Document:

Exhibit 10.1

 

Execution Version

 

SECOND AMENDMENT TO

AMENDED AND RESTATED CREDIT AGREEMENT

 

THIS SECOND AMENDMENT
TO AMENDED AND RESTATED CREDIT AGREEMENT (hereinafter called this “Amendment”) is dated as of June
17, 2020, by and among RING ENERGY INC., a Nevada corporation (the “Borrower”), each of the Lenders
which is signatory hereto, and TRUIST BANK, successor by merger to SunTrust Bank, as Administrative Agent for the Lenders (in
such capacity, together with its successors in such capacity “Administrative Agent”) and as Issuing
Bank under the Credit Agreement referred to below.

 

W I T N E S S E T H:

 

WHEREAS, the Borrower,
Administrative Agent and the Lenders are parties to that certain Amended and Restated Credit Agreement dated as of April 9, 2019,
as amended by that certain First Amendment to Amended and Restated Credit Agreement dated as of November 27, 2019 (as amended
by this Amendment and as further amended, modified or restated from time to time, the “Credit Agreement”),
whereby upon the terms and conditions therein stated the Lenders have agreed to make certain loans to the Borrower upon the terms
and conditions set forth therein;

 

WHEREAS, the Borrower
has requested that the Lenders amend the Credit Agreement as set forth below; and

 

WHEREAS, subject to
the terms and conditions hereof, the Lenders are willing to agree to the amendments to the Credit Agreement as set forth herein.

 

NOW, THEREFORE, for
and in consideration of the mutual covenants and agreements herein contained, the parties to this Amendment hereby agree as follows:

 

SECTION
1.        Definitions.
Unless otherwise defined in this Amendment, each capitalized term used herein but not otherwise
defined herein has the meaning given such term in the Credit Agreement. The interpretive provisions set forth in Sections 1.2,
1.3 and 1.4 of the Credit Agreement shall apply to this Amendment.

 

SECTION
2.        Amendments
to Credit Agreement. Effective on the Amendment Effective Date, the Credit Agreement is hereby amended as follows:

 

(a)               
Section 1.1 of the Credit Agreement is amended by inserting the following definitions in proper alphabetical order:

 

“Borrowing
Base Deficiency Early Cure Amount” means (a) with respect to cash consideration received by the Borrower concurrently
with the consummation of the sale of the Delaware Basin Oil and Gas Properties, an amount equal (i) the amount of the cash consideration
received by the Borrower in respect of the sale of the Delaware Basin Oil and Gas Properties minus (ii) $20,000,000 multiplied
by (iii) fifty percent (50%); provided, that if such amount is less than $0 then such amount shall be deemed
to be $0 and (b) with respect to post-closing cash consideration payments received by the Borrower in respect of the sale of the
Delaware Basin Oil and Gas Properties and repayments of seller financing permitted by Section 7.6(i) received by the Borrower
in respect of the sale of the Delaware Basin Oil and Gas Properties, an amount equal to fifty percent (50%) of any such payment
or repayment, as applicable.

 

     

     

    

 

“Cash
Equivalents” shall mean clauses (i) through (v) of the defined term “Permitted Investments”.

 

“Consolidated
Cash Balance” shall mean, at any time, (a) the aggregate amount of cash and Cash Equivalents of the Loan Parties (determined
in accordance with GAAP), minus (b) the amount of cash for which the Loan Parties have issued checks or initiated wires
or ACH transfers in order to utilize such cash (or will, within five (5) Business Days issue checks or initiate wires or ACH transfers
in order to utilize such cash) on account of transactions not prohibited by this Agreement; provided that Consolidated Cash Balance
shall exclude: (i) any cash and Cash Equivalents set aside for payroll or employee benefits, the payment of withholding or other
taxes of the Borrower or any Subsidiary, or the payment of royalty and working interest payments, in each case, accrued and owing
to third parties in the ordinary course of business, (ii) any cash and Cash Equivalents of the Borrower or any Subsidiary constituting
purchase price deposits held in escrow pursuant to a binding and enforceable purchase and sale agreement with a third party containing
customary provisions regarding the payment and refunding of such deposits, (iii) any cash and Cash Equivalents of the Borrower
or any Subsidiary constituting purchase price holdback amounts held in escrow pursuant to a binding and enforceable purchase and
sale agreement with a third party containing customary provisions regarding the disbursement of such holdback amounts and (iv)
any cash and Cash Equivalents received by the Borrower from (x) equity contributions made to it or (y) issuances of Capital Stock
of the Borrower, so long as such cash and/or Cash Equivalents are deposited into a segregated Controlled Account.

 

“Consolidated
Cash Balance Limit” shall mean $20,000,000.

 

“Delaware
Basin Oil and Gas Properties” means the “Assets”, as defined in the Delaware Basin Oil and Gas Properties
PSA.

 

“Delaware
Basin Oil and Gas Properties PSA” means that certain Purchase and Sale Agreement, dated April 9, 2020, between the Borrower,
as Seller, and EPUS Permian Assets, LLC, as Buyer, as amended by that certain Letter Amendment to that certain Purchase and Sale
Agreement dated April 9, 2020, dated May 15, 2020 (the “First Amendment to Delaware Basin Oil and Gas Properties PSA”)
and that certain Second Letter Amendment to that certain Purchase and Sale Agreement dated April 9, 2020, dated June 4, 2020 (the
 “Second Amendment to Delaware Basin Oil and Gas Properties PSA”), as further amended, restated, supplemented
or otherwise modified from time to time with the consent of the Administrative Agent.

 

“Excess
Cash” shall have the meaning set forth in Section 2.11(d).

 

“Excess
Cash Payment” shall mean any payment contemplated by Section 2.11(d).

 

The last sentence
of the definition of “Adjusted LIBO Rate” in Section 1.1 of the Credit Agreement is amended and restated in its entirety
as follows: “For purposes of this Agreement, the Adjusted LIBO Rate will not be less than one percent (1.00%).”

 

(b)               
Section 2.11 of the Credit Agreement is amended by inserting the following as a new clause (d):

 

“(d)If
the Consolidated Cash Balance exceeds the Consolidated Cash Balance Limit for five (5) consecutive Business Days (the amount of
such excess on such fifth (5th) Business Day being “Excess Cash”), then the Borrower shall, on such fifth (5th)
Business Day, prepay the Loans (other than any Letters of Credit) in an amount not less than the Excess Cash. Any prepayments
made by the Borrower pursuant to this subsection (d) shall be without premium, minimum payment amount or penalty and shall be
applied to the principal balance of any Borrowing specified by the Borrower.”

 

     

     

    

 

(c)               
Section 3.2 of the Credit Agreement is amended by (i) deleting the “and” at the end of clause (d) and
replacing it with a semicolon, (ii) deleting the period at the end of clause (e) and replacing it with “; and” and
(iii) inserting the following as a new clause (f):

 

“(f)in
the case of a Borrowing, after giving pro forma effect to the use of proceeds from such Borrowing, such Borrowing would not otherwise
cause the Loan Parties to have any Excess Cash.”

 

(d)               
The last paragraph of Section 3.2 of the Credit Agreement is amended by deleting “subsections (a), (b) and
(c) of this Section” and replacing it with “subsections (a), (b), (c) and (f) of this Section”.

 

(e)               
Section 5.14(a), Section 5.14(b) and Section 5.15 of the Credit Agreement are amended by replacing each reference
to “eighty percent (80%)” with “ninety percent (90%)”.

 

(f)                
Article V of the Credit Agreement is amended by inserting the following as a new Section 5.21:

 

“Section
5.21Delaware Basin Oil and Gas Properties PSA. From and after the sale of the Delaware
Basin Oil and Gas Properties pursuant to the Delaware Basin Oil and Gas Properties PSA: 

 

(a)The
Borrower will (i) in the event that the Borrower is to receive the post-closing cash consideration provided for under clause (i)
of the First Amendment to Delaware Basin Oil and Gas Properties PSA, promptly notify the Administrative Agent of any failure of
the Buyer (as defined in the First Amendment to Delaware Basin Oil and Gas Properties PSA) to make any payment of post-closing
cash consideration and (ii) in the event that the Borrower provides the seller financing provided for under clause (ii) of the
First Amendment to Delaware Basin Oil and Gas Properties PSA, promptly notify the Administrative Agent of any default of any interest
payment or principal due with respect to the Financed Amount (as defined in the First Amendment to Delaware Basin Oil and Gas
Properties PSA).

 

(b)In
the event the Buyer (as defined in the First Amendment to Delaware Basin Oil and Gas Properties PSA) fails to make any payment
of post-closing cash consideration contemplated by the First Amendment to Delaware Basin Oil and Gas Properties PSA or defaults
on any interest payment or principal payment due with respect to the Financed Amount (as defined in the First Amendment to Delaware
Basin Oil and Gas Properties PSA), the Borrower will exercise any and all rights, powers and remedies of the Borrower with respect
to such failure or default.

 

(c)The
Borrower will execute and deliver to the Administrative Agent any documents, financing statements, agreements and instruments
(including supplements to existing Collateral Documents) reasonably requested by the Administrative Agent, and take all such further
actions requested by the Administrative Agent, to grant to the Administrative Agent a Lien in all of the Borrower’s rights,
title and interest in and to the Borrower’s rights to payment of post-closing cash consideration under the Delaware Basin
Oil and Gas Properties PSA and payments of interest and principal with respect to the Financed Amount (as defined in the First
Amendment to Delaware Basin Oil and Gas Properties PSA).”

