agrees that such private sales shall be deemed to have been made
in a commercially reasonable manner and that no Secured Party shall have any obligation to delay sale of any such securities for
the period of time necessary to permit the issuer of such securities to register such securities for public sale under the Securities
Act of 1933, as amended (the “Securities Act”). The Pledgor further acknowledges and agrees that any offer to
sell such securities which has been (i) publicly advertised on a bona fide basis in a newspaper or other publication of general
circulation in the financial community of New York, New York (to the extent that such an offer may be so advertised without prior
registration under the Securities Act) or (ii) made privately in the manner described above to not less than fifteen (15) bona
fide offerees shall be deemed to involve a “public disposition” for the purposes of Section 9-610 of the Code (or
any successor or similar, applicable statutory provision) as then in effect in the State of New York, notwithstanding that such
sale may not constitute a “public offering” under the Securities Act, and that any Secured Party may, in such event,
bid for the purchase of such securities.

 

(c)          Any
cash held by any Secured Party as Pledged Collateral and all cash proceeds received by such Secured Party in respect of any sale
of, collection from, or other realization upon, all or any part of the Pledged Collateral shall be applied (after payment of any
amounts payable to such Secured Party pursuant to Section 11 hereof) by such Secured Party against, all or any part of the
Secured Obligations in such order as such Secured Party shall elect consistent with the provisions of the Securities Purchase Agreement.

 

(d)          In
the event that the proceeds of any such sale, collection or realization are insufficient to pay all amounts to which any Secured
Party is legally entitled, the Pledgor shall be liable for the deficiency, together with interest thereon at the highest rate specified
in the Notes for interest on overdue principal thereof or such other rate as shall be fixed by applicable law, together with the
costs of collection and the reasonable fees, costs and expenses of any attorneys employed by such Secured Party to collect such
deficiency.

 

(e)          In
disposing of the Pledged Collateral hereunder, a Secured Party may disclaim all warranties of title, possession, quiet enjoyment
and the like. Any proceeds of any disposition of any Pledged Collateral, including proceeds, or any part thereof, may be applied
by a Secured Party to the payment of expenses incurred by such Secured Party in connection with the foregoing, including reasonable
attorneys' fees, and the balance of such proceeds may be applied by such Secured Party toward the payment of the Secured Obligations
in such order of application as such Secured Party may from time to time elect. Upon the transfer of all or any part of the Secured
Obligations in accordance with this Agreement and the other Transaction Documents, a Secured Party may transfer all or any part
of the Pledged Collateral, including the proceeds, and shall be fully discharged thereafter from all liability and responsibility
with respect to any of the foregoing so transferred, and the transferee shall be vested with all rights and powers of such Secured
Party hereunder with respect to any of the foregoing so transferred; but with respect to any Pledged Collateral, including the
proceeds, not so transferred, such Secured Party shall retain all rights, powers, privileges and remedies herein given.

 

     

     

    

 

SECTION 11.       Indemnity
and Expenses.

 

(a)          The
Pledgor hereby agrees to indemnify and hold each Secured Party (and all of its officers, directors, employees, attorneys, consultants)
harmless from and against any and all claims, damages, losses, liabilities, obligations, penalties, fees, costs and expenses (including,
without limitation, reasonable legal fees and disbursements of counsel) to the extent that they arise out of or otherwise result
from this Agreement (including, without limitation, enforcement of this Agreement), except claims, losses or liabilities arising
or resulting directly from such Person’s gross negligence or willful misconduct, each as determined by a final non-appealable
judgment in favor of the Company or the Pledgor of a court of competent jurisdiction. The costs and expenses of enforcing this
right of indemnification by any Secured Party shall also be paid by the Pledgor.

 

(b)          The
Pledgor shall be obligated for, and will upon demand pay to each Secured Party the reasonable amount of any and all out-of-pocket
costs and expenses, including the reasonable fees and disbursements of such Secured Party’s counsel and of any experts which
such Secured Party may incur in connection with (i) the preparation, negotiation, execution, delivery, recordation, administration,
amendment, waiver or other modification or termination of this Agreement, (ii) the custody, preservation, use or operation of,
or the sale of, collection from, or other realization upon, any Pledged Collateral, (iii) the exercise or enforcement of any of
the rights of such Secured Party hereunder, or (iv) the failure by the Pledgor to perform or observe any of the provisions hereof.

 

SECTION 12.         Notices,
Etc. All notices and other communications provided for hereunder shall be in writing and shall be mailed (by certified mail,
postage prepaid and return receipt requested), sent by Federal Express or other recognized courier service (return receipt requested),
telecopied or delivered, if to the Pledgor, to him at the address specified in the Securities Purchase Agreement or if to the Secured
Parties, to it at the address specified in the Securities Purchase Agreement; or as to either such Person at such other address
as shall be designated by such Person in a written notice to such other Person complying as to delivery with the terms of this
Section 12. All such notices and other communications shall be effective (i) if sent by certified mail, postage prepaid, return
receipt requested, when received or three (3) Business Days after mailing, whichever first occurs, (ii) if telecopied, when transmitted
and confirmation is received, provided same is on a Business Day and, if not, on the next Business Day or (iii) if delivered or
sent by Federal Express or other recognized courier service (return receipt requested), upon delivery, provided same is on a Business
Day and, if not, on the next Business Day.

 

SECTION 13.         Security
Interest Absolute. All rights of the Secured Parties, all Liens and all obligations of the Pledgor hereunder shall be absolute
and unconditional irrespective of: (i) any lack of validity or enforceability of the Securities Purchase Agreement, the Notes or
any other Transaction Document, (ii) any change in the time, manner or place of payment of, or in any other term in respect of,
all or any of the Secured Obligations, or any other amendment or waiver of or consent to any departure from the Securities Purchase
Agreement, the Notes or any other Transaction Document, (iii) any exchange or release of, or non-perfection of any Lien on any
Collateral, or any release or amendment or waiver of or consent to departure from any guaranty, for all or any of the Secured Obligations,
or (iv) any other circumstance which might otherwise constitute a defense available to, or a discharge of, the Pledgor in respect
of the Secured Obligations (other than the payment in full in cash of the Secured Obligations or complete conversion to equity
securities of the Company of all indebtedness obligations owed by the Company to the Secured Parties under the Notes (including,
without limitation, all principal, interest and fees related to the Notes)). All authorizations and agencies contained herein with
respect to any of the Pledged Collateral are irrevocable and powers coupled with an interest.

 

     

     

    

 

SECTION 14.      Beneficial
Ownership. Each Secured Party shall not have the right to exercise its rights under this Agreement and any such exercise shall
be null and void and treated as if never made, to the extent that after giving effect to such exercise, such applicable Secured
Party together with its other Attribution Parties collectively would beneficially own in excess of 4.99% (the “Maximum
Percentage”) of the Ordinary Shares outstanding immediately after giving effect to such exercise. For purposes of the
foregoing sentence, the aggregate number of Ordinary Shares beneficially owned by a Secured Party and its other Attribution Parties
shall include the number of Ordinary Shares held by such Secured Party and all its other Attribution Parties plus the number of
Ordinary Shares to be acquired by such Secured Party with respect to which the determination of such sentence is being made, but
shall exclude the remaining Ordinary Shares pledged to such Secured Party that are not then being acquired upon such Secured Party’s
exercise of its right hereunder and any Ordinary Shares which would be issuable upon (A) conversion of the remaining, nonconverted
portion of the Note beneficially owned by such Secured Party or any its other Attribution Parties, (B) exercise or conversion of
the unexercised or nonconverted portion of any other securities of the Company (including, without limitation, any convertible
notes or convertible preferred shares or warrants, including, without limitation, the Warrants) beneficially owned by such Secured
Party or any its other Attribution Party subject to a limitation on conversion or exercise analogous to the limitation contained
in this Section 14. For purposes of this Section 14, beneficial ownership shall be calculated in accordance with Section 13(d)
of the 1934 Act. For purposes of determining the number of outstanding Ordinary Shares a Secured Party may acquire upon exercise
of its rights hereunder at any time of determination without exceeding the Maximum Percentage, each Secured Party may rely on the
number of outstanding Ordinary Shares as reflected in (x) the Company’s most recent Annual Report on Form 20-F, Report of
Foreign Issuer on Form 6-K or other public filing with the SEC, as the case may be, (y) a more recent public announcement by the
Company or (z) any other written notice by the Company or the Transfer Agent, if any, setting forth the number of Ordinary Shares
outstanding (the “Reported Outstanding Share Number”). For any reason at any time, upon the written or oral
request of a Secured Party, the Company shall within one (1) Business Day confirm orally and in writing or by electronic mail to
such Secured Party the number of Ordinary Shares then outstanding. In the event that the exercise of rights by a Secured Party
hereunder and transfer of Ordinary Shares from the Pledgor to such Secured Party hereunder would result in such Secured Party and
its other Attribution Parties being deemed to beneficially own, in the aggregate, more than the Maximum Percentage of the number
of outstanding Ordinary Shares (as determined under Section 13(d) of the 1934 Act), the transfer from the Pledgor to such Secured
Party of such number of shares by which such Secured Party’s and its other Attribution Parties’ aggregate beneficial
ownership exceeds the Maximum Percentage (the “Excess Shares”) shall be deemed null and void and shall be cancelled
ab initio, and such Secured Party shall not have the power to vote or to transfer the Excess Shares. Upon delivery of a written
notice to the Company, a Secured Party may from time to time increase (with such increase not effective until the sixty-first (61st)
day after delivery of such notice) or decrease the Maximum Percentage to any other percentage not in excess of 9.99% as specified
in such notice; provided that (i) any such increase in the Maximum Percentage will not be effective until the sixty-first (61st)
day after such notice is delivered to the Company and (ii) any such increase or decrease will apply only to such Secured Party
and its other Attribution Parties and not to any other Secured Party that is not an Attribution Party of such Secured Party. For
purposes of clarity, the Ordinary Shares in excess of the Maximum Percentage shall not be deemed to be beneficially owned by such
Secured Party for any purpose including for purposes of Section 13(d) or Rule 16a-1(a)(1) of the 1934 Act. No prior inability of
a Secured Party to exercise its rights hereunder and acquire any Ordinary Shares from the Pledger to such Secured Party pursuant
to this paragraph shall have any effect on the applicability of the provisions of this paragraph with respect to any subsequent
determination of transferability. The provisions of this paragraph shall be construed and implemented in a manner otherwise than
in strict conformity with the terms of this Section 14 to the extent necessary to correct this paragraph (or any portion of this
paragraph) which may be defective or inconsistent with the intended beneficial ownership limitation contained in this Section 14
or to make changes or supplements necessary or desirable to properly give effect to such limitation. The limitation contained in
this paragraph may not be waived and shall apply to a successor Secured Party.

 

     

     

    

 

SECTION 15.       Acknowledgment.

 

(a)          Each
Secured Party hereby agrees and acknowledges that no other Secured Party has agreed to act for it as an administrative or collateral
agent with respect to the Pledged Collateral pledged to such Secured Party hereunder, and each Secured Party is and shall remain
solely responsible for the attachment, perfection and priority of all Liens created by this Agreement or any other Security Document
in favor of such Secured Party with respect to the Pledged Collateral pledged to such Secured Party hereunder. No Secured Party
shall have by reason of this Agreement or any other Transaction Document an agency or fiduciary relationship with any other
Secured Party. No Secured Party (which term, as used in this sentence, shall include reference to each Secured Party’s officers,
directors, employees, attorneys, agents and Affiliates and to the officers, directors, employees, attorneys and agents of such
Secured Party’s Affiliates) shall: (i) have any duties or responsibilities except those expressly set forth in this
Agreement and the other Security Documents or (ii) be required to take, initiate or conduct any enforcement action (including
any litigation, foreclosure or collection proceedings hereunder or under any of the other Security Documents). Without limiting
the foregoing, no Secured Party shall have any right of action whatsoever against any other Secured Party as a result of such Secured
Party acting or refraining from acting hereunder or under any of the Security Documents except as a result and to the extent of
losses caused by such Secured Party’s actual gross negligence or willful misconduct, each as determined by a final non-appealable
judgment of a court of competent jurisdiction. No Secured Party assumes any responsibility for any failure or delay in performance
or breach by the Pledgor or any Secured Party of its obligations under this Agreement or any other Transaction Document. No Secured
Party makes to any other Secured Party or any other Person any express or implied warranty, representation or guarantee with
respect to any Secured Obligations, Pledged Collateral, Transaction Document or the Pledgor. No Secured Party nor any of its officers,
directors, employees, attorneys or agents shall be responsible to any other Secured Party or any of its officers, directors, employees,
attorneys or agents or any other Person for: (i) any recitals, statements, information, representations or warranties contained
in any of the Transaction Documents or in any certificate or other document furnished pursuant to the terms hereof; (ii) the
execution, validity, genuineness, effectiveness or enforceability of any of the Transaction Documents; (iii) the validity,
genuineness, enforceability, collectability, value, sufficiency or existence of any Pledged Collateral, or the attachment, perfection
or priority of any Lien therein; or (iv) the assets, liabilities, financial condition, results of operations, business, creditworthiness
or legal status of the Pledgor. No Secured Party nor any of its officers, directors, employees, attorneys or agents shall have
any obligation to any other Secured Party to ascertain or inquire into the existence of any default or Event of Default, the observance
or performance by the Pledgor of any of the duties or agreements of the Pledgor under any of the Transaction Documents or the satisfaction
of any conditions precedent contained in any of the Transaction Documents.