 

     

     

    

 

(g)               
Section 6.1 of the Credit Agreement is amended and restated in its entirety as follows:

 

“Section
6.1Leverage Ratio. Beginning with the fiscal quarter ending June 30, 2019, the Borrower will not, (a) as of the
last day of any fiscal quarter (other than the fiscal quarter ending September 30, 2020), permit its Leverage Ratio to be greater
than 4.0 to 1.0 and (b) as of the last day of the fiscal quarter ending September 30, 2020, permit its Leverage Ratio to be greater
than 4.75 to 1.0.”

 

(h)               
Section 7.4 of the Credit Agreement is amended as follows:

 

(1)               
Section 7.4(g) of the Credit Agreement is amended by deleting the “and” at the end thereof.

 

(2)               
Section 7.4(h) of the Credit Agreement is amended by deleting the period at the end thereof and replacing it with
 “; and”.

 

(3)               
Section 7.4 of the Credit Agreement is amended inserting the following as a new clause (i) at the end thereof:

 

“(i)the
seller financing provided for under clause (ii) of the First Amendment to Delaware Basin Oil and Gas Properties PSA.”

 

(i)                
Section 7.6 of the Credit Agreement is amended as follows:

 

(1)               
Section 7.6(c) of the Credit Agreement is amended by inserting “(other than the Delaware Basin Oil and Gas
Properties)” after the words “or any interest therein”.

 

(2)               
Section 7.6 of the Credit Agreement is amended by inserting the following as a new clause (d):

 

“(d)the
sale of the Delaware Basin Oil and Gas Properties by the Borrower; provided that (i) no Default exists, (ii) 100% of the
consideration received in respect of such sale shall be cash (provided that this clause (ii) shall not prohibit post-closing cash
consideration (so long as the Borrower receives not less than $28,500,000 of cash consideration concurrently with the consummation
of such sale) or seller financing permitted by Section 7.4(i) (so long as the Borrower receives not less than $23,500,000
of cash consideration concurrently with the consummation of such sale)), (iii) the consideration received in respect of such sale
shall be equal to or greater than the fair market value of the Delaware Basin Oil and Gas Properties (as reasonably determined
by the board of directors (or comparable governing body) of the Borrower and the Borrower shall deliver a certificate of the principal
executive officer or the principal financial officer of the Borrower certifying to that effect), and (iv) concurrently with the
consummation of such sale (A) the then-effective Borrowing Base shall be automatically reduced by $20,000,000, (B) Borrower shall
prepay the Loans in a principal amount equal to $20,000,000 (which $20,000,000 prepayment shall be, for the avoidance of doubt,
in addition to any other prepayment of the Loans required to occur on such date) and (C) if a Borrowing Base Deficiency exists
on the date of the consummation of such sale or on any date after the consummation of such sale that the Borrower receives consideration
for such sale (whether as a result of the Borrowing Base Deficiency that occurred in connection with the Scheduled Redetermination
for May 1, 2020 or otherwise) the Borrower shall prepay the Loans in a principal amount equal to the lesser of (1) the Borrowing
Base Deficiency Early Cure Amount and (2) the then existing Borrowing Base Deficiency, with such prepayment attributed to the
remaining monthly installments for the Borrowing Base Deficiency cure in reverse chronological order of installment due date.”

 

     

     

    

 

(j)                
Article X of the Credit Agreement is amended by inserting the following as a new Section 10.19:

 

“Section
10.19Acknowledgement Regarding Any Supported QFCs. To the extent that the Loan Documents
provide support, through a guarantee or otherwise, for Hedging Obligations or any other agreement or instrument that is a QFC
(such support, “QFC Credit Support” and each such QFC a “Supported QFC”), the parties acknowledge
and agree as follows with respect to the resolution power of the Federal Deposit Insurance Corporation under the Federal Deposit
Insurance Act and Title II of the Dodd-Frank Wall Street Reform and Consumer Protection Act (together with the regulations promulgated
thereunder, the “U.S. Special Resolution Regimes”) in respect of such Supported QFC and QFC Credit Support
(with the provisions below applicable notwithstanding that the Loan Documents and any Supported QFC may in fact be stated to be
governed by the laws of the State of New York and/or of the United States or any other state of the United States): 

 

(a)In
the event a Covered Entity that is party to a Supported QFC (each, a “Covered Party”) becomes subject to a
proceeding under a U.S. Special Resolution Regime, the transfer of such Supported QFC and the benefit of such QFC Credit Support
(and any interest and obligation in or under such Supported QFC and such QFC Credit Support, and any rights in property securing
such Supported QFC or such QFC Credit Support) from such Covered Party will be effective to the same extent as the transfer would
be effective under the U.S. Special Resolution Regime if the Supported QFC and such QFC Credit Support (and any such interest,
obligation and rights in property) were governed by the laws of the United States or a state of the United States. In the event
a Covered Party or a BHC Act Affiliate of a Covered Party becomes subject to a proceeding under a U.S. Special Resolution Regime,
Default Rights under the Loan Documents that might otherwise apply to such Supported QFC or any QFC Credit Support that may be
exercised against such Covered Party are permitted to be exercised to no greater extent than such Default Rights could be exercised
under the U.S. Special Resolution Regime if the Supported QFC and the Loan Documents were governed by the laws of the United States
or a state of the United States. Without limitation of the foregoing, it is understood and agreed that rights and remedies of
the parties with respect to a Defaulting Lender shall in no event affect the rights of any Covered Party with respect to a Supported
QFC or any QFC Credit Support.

 

(b)As
used in this Section 10.19, the following terms have the following meanings:

 

“BHC
Act Affiliate” of a party means an “affiliate” (as such term is defined under, and interpreted in accordance
with, 12 U.S.C. 1841(k)) of such party.

 

“Covered
Entity” means any of the following: (i) a “covered entity” as that term is defined in, and interpreted in
accordance with, 12 C.F.R. §252.82(b); (ii)a “covered bank” as that term is defined in, and interpreted in accordance
with, 12 C.F.R. §47.3(b); or (iii) a “covered FSI” as that term is defined in, and interpreted in accordance
with, 12 C.F.R. §382.2(b).

 

     

     

    

 

“Default
Right” has the meaning assigned to that term in, and shall be interpreted in accordance with, 12 C.F.R. §§252.81,
47.2 or 382.1, as applicable.

 

“QFC”
has the meaning assigned to the term “qualified financial contract” in, and shall be interpreted in accordance with,
12 U.S.C. 5390(c)(8)(D).”

 

(k)               
The introductory paragraph of the Credit Agreement, the definition of “Bank Product Provider” in Section
1.1 of the Credit Agreement, the definition of “Issuing Bank” in Section 1.1 of the Credit Agreement, Section 5.11(a)
of the Credit Agreement, Section 9.1(a) of the Credit Agreement, Section 10.1(a)(i) of the Credit Agreement, Section 10.4(c) of
the Credit Agreement, Schedule II to the Credit Agreement and each Exhibit to the Credit Agreement are amended by deleting each
reference to “SunTrust Bank” and replacing it with “Truist Bank, successor by merger to SunTrust Bank”.

 

(l)                
The “Applicable Margin and Applicable Percentage” table in Schedule I of the Credit Agreement is amended
and restated in its entirety as follows:

 

	Pricing
    Level	Borrowing
    Base Utilization Percentage	Applicable
    Margin for Eurodollar Loans	Applicable
    Margin for Base Rate Loans	Applicable
    Percentage for Unused Commitment Fee
	I	<
    25%	2.50%

        per annum
	1.50%

        per annum
	0.300%

        per annum

	II	≥
    25% but < 50%	2.75%

        per annum
	1.75%

        per annum
	0.375%

        per annum

	III	≥
    50% but < 75%	3.00%

        per annum
	2.00%

        per annum
	0.375%

        per annum

	IV	≥
    75% but < 90%	3.25%

        per annum
	2.25%

        per annum
	0.375%

        per annum

	V	≥
    90%	3.50%

        per annum
	2.50%

        per annum
	0.500%

        per annum

 

SECTION
3.        Borrowing
Base Scheduled Redetermination; Additional Adjustment.

 

(a)               
Effective on the Amendment Effective Date, the Borrowing Base is decreased to $375,000,000 until the next redetermination
or adjustment thereof pursuant to the Credit Agreement. The Borrowing Base redetermination provided for by this Amendment is the
Scheduled Redetermination for May 1, 2020. This Amendment shall serve as a New Borrowing Base Notice under the Credit Agreement.
The Borrowing Base redetermination provided for by this Amendment results in a Borrowing Base Deficiency. The Borrower, the Administrative
Agent and the Lenders party hereto agree that this Amendment shall serve as the Borrower’s written notice of its election
to cure the Borrowing Base Deficiency pursuant to subclause (C) of Section 2.11(a)(i) of the Credit Agreement by prepaying the
Loans in five (5) equal monthly installments each equal to one-fifth of such Borrowing Base Deficiency, the first of which shall
be due on the thirtieth (30th) day following the Amendment Effective Date and the last of which shall be due on the one-hundred
fiftieth (150th) day following the Amendment Effective Date.

 

(b)               
The Borrower, the Administrative Agent and the Lenders party hereto agree that, in addition to the Borrowing Base
redeterminations provided for otherwise in Section 2.4 of the Credit Agreement or any other provision of the Credit Agreement,
effective immediately upon the sale of the Delaware Basin Oil and Gas Properties by the Borrower pursuant to Section 7.6(d) of
the Credit Agreement (as amended by this Amendment), the then-effective Borrowing Base shall automatically reduce on the date
of the occurrence of such sale by the amount of $20,000,000. The Borrower and the Lenders party hereto agree that this Amendment
shall serve as the Administrative Agent’s written notice to the Borrower of such reduced Borrowing Base.

 

     

     

    

SECTION
4.        Conditions
of Effectiveness.

 

(a)               
This Amendment shall become effective as of the date (the “Amendment Effective Date”)
that each of the following conditions precedent shall have been satisfied:

 

(1)               
The Administrative Agent shall have received (which may be by electronic transmission), in form and substance satisfactory
to the Administrative Agent, a counterpart of this Amendment which shall have been executed by the Administrative Agent, the Issuing
Bank, the Lenders and the Borrower (which may be by PDF transmission); and

 

(2)               
Borrower shall have paid all fees and expenses due to the Lenders and the Administrative Agent (including, but not
limited to, reasonable attorneys’ fees of counsel to the Administrative Agent).

 

(b)               
Without limiting the generality of the provisions of Sections 3.1 and 3.2 of the Credit Agreement, for purposes
of determining compliance with the conditions specified in Section 4(a), each Lender that has signed this Amendment
(and its permitted successors and assigns) shall be deemed to have consented to, approved or accepted, or to be satisfied with,
each document or other matter required hereunder to be consented to or approved by or acceptable or satisfactory to a Lender unless
the Administrative Agent shall have received written notice from such Lender prior to the proposed Amendment Effective Date specifying
its objection thereto.

 

(c)               
The Administrative Agent shall notify the Borrower and the Lenders of the Amendment Effective Date.

 

SECTION
5.        Representations
and Warranties. The Borrower represents and warrants to Administrative Agent and the
Lenders, with full knowledge that such Persons are relying on the following representations and warranties in executing this Amendment,
as follows:

 

(a)               
It has the organizational power and authority to execute, deliver and perform this Amendment, and all organizational
action on the part of it requisite for the due execution, delivery and performance of this Amendment has been duly and effectively
taken.

 

(b)               
The Credit Agreement, as amended by this Amendment, the Loan Documents and each and every other document executed
and delivered to the Administrative Agent and the Lenders in connection with this Amendment to which it is a party constitute
the legal, valid and binding obligations of the Borrower, enforceable against the Borrower in accordance with their respective
terms except as enforceability may be limited by applicable bankruptcy, insolvency, or similar laws affecting the enforcement
of creditors’ rights generally or by equitable principles relating to enforceability.

 

(c)               
This Amendment does not and will not conflict with any provisions of any of the articles or certificate of incorporation,
bylaws, and other organizational and governing documents of the Borrower.

 

     

     

    

 

(d)               
No approval, consent, exemption, authorization, or other action by, or notice to, or filing with, any Governmental
Authority is necessary or required in connection with the execution, delivery or performance by, or enforcement against, the Borrower
of this Amendment.

 

(e)               
At the time of and immediately after giving effect to this Amendment, the representations and warranties of the
Borrower contained in Article IV of the Credit Agreement or in any other Loan Document are true and correct in all material respects
(other than those representations and warranties that are expressly qualified by a Material Adverse Effect or other materiality,
in which case such representations and warranties shall be true and correct in all respects), except that any representation and
warranty which by its terms is made as of a specified date shall be required to be so true and correct in all material respects
only as of such specified date.

 

(f)                
At the time of and immediately after giving effect to this Amendment, no Default, Event of Default or Borrowing
Base Deficiency (other than the Borrowing Base Deficiency identified in Section 3(a) of this Amendment) exists.

 

(g)               
Since December 31, 2019, there has been no event or circumstance which has had or could reasonably be expected to
have a Material Adverse Effect.

 

(h)               
As of the Amendment Effective Date, notwithstanding any provision in any Collateral Document to the contrary, no
Building (as defined in the applicable Flood Insurance Regulation) or Manufactured (Mobile) Home (as defined in the applicable
Flood Insurance Regulation) included in the definition of “Mortgaged Property” or “collateral” or similar
definition in any Collateral Document and no Building or Manufactured (Mobile) Home is encumbered by any Collateral Document.
As used in this paragraph, “Building” means any Building or Manufactured (Mobile) Home, in each case as defined in
the applicable Flood Insurance Regulations); and “Flood Insurance Regulations” means (I) the National Flood Insurance
Act of 1968 as now or hereafter in effect or any successor statute thereto, (II) the Flood Disaster Protection Act of 1973 as
now or hereafter in effect or any successor statute thereto, (III) the National Flood Insurance Reform Act of 1994 (amending 42
USC § 4001, et seq.), as the same may be amended or recodified from time to time, and (IV) the Flood Insurance Reform Act
of 2004 and any regulations promulgated thereunder.

 

SECTION
6.        Miscellaneous.

 

(a)               
Reference to the Credit Agreement. Upon the effectiveness hereof, on and after the date hereof, each
reference in the Credit Agreement to “this Agreement,” “hereunder,” “hereof,” “herein,”
or words of like import, shall mean and be a reference to the Credit Agreement as amended hereby.

 

(b)               
Effect on the Credit Agreement; Ratification. Except as specifically amended by this Amendment, the
Credit Agreement shall remain in full force and effect and is hereby ratified and confirmed. By its acceptance hereof, the Borrower
hereby ratifies and confirms each Loan Document to which it is a party in all respects, after giving effect to the amendments
set forth herein.

 

(c)               
Extent of Amendments. Except as otherwise expressly provided herein, the Credit Agreement and the
other Loan Documents are not amended, modified or affected by this Amendment. The Borrower hereby ratifies and confirms that (i)
except as expressly amended hereby, all of the terms, conditions, covenants, representations, warranties and all other provisions
of the Credit Agreement remain in full force and effect, (ii) each of the other Loan Documents are and remain in full force and
effect in accordance with their respective terms, and (iii) the Collateral and the Liens on the Collateral securing the Obligations
are unimpaired by this Amendment and remain in full force and effect.

 

     

     

    

 

(d)               
Loan Documents. The Loan Documents, as such may be amended in accordance herewith, are and remain
legal, valid and binding obligations of the parties thereto, enforceable in accordance with their respective terms. This Amendment
is a Loan Document.

 

(e)               
Claims. As additional consideration to the execution, delivery, and performance of this Amendment
by the parties hereto and to induce Administrative Agent and Lenders to enter into this Amendment, the Borrower represents and
warrants that, as of the date hereof, it does not know of any defenses, counterclaims or rights of setoff to the payment of any
Obligations of the Borrower to Administrative Agent, Issuing Bank or any Lender.

 

(f)                
Execution and Counterparts. This Amendment may be executed in any number of counterparts and by different
parties hereto in separate counterparts, each of which when so executed and delivered shall be deemed to be an original and all
of which taken together shall constitute but one and the same instrument. Delivery of an executed counterpart of this Amendment
by facsimile or pdf shall be equally as effective as delivery of a manually executed counterpart.

 

(g)               
Governing Law. This Amendment and any claims, controversy, dispute or cause of action (whether in
contract or tort or otherwise) based upon, arising out of or relating to this Amendment and the transactions contemplated hereby
and thereby shall be construed in accordance with and be governed by the law (without giving effect to the conflict of law principles
thereof) of the State of Texas.

 

(h)               
Headings. Section headings in this Amendment are included herein for convenience and reference only
and shall not constitute a part of this Amendment for any other purpose.

 

SECTION 7.       NO
ORAL AGREEMENTS. THE RIGHTS AND OBLIGATIONS OF EACH OF THE PARTIES TO THE LOAN DOCUMENTS SHALL BE DETERMINED SOLELY FROM WRITTEN
AGREEMENTS, DOCUMENTS, AND INSTRUMENTS, AND ANY PRIOR ORAL AGREEMENTS BETWEEN SUCH PARTIES ARE SUPERSEDED BY AND MERGED INTO SUCH
WRITINGS. THIS AMENDMENT AND THE OTHER WRITTEN LOAN DOCUMENTS EXECUTED BY THE BORROWER, ADMINISTRATIVE AGENT, ISSUING BANK AND/OR
LENDERS REPRESENT THE FINAL AGREEMENT BETWEEN SUCH PARTIES, AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS,
OR SUBSEQUENT ORAL AGREEMENTS BY SUCH PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN SUCH PARTIES.

 

SECTION
8.        No
Waiver. The Borrower hereby agrees that no Event of Default and no Default has been
waived or remedied by the execution of this Amendment by the Administrative Agent or any Lender. Nothing contained in this Amendment
nor any past indulgence by the Administrative Agent, Issuing Bank or any Lender, nor any other action or inaction on behalf of
the Administrative Agent, Issuing Bank or any Lender, (i) shall constitute or be deemed to constitute a waiver of any Defaults
or Events of Default which may exist under the Credit Agreement or the other Loan Documents, or (ii) shall constitute or be deemed
to constitute an election of remedies by the Administrative Agent, Issuing Bank or any Lender, or a waiver of any of the rights
or remedies of the Administrative Agent, Issuing Bank or any Lender provided in the Credit Agreement, the other Loan Documents,
or otherwise afforded at law or in equity.

 

Signatures Pages Follow

 

     

     

    

IN WITNESS WHEREOF,
the parties hereto have caused this Amendment to be duly executed and delivered by their proper and duly authorized officers as
of the day and year first above written.