 

     

     

    

 

(b)          Each
Secured Party hereby acknowledges and represents that it has, independently and without reliance upon any other Secured Party,
and based upon such documents, information and analyses as it has deemed appropriate, made its own credit analysis of the Pledgor
and the Company and its own decision to enter into the Transaction Documents and to purchase the Notes and Warrants, and each Secured
Party has made such inquiries concerning the Transaction Documents, the Pledged Collateral, the Company and the Pledgor as such
Secured Party feels necessary and appropriate, and has taken such care on its own behalf as would have been the case had it entered
into the Transaction Documents without any other Secured Party. Each Secured Party hereby further acknowledges and represents that
the other Secured Parties have not made any representations or warranties to it concerning the Pledgor, any of the Pledged Collateral
or the legality, validity, sufficiency or enforceability of any of the Transaction Documents. Each Secured Party also hereby acknowledges
that it will, independently and without reliance upon the other Secured Parties, and based upon such financial statements, documents
and information as it deems appropriate at the time, continue to make and rely upon its own credit decisions in taking or refraining
to take any other action under this Agreement or the Transaction Documents. No Secured Party shall have any duty or responsibility
to provide any other Secured Party with any notices, reports or certificates furnished to such Secured Party by the Pledgor or
any credit or other information concerning the affairs, financial condition, business or assets of the Company (or any of its Affiliates)
or any Pledgor which may come into possession of such Secured Party.

 

SECTION 16.       Miscellaneous.

 

(a)          No
amendment of any provision of this Agreement shall be effective unless it is in writing and signed by the Pledgor and the Required
Holders, and no waiver of any provision of this Agreement, and no consent to any departure by the Pledgor therefrom, shall be effective
unless it is in writing and signed by the Required Holders, and then such waiver or consent shall be effective only in the specific
instance and for the specific purpose for which given.

 

(b)          No
failure on the part of any Secured Party to exercise, and no delay in exercising, any right hereunder or under any other Transaction
Document shall operate as a waiver thereof; nor shall any single or partial exercise of any such right preclude any other or further
exercise thereof or the exercise of any other right. The rights and remedies of the Secured Parties provided herein and in the
other Transaction Documents are cumulative and are in addition to, and not exclusive of, any rights or remedies provided by law.
The rights of the each Secured Party under any Transaction Document against any party thereto are not conditional or contingent
on any attempt by such Secured Party to exercise any of its rights under any other Transaction Document against such party or against
any other Person.

 

     

     

    

 

(c)          To
the extent that Pledgor makes a payment or payments to any Secured Party, or any Secured Party enforces any Lien or security interest
or exercises any right of set-off, and such payment or payments or the proceeds of such enforcement or set-off or any part thereof
are subsequently invalidated, declared to be fraudulent, preferential or at undervalue, set aside and/or required to be repaid
to a trustee, receiver or any other party under any bankruptcy, debtor relief laws, any other federal, state or foreign law, or
any equitable cause, then, to the extent of such recovery, the obligation or part thereof originally intended to be satisfied,
and all Liens, rights and remedies therefor or related thereto, shall be revived and continued in full force and effect as if such
payment or payments had not been made or such enforcement or set-off had not occurred.

 

(d)          Any
provision of this Agreement which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective
to the extent of such prohibition or unenforceability without invalidating the remaining portions hereof or affecting the validity
or enforceability of such provision in any other jurisdiction.

 

(e)          This
Agreement shall create a continuing security interest in and Lien on the Pledged Collateral and shall (i) remain in full force
and effect until the termination of this Agreement in accordance with the terms hereof and (ii) be binding on the Pledgor
and his heirs and assigns and shall inure, together with all rights and remedies of each Secured Party and its successors, transferees
and assigns. Without limiting the generality of clause (ii) of the immediately preceding sentence, each Secured Party may assign
or otherwise transfer its rights and obligations under this Agreement and any other Transaction Document to any other Person pursuant
to the terms of the Securities Purchase Agreement, and such other Person shall thereupon become vested with all of the benefits
in respect thereof granted to such Secured Party herein or otherwise. Upon any such assignment or transfer, all references in this
Agreement to such Secured Party shall mean the assignee of such Secured Party. None of the rights or obligations of the Pledgor
hereunder may be assigned or otherwise transferred without the prior written consent of the Required Holders, and any such assignment
or transfer without such consent shall be null and void.

 

(f)          Notwithstanding
anything to the contrary in this Agreement, (i) this Agreement (along with all powers of attorney granted hereunder) and the security
interests and Lien created hereby shall terminate and all rights to the Pledged Collateral shall revert to the Pledgor upon the
repayment in full in cash and/or complete conversion to equity securities of the Company of all indebtedness obligations owed by
the Company to the Secured Parties under the Notes (including, without limitation, all principal, interest and fees related to
the Notes), and (ii) the Secured Parties will, upon the Pledgor’s request and at the Pledgor’s expense, (A) return
to the Pledgor such of the Pledged Collateral (to the extent delivered to such Secured Party) as shall not have been sold or otherwise
disposed of or applied pursuant to the terms hereof, and (B) execute and deliver to the Pledgor, without recourse, representation
or warranty, such documents as the Pledgor shall reasonably request to evidence such termination.

 

     

     

    

 

(g)         The
internal laws, and not the laws of conflicts, of the State of New York shall govern the enforceability and validity of this Agreement,
the construction of its terms and the interpretation of the rights and duties of the parties, except as required by mandatory provisions
of law and except to the extent that the validity and perfection or the perfection and the effect of perfection or non-perfection
of the security interest and Lien created hereby, or remedies hereunder, in respect of any particular Pledged Collateral are governed
by the law of a jurisdiction other than the State of New York.

 

(h)         Each
party to this Agreement hereby irrevocably and unconditionally submits, for itself and its property, to the exclusive jurisdiction
of the United States District Court for the Southern District of New York sitting in Manhattan or the Commercial Division, Civil
Branch of the Supreme Court of the State of New York sitting in New York County in connection with any suit, action or proceeding
directly or indirectly arising out of, under or in connection with this Agreement or the other Transaction Documents or the transactions
contemplated hereby or thereby. No party to this Agreement may move to (i) transfer any such suit, action or proceeding brought
in such New York court or federal court to another jurisdiction, (ii) consolidate any such suit, action or proceeding brought in
such New York court or federal court with a suit, action or proceeding in another jurisdiction or (iii) dismiss any such suit,
action or proceeding brought in such New York court or federal court for the purpose of bringing the same in another jurisdiction.
Each party to this Agreement agrees that a final judgment in any such suit, action or proceeding shall be conclusive and may be
enforced in any other jurisdiction by suit on the judgment or in any other manner provided by law. Each party to this Agreement
hereby irrevocably and unconditionally waives, to the fullest extent it may legally and effectively do so, any objection which
it may now or hereafter have to the laying of venue of any suit, action or proceeding arising out of or relating to this Agreement,
or the other Transaction Documents in any New York court sitting in New York County or any federal court sitting in the Southern
District of New York.

 

(i)           The
Pledgor hereby appoints CT Corporation System, 111 Eighth Avenue, 13th Floor, New York, New York 10011, as its agent for service
of process in New York. The Company hereby appoints CT Corporation System, 111 Eighth Avenue, 13th Floor, New York, New York 10011,
as its agent for service of process in New York. Nothing contained herein shall affect the right of each Secured Party to serve
process in any other manner permitted by law or commence legal proceedings or otherwise proceed against the Pledgor or the Company
or any property of the Pledgor or the Company in any other jurisdiction.

 

(j)           The
Pledgor irrevocably and unconditionally waives any right he may have to claim or recover in any legal action, suit or proceeding
referred to in this Section any special, exemplary, punitive or consequential damages.

 

(k)          EACH
PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT
OF ANY SUIT, ACTION OR PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT OR OTHER TRANSACTION
DOCUMENTS.

 

(l)           The
headings herein are for convenience only, do not constitute a part of this Agreement and shall not be deemed to limit or affect
any of the provisions hereof. The language used in this Agreement will be deemed to be the language chosen by the parties to express
their mutual intent, and no rules of strict construction will be applied against any party.

 

     

     

    

 

(m)         This
Agreement may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which
shall be deemed to be an original, but all of which taken together shall constitute one and the same agreement.

 

[Signature
Page Follows]

 

     

     

    

 

In
Witness Whereof, the Pledgor, the Company and the Secured Parties have executed and delivered this Agreement as of the date
first above written.

 

	 	PLEDGOR:
	 	 
	 	FARMNET LIMITED
	 	 
	 	By:	 
	 	 	Name:  
	 	 	Title:  

 

     

     

    

 

In
Witness Whereof, the Pledgor, the Company and the Secured Parties have executed and delivered this Agreement as of the date
first above written.

 

	 	SECURED PARTY:
	 	 
	 	By:	 
	 	 	Name:  
	 	 	Title:

 

     

     

    

 

In
Witness Whereof, the Pledgor, the Company and the Secured Parties have executed and delivered this Agreement as of the date
first above written.

 

	 	COMPANY:
	 	 
	 	Farmmi, Inc.
	 	 
	 	By:	 
	 	 	Name:  
	 	 	Title:  

 

     

     

    

 

SCHEDULE
I TO PLEDGE AGREEMENT

 

Pledged Shares

 

	Pledgor Legal Name and
 Addresses	 	Name of Issuer	 	Number of 
 Shares	 	 	% of 
 Shares	 	 	Class	 	Secured Party
  to Initially 
 Hold Certificate with 
 respect to such
  Pledged Shares
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	FarmNet Limited
 c/o Farmmi, Inc., No. 307, Tianning Industrial Area, Lishui, Zhejiang Province, People’s Republic of China 323000	 	Farmmi, Inc.	 	 	3,000,000	 	 	 	25.14	%	 	Ordinary Shares	 	

 

     

     

    

 

ANNEX I

 

TO

 

PLEDGE
AGREEMENT

 

PLEDGE AMENDMENT

 

This Pledge Amendment,
dated ●, 20●, is delivered pursuant to Section 4 of the Pledge Agreement referred to below. The undersigned
hereby agrees that this Pledge Amendment may be attached to the Pledge Agreement, dated as of November ___, 2018, made by FarmNet
Limited and Farmmi, Inc., a company organized under the laws of the Cayman Islands in favor of the secured parties signatory thereto
(the “Secured Parties”) as it may heretofore have been or hereafter may be amended or otherwise modified or
supplemented from time to time and that the promissory notes [and/or] shares or other equity interests listed on this Pledge Amendment
shall be hereby pledged and assigned to the Secured Parties and become part of the Pledged Collateral referred to in such Pledge
Agreement and shall secure all of the obligations referred to in such Pledge Agreement.

 

Pledged Shares

 

	Pledgor	 	Name of Issuer	 	
        Number of Shares or Other Equity
Interests 
	 	Class	 	Certificate No(s)
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 

 

	 	[PLEDGOR]
	 	 
	 	By:	 
	 	 	[SHAREHOLDER]EXHIBIT 10.3

 

REGISTRATION RIGHTS AGREEMENT

 

This REGISTRATION
RIGHTS AGREEMENT (this “Agreement”), dated as of November 1, 2018, is by and among Farmmi, Inc., an exempted
company incorporated under the laws of the Cayman Islands with offices located at No. 307, Tianning Industrial Area, Lishui, Zhejiang
Province, People’s Republic of China 323000 (the “Company”), and the undersigned buyers (each, a “Buyer,”
and collectively, the “Buyers”).

 

RECITALS

 

A.           In
connection with the Securities Purchase Agreement by and among the parties hereto, dated as of November 1, 2018 (the “Securities
Purchase Agreement”), the Company has agreed, upon the terms and subject to the conditions of the Securities Purchase
Agreement, to issue and sell to each Buyer (i) the Notes (as defined in the Securities Purchase Agreement) which will be convertible
into Conversion Shares (as defined in the Securities Purchase Agreement) in accordance with the terms of the Notes and (ii) the
Warrants (as defined in the Securities Purchase Agreement) which will be exercisable to purchase Warrant Shares (as defined in
the Securities Purchase Agreement) in accordance with the terms of the Warrants.

 

B.           To
induce the Buyers to consummate the transactions contemplated by the Securities Purchase Agreement, the Company has agreed to provide
certain registration rights under the Securities Act of 1933, as amended, and the rules and regulations thereunder, or any similar
successor statute (collectively, the “1933 Act”), and applicable state securities laws.

 

AGREEMENT

 

NOW, THEREFORE,
in consideration of the premises and the mutual covenants contained herein and for other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, the Company and each of the Buyers hereby agree as follows:

 

1.            Definitions.

 

Capitalized terms used
herein and not otherwise defined herein shall have the respective meanings set forth in the Securities Purchase Agreement. As used
in this Agreement, the following terms shall have the following meanings:

 

(a)          “Business
Day” means any day other than Saturday, Sunday or any other day on which commercial banks in New York, New York are authorized
or required by law to remain closed.

 

(b)          “Closing
Date” shall have the meaning set forth in the Securities Purchase Agreement.

 

(c)          “Effective
Date” means the date that the applicable Registration Statement has been declared effective by the SEC.

 

     

     

    

 

(d)          “Effectiveness
Deadline” means (i) with respect to the initial Registration Statement required to be filed pursuant to Section 2(a),
the earlier of the (A) 120th calendar day after the Closing Date and (B) 3rd Business Day after the date the Company
is notified (orally or in writing, whichever is earlier) by the SEC that such Registration Statement will not be reviewed or will
not be subject to further review and (ii) with respect to any additional Registration Statements that may be required to be filed
by the Company pursuant to this Agreement, the earlier of the (A) 120th calendar day following the date on which the
Company was required to file such additional Registration Statement and (B) 3rd Business Day after the date the Company is notified
(orally or in writing, whichever is earlier) by the SEC that such Registration Statement will not be reviewed or will not be subject
to further review.