 

	 	RING ENERGY INC.,
	 	as Borrower
	 	 
	 	 
	 	By:	/s/ William R. Broaddrick
	 	 	William R. Broaddrick
	 	 	Vice President and Chief Financial Officer

 

    Signature Page to Second Amendment to Amended and Restated Credit Agreement
Ring Energy, Inc.

     

    

 

	 	TRUIST BANK, SUCCESSOR BY MERGER TO SUNTRUST BANK,
	 	as Administrative Agent, as Issuing Bank and as a Lender
	 	 
	 	 
	 	By:	/s/ Benjamin L. Brown
	 	 	Name: Benjamin L. Brown
	 	 	Title: Director

 

    Signature Page to Second Amendment to Amended and Restated Credit Agreement
Ring Energy, Inc.

     

    

 

	 	BBVA USA,
	 	as a Lender
	 	 
	 	 
	 	By:	/s/ Julia Barnhill
	 	 	Name: Julia Barnhill
	 	 	Title: Vice President

  

 

 

    Signature Page to Second Amendment to Amended and Restated Credit Agreement
Ring Energy, Inc.

     

    

 

	 	IBERIABANK,
	 	as a Lender
	 	 
	 	 
	 	By:	/s/ W. Bryan Chapman
	 	 	Name: W. Bryan Chapman
	 	 	Title: Market President-Energy Lending

 

 

    Signature Page to Second Amendment to Amended and Restated Credit Agreement
Ring Energy, Inc.

     

    

 

	 	CANADIAN IMPERIAL BANK OF COMMERCE, NEW YORK BRANCH,
	 	as a Lender
	 	 
	 	 
	 	By:	/s/ Donovan C. Broussard
	 	 	Name: Donovan C. Broussard
	 	 	Title: Authorized Signatory 
	 	 	 
	 	 	 
	 	By:	/s/ Jacob W. Lewis
	 	 	Name: Jacob W. Lewis
	 	 	Title: Authorized Signatory
	 	 	 

 

 

    Signature Page to Second Amendment to Amended and Restated Credit Agreement
Ring Energy, Inc.

     

    

 

	 	ZIONS BANCORPORATION, N.A. DBA AMEGY BANK,
	 	as a Lender
	 	 
	 	 
	 	By:	/s/ G. Scott Collins
	 	 	Name: G. Scott Collins
	 	 	Title: Executive Vice President

 

 

 

    Signature Page to Second Amendment to Amended and Restated Credit Agreement
Ring Energy, Inc.

     

    

 

	 	U.S. BANK NATIONAL ASSOCIATION,
	 	as a Lender
	 	 
	 	 
	 	By:	/s/ Bruce E. Hernandez
	 	 	Name: Bruce E. Hernandez
	 	 	Title: Senior Vice President

 

 

 

    Signature Page to Second Amendment to Amended and Restated Credit Agreement
Ring Energy, Inc.

     

    

  

	 	CADENCE BANK,
	 	as a Lender
	 	 
	 	 
	 	By:	/s/ Anthony Blanco
	 	 	Name: Anthony Blanco
	 	 	Title: Senior Vice President

 

 

 

    Signature Page to Second Amendment to Amended and Restated Credit Agreement
Ring Energy, Inc.

     

    

  

	 	CROSSFIRST BANK,
	 	as a Lender
	 	 
	 	 
	 	By:	/s/ Chris Cardoni
	 	 	Name: Chris Cardoni 
	 	 	Title: President, Energy Bank

 

 

 

    Signature Page to Second Amendment to Amended and Restated Credit Agreement
Ring Energy, Inc.Exhibit 10.1

 

SECURITIES PURCHASE AGREEMENT

 

THIS SECURITIES
PURCHASE AGREEMENT (this “Agreement”), dated as of June 19, 2020, is between CHINA XIANGTAI FOOD CO.,
LTD., a company incorporated under the laws of the Cayman Islands, with headquarters located at Xinganxian Plaza, Building
B, Suite 21-1, Lianglukou, Yuzhong District, Chongqing, People’s Republic of China 400800 (the “Company”),
and each of the investors listed on the Schedule of Buyers attached hereto (individually, a “Buyer” and collectively
the “Buyers”).

 

WITNESSETH

 

WHEREAS, the
Company and each Buyer desire to enter into this transaction for the Company to sell and the Buyers to purchase the Convertible
Debentures (as defined below) pursuant to an exemption from registration pursuant to Section 4(2) and/or Rule 506 of Regulation
D (“Regulation D”) as promulgated by the U.S. Securities and Exchange Commission (the “SEC”)
under the Securities Act of 1933, as amended (the “Securities Act”);

 

WHEREAS, the
parties desire that, upon the terms and subject to the conditions contained herein, the Company shall issue and sell to the Buyer(s),
as provided herein, and the Buyer(s) shall purchase up to $2,000,000 of convertible debentures in the form attached hereto as
 “Exhibit A” (the “Convertible Debentures”), which shall be convertible into the Company’s
ordinary shares, par value $0.01 (the “Common Stock”) (as converted, the “Conversion Shares”),
of which $700,000 shall be purchased upon signing this Agreement (the “First Closing”), $700,000 shall be purchased
on the 30th day after signing this Agreement (the “Second Closing”), $300,000 shall be purchased
on the 60th day after signing this Agreement (the “Third Closing”), and $300,000 shall be purchased
on the 90th day after signing this Agreement (the “Fourth Closing”) (individually referred to as
a “Closing” collectively referred to as the “Closings”), for a total purchase price of up
to $2,000,000 (the “Purchase Price”) in the respective amounts set forth opposite each Buyer(s) name on Schedule
I (the “Subscription Amount”);

 

WHEREAS, contemporaneously
with the execution and delivery of this Agreement, the Company is delivering Irrevocable Transfer Agent Instructions (the “Irrevocable
Transfer Agent Instructions”) to its transfer agent; and

 

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

 

AGREEMENT

  

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

 

		1.	PURCHASE AND SALE OF CONVERTIBLE
                                         DEBENTURES.

 

(a)                  
Purchase of Convertible Debentures. Subject to the satisfaction (or waiver) of the conditions set forth in Sections
6 and 7 below, the Company shall issue and sell to each Buyer, and each Buyer severally, but not jointly, agrees to purchase from
the Company at each Closing Convertible Debentures in amounts corresponding with the Subscription Amount set forth opposite each
Buyer’s name on Schedule of Buyers attached as Schedule I hereto.

 

     

     

    

 

(b)                 
Closing Dates. Each Closing of the purchase of Convertible Debentures by the Buyers shall occur at the offices Yorkville
Advisors Global, LP, 1012 Springfield Avenue, Mountainside, NJ 07092. The date and time of each Closing shall be as follows: (i)
the First Closing shall be 10:00 a.m., New York time, on the first Business Day on which the conditions to the Closing set forth
in Sections 6 and 7 below are satisfied or waived (or such other date as is mutually agreed to by the Company and each Buyer)
(the “First Closing Date”), (ii) the Second Closing shall be 10:00 a.m., New York time, on the 30th
day after the signing of this agreement or, if it is not a Business Day, the first Business Day thereafter, provided the conditions
to the Closing set forth in Sections 6 and 7 below are satisfied or waived (or such other date as is mutually agreed to by the
Company and each Buyer) (the “Second Closing Date”), (iii) the Third Closing shall be 10:00 a.m., New York
time, on the 60th day after the signing of this agreement or, if it is not a Business Day, the first Business Day thereafter,
provided the conditions to the Closing set forth in Sections 6 and 7 below are satisfied or waived (or such other date as is mutually
agreed to by the Company and each Buyer) (the “Third Closing Date”), and (iv) the Fourth Closing shall be 10:00
a.m., New York time, on the 90th day after the signing of this agreement or, if it is not a Business Day, the first
Business Day thereafter, provided the conditions to the Closing set forth in Sections 6 and 7 below are satisfied or waived (or
such other date as is mutually agreed to by the Company and each Buyer) (the “Fourth Closing Date” and collectively
referred to as the “Closing Dates”). As used herein “Business Day” means any day other than
a Saturday, Sunday or other day on which commercial banks in New York, New York are authorized or required by law to remain closed.

 

(c)                  
Form of Payment; Deliveries. Subject to the satisfaction of the terms and conditions of this Agreement, on
each Closing Date, (i) the Buyers shall deliver to the Company such aggregate proceeds for the Convertible Debentures to be issued
and sold to such Buyer at such Closing, minus the fees to be paid directly from the proceeds of such Closing as set forth herein,
and (ii) the Company shall deliver to each Buyer, Convertible Debentures which such Buyer is purchasing at such Closing in
amounts indicated opposite such Buyer’s name on Schedule I, duly executed on behalf of the Company.

 

		2.	BUYER’S REPRESENTATIONS
                                         AND WARRANTIES.

 

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

 

(a)                  
Investment Purpose. The Buyer is acquiring the Securities for its own account for investment only and not with a
view towards, or for resale in connection with, the public sale or distribution thereof, except pursuant to sales registered or
exempted under the Securities Act; provided, however, that by making the representations herein, such Buyer reserves the right
to dispose of the Securities at any time in accordance with or pursuant to an effective registration statement covering such Securities
or an available exemption under the Securities Act. Such Buyer does not presently have any agreement or understanding, directly
or indirectly, with any Person to distribute any of the Securities. 

 

    2

     

    

 

(b)                 
Accredited Investor Status. The Buyer is an “Accredited Investor” as that term is defined in Rule 501(a)(3)
of Regulation D.

 

(c)                  
Reliance on Exemptions. The Buyer understands that the Securities are being offered and sold to it in reliance on
specific exemptions from the registration requirements of United States federal and state securities laws and that the Company
is relying in part upon the truth and accuracy of, and such Buyer’s compliance with, the representations, warranties, agreements,
acknowledgments and understandings of such Buyer set forth herein in order to determine the availability of such exemptions and
the eligibility of such Buyer to acquire the Securities.

 

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

 

(e)                  
Transfer or Resale. The Buyer understands that: (i) the Securities have not been registered under the Securities
Act or any state securities laws, and may not be offered for sale, sold, assigned or transferred unless (A) subsequently registered
thereunder, (B) such Buyer shall have delivered to the Company an opinion of counsel, in a generally acceptable form, to the effect
that such Securities to be sold, assigned or transferred may be sold, assigned or transferred pursuant to an exemption from such
registration requirements, or (C) such Buyer provides the Company with reasonable assurances (in the form of seller and broker
representation letters) that such Securities can be sold, assigned or transferred pursuant to Rule 144 promulgated under the Securities
Act, as amended (or a successor rule thereto) (collectively, “Rule 144”), in each case following the applicable
holding period set forth therein; and (ii) any sale of the Securities made in reliance on Rule 144 may be made only in accordance
with the terms of Rule 144 and further, if Rule 144 is not applicable, any resale of the Securities under circumstances in which
the seller (or the person through whom the sale is made) may be deemed to be an underwriter (as that term is defined in the
Securities Act) may require compliance with some other exemption under the Securities Act or the rules and regulations of the
SEC thereunder.

 

(f)                   
Legends. The Buyer agrees to the imprinting, so long as its required by this Section 2(f), of a restrictive legend
on the Securities in substantially the following form:

 

    3

     

    

 

THE SECURITIES REPRESENTED BY THIS
CERTIFICATE [AND THOSE SECURITIES INTO WHICH THEY ARE CONVERTIBLE] HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933,
AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES [AND THOSE SECURITIES INTO WHICH THEY ARE CONVERTIBLE] HAVE BEEN
ACQUIRED SOLELY FOR INVESTMENT PURPOSES AND NOT WITH A VIEW TOWARD RESALE AND MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR
ASSIGNED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED,
OR APPLICABLE STATE SECURITIES LAWS, OR AN OPINION OF COUNSEL, IN A GENERALLY ACCEPTABLE FORM, THAT REGISTRATION IS NOT REQUIRED
UNDER SAID ACT OR APPLICABLE STATE SECURITIES LAWS

 

Certificates evidencing the Conversion
Shares shall not contain any legend (including the legend set forth above), (i) while a registration statement covering the resale
of such security is effective under the Securities Act, (ii) following any sale of such Conversion Shares pursuant to Rule 144,
(iii) if such Conversion Shares are eligible for sale under Rule 144, or (iv) if such legend is not required under applicable
requirements of the Securities Act (including judicial interpretations and pronouncements issued by the staff of the SEC). The
Buyer agrees that the removal of restrictive legend from certificates representing Securities as set forth in this Section 3(f)
is predicated upon the Company’s reliance that the Buyer will sell any Securities pursuant to either the registration requirements
of the Securities Act, including any applicable prospectus delivery requirements, or an exemption therefrom, and that if Securities
are sold pursuant to a registration statement, they will be sold in compliance with the plan of distribution set forth therein.

 

(g)                 
Organization; Authority. Such Buyer is an entity duly organized, validly existing and in good standing under
the laws of the jurisdiction of its organization with the requisite power and authority to enter into and to consummate the transactions
contemplated by the Transaction Documents (as defined below) to which it is a party and otherwise to carry out its obligations
hereunder and thereunder.

 

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

 

(i)                   
No Conflicts. The execution, delivery and performance by such Buyer of this Agreement and the consummation by such
Buyer of the transactions contemplated hereby will not (i) result in a violation of the organizational documents of such Buyer,
(ii) conflict with, or constitute a default (or an event which with notice or lapse of time or both would become a default) under,
or give to others any rights of termination, amendment, acceleration or cancellation of, any agreement, indenture or instrument
to which such Buyer is a party or (iii) result in a violation of any law, rule, regulation, order, judgment or decree (including
federal and state securities laws) applicable to such Buyer, except, in the case of clauses (ii) and (iii) above, for such conflicts,
defaults, rights or violations which could not, individually or in the aggregate, reasonably be expected to have a material adverse
effect on the ability of such Buyer to perform its obligations hereunder.

 

    4

     

    

 

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

 

(k)                  Trading
Limitation and Information. On any given Trading Day, the Buyer agrees that it (together with any affiliates) shall not sell
such number of shares of Common Stock that would exceed 20% of the aggregate trading volume on such Trading Day. Upon the Company’s
request, the Buyer agrees to provide the Company with trading reports setting forth the number and average sales prices of Common
Stock sold the Buyer on each Trading Day the prior trading week along with the total aggregate number of shares of Common Stock
traded on each Trading Day. “Trading Day” means a day on which the shares of Common Stock are quoted or traded
on an Eligible Market on which the shares of Common Stock are then quoted or listed; provided, that in the event that the shares
of Common Stock are not listed or quoted, then Trading Day shall mean a Business Day.

 

(l)                    Consent.
The Buyer, as the holder of all of the convertible debentures issued pursuant to a securities purchase agreement entered into
with the Company on November 22, 2019 (the “2019 SPA”), hereby consents to the issuance of the Convertible
Debentures as required pursuant to the 2019 SPA.

 

		3.	REPRESENTATIONS AND WARRANTIES
                                         OF THE COMPANY.

 

Except as set forth
under the corresponding section of the Disclosure Schedules which Disclosure Schedules shall be deemed a part hereof and to qualify
any representation or warranty otherwise made herein to the extent of such disclosure, the Company hereby makes the representations
and warranties set forth below to The Buyer:

 

    5

     

    

 

(a)               
 Organization and Qualification. The Company and each of its Subsidiaries are entities duly formed, validly existing
and in good standing under the laws of the jurisdiction in which they are formed, and have the requisite power and authority to
own their properties and to carry on their business as now being conducted and as presently proposed to be conducted. The Company
and each of its Subsidiaries is duly qualified as a foreign entity to do business and is in good standing in every jurisdiction
in which its ownership of property or the nature of the business conducted by it makes such qualification necessary, except to
the extent that the failure to be so qualified or be in good standing would not reasonably be expected to have a Material Adverse
Effect (as defined below). As used in this Agreement, “Material Adverse Effect” means any material adverse
effect on (i) the business, properties, assets, liabilities, operations (including results thereof), condition (financial or otherwise)
or prospects of the Company and its Subsidiaries, taken as a whole, (ii) the transactions contemplated hereby or in any of the
other Transaction Documents or any other agreements or instruments to be entered into by the Company in connection herewith or
therewith or (iii) the authority or ability of the Company to perform any of its obligations under any of the Transaction Documents
(as defined below). “Subsidiaries” means any Person in which the Company, directly or indirectly, owns a majority
of the outstanding capital stock having voting power or holds a majority of the equity or similar interest of such Person, and
each of the foregoing, is individually referred to herein as a “Subsidiary”.

 

(b)                
Authorization; Enforcement; Validity. The Company has the requisite power and authority to enter into
and perform its obligations under this Agreement and the other Transaction Documents and to issue the Securities in accordance
with the terms hereof and thereof. The execution and delivery of this Agreement and the other Transaction Documents by the Company
and the consummation by the Company of the transactions contemplated hereby and thereby (including, without limitation, the issuance
of the Convertible Debentures, the reservation for issuance and issuance of the Conversion Shares issuable upon conversion of
the Convertible Debentures), have been duly authorized by the Company's board of directors and no further filing, consent or authorization
is required by the Company, its board of directors or its stockholders or other governmental body. This Agreement has been, and
the other Transaction Documents to which the Company is a party will be prior to the Closing, duly executed and delivered by the
Company, and each constitutes the legal, valid and binding obligations of the Company, enforceable against the Company in accordance
with its respective terms, except as such enforceability may be limited by general principles of equity or applicable bankruptcy,
insolvency, reorganization, moratorium, liquidation or similar laws relating to, or affecting generally, the enforcement of applicable
creditors' rights and remedies and except as rights to indemnification and to contribution may be limited by federal or state
securities law. “Transaction Documents” means, collectively, this Agreement, the Convertible Debentures, the
Irrevocable Transfer Agent Instructions, and each of the other agreements and instruments entered into by the Company or delivered
by the Company in connection with the transactions contemplated hereby and thereby, as may be amended from time to time.

 

(c)                 
Issuance of Securities. The issuance of the Securities are duly authorized and, upon issuance and payment in accordance
with the terms of the Transaction Documents the Securities shall be validly issued, fully paid and non-assessable and free from
all preemptive or similar rights, mortgages, defects, claims, liens, pledges, charges, taxes, rights of first refusal, encumbrances,
security interests and other encumbrances (collectively “Liens”)
with respect to the issuance thereof. As of each Closing Date, the Company shall have reserved from its duly authorized capital
stock not less than 300% of the maximum number of shares of Common Stock issuable upon conversion of all Convertible Debentures
(assuming for purposes hereof that (x) such Convertible Debentures are convertible at the Conversion Price (as defined therein)
as of the date of determination, (y) any such conversion shall not take into account any limitations on the conversion of the
Convertible Debentures set forth therein, including the Floor Price). Upon issuance or conversion in accordance with the Convertible
Debentures, the Conversion Shares, when issued, will be validly issued, fully paid and nonassessable and free from all preemptive
or similar rights or Liens with respect to the issue thereof, with the holders being entitled to all rights accorded to a holder
of Common Stock. 