 

(e)          “Filing
Deadline” means (i) with respect to the initial Registration Statement required to be filed pursuant to Section 2(a),
the 30th calendar day after the Closing Date and (ii) with respect to any additional Registration Statements that
may be required to be filed by the Company pursuant to this Agreement, the date on which the Company was required to file such
additional Registration Statement pursuant to the terms of this Agreement.

 

(f)          “Investor”
means a Buyer or any transferee or assignee of any Registrable Securities, Notes or Warrants, as applicable, to whom a Buyer assigns
its rights under this Agreement and who agrees to become bound by the provisions of this Agreement in accordance with Section 9
and any transferee or assignee thereof to whom a transferee or assignee of any Registrable Securities, Notes or Warrants, as applicable,
assigns its rights under this Agreement and who agrees to become bound by the provisions of this Agreement in accordance with Section 9.

 

(g)          “Person”
means an individual, a limited liability company, a partnership, a joint venture, a corporation, a trust, an unincorporated organization
or a government or any department or agency thereof.

 

(h)          “register,”
“registered,” and “registration” refer to a registration effected by preparing and filing
one or more Registration Statements in compliance with the 1933 Act and pursuant to Rule 415 and the declaration of effectiveness
of such Registration Statement(s) by the SEC.

 

(i)          “Registrable
Securities” means (i) the Conversion Shares, (ii) the Warrant Shares and (iii) any share capital of the Company issued
or issuable with respect to the Conversion Shares, the Warrant Shares, the Notes or the Warrants, including, without limitation,
(1) as a result of any share split, share dividend, recapitalization, exchange or similar event or otherwise and (2) any share
capital of the Company into which the Ordinary Shares (as defined in the Notes) are converted or exchanged and share capital of
a Successor Entity (as defined in the Warrants) into which the Ordinary Shares are converted or exchanged, in each case, without
regard to any limitations on conversion of the Notes or exercise of the Warrants.

 

(j)          “Registration
Statement” means a registration statement or registration statements of the Company filed under the 1933 Act covering
Registrable Securities.

 

    	 	2	 

     

    

 

(k)          “Required
Holders” means, as of any given time, the holders of a majority of the Registrable Securities as of such time (excluding
any Registrable Securities held by the Company or any of its Subsidiaries as of such time).

 

(l)          “Required
Registration Amount” means 150% of the sum of (i) the maximum number of Conversion Shares issuable upon conversion of
the Notes (assuming for purposes hereof that (x) the Notes are convertible at the initial Conversion Price (as defined in the Notes),
(y) interest on the Notes shall accrue through the second anniversary of the Closing Date and will be converted in Ordinary Shares
at an interest conversion price equal to the Interest Conversion Price (as defined in the Notes) assuming an Interest Date (as
defined in the Note) as of the date hereof and (z) any such conversion shall not take into account any limitations on the conversion
of the Notes set forth in the Notes) and (ii) the maximum number of Warrant Shares issuable upon exercise of the Warrants (without
taking into account any limitations on the exercise of the Warrants set forth therein), all subject to adjustment as provided in
Section 2(d) and/or Section 2(f).

 

(m)          “Rule
144” means Rule 144 promulgated by the SEC under the 1933 Act, as such rule may be amended from time to time, or any
other similar or successor rule or regulation of the SEC that may at any time permit the Investors to sell securities of the Company
to the public without registration.

 

(n)          “Rule
415” means Rule 415 promulgated by the SEC under the 1933 Act, as such rule may be amended from time to time, or any
other similar or successor rule or regulation of the SEC providing for offering securities on a continuous or delayed basis.

 

(o)          “SEC”
means the United States Securities and Exchange Commission or any successor thereto.

 

2.            Registration.

 

(a)          Mandatory
Registration. The Company shall prepare and, as soon as practicable, but in no event later than the Filing Deadline, file with
the SEC an initial Registration Statement on Form F-1 covering the resale of all of the Registrable Securities, provided that such
initial Registration Statement shall register for resale at least the number of Ordinary Shares equal to the Required Registration
Amount as of the date such Registration Statement is initially filed with the SEC. Such initial Registration Statement, and each
other Registration Statement required to be filed pursuant to the terms of this Agreement, shall contain (except if otherwise directed
by the Required Holders) the “Selling Shareholders” and “Plan of Distribution” sections in
substantially the form attached hereto as Exhibit B. The Company shall use its best efforts to have such initial Registration
Statement, and each other Registration Statement required to be filed pursuant to the terms of this Agreement, declared effective
by the SEC as soon as practicable, but in no event later than the applicable Effectiveness Deadline for such Registration Statement.

 

(b)          Legal
Counsel. Subject to Section 5 hereof, Kelley Drye & Warren LLP, counsel solely to the lead investor (“Legal
Counsel”) shall review and oversee any registration, solely on behalf of the lead investor, pursuant to this Section 2.

 

    	 	3	 

     

    

 

(c)          Ineligibility
to Use Form F-3. The Company shall undertake to register the resale of the Registrable Securities on Form F-3 as soon
as such form is available, provided that the Company shall maintain the effectiveness of all Registration Statements then in effect
until such time as a Registration Statement on Form F-3 covering the resale of all the Registrable Securities has been declared
effective by the SEC and the prospectus contained therein is available for use.

 

(d)          Sufficient
Number of Shares Registered. In the event the number of shares available under any Registration Statement is insufficient to
cover all of the Registrable Securities required to be covered by such Registration Statement or an Investor’s allocated
portion of the Registrable Securities pursuant to Section 2(h), the Company shall amend such Registration Statement (if permissible),
or file with the SEC a new Registration Statement (on the short form available therefor, if applicable), or both, so as to cover
at least the Required Registration Amount as of the Trading Day immediately preceding the date of the filing of such amendment
or new Registration Statement, in each case, as soon as practicable, but in any event not later than fifteen (15) days after the
necessity therefor arises (but taking account of any Staff position with respect to the date on which the Staff will permit such
amendment to the Registration Statement and/or such new Registration Statement (as the case may be) to be filed with the SEC).
The Company shall use its best efforts to cause such amendment to such Registration Statement and/or such new Registration Statement
(as the case may be) to become effective as soon as practicable following the filing thereof with the SEC, but in no event later
than the applicable Effectiveness Deadline for such Registration Statement. For purposes of the foregoing provision, the number
of shares available under a Registration Statement shall be deemed “insufficient to cover all of the Registrable Securities”
if at any time the number of Ordinary Shares available for resale under the applicable Registration Statement is less than the
product determined by multiplying (i) the Required Registration Amount as of such time by (ii) 0.90. The calculation set forth
in the foregoing sentence shall be made without regard to any limitations on conversion, amortization and/or redemption of the
Notes ir exercise of the Warrants (and such calculation shall assume (A) that the Notes are then convertible in full into Ordinary
Shares at the then prevailing Conversion Rate (as defined in the Notes), (B) the initial outstanding principal amount of the Notes
remains outstanding through the scheduled Maturity Date (as defined in the Notes) and no redemptions of the Notes occur prior to
the scheduled Maturity Date and (C) the Warrants are then exercisable in full into Ordinary Shares at the then prevailing Exercise
Price (as defined in the Warrants)).

 

    	 	4	 

     

    

 

(e)          Effect
of Failure to File and Obtain and Maintain Effectiveness of any Registration Statement. If (i) a Registration Statement covering
the resale of all of the Registrable Securities required to be covered thereby (disregarding any reduction pursuant to Section 2(f))
and required to be filed by the Company pursuant to this Agreement is (A) not filed with the SEC on or before the Filing Deadline
for such Registration Statement (a “Filing Failure”) (it being understood that if the Company files a Registration
Statement without affording each Investor and Legal Counsel the opportunity to review and comment on the same as required by Section 3(c)
hereof, the Company shall be deemed to not have satisfied this clause (i)(A) and such event shall be deemed to be a Filing
Failure) or (B) not declared effective by the SEC on or before the Effectiveness Deadline for such Registration Statement (an “Effectiveness
Failure”) (it being understood that if on the Business Day immediately following the Effective Date for such Registration
Statement the Company shall not have filed a “final” prospectus for such Registration Statement with the SEC under
Rule 424(b) in accordance with Section 3(b) (whether or not such a prospectus is technically required by such rule), the Company
shall be deemed to not have satisfied this clause (i)(B) and such event shall be deemed to be an Effectiveness Failure), (ii) other
than during an Allowable Grace Period (as defined below), on any day after the Effective Date of a Registration Statement sales
of all of the Registrable Securities required to be included on such Registration Statement (disregarding any reduction pursuant
to Section 2(f)) cannot be made pursuant to such Registration Statement (including, without limitation, because of a failure
to keep such Registration Statement effective, a failure to disclose such information as is necessary for sales to be made pursuant
to such Registration Statement, a suspension or delisting of (or a failure to timely list) the Ordinary Shares on the Principal
Market (as defined in the Securities Purchase Agreement) or any other limitations imposed by the Principal Market, or a failure
to register a sufficient number of Ordinary Shares or by reason of a stop order) or the prospectus contained therein is not available
for use for any reason (a “Maintenance Failure”), or (iii) if a Registration Statement is not effective for
any reason or the prospectus contained therein is not available for use for any reason, and either (x) the Company fails for any
reason to satisfy the requirements of Rule 144(c)(1), including, without limitation, the failure to satisfy the current public
information requirement under Rule 144(c) or (y) the Company has ever been an issuer described in Rule 144(i)(1)(i) or becomes
such an issuer in the future, and the Company shall fail to satisfy any condition set forth in Rule 144(i)(2) (a “Current
Public Information Failure”) as a result of which any of the Investors are unable to sell Registrable Securities without
restriction under Rule 144 (including, without limitation, volume restrictions), then, as partial relief for the damages to
any holder by reason of any such delay in, or reduction of, its ability to sell the underlying Ordinary Shares (which remedy shall
not be exclusive of any other remedies available at law or in equity, including, without limitation, specific performance), the
Company shall pay to each holder of Registrable Securities relating to such Registration Statement an amount in cash equal to one
percent (1%) of such Investor’s original principal amount stated in such Investor’s Note on the Closing Date (1) on
the date of such Filing Failure, Effectiveness Failure, Maintenance Failure or Current Public Information Failure, as applicable,
and (2) on every thirty (30) day anniversary of (I) a Filing Failure until such Filing Failure is cured; (II) an Effectiveness
Failure until such Effectiveness Failure is cured; (III) a Maintenance Failure until such Maintenance Failure is cured; and
(IV) a Current Public Information Failure until the earlier of (i) the date such Current Public Information Failure is cured and
(ii) such time that such public information is no longer required pursuant to Rule 144 (in each case, pro rated for periods
totaling less than thirty (30) days). The payments to which a holder of Registrable Securities shall be entitled pursuant to this
Section 2(e) are referred to herein as “Registration Delay Payments.” Following the initial Registration
Delay Payment for any particular event or failure (which shall be paid on the date of such event or failure, as set forth above),
without limiting the foregoing, if an event or failure giving rise to the Registration Delay Payments is cured prior to any thirty
(30) day anniversary of such event or failure, then such Registration Delay Payment shall be made on the third (3rd)
Business Day after such cure. In the event the Company fails to make Registration Delay Payments in a timely manner in accordance
with the foregoing, such Registration Delay Payments shall bear interest at the rate of one percent (1%) per month (prorated for
partial months) until paid in full. Notwithstanding the foregoing, no Registration Delay Payments shall be owed to an Investor
(other than with respect to a Maintenance Failure resulting from a suspension or delisting of (or a failure to timely list) the
Ordinary Shares on the Principal Market) with respect to any period during which all of such Investor’s Registrable Securities
may be sold by such Investor without restriction under Rule 144 (including, without limitation, volume restrictions) and without
the need for current public information required by Rule 144(c)(1) (or Rule 144(i)(2), if applicable).

 

    	 	5	 

     

    

 

(f)           Offering.
Notwithstanding anything to the contrary contained in this Agreement, but subject to the payment of the Registration Delay Payments
pursuant to Section 2(e), in the event the staff of the SEC (the “Staff”) or the SEC seeks to characterize
any offering pursuant to a Registration Statement filed pursuant to this Agreement as constituting an offering of securities
by, or on behalf of, the Company, or in any other manner, such that the Staff or the SEC do not permit such Registration
Statement to become effective and used for resales in a manner that does not constitute such an offering and that permits the continuous
resale at the market by the Investors participating therein (or as otherwise may be acceptable to each Investor) without
being named therein as an “underwriter,” then the Company shall reduce the number of shares to be included in such
Registration Statement by all Investors until such time as the Staff and the SEC shall so permit such Registration Statement
to become effective as aforesaid. In making such reduction, the Company shall reduce the number of shares to be included by all
Investors on a pro rata basis (based upon the number of Registrable Securities otherwise required to be included for each Investor)
unless the inclusion of shares by a particular Investor or a particular set of Investors are resulting in the Staff or the SEC’s
“by or on behalf of the Company” offering position, in which event the shares held by such Investor or set of Investors
shall be the only shares subject to reduction (and if by a set of Investors on a pro rata basis by such Investors or on such other
basis as would result in the exclusion of the least number of shares by all such Investors); provided, that, with respect to such
pro rata portion allocated to any Investor, such Investor may elect the allocation of such pro rata portion among the Registrable
Securities of such Investor. In addition, in the event that the Staff or the SEC requires any Investor seeking to sell securities
under a Registration Statement filed pursuant to this Agreement to be specifically identified as an “underwriter”
in order to permit such Registration Statement to become effective, and such Investor does not consent to being so named as an
underwriter in such Registration Statement, then, in each such case, the Company shall reduce the total number of Registrable
Securities to be registered on behalf of such Investor, until such time as the Staff or the SEC does not require
such identification or until such Investor accepts such identification and the manner thereof. Any reduction pursuant to this paragraph
will first reduce all Registrable Securities other than those issued pursuant to the Securities Purchase Agreement. In
the event of any reduction in Registrable Securities pursuant to this paragraph, an affected Investor shall have the
right to require, upon delivery of a written request to the Company signed by such Investor, the Company to file a registration
statement within twenty (20) days of such request (subject to any restrictions imposed by Rule 415 or required by the Staff
or the SEC) for resale by such Investor in a manner acceptable to such Investor, and the Company shall following such request cause
to be and keep effective such registration statement in the same manner as otherwise contemplated in this Agreement for registration
statements hereunder, in each case until such time as: (i) all Registrable Securities held by such Investor have been registered
and sold pursuant to an effective Registration Statement in a manner acceptable to such Investor or (ii) all Registrable Securities
may be resold by such Investor without restriction (including, without limitation, volume limitations) pursuant to Rule 144
(taking account of any Staff position with respect to “affiliate” status) and without the need for current public information
required by Rule 144(c)(1) (or Rule 144(i)(2), if applicable) or (iii) such Investor agrees to be named as an underwriter in any
such Registration Statement in a manner acceptable to such Investor as to all Registrable Securities held by such Investor and
that have not theretofore been included in a Registration Statement under this Agreement (it being understood that the special
demand right under this sentence may be exercised by an Investor multiple times and with respect to limited amounts of Registrable
Securities in order to permit the resale thereof by such Investor as contemplated above). For the avoidance of doubt, if the Company
shall have registered the Required Registration Amount (as adjusted pursuant to this Section 2(f)) on an effective Registration
Statement prior to the Effectiveness Deadline, the failure to register the Requried Registration Amount (without regard to any
reduction pursuant to this Section 2(f)) on an effective Registration Statement prior to the Effectiveness Deadline shall not cause
an Effectiveness Failure to exist.

 

    	 	6	 

     

    

 

(g)          Piggyback
Registrations. Without limiting any obligation of the Company hereunder or under the Securities Purchase Agreement, if there
is not an effective Registration Statement covering all of the Registrable Securities or the prospectus contained therein is not
available for use and the Company shall determine to prepare and file with the SEC a registration statement or offering statement
relating to an offering for its own account or the account of others under the 1933 Act of any of its equity securities (other
than on Form F-4 or Form F-8 (each as promulgated under the 1933 Act) or their then equivalents relating to equity securities to
be issued solely in connection with any acquisition of any entity or business or equity securities issuable in connection with
the Company’s share option or other employee benefit plans), then the Company shall deliver to each Investor a written notice
of such determination and, if within fifteen (15) days after the date of the delivery of such notice, any such Investor shall
so request in writing, the Company shall include in such registration statement or offering statement all or any part of such Registrable
Securities such Investor requests to be registered; provided, however, the Company shall not be required to register any Registrable
Securities pursuant to this Section 2(g) that are eligible for resale pursuant to Rule 144 without restriction (including,
without limitation, volume restrictions) and without the need for current public information required by Rule 144(c)(1) (or Rule 144(i)(2),
if applicable) or that are the subject of a then-effective Registration Statement.

 

(h)          Allocation
of Registrable Securities. The initial number of Registrable Securities included in any Registration Statement and any increase
in the number of Registrable Securities included therein shall be allocated pro rata among the Investors based on the number of
Registrable Securities held by each Investor at the time such Registration Statement covering such initial number of Registrable
Securities or increase thereof is declared effective by the SEC. In the event that an Investor sells or otherwise transfers any
of such Investor’s Registrable Securities, each transferee or assignee (as the case may be) that becomes an Investor shall
be allocated a pro rata portion of the then-remaining number of Registrable Securities included in such Registration Statement
for such transferor or assignee (as the case may be). Any Ordinary Shares included in a Registration Statement and which remain
allocated to any Person which ceases to hold any Registrable Securities covered by such Registration Statement shall be allocated
to the remaining Investors, pro rata based on the number of Registrable Securities then held by such Investors which are covered
by such Registration Statement.

 

(i)          No
Inclusion of Other Securities. The Company shall in no event include any securities other than Registrable Securities on any
Registration Statement filed in accordance herewith without the prior written consent of the Required Holders. Until the Applicable
Date (as defined in the Securities Purchase Agreement), the Company shall not enter into any agreement providing any registration
rights to any of its security holders, except as otherwise permitted under the Securities Purchase Agreement.

 

    	 	7	 

     

    

 

3.            Related
Obligations.

 

The Company shall use
its best efforts to effect the registration of the Registrable Securities in accordance with the intended method of disposition
thereof, and, pursuant thereto, the Company shall have the following obligations:

 

(a)          The
Company shall promptly prepare and file with the SEC a Registration Statement with respect to all the Registrable Securities (but
in no event later than the applicable Filing Deadline) and use its best efforts to cause such Registration Statement to become
effective as soon as practicable after such filing (but in no event later than the Effectiveness Deadline). Subject to Allowable
Grace Periods, the Company shall keep each Registration Statement effective (and the prospectus contained therein available for
use) pursuant to Rule 415 for resales by the Investors on a delayed or continuous basis at then-prevailing market prices (and not
fixed prices) at all times until the earlier of (i) the date as of which all of the Investors may sell all of the Registrable Securities
required to be covered by such Registration Statement (disregarding any reduction pursuant to Section 2(f)) without restriction
pursuant to Rule 144 (including, without limitation, volume restrictions) and without the need for current public information required
by Rule 144(c)(1) (or Rule 144(i)(2), if applicable) or (ii) the date on which the Investors shall have sold all of the Registrable
Securities covered by such Registration Statement (the “Registration Period”). Notwithstanding anything to the
contrary contained in this Agreement, the Company shall ensure that, when filed and at all times while effective, each Registration
Statement (including, without limitation, all amendments and supplements thereto) and the prospectus (including, without limitation,
all amendments and supplements thereto) used in connection with such Registration Statement (1) shall not contain any untrue statement
of a material fact or omit to state a material fact required to be stated therein, or necessary to make the statements therein
(in the case of prospectuses, in the light of the circumstances in which they were made) not misleading and (2) will disclose (whether
directly or through incorporation by reference to other SEC filings to the extent permitted) all material information regarding
the Company and its securities. The Company shall submit to the SEC, within one (1) Business Day after the later of the date that
(i) the Company learns that no review of a particular Registration Statement will be made by the Staff or that the Staff has no
further comments on a particular Registration Statement (as the case may be) and (ii) the consent of Legal Counsel is obtained
pursuant to Section 3(c) (which consent shall be immediately sought), a request for acceleration of effectiveness of such
Registration Statement to a time and date not later than twenty-four (24) hours after the submission of such request or such
later time as the Staff shall require. The Company shall respond in writing to comments made by the SEC in respect of a Registration
Statement as soon as practicable, but in no event later than fifteen (15) days after the receipt of comments by or notice from
the SEC that an amendment is required in order for a Registration Statement to be declared effective.

 

    	 	8	 

     

    

 

(b)          Subject
to Section 3(r) of this Agreement, the Company shall prepare and file with the SEC such amendments (including, without limitation,
post-effective amendments) and supplements to each Registration Statement and the prospectus used in connection with each such
Registration Statement, which prospectus is to be filed pursuant to Rule 424 promulgated under the 1933 Act, as may be necessary
to keep each such Registration Statement effective at all times during the Registration Period for such Registration Statement,
and, during such period, comply with the provisions of the 1933 Act with respect to the disposition of all Registrable Securities
of the Company required to be covered by such Registration Statement until such time as all of such Registrable Securities shall
have been disposed of in accordance with the intended methods of disposition by the seller or sellers thereof as set forth in such
Registration Statement; provided, however, by 8:30 a.m. (New York time) on the Business Day immediately following each Effective
Date, the Company shall file with the SEC in accordance with Rule 424(b) under the 1933 Act the final prospectus to be used in
connection with sales pursuant to the applicable Registration Statement (whether or not such a prospectus is technically required
by such rule). In the case of amendments and supplements to any Registration Statement which are required to be filed pursuant
to this Agreement (including, without limitation, pursuant to this Section 3(b)) by reason of the Company filing a report
on Form 6-K, Form 20-F or any analogous report under the Securities Exchange Act of 1934, as amended (the “1934 Act”),
the Company shall, if permitted under the applicable rules and regulations of the SEC, have incorporated such report by reference
into such Registration Statement, if applicable, or shall file such amendments or supplements with the SEC on the same day on which
the 1934 Act report is filed which created the requirement for the Company to amend or supplement such Registration Statement.

 

(c)          The
Company shall (A) permit Legal Counsel and legal counsel for each other Investor to review and comment upon (i) each Registration
Statement at least five (5) Business Days prior to its filing with the SEC and (ii) all amendments and supplements to each Registration
Statement (including, without limitation, the prospectus contained therein) (except for Annual Reports on Form 20-F, Report of
Foreign Issuer on Form 6-K, and any similar or successor reports) within a reasonable number of days prior to their filing with
the SEC, and (B) not file any Registration Statement or amendment or supplement thereto in a form to which Legal Counsel or any
legal counsel for any other Investor reasonably objects. The Company shall not submit a request for acceleration of the effectiveness
of a Registration Statement or any amendment or supplement thereto or to any prospectus contained therein without the prior consent
of Legal Counsel, which consent shall not be unreasonably withheld or delayed. The Company shall promptly furnish to Legal Counsel
and legal counsel for each other Investor, without charge, (i) copies of any correspondence from the SEC or the Staff to the Company
or its representatives relating to each Registration Statement, provided that such correspondence shall not contain any material,
non-public information regarding the Company or any of its Subsidiaries (as defined in the Securities Purchase Agreement), (ii) after
the same is prepared and filed with the SEC, one (1) copy of each Registration Statement and any amendment(s) and supplement(s)
thereto, including, without limitation, financial statements and schedules, all documents incorporated therein by reference, if
requested by an Investor, and all exhibits and (iii) upon the effectiveness of each Registration Statement, one (1) copy of
the prospectus included in such Registration Statement and all amendments and supplements thereto. The Company shall reasonably
cooperate with Legal Counsel and legal counsel for each other Investor in performing the Company’s obligations pursuant to
this Section 3.

 

    	 	9	 

     

    

 

(d)          The
Company shall promptly furnish to each Investor whose Registrable Securities are included in any Registration Statement, without
charge, (i) after the same is prepared and filed with the SEC, at least one (1) copy of each Registration Statement and any amendment(s)
and supplement(s) thereto, including, without limitation, financial statements and schedules, all documents incorporated therein
by reference, if requested by an Investor, all exhibits and each preliminary prospectus, (ii) upon the effectiveness of each Registration
Statement, ten (10) copies of the prospectus included in such Registration Statement and all amendments and supplements thereto
(or such other number of copies as such Investor may reasonably request from time to time) and (iii) such other documents, including,
without limitation, copies of any preliminary or final prospectus, as such Investor may reasonably request from time to time in
order to facilitate the disposition of the Registrable Securities owned by such Investor.

 

(e)          The
Company shall use its best efforts to (i) register and qualify, unless an exemption from registration and qualification applies,
the resale by Investors of the Registrable Securities covered by a Registration Statement under such other securities or “blue
sky” laws of all applicable jurisdictions in the United States, (ii) prepare and file in those jurisdictions, such amendments
(including, without limitation, post-effective amendments) and supplements to such registrations and qualifications as may be necessary
to maintain the effectiveness thereof during the Registration Period, (iii) take such other actions as may be necessary to maintain
such registrations and qualifications in effect at all times during the Registration Period, and (iv) take all other actions reasonably
necessary or advisable to qualify the Registrable Securities for sale in such jurisdictions; provided, however, the Company shall
not be required in connection therewith or as a condition thereto to (x) qualify to do business in any jurisdiction where it would
not otherwise be required to qualify but for this Section 3(e), (y) subject itself to general taxation in any such jurisdiction,
or (z) file a general consent to service of process in any such jurisdiction. The Company shall promptly notify Legal Counsel,
legal counsel for each other Investor and each Investor who holds Registrable Securities of the receipt by the Company of any notification
with respect to the suspension of the registration or qualification of any of the Registrable Securities for sale under the securities
or “blue sky” laws of any jurisdiction in the United States or its receipt of actual notice of the initiation or threatening
of any proceeding for such purpose.