 

    6

     

    

 

(d)                
 No Conflicts. The execution, delivery and performance of the Transaction Documents by the Company and the consummation
by the Company of the transactions contemplated hereby and thereby (including, without limitation, the issuance of the Convertible
Debentures, the Conversion Shares, and the reservation for issuance of the Conversion Shares) will not (i) result in a violation
of the Articles of Incorporation (as defined below), Bylaws (as defined below), certificate of formation, memorandum of association,
articles of association, bylaws or other organizational documents of the Company or any of its Subsidiaries, or any capital stock
or other securities of the Company or any of its Subsidiaries, (ii) conflict with, or constitute a default under, or give to others
any rights of termination, amendment, acceleration or cancellation of, any agreement, indenture or instrument to which the Company
or any of its Subsidiaries is a party, or (iii) result in a violation of any law, rule, regulation, order, judgment or decree
(including, without limitation, U.S. federal and state securities laws and regulations, the securities laws of the jurisdictions
of the Company's incorporation or in which it or its subsidiaries operate and the rules and regulations of the Nasdaq (the “Principal
Market”) and including all applicable laws, rules and regulations of the Cayman Islands) applicable to the Company or
any of its Subsidiaries or by which any property or asset of the Company or any of its Subsidiaries is bound or affected, except
in the case of (ii) and (iii) for any conflict, default, right or violation that would not reasonably be expected to result in
a Material Adverse Effect.

 

(e)                 
Consents. The Company is not required to obtain any material consent from, authorization or order of, or make any
filing or registration with (other than any filings as may be required by any federal or state securities agencies and any filings
as may be required by the Principal Market), any Governmental Entity (as defined below) or any regulatory or self-regulatory agency
or any other Person in order for it to execute, deliver or perform any of its obligations under or contemplated by the Transaction
Documents, in each case, in accordance with the terms hereof or thereof. All consents, authorizations, orders, filings and registrations
which the Company or any Subsidiary is required to obtain pursuant to the preceding sentence have been or will be obtained or
effected on or prior to each Closing Date, and neither the Company nor any of its Subsidiaries are aware of any facts or circumstances
which might prevent the Company or any of its Subsidiaries from obtaining or effecting any of the registration, application or
filings contemplated by the Transaction Documents. The Company is not in violation of the requirements of the Principal Market
and has no knowledge of any facts or circumstances which could reasonably lead to delisting or suspension of the Common Stock
in the foreseeable future. The Company has notified the Principal Market of the issuance of all of the Securities hereunder, which
does not require obtaining the approval of the stockholders of the Company or any other Person or Governmental Entity, and the
Principal Market has completed its review of the related Listing of Additional Share form. “Governmental
Entity” means any nation, state, county, city, town, village, district, or other political jurisdiction of any nature, federal,
state, local, municipal, foreign, or other government, governmental or quasi-governmental authority of any nature (including any
governmental agency, branch, department, official, or entity and any court or other tribunal), multi-national organization or
body; or body exercising, or entitled to exercise, any administrative, executive, judicial, legislative, police, regulatory,
or taxing authority or power of any nature or instrumentality of any of the foregoing, including any entity or enterprise owned
or controlled by a government or a public international organization or any of the foregoing. 

 

    7

     

    

 

(f)                  
Acknowledgment Regarding Buyer's Purchase of Securities. The Company acknowledges and agrees that each Buyer is
acting solely in the capacity of an arm's length purchaser with respect to the Transaction Documents and the transactions contemplated
hereby and thereby and that no Buyer is (i) an officer or director of the Company or any of its Subsidiaries, (ii) to its knowledge,
an "affiliate" (as defined in Rule 144 promulgated under the 1933 Act (or a successor rule thereto) (collectively, “Rule
144”)) of the Company or any of its Subsidiaries or (iii) to its knowledge, a “beneficial owner” of more
than 10% of the shares of Common Stock (as defined for purposes of Rule 13d-3 of the 1934 Act). The Company further acknowledges
that no Buyer is acting as a financial advisor or fiduciary of the Company or any of its Subsidiaries (or in any similar capacity)
with respect to the Transaction Documents and the transactions contemplated hereby and thereby, and any advice given by a Buyer
or any of its representatives or agents in connection with the Transaction Documents and the transactions contemplated hereby
and thereby is merely incidental to such Buyer's purchase of the Securities. The Company further represents to each Buyer that
the Company's decision to enter into the Transaction Documents to which it is a party has been based solely on the independent
evaluation by the Company and its representatives.

 

(g)                 
No Integrated Offering. None of the Company, its Subsidiaries or any of their affiliates, nor any Person acting
on their behalf has, directly or indirectly, made any offers or sales of any security or solicited any offers to buy any security,
under circumstances that would cause this offering of the Securities to require approval of stockholders of the Company under
any applicable stockholder approval provisions, including, without limitation, under the rules and regulations of any exchange
or automated quotation system on which any of the securities of the Company are listed or designated for quotation. None of the
Company, its Subsidiaries, their affiliates nor any Person acting on their behalf will take any action or steps that would cause
the offering of any of the Securities to be integrated with other offerings of securities of the Company.

 

(h)                
Dilutive Effect. The Company understands and acknowledges that the number of Conversion Shares will increase in
certain circumstances. The Company further acknowledges its obligation to issue the Conversion Shares upon conversion of the Convertible
Debentures in accordance with this Agreement and the Convertible Debentures is, absolute and unconditional regardless of the dilutive
effect that such issuance may have on the ownership interests of other stockholders of the Company.

 

    8

     

    

 

(i)                  
Application of Takeover Protections; Rights Agreement. The Company and its board of directors have taken all
necessary action, if any, in order to render inapplicable any control share acquisition, interested stockholder, business combination,
poison pill (including, without limitation, any distribution under a rights agreement), stockholder rights plan or other similar
anti-takeover provision under the Articles of Incorporation, Bylaws or other organizational documents or the laws of the jurisdiction
of its incorporation or otherwise which is or could become applicable to any Buyer as a result of the transactions contemplated
by this Agreement, including, without limitation, the Company's issuance of the Securities and any Buyer's ownership of the Securities.

 

(j)                
 SEC Documents; Financial Statements. During the two (2) years prior to the date hereof, the Company has timely
filed all reports, schedules, forms, proxy statements, statements and other documents required to be filed by it with the SEC
pursuant to the reporting requirements of the Securities Exchange Act of 1934, as amended (the “1934 Act”)
(all of the foregoing filed prior to the date hereof and all exhibits and appendices included therein and financial statements,
notes and schedules thereto and documents incorporated by reference therein being hereinafter referred to as the “SEC
Documents”). The Company has delivered or has made available to the Buyers or their respective representatives true,
correct and complete copies of each of the SEC Documents not available on the EDGAR system. As of their respective dates, the
SEC Documents complied in all material respects with the requirements of the 1934 Act and the rules and regulations of the SEC
promulgated thereunder applicable to the SEC Documents, and none of the SEC Documents, at the time they were filed with the SEC,
contained any untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary
in order to make the statements therein, in the light of the circumstances under which they were made, not misleading. As of their
respective dates, the financial statements of the Company included in the SEC Documents complied in all material respects with
applicable accounting requirements and the published rules and regulations of the SEC with respect thereto as in effect as of
the time of filing. Such financial statements have been prepared in accordance with generally accepted accounting principles (“GAAP”),
consistently applied, during the periods involved (except (i) as may be otherwise indicated in such financial statements or the
notes thereto, or (ii) in the case of unaudited interim statements, to the extent they may exclude footnotes or may be condensed
or summary statements) and fairly present in all material respects the financial position of the Company as of the dates thereof
and the results of its operations and cash flows for the periods then ended (subject, in the case of unaudited statements, to
normal year-end audit adjustments which will not be material, either individually or in the aggregate). The reserves, if any,
established by the Company or the lack of reserves, if applicable, are reasonable based upon facts and circumstances known by
the Company on the date hereof and there are no loss contingencies that are required to be accrued by the Statement of Financial
Accounting Standard No. 5 of the Financial Accounting Standards Board which are not provided for by the Company in its financial
statements or otherwise. No other information provided by or on behalf of the Company to any of the Buyers which is not included
in the SEC Documents (including, without limitation, information in the disclosure schedules to this Agreement) contains any untrue
statement of a material fact or omits to state any material fact necessary in order to make the statements therein not misleading,
in the light of the circumstance under which they are or were made. The Company is not currently contemplating to amend or restate
any of the financial statements (including, without limitation, any notes or any letter of the independent accountants of the
Company with respect thereto) included in the SEC Documents (the “Financial Statements”),
nor is the Company currently aware of facts or circumstances which would require the Company to amend or restate any of the Financial
Statements, in each case, in order for any of the Financials Statements to be in compliance with GAAP and the rules and regulations
of the SEC. The Company has not been informed by its independent accountants that they recommend that the Company amend or restate
any of the Financial Statements or that there is any need for the Company to amend or restate any of the Financial Statements.