 

(f)          The
Company shall notify Legal Counsel, legal counsel for each other Investor and each Investor in writing of the happening of any
event, as promptly as practicable after becoming aware of such event, as a result of which the prospectus included in a Registration
Statement, as then in effect, may include an untrue statement of a material fact or omission to state a material fact required
to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made,
not misleading (provided that in no event shall such notice contain any material, non-public information regarding the Company
or any of its Subsidiaries), and, subject to Section 3(r), promptly prepare a supplement or amendment to such Registration
Statement and such prospectus contained therein to correct such untrue statement or omission and deliver ten (10) copies of such
supplement or amendment to Legal Counsel, legal counsel for each other Investor and each Investor (or such other number of copies
as Legal Counsel, legal counsel for each other Investor or such Investor may reasonably request). The Company shall also promptly
notify Legal Counsel, legal counsel for each other Investor and each Investor in writing (i) when a prospectus or any prospectus
supplement or post-effective amendment has been filed, when a Registration Statement or any post-effective amendment has become
effective (notification of such effectiveness shall be delivered to Legal Counsel, legal counsel for each other Investor and each
Investor by facsimile or e-mail on the same day of such effectiveness and by overnight mail), and when the Company receives written
notice from the SEC that a Registration Statement or any post-effective amendment will be reviewed by the SEC, (ii) of any request
by the SEC for amendments or supplements to a Registration Statement or related prospectus or related information, (iii) of the
Company’s reasonable determination that a post-effective amendment to a Registration Statement would be appropriate; and
(iv) of the receipt of any request by the SEC or any other federal or state governmental authority for any additional information
relating to the Registration Statement or any amendment or supplement thereto or any related prospectus. The Company shall respond
as promptly as practicable to any comments received from the SEC with respect to each Registration Statement or any amendment thereto
(it being understood and agreed that the Company’s response to any such comments shall be delivered to the SEC no later than
fifteen (15) Business Days after the receipt thereof).

 

    	 	10	 

     

    

 

(g)          The
Company shall (i) use its best efforts to prevent the issuance of any stop order or other suspension of effectiveness of each Registration
Statement or the use of any prospectus contained therein, or the suspension of the qualification, or the loss of an exemption from
qualification, of any of the Registrable Securities for sale in any jurisdiction and, if such an order or suspension is issued,
to obtain the withdrawal of such order or suspension at the earliest possible moment and (ii) notify Legal Counsel, legal counsel
for each other Investor and each Investor who holds Registrable Securities of the issuance of such order and the resolution thereof
or its receipt of actual notice of the initiation or threat of any proceeding for such purpose.

 

(h)          If
any Investor may be required under applicable securities law to be described in any Registration Statement as an underwriter and
such Investor consents to so being named an underwriter, at the request of any Investor, the Company shall furnish to such Investor,
on the date of the effectiveness of such Registration Statement and thereafter from time to time on such dates as an Investor may
reasonably request (i) a letter, dated such date, from the Company’s independent certified public accountants in form and
substance as is customarily given by independent certified public accountants to underwriters in an underwritten public offering,
addressed to the Investors, and (ii) an opinion, dated as of such date, of counsel representing the Company for purposes of such
Registration Statement, in form, scope and substance as is customarily given in an underwritten public offering, addressed to the
Investors.

 

(i)          If
any Investor may be required under applicable securities law to be described in any Registration Statement as an underwriter and
such Investor consents to so being named an underwriter, upon the written request of such Investor, the Company shall make available
for inspection by (i) such Investor, (ii) legal counsel for such Investor and (iii) one (1) firm of accountants or other agents
retained by such Investor (collectively, the “Inspectors”), all pertinent financial and other records, and pertinent
corporate documents and properties of the Company (collectively, the “Records”), as shall be reasonably deemed
necessary by each Inspector, and cause the Company’s officers, directors and employees to supply all information which any
Inspector may reasonably request; provided, however, each Inspector shall agree in writing to hold in strict confidence and not
to make any disclosure (except to such Investor) or use of any Record or other information which the Company’s board of directors
determines in good faith to be confidential, and of which determination the Inspectors are so notified, unless (1) the disclosure
of such Records is necessary to avoid or correct a misstatement or omission in any Registration Statement or is otherwise required
under the 1933 Act, (2) the release of such Records is ordered pursuant to a final, non-appealable subpoena or order from a court
or government body of competent jurisdiction, or (3) the information in such Records has been made generally available to the public
other than by disclosure in violation of this Agreement or any other Transaction Document (as defined in the Securities Purchase
Agreement). Such Investor agrees that it shall, upon learning that disclosure of such Records is sought in or by a court or governmental
body of competent jurisdiction or through other means, give prompt notice to the Company and allow the Company, at its expense,
to undertake appropriate action to prevent disclosure of, or to obtain a protective order for, the Records deemed confidential.
Nothing herein (or in any other confidentiality agreement between the Company and such Investor, if any) shall be deemed to limit
any Investor’s ability to sell Registrable Securities in a manner which is otherwise consistent with applicable laws and
regulations.

 

    	 	11	 

     

    

 

(j)          The
Company shall hold in confidence and not make any disclosure of information concerning an Investor provided to the Company unless
(i) disclosure of such information is necessary to comply with federal or state securities laws, (ii) the disclosure of such information
is necessary to avoid or correct a misstatement or omission in any Registration Statement or is otherwise required to be disclosed
in such Registration Statement pursuant to the 1933 Act, (iii) the release of such information is ordered pursuant to a subpoena
or other final, non-appealable order from a court or governmental body of competent jurisdiction, or (iv) such information has
been made generally available to the public other than by disclosure in violation of this Agreement or any other Transaction Document.
The Company agrees that it shall, upon learning that disclosure of such information concerning an Investor is sought in or by a
court or governmental body of competent jurisdiction or through other means, give prompt written notice to such Investor and allow
such Investor, at such Investor’s expense, to undertake appropriate action to prevent disclosure of, or to obtain a protective
order for, such information.

 

(k)          Without
limiting any obligation of the Company under the Securities Purchase Agreement, the Company shall use its best efforts either to
(i) cause all of the Registrable Securities covered by each Registration Statement to be listed on each securities exchange on
which securities of the same class or series issued by the Company are then listed, if any, if the listing of such Registrable
Securities is then permitted under the rules of such exchange, (ii) secure designation and quotation of all of the Registrable
Securities covered by each Registration Statement on an Eligible Market (as defined in the Securities Purchase Agreement), or (iii)
if, despite the Company’s best efforts to satisfy the preceding clauses (i) or (ii) the Company is unsuccessful in satisfying
the preceding clauses (i) or (ii), without limiting the generality of the foregoing, to use its best efforts to arrange for at
least two market makers to register with the Financial Industry Regulatory Authority (“FINRA”) as such with
respect to such Registrable Securities. In addition, the Company shall cooperate with each Investor and any broker or dealer through
which any such Investor proposes to sell its Registrable Securities in effecting a filing with FINRA pursuant to FINRA Rule 5110
as requested by such Investor. The Company shall pay all fees and expenses in connection with satisfying its obligations under
this Section 3(k).

 

(l)          The
Company shall cooperate with the Investors who hold Registrable Securities being offered and, to the extent applicable, facilitate
the timely preparation and delivery of certificates (not bearing any restrictive legend) representing the Registrable Securities
to be offered pursuant to a Registration Statement and enable such certificates to be in such denominations or amounts (as the
case may be) as the Investors may reasonably request from time to time and registered in such names as the Investors may request.

 

    	 	12	 

     

    

 

(m)          If
requested by an Investor, the Company shall as soon as practicable after receipt of notice from such Investor and subject to Section 3(r)
hereof, (i) incorporate in a prospectus supplement or post-effective amendment such information as an Investor reasonably requests
to be included therein relating to the sale and distribution of Registrable Securities, including, without limitation, information
with respect to the number of Registrable Securities being offered or sold, the purchase price being paid therefor and any other
terms of the offering of the Registrable Securities to be sold in such offering; (ii) make all required filings of such prospectus
supplement or post-effective amendment after being notified of the matters to be incorporated in such prospectus supplement or
post-effective amendment; and (iii) supplement or make amendments to any Registration Statement or prospectus contained therein
if reasonably requested by an Investor holding any Registrable Securities.

 

(n)          The
Company shall use its best efforts to cause the Registrable Securities covered by a Registration Statement to be registered with
or approved by such other governmental agencies or authorities as may be necessary to consummate the disposition of such Registrable
Securities.

 

(o)          The
Company shall make generally available to its security holders as soon as practical, but not later than ninety (90) days after
the close of the period covered thereby, an earnings statement (in form complying with, and in the manner provided by, the provisions
of Rule 158 under the 1933 Act) covering a twelve-month period beginning not later than the first day of the Company’s
fiscal quarter next following the applicable Effective Date of each Registration Statement.

 

(p)          The
Company shall otherwise use its best efforts to comply with all applicable rules and regulations of the SEC in connection with
any registration hereunder.

 

(q)          Within
one (1) Business Day after a Registration Statement which covers Registrable Securities is declared effective by the SEC, the Company
shall deliver, and shall cause legal counsel for the Company to deliver, to the transfer agent for such Registrable Securities
(with copies to the Investors whose Registrable Securities are included in such Registration Statement) confirmation that such
Registration Statement has been declared effective by the SEC in the form attached hereto as Exhibit A.

 

    	 	13	 

     

    

 

(r)           Notwithstanding
anything to the contrary herein (but subject to the last sentence of this Section 3(r)), at any time after the Effective Date
of a particular Registration Statement, the Company may delay the disclosure of material, non-public information concerning the
Company or any of its Subsidiaries the disclosure of which at the time is not, in the good faith opinion of the board of directors
of the Company, in the best interest of the Company and, in the opinion of counsel to the Company, otherwise required (a “Grace
Period”), provided that the Company shall promptly notify the Investors in writing of the (i) existence of material,
non-public information giving rise to a Grace Period (provided that in each such notice the Company shall not disclose the content
of such material, non-public information to any of the Investors) and the date on which such Grace Period will begin and (ii) date
on which such Grace Period ends, provided further that (I) no Grace Period shall exceed ten (10) consecutive days and during any
three hundred sixty five (365) day period all such Grace Periods shall not exceed an aggregate of thirty (30) days, (II) the first
day of any Grace Period must be at least five (5) Trading Days after the last day of any prior Grace Period and (III) no Grace
Period may exist during the sixty (60) Trading Day period immediately following the Effective Date of such Registration Statement
(provided that such sixty (60) Trading Day period shall be extended by the number of Trading Days during such period and any extension
thereof contemplated by this proviso during which such Registration Statement is not effective or the prospectus contained therein
is not available for use) (each, an “Allowable Grace Period”). For purposes of determining the length of a Grace
Period above, such Grace Period shall begin on and include the date the Investors receive the notice referred to in clause (i)
above and shall end on and include the later of the date the Investors receive the notice referred to in clause (ii) above and
the date referred to in such notice. The provisions of Section 3(g) hereof shall not be applicable during the period of any
Allowable Grace Period. Upon expiration of each Grace Period, the Company shall again be bound by the first sentence of Section 3(f)
with respect to the information giving rise thereto unless such material, non-public information is no longer applicable. Notwithstanding
anything to the contrary contained in this Section 3(r), the Company shall cause its transfer agent to deliver unlegended
Ordinary Shares to a transferee of an Investor in accordance with the terms of the Securities Purchase Agreement in connection
with any sale of Registrable Securities with respect to which such Investor has entered into a contract for sale, and delivered
a copy of the prospectus included as part of the particular Registration Statement to the extent applicable, prior to such Investor’s
receipt of the notice of a Grace Period and for which the Investor has not yet settled.

 

(s)          The
Company shall take all other reasonable actions necessary to expedite and facilitate disposition by each Investors of its Registrable
Securities pursuant to each Registration Statement.

 

(t)          Neither
the Company nor any Subsidiary or affiliate thereof shall identify any Investor as an underwriter in any public disclosure or filing
with the SEC, the Principal Market or any Eligible Market and any Buyer being deemed an underwriter by the SEC shall not relieve
the Company of any obligations it has under this Agreement or any other Transaction Document (as defined in the Securities Purchase
Agreement); provided, however, that the foregoing shall not prohibit the Company from including the disclosure found in the "Plan
of Distribution" section attached hereto as Exhibit B in the Registration Statement.

 

(u)          Neither
the Company nor any of its Subsidiaries has entered, as of the date hereof, nor shall the Company or any of its Subsidiaries, on
or after the date of this Agreement, enter into any agreement with respect to its securities, that would have the effect of impairing
the rights granted to the Buyers in this Agreement or otherwise conflicts with the provisions hereof.

 

    	 	14	 

     

    

 

4.            Obligations
of the Investors.

 

(a)          At
least five (5) Business Days prior to the first anticipated filing date of each Registration Statement, the Company shall notify
each Investor in writing of the information the Company requires from each such Investor with respect to such Registration Statement.
It shall be a condition precedent to the obligations of the Company to complete the registration pursuant to this Agreement with
respect to the Registrable Securities of a particular Investor that such Investor shall furnish to the Company such information
regarding itself, the Registrable Securities held by it and the intended method of disposition of the Registrable Securities held
by it, as shall be reasonably required to effect and maintain the effectiveness of the registration of such Registrable Securities
and shall execute such documents in connection with such registration as the Company may reasonably request.

 

(b)          Each
Investor, by such Investor’s acceptance of the Registrable Securities, agrees to cooperate with the Company as reasonably
requested by the Company in connection with the preparation and filing of each Registration Statement hereunder, unless such Investor
has notified the Company in writing of such Investor’s election to exclude all of such Investor’s Registrable Securities
from such Registration Statement.

 

(c)          Each
Investor agrees that, upon receipt of any notice from the Company of the happening of any event of the kind described in Section 3(g)
or the first sentence of 3(f), such Investor will immediately discontinue disposition of Registrable Securities pursuant to any
Registration Statement(s) covering such Registrable Securities until such Investor’s receipt of the copies of the supplemented
or amended prospectus contemplated by Section 3(g) or the first sentence of Section 3(f) or receipt of notice that no
supplement or amendment is required. Notwithstanding anything to the contrary in this Section 4(c), the Company shall cause
its transfer agent to deliver unlegended Ordinary Shares to a transferee of an Investor in accordance with the terms of the Securities
Purchase Agreement in connection with any sale of Registrable Securities with respect to which such Investor has entered into a
contract for sale prior to the Investor’s receipt of a notice from the Company of the happening of any event of the kind
described in Section 3(g) or the first sentence of Section 3(f) and for which such Investor has not yet settled.

 

5.            Expenses
of Registration.

 

All reasonable expenses,
other than underwriting discounts and commissions, incurred in connection with registrations, filings or qualifications pursuant
to Sections 2 and 3, including, without limitation, all registration, listing and qualifications fees, printers and accounting
fees, FINRA filing fees (if any) and fees and disbursements of counsel for the Company shall be paid by the Company. The Company
shall reimburse Legal Counsel for its fees and disbursements in connection with registration, filing or qualification pursuant
to Sections 2 and 3 of this Agreement which amount shall be limited to $10,000 for each such registration, filing or qualification.

 

    	 	15	 

     

    

 

6.            Indemnification.

 

(a)          To
the fullest extent permitted by law, the Company will, and hereby does, indemnify, hold harmless and defend each Investor and each
of its directors, officers, shareholders, members, partners, employees, agents, advisors, representatives (and any other Persons
with a functionally equivalent role of a Person holding such titles notwithstanding the lack of such title or any other title)
and each Person, if any, who controls such Investor within the meaning of the 1933 Act or the 1934 Act and each of the directors,
officers, shareholders, members, partners, employees, agents, advisors, representatives (and any other Persons with a functionally
equivalent role of a Person holding such titles notwithstanding the lack of such title or any other title) of such controlling
Persons (each, an “Indemnified Person”), against any losses, obligations, claims, damages, liabilities, contingencies,
judgments, fines, penalties, charges, costs (including, without limitation, court costs, reasonable attorneys’ fees and costs
of defense and investigation), amounts paid in settlement or expenses, joint or several, (collectively, “Claims”)
incurred in investigating, preparing or defending any action, claim, suit, inquiry, proceeding, investigation or appeal taken from
the foregoing by or before any court or governmental, administrative or other regulatory agency, body or the SEC, whether pending
or threatened, whether or not an Indemnified Person is or may be a party thereto (“Indemnified Damages”), to
which any of them may become subject insofar as such Claims (or actions or proceedings, whether commenced or threatened, in respect
thereof) arise out of or are based upon: (i) any untrue statement or alleged untrue statement of a material fact in a Registration
Statement or any post-effective amendment thereto or in any filing made in connection with the qualification of the offering under
the securities or other “blue sky” laws of any jurisdiction in which Registrable Securities are offered (“Blue
Sky Filing”), or the omission or alleged omission to state a material fact required to be stated therein or necessary
to make the statements therein not misleading, (ii) any untrue statement or alleged untrue statement of a material fact contained
in any preliminary prospectus if used prior to the effective date of such Registration Statement, or contained in the final prospectus
(as amended or supplemented, if the Company files any amendment thereof or supplement thereto with the SEC) or the omission or
alleged omission to state therein any material fact necessary to make the statements made therein, in light of the circumstances
under which the statements therein were made, not misleading or (iii) any violation or alleged violation by the Company of the
1933 Act, the 1934 Act, any other law, including, without limitation, any state securities law, or any rule or regulation thereunder
relating to the offer or sale of the Registrable Securities pursuant to a Registration Statement or (iv) any violation of this
Agreement (the matters in the foregoing clauses (i) through (iv) being, collectively, “Violations”). Subject
to Section 6(c), the Company shall reimburse the Indemnified Persons, promptly as such expenses are incurred and are due and
payable, for any legal fees or other reasonable expenses incurred by them in connection with investigating or defending any such
Claim. Notwithstanding anything to the contrary contained herein, the indemnification agreement contained in this Section 6(a):
(i) shall not apply to a Claim by an Indemnified Person arising out of or based upon a Violation which occurs in reliance upon
and in conformity with information furnished in writing to the Company by such Indemnified Person for such Indemnified Person expressly
for use in connection with the preparation of such Registration Statement or any such amendment thereof or supplement thereto,
if such prospectus was timely made available by the Company pursuant to Section 3(d); and (ii) shall not apply to amounts paid
in settlement of any Claim if such settlement is effected without the prior written consent of the Company, which consent shall
not be unreasonably withheld or delayed. Such indemnity shall remain in full force and effect regardless of any investigation made
by or on behalf of the Indemnified Person and shall survive the transfer of any of the Registrable Securities by any of the Investors
pursuant to Section 9.

 

    	 	16	 

     

    

 

(b)          In
connection with any Registration Statement in which an Investor is participating, such Investor agrees to severally and not jointly
indemnify, hold harmless and defend, to the same extent and in the same manner as is set forth in Section 6(a), the Company,
each of its directors, each of its officers who signs the Registration Statement and each Person, if any, who controls the Company
within the meaning of the 1933 Act or the 1934 Act (each, an “Indemnified Party”), against any Claim or Indemnified
Damages to which any of them may become subject, under the 1933 Act, the 1934 Act or otherwise, insofar as such Claim or Indemnified
Damages arise out of or are based upon any Violation, in each case, to the extent, and only to the extent, that such Violation
occurs in reliance upon and in conformity with written information furnished to the Company by such Investor expressly for use
in connection with such Registration Statement; and, subject to Section 6(c) and the below provisos in this Section 6(b),
such Investor will reimburse an Indemnified Party any legal or other expenses reasonably incurred by such Indemnified Party in
connection with investigating or defending any such Claim; provided, however, the indemnity agreement contained in this Section 6(b)
and the agreement with respect to contribution contained in Section 7 shall not apply to amounts paid in settlement of any
Claim if such settlement is effected without the prior written consent of such Investor, which consent shall not be unreasonably
withheld or delayed, provided further that such Investor shall be liable under this Section 6(b) for only that amount of a
Claim or Indemnified Damages as does not exceed the net proceeds to such Investor as a result of the applicable sale of Registrable
Securities pursuant to such Registration Statement. Such indemnity shall remain in full force and effect regardless of any investigation
made by or on behalf of such Indemnified Party and shall survive the transfer of any of the Registrable Securities by any of the
Investors pursuant to Section 9.

 

(c)          Promptly
after receipt by an Indemnified Person or Indemnified Party (as the case may be) under this Section 6 of notice of the commencement
of any action or proceeding (including, without limitation, any governmental action or proceeding) involving a Claim, such Indemnified
Person or Indemnified Party (as the case may be) shall, if a Claim in respect thereof is to be made against any indemnifying party
under this Section 6, deliver to the indemnifying party a written notice of the commencement thereof, and the indemnifying
party shall have the right to participate in, and, to the extent the indemnifying party so desires, jointly with any other indemnifying
party similarly noticed, to assume control of the defense thereof with counsel mutually satisfactory to the indemnifying party
and the Indemnified Person or the Indemnified Party (as the case may be); provided, however, an Indemnified Person or Indemnified
Party (as the case may be) shall have the right to retain its own counsel with the fees and expenses of such counsel to be paid
by the indemnifying party if: (i) the indemnifying party has agreed in writing to pay such fees and expenses; (ii) the indemnifying
party shall have failed promptly to assume the defense of such Claim and to employ counsel reasonably satisfactory to such Indemnified
Person or Indemnified Party (as the case may be) in any such Claim; or (iii) the named parties to any such Claim (including, without
limitation, any impleaded parties) include both such Indemnified Person or Indemnified Party (as the case may be) and the indemnifying
party, and such Indemnified Person or such Indemnified Party (as the case may be) shall have been advised by counsel that a conflict
of interest is likely to exist if the same counsel were to represent such Indemnified Person or such Indemnified Party and the
indemnifying party (in which case, if such Indemnified Person or such Indemnified Party (as the case may be) notifies the indemnifying
party in writing that it elects to employ separate counsel at the expense of the indemnifying party, then the indemnifying party
shall not have the right to assume the defense thereof and such counsel shall be at the expense of the indemnifying party, provided
further that in the case of clause (iii) above the indemnifying party shall not be responsible for the reasonable fees and expenses
of more than one (1) separate legal counsel for such Indemnified Person or Indemnified Party (as the case may be). The Indemnified
Party or Indemnified Person (as the case may be) shall reasonably cooperate with the indemnifying party in connection with any
negotiation or defense of any such action or Claim by the indemnifying party and shall furnish to the indemnifying party all information
reasonably available to the Indemnified Party or Indemnified Person (as the case may be) which relates to such action or Claim.
The indemnifying party shall keep the Indemnified Party or Indemnified Person (as the case may be) reasonably apprised at all times
as to the status of the defense or any settlement negotiations with respect thereto. No indemnifying party shall be liable for
any settlement of any action, claim or proceeding effected without its prior written consent; provided, however, the indemnifying
party shall not unreasonably withhold, delay or condition its consent. No indemnifying party shall, without the prior written consent
of the Indemnified Party or Indemnified Person (as the case may be), consent to entry of any judgment or enter into any settlement
or other compromise which does not include as an unconditional term thereof the giving by the claimant or plaintiff to such Indemnified
Party or Indemnified Person (as the case may be) of a release from all liability in respect to such Claim or litigation, and such
settlement shall not include any admission as to fault on the part of the Indemnified Party. Following indemnification as provided
for hereunder, the indemnifying party shall be subrogated to all rights of the Indemnified Party or Indemnified Person (as the
case may be) with respect to all third parties, firms or corporations relating to the matter for which indemnification has been
made. The failure to deliver written notice to the indemnifying party within a reasonable time of the commencement of any such
action shall not relieve such indemnifying party of any liability to the Indemnified Person or Indemnified Party (as the case may
be) under this Section 6, except to the extent that the indemnifying party is materially and adversely prejudiced in its ability
to defend such action.

 

    	 	17	 

     

    

 

(d)          The
indemnification required by this Section 6 shall be made by periodic payments of the amount thereof during the course of the
investigation or defense, as and when bills are received or Indemnified Damages are incurred.

 

(e)          The
indemnity and contribution agreements contained herein shall be in addition to (i) any cause of action or similar right of the
Indemnified Party or Indemnified Person against the indemnifying party or others, and (ii) any liabilities the indemnifying party
may be subject to pursuant to the law.

 

7.            Contribution.

 

To the extent any indemnification
by an indemnifying party is prohibited or limited by law, the indemnifying party agrees to make the maximum contribution with respect
to any amounts for which it would otherwise be liable under Section 6 to the fullest extent permitted by law; provided, however:
(i) no contribution shall be made under circumstances where the maker would not have been liable for indemnification under the
fault standards set forth in Section 6 of this Agreement, (ii) no Person involved in the sale of Registrable Securities which
Person is guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the 1933 Act) in connection with such
sale shall be entitled to contribution from any Person involved in such sale of Registrable Securities who was not guilty of fraudulent
misrepresentation; and (iii) contribution by any seller of Registrable Securities shall be limited in amount to the amount
of net proceeds received by such seller from the applicable sale of such Registrable Securities pursuant to such Registration Statement.
Notwithstanding the provisions of this Section 7, no Investor shall be required to contribute, in the aggregate, any amount
in excess of the amount by which the net proceeds actually received by such Investor from the applicable sale of the Registrable
Securities subject to the Claim exceeds the amount of any damages that such Investor has otherwise been required to pay, or would
otherwise be required to pay under Section 6(b), by reason of such untrue or alleged untrue statement or omission or alleged
omission.

 

    	 	18	 

     

    

 

8.            Reports
Under the 1934 Act.

 

With a view to making
available to the Investors the benefits of Rule 144, the Company agrees to:

 

(a)          make
and keep public information available, as those terms are understood and defined in Rule 144;

 

(b)          file
with the SEC in a timely manner all reports and other documents required of the Company under the 1933 Act and the 1934 Act so
long as the Company remains subject to such requirements (it being understood and agreed that nothing herein shall limit any obligations
of the Company under the Securities Purchase Agreement) and the filing of such reports and other documents is required for the
applicable provisions of Rule 144; and

 

(c)          furnish
to each Investor so long as such Investor owns Registrable Securities, promptly upon request, (i) a written statement by the Company,
if true, that it has complied with the reporting, submission and posting requirements of Rule 144, the 1933 Act and the 1934 Act,
(ii) a copy of the most recent annual or quarterly report of the Company and such other reports and documents so filed by the Company
with the SEC if such reports are not publicly available via EDGAR, and (iii) such other information as may be reasonably requested
to permit the Investors to sell such securities pursuant to Rule 144 without registration.

 

9.           Assignment
of Registration Rights.

 

All or any portion
of the rights under this Agreement shall be automatically assignable by each Investor to any transferee or assignee (as the case
may be) of all or any portion of such Investor’s Registrable Securities, Notes or Warrants if: (i) such Investor agrees in
writing with such transferee or assignee (as the case may be) to assign all or any portion of such rights, and a copy of such agreement
is furnished to the Company within a reasonable time after such transfer or assignment (as the case may be); (ii) the Company is,
within a reasonable time after such transfer or assignment (as the case may be), furnished with written notice of (a) the name
and address of such transferee or assignee (as the case may be), and (b) the securities with respect to which such registration
rights are being transferred or assigned (as the case may be); (iii) immediately following such transfer or assignment (as
the case may be) the further disposition of such securities by such transferee or assignee (as the case may be) is restricted under
the 1933 Act or applicable state securities laws if so required; (iv) at or before the time the Company receives the written notice
contemplated by clause (ii) of this sentence such transferee or assignee (as the case may be) agrees in writing with the Company
to be bound by all of the provisions contained herein; (v) such transfer or assignment (as the case may be) shall have been made
in accordance with the applicable requirements of the Securities Purchase Agreement, the Notes and the Warrants (as the case may
be); and (vi) such transfer or assignment (as the case may be) shall have been conducted in accordance with all applicable federal
and state securities laws.