 

    9

     

    

 

(k)                 
Absence of Certain Changes. Since the date of the Company's most recent audited financial statements contained in
a Form 20-F, there has been no Material Adverse Effect, nor any event or occurrence specifically affecting the Company or its
Subsidiaries that would be reasonably expected to result in a Material Adverse Effect. Since the date of the Company's most recent
audited financial statements contained in a Form 20-F, neither the Company nor any of its Subsidiaries has (i) declared or paid
any dividends, (ii) sold any material assets, individually or in the aggregate, outside of the ordinary course of business or
(iii) made any material capital expenditures, individually or in the aggregate, outside of the ordinary course of business. Neither
the Company nor any of its Subsidiaries has taken any steps to seek protection pursuant to any law or statute relating to bankruptcy,
insolvency, reorganization, receivership, liquidation or winding up, nor does the Company or any Subsidiary have any knowledge
or reason to believe that any of their respective creditors intend to initiate involuntary bankruptcy proceedings or any actual
knowledge of any fact which would reasonably lead a creditor to do so.

 

(l)                   
No Undisclosed Events, Liabilities, Developments or Circumstances. No event, liability, development or circumstance
has occurred or exists, or is reasonably expected to exist or occur specific to the Company, any of its Subsidiaries or any of
their respective businesses, properties, liabilities, prospects, operations (including results thereof) or condition (financial
or otherwise), that has not been publicly disclosed and would reasonably be expected to have a Material Adverse Effect.

 

    10

     

    

 

(m)                 
Conduct of Business; Regulatory Permits. Neither the Company nor any of its Subsidiaries is in violation of
any term under its Articles of Incorporation, any certificate of designation, preferences or rights of any other outstanding series
of preferred stock of the Company or any of its Subsidiaries or Bylaws or their organizational charter, certificate of formation,
memorandum of association, articles of association, Articles of Incorporation or certificate of incorporation or bylaws, respectively.
Neither the Company nor any of its Subsidiaries is in violation of any judgment, decree or order or any statute, ordinance, rule
or regulation applicable to the Company or any of its Subsidiaries, and neither the Company nor any of its Subsidiaries will conduct
its business in violation of any of the foregoing, except in all cases for violations which would not reasonably be expected to
have a Material Adverse Effect. Without limiting the generality of the foregoing, the Company is not in violation of any of the
rules, regulations or requirements of the Principal Market and has no knowledge of any facts or circumstances that could reasonably
lead to delisting or suspension of the Common Stock by the Principal Market in the foreseeable future. During the one year prior
to the date hereof, (i) the Common Stock has been listed or designated for quotation on the Principal Market, (ii) trading in
the Common Stock has not been suspended by the SEC or the Principal Market and (iii) the Company has received no communication,
written or oral, from the SEC or the Principal Market regarding the suspension or delisting of the Common Stock from the Principal
Market, which has not been publicly disclosed. The Company and each of its Subsidiaries possess all certificates, authorizations
and permits issued by the appropriate regulatory authorities necessary to conduct their respective businesses, except where the
failure to possess such certificates, authorizations or permits would not reasonably be expected to have, individually or in the
aggregate, a Material Adverse Effect, and neither the Company nor any of its Subsidiaries has received any notice of proceedings
relating to the revocation or modification of any such certificate, authorization or permit. There is no agreement, commitment,
judgment, injunction, order or decree binding upon the Company or any of its Subsidiaries or to which the Company or any of its
Subsidiaries is a party which has or would reasonably be expected to have the effect of prohibiting or materially impairing any
business practice of the Company or any of its Subsidiaries, any acquisition of property by the Company or any of its Subsidiaries
or the conduct of business by the Company or any of its Subsidiaries as currently conducted other than such effects, individually
or in the aggregate, which have not had and would not reasonably be expected to have a Material Adverse Effect on the Company
or any of its Subsidiaries.

 

(n)                 
Foreign Corrupt Practices. Neither the Company nor any of its Subsidiaries nor any director, officer, agent, employee,
nor any other person acting for or on behalf of the Company or any of its Subsidiaries (individually and collectively, a “Company
Affiliate”) have violated the U.S. Foreign Corrupt Practices Act (the “FCPA) or any other applicable anti-bribery
or anti- corruption laws, nor has any Company Affiliate offered, paid, promised to pay, or authorized the payment of any money,
or offered, given, promised to give, or authorized the giving of anything of value, to any officer, employee or any other person
acting in an official capacity for any Governmental Entity to any political party or official thereof or to any candidate for
political office (individually and collectively, a “Government Official”) or to any person under circumstances
where such Company Affiliate knew or was aware of a high probability that all or a portion of such money or thing of value would
be offered, given or promised, directly or indirectly, to any Government Official, for the purpose, in violation of applicable
law, of: (i) (A) influencing any act or decision of such Government Official in his/her official capacity, (B) inducing such Government
Official to do or omit to do any act in violation of his/her lawful duty, (C) securing any improper advantage, or (D) inducing
such Government Official to influence or affect any act or decision of any Governmental Entity, or (ii) assisting the Company
or its Subsidiaries in obtaining or retaining business for or with, or directing business to, the Company or its Subsidiaries.

 

    11

     

    

 

(o)                 
Equity Capitalization.

 

(i)                
Definitions:

 

(A)             
“Common Stock” means (x) the Company's shares of common stock, par value $0.01 per share, and (y) any
capital stock into which such common stock shall have been changed or any share capital resulting from a reclassification of such
common stock.

 

(ii)              
Authorized and Outstanding Capital Stock. As of the date hereof, the authorized capital stock of the Company consists
of (A) 50,000,000 ordinary shares with a par value of $0.01 per share, of which, 23,894,027 are
issued and outstanding. 

 

(iii)            
Valid Issuance; Available Shares. All of such outstanding shares are duly authorized and have been validly
issued and are fully paid and nonassessable.

 

(iv)             
Existing Securities; Obligations. Except as disclosed in the SEC Documents: (A) none of the Company's or any
Subsidiary's shares, interests or capital stock is subject to preemptive rights or any other similar rights or Liens suffered
or permitted by the Company or any Subsidiary; (B) there are no outstanding options, warrants, scrip, rights to subscribe
to, calls or commitments of any character whatsoever relating to, or securities or rights convertible into, or exercisable or
exchangeable for, any shares, interests or capital stock of the Company or any of its Subsidiaries, or contracts, commitments,
understandings or arrangements by which the Company or any of its Subsidiaries is or may become bound to issue additional shares,
interests or capital stock of the Company or any of its Subsidiaries or options, warrants, scrip, rights to subscribe to, calls
or commitments of any character whatsoever relating to, or securities or rights convertible into, or exercisable or exchangeable
for, any shares, interests or capital stock of the Company or any of its Subsidiaries; (C) there are no agreements or arrangements
under which the Company or any of its Subsidiaries is obligated to register the sale of any of their securities under the 1933
Act (except pursuant to this Agreement); (D) there are no outstanding securities or instruments of the Company or any of
its Subsidiaries which contain any redemption or similar provisions, and there are no contracts, commitments, understandings or
arrangements by which the Company or any of its Subsidiaries is or may become bound to redeem a security of the Company or any
of its Subsidiaries; (E) there are no securities or instruments containing anti-dilution or similar provisions that will
be triggered by the issuance of the Securities; and (G) neither the Company nor any Subsidiary has any stock appreciation
rights or "phantom stock" plans or agreements or any similar plan or agreement.

 

(v)               
Organizational Documents. The Company has furnished to the Buyers or filed on EDGAR true, correct and complete copies
of the Company's Articles of Incorporation, as amended and as in effect on the date hereof (the “Articles of Incorporation”),
and the Company's bylaws, as amended and as in effect on the date hereof (the “Bylaws”), and the terms of all
convertible securities and the material rights of the holders thereof in respect thereto.

 

    12

     

    

 

(p)                 
Litigation. Except as disclosed in the SEC Documents, there is no action, suit, arbitration, proceeding, inquiry
or investigation before or by the Principal Market, any court, public board, other Governmental Entity, self-regulatory organization
or body pending or, to the knowledge of the Company, threatened against or affecting the Company or any of its Subsidiaries, the
Common Stock or any of the Company's or its Subsidiaries' officers or directors, whether of a civil or criminal nature or otherwise,
in their capacities as such, which would reasonably be expected to result in a Material Adverse Effect. After reasonable inquiry
of its employees, the Company is not aware of any event which might result in or form the basis for any such action, suit, arbitration,
investigation, inquiry or other proceeding. Without limitation of the foregoing, there has not been, and to the knowledge of the
Company, there is not pending or contemplated, any investigation by the SEC involving the Company, any of its Subsidiaries or
any current or former director or officer of the Company or any of its Subsidiaries. Neither the Company nor any of its Subsidiaries
is the subject of any order, writ, judgment, injunction, decree, determination or award of any Governmental Entity that would
reasonably be expected to result in a Material Adverse Effect.

 

(q)                  
Insurance. The Company and each of its Subsidiaries are insured by insurers of recognized financial responsibility
against such losses and risks and in such amounts as management of the Company believes to be prudent and customary in the businesses
in which the Company and its Subsidiaries are engaged. In accordance with the previous sentence, the Company currently maintains
no insurance policies. Neither the Company nor any such Subsidiary has been refused any insurance coverage sought or applied for,
and neither the Company nor any such Subsidiary has any reason to believe that it will be unable to renew its existing insurance
coverage as and when such coverage expires or to obtain similar coverage from similar insurers as may be necessary to continue
its business at a cost that would not have a Material Adverse Effect.

 

(r)                   
Manipulation of Price. Neither the Company nor any of its Subsidiaries has, and, to the knowledge of the Company,
no Person acting on their behalf has, directly or indirectly, (i) taken any action designed to cause or to result in the stabilization
or manipulation of the price of any security of the Company or any of its Subsidiaries to facilitate the sale or resale of any
of the Securities, (ii) sold, bid for, purchased, or paid any compensation for soliciting purchases of, any of the Securities,
or (iii) paid or agreed to pay to any Person any compensation for soliciting another to purchase any other securities of the Company
or any of its Subsidiaries.