 

    	 	19	 

     

    

 

10.          Amendment
of Registration Rights.

 

Provisions of this
Agreement may be amended and the observance thereof may be waived (either generally or in a particular instance and either retroactively
or prospectively), only with the written consent of the Company and the Required Holders; provided that any such amendment or waiver
that complies with the foregoing, but that disproportionately, materially and adversely affects the rights and obligations of any
Investor relative to the comparable rights and obligations of the other Investors shall require the prior written consent of such
adversely affected Investor. Any amendment or waiver effected in accordance with this Section 10 shall be binding upon each Investor
and the Company, provided that no such amendment shall be effective to the extent that it (1) applies to less than all of the holders
of Registrable Securities or (2) imposes any obligation or liability on any Investor without such Investor’s prior written
consent (which may be granted or withheld in such Investor’s sole discretion). No waiver shall be effective unless it is
in writing and signed by an authorized representative of the waiving party. No consideration shall be offered or paid to any Person
to amend or consent to a waiver or modification of any provision of this Agreement unless the same consideration (other than the
reimbursement of legal fees) also is offered to all of the parties to this Agreement.

 

11.          Miscellaneous.

 

(a)          Solely
for purposes of this Agreement, a Person is deemed to be a holder of Registrable Securities whenever such Person owns, or is deemed
to own, of record such Registrable Securities. If the Company receives conflicting instructions, notices or elections from two
or more Persons with respect to the same Registrable Securities, the Company shall act upon the basis of instructions, notice or
election received from such record owner of such Registrable Securities.

 

(b)          Any
notices, consents, waivers or other communications required or permitted to be given under the terms of this Agreement must be
in writing and will be deemed to have been delivered: (i) upon receipt, when delivered personally; (ii) upon receipt, when sent
by facsimile (provided confirmation of transmission is mechanically or electronically generated and kept on file by the sending
party) or electronic mail (provided that such sent email is kept on file (whether electronically or otherwise) by the sending party
and the sending party does not receive an automatically generated message from the recipient's email server that such e-mail could
not be delivered to such recipient); or (iii) one (1) Business Day after deposit with a nationally recognized overnight delivery
service with next day delivery specified, in each case, properly addressed to the party to receive the same. The addresses, facsimile
numbers and email addresses for such communications shall be:

 

    	 	20	 

     

    

 

If to the Company:

 

Farmmi, Inc.

No. 307, Tianning Industrial Area

Lishui, Zhejiang Province

People’s Republic of China 323000

Telephone: +86-057-1875555801

Facsimile: +86-057-1875555826

Attention: Chief Executive Officer

E-Mail: farmmi@farmmi.com

 

With a copy (for informational purposes only) to:

 

Kaufman & Canoles, P.C.

Two James Center, 14th Floor

1021 E. Cary St.

Richmond, VA 23219

Telephone: (804) 771-5700

Facsimile: +1 (888) 360.9092

Attention: Anthony W. Basch

E-Mail: awbasch@kaufcan.com

 

If to the Transfer Agent:

 

TranShare Securities Transfer and Registrar

15500 Roosevelt Blvd., Suite 301

Clearwater, FL 33760

Telephone: (303) 662-1112

Attention: Jinlong Liu

E-Mail: jliu@transhare.com

 

If to Legal
Counsel:

 

Kelley Drye &
Warren LLP

101 Park Avenue

New York, NY 10178

Telephone: (212) 808-7540

Facsimile: (212) 808-7897

Attention: Michael A. Adelstein, Esq.

Email: madelstein@kelleydrye.com

 

If to a Buyer, to its address, facsimile
number and/or email address set forth on the Schedule of Buyers attached to the Securities Purchase Agreement, with copies to such
Buyer’s representatives as set forth on the Schedule of Buyers, or to such other address, facsimile number, and/or email
address and/or to the attention of such other Person as the recipient party has specified by written notice given to each other
party five (5) days prior to the effectiveness of such change, provided that Kelley Drye & Warren LLP shall only be provided
notices sent to the lead investor. Written confirmation of receipt (A) given by the recipient of such notice, consent, waiver
or other communication, (B) mechanically or electronically generated by the sender’s facsimile machine or email containing
the time, date, recipient facsimile number or email address and an image of the first page of such transmission or (C) provided
by a courier or overnight courier service shall be rebuttable evidence of personal service, receipt by facsimile or receipt from
a nationally recognized overnight delivery service in accordance with clause (i), (ii) or (iii) above, respectively.

 

    	 	21	 

     

    

 

(c)          Failure
of any party to exercise any right or remedy under this Agreement or otherwise, or delay by a party in exercising such right or
remedy, shall not operate as a waiver thereof. The Company and each Investor acknowledge and agree that irreparable damage would
occur in the event that any of the provisions of this Agreement were not performed in accordance with their specific terms or were
otherwise breached. It is accordingly agreed that each party hereto shall be entitled to an injunction or injunctions to prevent
or cure breaches of the provisions of this Agreement by any other party hereto and to enforce specifically the terms and provisions
hereof (without the necessity of showing economic loss and without any bond or other security being required), this being in addition
to any other remedy to which any party may be entitled by law or equity.

 

(d)          All
questions concerning the construction, validity, enforcement and interpretation of this Agreement shall be governed by the internal
laws of the State of New York, without giving effect to any choice of law or conflict of law provision or rule (whether of the
State of New York or any other jurisdictions) that would cause the application of the laws of any jurisdictions other than the
State of New York. Each party hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting
in The City of New York, Borough of Manhattan, for the adjudication of any dispute hereunder or in connection herewith or with
any transaction contemplated hereby or discussed herein, and hereby irrevocably waives, and agrees not to assert in any suit, action
or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding
is brought in an inconvenient forum or that the venue of such suit, action or proceeding is improper. The Company hereby appoints
CT Corporation, 111 Eighth Avenue, 13th Floor, New York, New York 10011, as its agent for service of process in New York. Each
party hereby irrevocably waives personal service of process and consents to process being served in any such suit, action or proceeding
by mailing a copy thereof to such party at the address for such notices to it under this Agreement and agrees that such service
shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in
any way any right to serve process in any manner permitted by law. EACH PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE TO,
AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION HEREWITH OR ARISING OUT
OF THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY. The choice of the laws of the State of New York as the governing law
of this Agreement is a valid choice of law and would be recognized and given effect to in any action brought before a court of
competent jurisdiction in the Cayman Islands, except for those laws (i) which such court considers to be procedural in nature,
(ii) which are revenue or penal laws or (iii) the application of which would be inconsistent with public policy, as such term is
interpreted under the laws of the Cayman Islands. The choice of laws of the State of New York as the governing law of this Agreement
will be honored by competent courts in the People’s Republic of China, subject to compliance with relevant the People’s
Republic of China civil procedural requirements. The Company or any of their respective properties, assets or revenues does not
have any right of immunity under Cayman Islands, the People’s Republic of China or New York law, from any legal action, suit
or proceeding, from the giving of any relief in any such legal action, suit or proceeding, from set-off or counterclaim, from the
jurisdiction of any Cayman Islands and the People’s Republic of China, New York or United States federal court, from service
of process, attachment upon or prior to judgment, or attachment in aid of execution of judgment, or from execution of a judgment,
or other legal process or proceeding for the giving of any relief or for the enforcement of a judgment, in any such court, with
respect to its obligations, liabilities or any other matter under or arising out of or in connection with this Agreement; and,
to the extent that the Company, or any of its properties, assets or revenues may have or may hereafter become entitled to any such
right of immunity in any such court in which proceedings may at any time be commenced, the Company hereby waives such right to
the extent permitted by law and hereby consents to such relief and enforcement as provided in this Agreement and the other Transaction
Documents.

 

    	 	22	 

     

    

 

(e)          If
any provision of this Agreement is prohibited by law or otherwise determined to be invalid or unenforceable by a court of competent
jurisdiction, the provision that would otherwise be prohibited, invalid or unenforceable shall be deemed amended to apply to the
broadest extent that it would be valid and enforceable, and the invalidity or unenforceability of such provision shall not affect
the validity of the remaining provisions of this Agreement so long as this Agreement as so modified continues to express, without
material change, the original intentions of the parties as to the subject matter hereof and the prohibited nature, invalidity or
unenforceability of the provision(s) in question does not substantially impair the respective expectations or reciprocal obligations
of the parties or the practical realization of the benefits that would otherwise be conferred upon the parties. The parties will
endeavor in good faith negotiations to replace the prohibited, invalid or unenforceable provision(s) with a valid provision(s),
the effect of which comes as close as possible to that of the prohibited, invalid or unenforceable provision(s).

 

(f)          This
Agreement, the other Transaction Documents, the schedules and exhibits attached hereto and thereto and the instruments referenced
herein and therein constitute the entire agreement among the parties hereto and thereto solely with respect to the subject matter
hereof and thereof. There are no restrictions, promises, warranties or undertakings, other than those set forth or referred to
herein and therein. This Agreement, the other Transaction Documents, the schedules and exhibits attached hereto and thereto and
the instruments referenced herein and therein supersede all prior agreements and understandings among the parties hereto solely
with respect to the subject matter hereof and thereof; provided, however, nothing contained in this Agreement or any other Transaction
Document shall (or shall be deemed to) (i) have any effect on any agreements any Investor has entered into with the Company or
any of its Subsidiaries prior to the date hereof with respect to any prior investment made by such Investor in the Company, (ii)
waive, alter, modify or amend in any respect any obligations of the Company or any of its Subsidiaries or any rights of or benefits
to any Investor or any other Person in any agreement entered into prior to the date hereof between or among the Company and/or
any of its Subsidiaries and any Investor and all such agreements shall continue in full force and effect or (iii) limit any obligations
of the Company under any of the other Transaction Documents.

 

    	 	23	 

     

    

 

(g)          Subject
to compliance with Section 9 (if applicable), this Agreement shall inure to the benefit of and be binding upon the permitted
successors and assigns of each of the parties hereto. This Agreement is not for the benefit of, nor may any provision hereof be
enforced by, any Person, other than the parties hereto, their respective permitted successors and assigns and the Persons referred
to in Sections 6 and 7 hereof.

 

(h)          The
headings in this Agreement are for convenience of reference only and shall not limit or otherwise affect the meaning hereof. Unless
the context clearly indicates otherwise, each pronoun herein shall be deemed to include the masculine, feminine, neuter, singular
and plural forms thereof. The terms “including,” “includes,” “include” and words of like import
shall be construed broadly as if followed by the words “without limitation.” The terms “herein,” “hereunder,”
“hereof” and words of like import refer to this entire Agreement instead of just the provision in which they are found.

 

(i)          This
Agreement may be executed in two or more identical counterparts, each of which shall be deemed an original, but all of which shall
be considered one and the same agreement and shall become effective when counterparts have been signed by each party and delivered
to the other party. In the event that any signature is delivered by facsimile transmission or by an email which contains a portable
document format (.pdf) file of an executed signature page, such signature page shall create a valid and binding obligation of the
party executing (or on whose behalf such signature is executed) with the same force and effect as if such signature page were an
original thereof.

 

(j)          Each
party shall do and perform, or cause to be done and performed, all such further acts and things, and shall execute and deliver
all such other agreements, certificates, instruments and documents as any other party may reasonably request in order to carry
out the intent and accomplish the purposes of this Agreement and the consummation of the transactions contemplated hereby.

 

(k)          The
language used in this Agreement will be deemed to be the language chosen by the parties to express their mutual intent and no rules
of strict construction will be applied against any party. Notwithstanding anything to the contrary set forth in Section 10, terms
used in this Agreement but defined in the other Transaction Documents shall have the meanings ascribed to such terms on the Closing
Date in such other Transaction Documents unless otherwise consented to in writing by each Investor.

 

(l)          All
consents and other determinations required to be made by the Investors pursuant to this Agreement shall be made, unless otherwise
specified in this Agreement, by the Required Holders, determined as if all of the outstanding Notes then held by the Investors
have been converted for Registrable Securities without regard to any limitations on redemption, amortization and/or conversion
of the Notes and the outstanding Warrants then held by Investors have been exercised for Registrable Securities without regard
to any limitations on exercise of the Warrants.

 

(m)          This
Agreement is intended for the benefit of the parties hereto and their respective permitted successors and assigns, and is not for
the benefit of, nor may any provision hereof be enforced by, any other Person.

 

    	 	24	 

     

    

 

(n)          The
obligations of each Investor under this Agreement and the other Transaction Documents are several and not joint with the obligations
of any other Investor, and no Investor shall be responsible in any way for the performance of the obligations of any other Investor
under this Agreement or any other Transaction Document. Nothing contained herein or in any other Transaction Document, and no action
taken by any Investor pursuant hereto or thereto, shall be deemed to constitute the Investors as, and the Company acknowledges
that the Investors do not so constitute, a partnership, an association, a joint venture or any other kind of group or entity, or
create a presumption that the Investors are in any way acting in concert or as a group or entity with respect to such obligations
or the transactions contemplated by the Transaction Documents or any matters, and the Company acknowledges that the Investors are
not acting in concert or as a group, and the Company shall not assert any such claim, with respect to such obligations or the transactions
contemplated by this Agreement or any of the other the Transaction Documents. Each Investor shall be entitled to independently
protect and enforce its rights, including, without limitation, the rights arising out of this Agreement or out of any other Transaction
Documents, and it shall not be necessary for any other Investor to be joined as an additional party in any proceeding for such
purpose. The use of a single agreement with respect to the obligations of the Company contained herein was solely in the control
of the Company, not the action or decision of any Investor, and was done solely for the convenience of the Company and not because
it was required or requested to do so by any Investor. It is expressly understood and agreed that each provision contained in this
Agreement and in each other Transaction Document is between the Company and an Investor, solely, and not between the Company and
the Investors collectively and not between and among Investors.

 

[signature page follows]

 

    	 	25	 

     

    

 

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

 

	 	COMPANY:
	 	 
	 	FARMMI, INC.
	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

     

     

    

  

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

 

	 	BUYERS:
	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

     

     

    

 

EXHIBIT A

 

FORM OF NOTICE OF EFFECTIVENESS

OF REGISTRATION STATEMENT

 

______________________

______________________

______________________

Attention: ______________

 

Re:         Farmmi,
Inc.

 

Ladies and Gentlemen:

 

[We are][I am] counsel
to Farmmi, Inc., company organized under the laws of the Cayman Islands with offices located at No. 307, Tianning Industrial Area,
Lishui, Zhejiang Province, People’s Republic of China 323000 (the “Company”), and have represented the
Company in connection with that certain Securities Purchase Agreement (the “Securities Purchase Agreement”)
entered into by and among the Company and the buyers named therein (collectively, the “Holders”) pursuant to
which the Company issued to the Holders senior secured convertible notes (the “Notes”) convertible into the
Company’s ordinary shares, $0.001 par value per share (the “Ordinary Shares”), and warrants exercisable
for Ordinary Shares (the “Warrants”). Pursuant to the Securities Purchase Agreement, the Company also has entered
into a Registration Rights Agreement with the Holders (the “Registration Rights Agreement”) pursuant to which
the Company agreed, among other things, to register the Registrable Securities (as defined in the Registration Rights Agreement),
including the Ordinary Shares issuable upon conversion of the Notes and exercise of the Warrants, under the Securities Act of 1933,
as amended (the “1933 Act”). In connection with the Company’s obligations under the Registration Rights
Agreement, on November __, 2018, the Company filed a Registration Statement on Form [F-1][F-3] (File No. 333-_____________)
(the “Registration Statement”) with the Securities and Exchange Commission (the “SEC”) relating
to the Registrable Securities which names each of the Holders as a selling shareholder thereunder.

 

In connection with the
foregoing, [we][I] advise you that [a member of the SEC’s staff has advised [us][me] by telephone that [the SEC has entered
an order declaring the Registration Statement effective under the 1933 Act at [ENTER TIME OF EFFECTIVENESS] on [ENTER DATE OF EFFECTIVENESS]]
[an order declaring the Registration Statement effective under the 1933 Act at [ENTER TIME OF EFFECTIVENESS] on [ENTER DATE OF
EFFECTIVENESS]] has been posted on the web site of the SEC at www.sec.gov] and [we][I] have no knowledge, after a review of information
posted on the website of the SEC at http://www.sec.gov/litigation/stoporders.shtml, that any stop order suspending its effectiveness
has been issued or that any proceedings for that purpose are pending before, or threatened by, the SEC and the Registrable Securities
are available for resale under the 1933 Act pursuant to the Registration Statement.

 

     

     

    

 

This letter shall serve
as our standing opinion to you that the Ordinary Shares underlying the Notes and Warrants are freely transferable by the Holders
pursuant to the Registration Statement. You need not require further letters from us to effect any future legend-free issuance
or reissuance of such Ordinary Shares to the Holders as contemplated by the Company’s Irrevocable Transfer Agent Instructions
dated _________ __, 20__.

 

	 	Very truly yours,
	 	 
	 	[ISSUER’S COUNSEL]
	 	 
	 	By:_____________________

 

CC:[BUYER]

 

     

     

    

 

EXHIBIT B

 

SELLING SHAREHOLDERS

 

The ordinary shares
being offered by the selling shareholders are those issuable to the selling shareholders upon conversion of the notes and exercise
of the warrants. For additional information regarding the issuance of the notes and the warrants, see “Private Placement
of Notes and Warrants” above. We are registering the ordinary shares in order to permit the selling shareholders to offer
the shares for resale from time to time. Except for the ownership of the notes and the warrants issued pursuant to the Securities
Purchase Agreement, the selling shareholders have not had any material relationship with us within the past three years.

 

The table below lists
the selling shareholders and other information regarding the beneficial ownership (as determined under Section 13(d) of the Securities
Exchange Act of 1934, as amended, and the rules and regulations thereunder) of the ordinary shares held by each of the selling
shareholders. The second column lists the number of ordinary shares beneficially owned by the selling shareholders, based on their
respective ownership of ordinary shares, notes and warrants, as of ________, 20__, assuming conversion of the notes and exercise
of the warrants held by each such selling shareholder on that date but taking account of any limitations on conversion and exercise
set forth therein.

 

The third column lists
the ordinary shares being offered by this prospectus by the selling shareholders and does not take in account any limitations on
(i) conversion of the notes set forth therein or (ii) exercise of the warrants set forth therein.

 

In accordance with
the terms of a registration rights agreement with the holders of the notes and the warrants, this prospectus generally covers the
resale of 150% of the sum of (i) the maximum number of ordinary shares issued or issuable pursuant to the Notes, including payment
of interest on the notes through [DATE], and (ii) the maximum number of ordinary shares issued or issuable upon exercise of the
warrants, in each case, determined as if the outstanding notes (including interest on the notes through [DATE]) and warrants were
converted or exercised (as the case may be) in full (without regard to any limitations on conversion or exercise contained therein
solely for the purpose of such calculation) at a conversion price or exercise price (as the case may be) calculated as of the trading
day immediately preceding the date this registration statement was initially filed with the SEC. Because the conversion price of
the notes and the exercise price of the warrants may be adjusted, the number of shares that will actually be issued may be more
or less than the number of shares being offered by this prospectus. The fourth column assumes the sale of all of the shares offered
by the selling shareholders pursuant to this prospectus.

 

Under the terms of
the notes and the warrants, a selling shareholder may not convert the notes or exercise the warrants to the extent (but only to
the extent) such selling shareholder or any of its affiliates would beneficially own a number of shares of our ordinary shares
which would exceed 4.99% of the outstanding shares of the Company. The number of shares in the second column reflects these limitations.
The selling shareholders may sell all, some or none of their shares in this offering. See “Plan of Distribution.”

 

     

     

    

 

	Name of Selling Shareholder	 	Number of Ordinary 

Shares Owned Prior to 

Offering	 	Maximum Number of 

Ordinary Shares to be Sold 

Pursuant to this Prospectus	 	Number of Ordinary 

Shares of Owned After 

Offering
	 	 	 	 	 	 	 

 

     

     

    

 

PLAN OF DISTRIBUTION

 

We are registering
the ordinary shares issuable upon conversion of the notes and exercise of the warrants to permit the resale of these ordinary shares
by the holders of the notes and warrants from time to time after the date of this prospectus. We will not receive any of the proceeds
from the sale by the selling shareholders of the ordinary shares, although we will receive the exercise price of any Warrants not
exercised by the selling shareholders on a cashless exercise basis. We will bear all fees and expenses incident to our obligation
to register the ordinary shares.

 

The selling shareholders
may sell all or a portion of the ordinary shares held by them and offered hereby from time to time directly or through one or more
underwriters, broker-dealers or agents. If the ordinary shares are sold through underwriters or broker-dealers, the selling shareholders
will be responsible for underwriting discounts or commissions or agent’s commissions. The ordinary shares may be sold in
one or more transactions at fixed prices, at prevailing market prices at the time of the sale, at varying prices determined at
the time of sale or at negotiated prices. These sales may be effected in transactions, which may involve crosses or block transactions,
pursuant to one or more of the following methods:

 

		·	on any national securities exchange or quotation service on which the securities may be listed
or quoted at the time of sale;

 

		·	in the over-the-counter market;

 

		·	in transactions otherwise than on these exchanges or systems or in the over-the-counter market;

 

		·	through the writing or settlement of options, whether such options are listed on an options exchange
or otherwise;

 

		·	ordinary brokerage transactions and transactions in which the broker-dealer solicits purchasers;

 

		·	block trades in which the broker-dealer will attempt to sell the shares as agent but may position
and resell a portion of the block as principal to facilitate the transaction;

 

		·	purchases by a broker-dealer as principal and resale by the broker-dealer for its account;

 

		·	an exchange distribution in accordance with the rules of the applicable exchange;

 

		·	privately negotiated transactions;

 

		·	short sales made after the date the Registration Statement is declared effective by the SEC;

 

     

     

    

 

		·	broker-dealers may agree with a selling security holder to sell a specified number of such shares
at a stipulated price per share;

 

		·	a combination of any such methods of sale; and

 

		·	any other method permitted pursuant to applicable law.

 

The selling shareholders
may also sell ordinary shares under Rule 144 promulgated under the Securities Act of 1933, as amended, if available, rather
than under this prospectus. In addition, the selling shareholders may transfer the ordinary shares by other means not described
in this prospectus. If the selling shareholders effect such transactions by selling ordinary shares to or through underwriters,
broker-dealers or agents, such underwriters, broker-dealers or agents may receive commissions in the form of discounts, concessions
or commissions from the selling shareholders or commissions from purchasers of the ordinary shares for whom they may act as agent
or to whom they may sell as principal (which discounts, concessions or commissions as to particular underwriters, broker-dealers
or agents may be in excess of those customary in the types of transactions involved). In connection with sales of the ordinary
shares or otherwise, the selling shareholders may enter into hedging transactions with broker-dealers, which may in turn engage
in short sales of the ordinary shares in the course of hedging in positions they assume. The selling shareholders may also sell
ordinary shares short and deliver ordinary shares covered by this prospectus to close out short positions and to return borrowed
shares in connection with such short sales. The selling shareholders may also loan or pledge ordinary shares to broker-dealers
that in turn may sell such shares.

 

The selling shareholders
may pledge or grant a security interest in some or all of the notes, warrants or ordinary shares owned by them and, if they default
in the performance of their secured obligations, the pledgees or secured parties may offer and sell the ordinary shares from time
to time pursuant to this prospectus or any amendment to this prospectus under Rule 424(b)(3) or other applicable provision of the
Securities Act amending, if necessary, the list of selling shareholders to include the pledgee, transferee or other successors
in interest as selling shareholders under this prospectus. The selling shareholders also may transfer and donate the ordinary shares
in other circumstances in which case the transferees, donees, pledgees or other successors in interest will be the selling beneficial
owners for purposes of this prospectus.

 

To the extent required
by the Securities Act and the rules and regulations thereunder, the selling shareholders and any broker-dealer participating in
the distribution of the ordinary shares may be deemed to be “underwriters” within the meaning of the Securities Act,
and any commission paid, or any discounts or concessions allowed to, any such broker-dealer may be deemed to be underwriting commissions
or discounts under the Securities Act. At the time a particular offering of the ordinary shares is made, a prospectus supplement,
if required, will be distributed, which will set forth the aggregate amount of ordinary shares being offered and the terms of the
offering, including the name or names of any broker-dealers or agents, any discounts, commissions and other terms constituting
compensation from the selling shareholders and any discounts, commissions or concessions allowed or re-allowed or paid to broker-dealers.

 

     

     

    

 

Under the securities
laws of some states, the ordinary shares may be sold in such states only through registered or licensed brokers or dealers. In
addition, in some states the ordinary shares may not be sold unless such shares have been registered or qualified for sale in such
state or an exemption from registration or qualification is available and is complied with.

 

There can be no assurance
that any selling shareholder will sell any or all of the ordinary shares registered pursuant to the registration statement, of
which this prospectus forms a part.

 

The selling shareholders
and any other person participating in such distribution will be subject to applicable provisions of the Securities Exchange Act
of 1934, as amended, and the rules and regulations thereunder, including, without limitation, to the extent applicable, Regulation M
of the Exchange Act, which may limit the timing of purchases and sales of any of the ordinary shares by the selling shareholders
and any other participating person. To the extent applicable, Regulation M may also restrict the ability of any person engaged
in the distribution of the ordinary shares to engage in market-making activities with respect to the ordinary shares. All of the
foregoing may affect the marketability of the ordinary shares and the ability of any person or entity to engage in market-making
activities with respect to the ordinary shares.

 

We will pay all expenses
of the registration of the ordinary shares pursuant to the registration rights agreement, estimated to be $[     ]
in total, including, without limitation, Securities and Exchange Commission filing fees and expenses of compliance with state securities
or “blue sky” laws; provided, however, a selling shareholder will pay all underwriting discounts and selling commissions,
if any. We will indemnify the selling shareholders against liabilities, including some liabilities under the Securities Act in
accordance with the registration rights agreements or the selling shareholders will be entitled to contribution. We may be indemnified
by the selling shareholders against civil liabilities, including liabilities under the Securities Act that may arise from any written
information furnished to us by the selling shareholder specifically for use in this prospectus, in accordance with the related
registration rights agreements or we may be entitled to contribution.

 

Once sold under the
registration statement, of which this prospectus forms a part, the ordinary shares will be freely tradable in the hands of persons
other than our affiliates.

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