 

(s)                 
Registration Eligibility. The Company is eligible to register the resale of the Conversion Shares by the Buyers
using Form F-3 promulgated under the 1933 Act.

 

(t)                  
Shell Company Status. The Company is not, and has never been, an issuer identified in, or subject to, Rule 144(i).

 

(u)                 
Money Laundering. The Company and its Subsidiaries are in compliance with, and have not previously violated, the
USA Patriot Act of 2001 and all other applicable U.S. and non-U.S. anti-money laundering laws and regulations, including, but
not limited to, the laws, regulations and Executive Orders and sanctions programs (“Sanctions
Programs”) administered by the U.S. Office of Foreign Assets Control (“OFAC”), including, without
limitation, (i) Executive Order 13224 of September 23, 2001 entitled, "Blocking Property and Prohibiting Transactions With
Persons Who Commit, Threaten to Commit, or Support Terrorism" (66 Fed. Reg. 49079 (2001)); and any regulations contained
in 31 CFR, Subtitle B, Chapter V. 

 

    13

     

    

 

(v)                 
Disclosure. The Company confirms that neither it nor any other Person acting on its behalf has provided any of the
Buyers or their agents or counsel with any information that constitutes or could reasonably be expected to constitute material,
non-public information concerning the Company or any of its Subsidiaries, other than the existence of the transactions contemplated
by this Agreement and the other Transaction Documents. The Company understands and confirms that each of the Buyers will rely
on the foregoing representations in effecting transactions in securities of the Company. All disclosure provided to the Buyers
regarding the Company and its Subsidiaries, their businesses and the transactions contemplated hereby, including the schedules
to this Agreement, furnished by or on behalf of the Company or any of its Subsidiaries, taken as a whole, is true and correct
and does not contain any untrue statement of a material fact or omit to state any material fact necessary in order to make the
statements made therein, in the light of the circumstances under which they were made, not misleading. All of the written information
furnished after the date hereof by or on behalf of the Company or any of its Subsidiaries to each Buyer pursuant to or in connection
with this Agreement and the other Transaction Documents, taken as a whole, will be true and correct in all material respects as
of the date on which such information is so provided and will not contain any untrue statement of a material fact or omit to state
any material fact necessary in order to make the statements made therein, in the light of the circumstances under which they were
made, not misleading. No event or circumstance has occurred or information exists with respect to the Company or any of its Subsidiaries
or its or their business, properties, liabilities, prospects, operations (including results thereof) or conditions (financial
or otherwise), which, under applicable law, rule or regulation, requires public disclosure at or before the date hereof or announcement
by the Company but which has not been so publicly disclosed. All financial projections and forecasts that have been prepared by
or on behalf of the Company or any of its Subsidiaries and made available to the Buyers have been prepared in good faith based
upon reasonable assumptions and represented, at the time each such financial projection or forecast was delivered to each Buyer,
the Company's best estimate of future financial performance (it being recognized that such financial projections or forecasts
are not to be viewed as facts and that the actual results during the period or periods covered by any such financial projections
or forecasts may differ from the projected or forecasted results). The Company acknowledges and agrees that no Buyer makes or
has made any representations or warranties with respect to the transactions contemplated hereby other than those specifically
set forth in Section 2.

 

(w)                
No General Solicitation. Neither the Company, nor any of its affiliates, nor any Person acting on its or their behalf,
has engaged in any form of general solicitation or general advertising (within the meaning of Regulation D under the Securities
Act) in connection with the offer or sale of the Securities.

 

    14

     

    

 

(x)                 
Private Placement. Assuming the accuracy of the Buyers’ representations and warranties set forth in Section
2, no registration under the Securities Act is required for the offer and sale of the Securities by the Company to the Buyers
as contemplated hereby. The issuance and sale of the Securities hereunder does not contravene the rules and regulations of the
Primary Market.

 

		4.	COVENANTS.

 

(a)                  
Reporting Status. For the period beginning on the date hereof, and ending 6 months after the date on which all the
Convertible Debentures are no longer outstanding (the “Reporting Period”), the Company shall use its best efforts
to file on a timely basis all reports required to be filed with the SEC pursuant to the 1934 Act, and the Company shall not terminate
its status as an issuer required to file reports under the 1934 Act even if the 1934 Act or the rules and regulations thereunder
would no longer require or otherwise permit such termination.

 

(b)                  
Use of Proceeds. Neither the Company nor any Subsidiary will, directly or indirectly, use the proceeds of the transactions
contemplated herein to repay any loans to any executives or employees of the Company. Neither the Company nor any Subsidiary will,
directly or indirectly, use the proceeds of the transactions contemplated herein, or lend, contribute, facilitate or otherwise
make available such proceeds to any Person (i) to fund, either directly or indirectly, any activities or business of or with any
Person that is identified on the list of Specially Designated Nationals and Blocker Persons maintained by OFAC, or in any country
or territory, that, at the time of such funding, is, or whose government is, the subject of Sanctions Programs, or (ii) in any
other manner that will result in a violation of Sanctions Programs.

 

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

 

(d)                 
Fees. The Company shall pay to YA Global II SPV, LLC, an affiliate of the lead Buyer (the “Subsidiary Fund”),
a one-time due diligence and structuring fee of $10,000. The Company authorizes each Buyer to deduct any fees due hereunder from
the gross process of the purchase of any Convertible Debentures.

 

    15

     

    

 

(e)                 
Pledge of Securities. Notwithstanding anything to the contrary contained in this Agreement, the Company acknowledges
and agrees that, subject to compliance with applicable federal and state securities laws, the Securities may be pledged by an
Investor in connection with a bona fide margin agreement or other loan or financing arrangement that is secured by the Securities.
The Company hereby agrees to execute and deliver such documentation as a pledgee of the Securities may reasonably request in connection
with a pledge of the Securities to such pledgee by a Buyer.

 

(f)                   
Disclosure of Transactions and Other Material Information. On or before 9:30 a.m., New York time, on the first Business
Day after the date of this Agreement, the Company shall file a current report of foreign private issuer on Form 6-K describing
all the material terms of the transactions contemplated by the Transaction Documents in the form required by the 1934 Act and
attaching all the material Transaction Documents (including, without limitation, this Agreement (and all schedules to this Agreement)
and the form of Statement of Designations) (including all attachments, the “Current Report”). From and after
the filing of the Current Report, the Company shall have disclosed all material, non-public information (if any) provided to any
of the Buyers by the Company or any of its Subsidiaries or any of their respective officers, directors, employees or agents in
connection with the transactions contemplated by the Transaction Documents. In addition, effective upon the filing of the Current
Report, the Company acknowledges and agrees that any and all confidentiality or similar obligations with respect to the transactions
contemplated by the Transaction Documents under any agreement, whether written or oral, between the Company, any of its Subsidiaries
or any of their respective officers, directors, affiliates, employees or agents, on the one hand, and any of the Buyers or any
of their affiliates, on the other hand, shall terminate. The Company shall not, and the Company shall cause each of its Subsidiaries
and each of its and their respective officers, directors, employees and agents not to, provide any Buyer with any material, non-public
information regarding the Company or any of its Subsidiaries from and after the date hereof without the express prior written
consent of such Buyer (which may be granted or withheld in such Buyer's sole discretion).

 

(g)                 
Reservation of Shares. So long as any of the Convertible Debentures remain outstanding, the Company shall take all
action necessary to at all times have authorized, and reserved for the purpose of issuance, no less than the lesser of (a) 19.99%
of 23,894,027 and (b) 300% of the maximum number of shares of Common Stock issuable upon conversion of all the Convertible Debentures
then outstanding (assuming for purposes hereof that (x) the Convertible Debentures are convertible at the Conversion Price then
in effect, and (y) any such conversion shall not take into account any limitations on the conversion of the Convertible Debentures,
including the Floor Price) (the “Required Reserve Amount”); provided that at no time shall the number
of shares of Common Stock reserved pursuant to this Section 4(g) be reduced other than proportionally in connection with any conversion
and/or redemption, or reverse stock split. If at any time the number of shares of Common Stock authorized and reserved for issuance
is not sufficient to meet the Required Reserved Amount, the Company will promptly take all corporate action necessary to authorize
and reserve a sufficient number of shares, including, without limitation, calling a special meeting of stockholders to authorize
additional shares to meet the Company's obligations pursuant to the Transaction Documents, in the case of an insufficient number
of authorized shares, recommending that stockholders vote in favor of an increase in such authorized number of shares sufficient
to meet the Required Reserved Amount.

 

    16

     

    

 

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

 

(i)                   
From the date hereof until (A) no more than $1,000,000 of Debentures remain outstanding, or (B) the first date when
each of the following conditions are satisfied: (i) 9 months have elapsed from the First Closing Date and the Buyers are eligible
to freely resell Conversion Shares pursuant to Rule 144, (ii) the closing price of the Common Stock during each of the five (5)
consecutive prior Trading Days shall be at least 150% of the Floor Price (as defined in the Debentures), and (iii) no Event of
Default (as defined in the Debentures) shall have occurred), unless the holders of at least 67% in principal amount of the then
outstanding Convertible Debentures shall have given prior written consent, the Company shall not, and shall not permit any of
its subsidiaries (whether or not a subsidiary on the date hereof) to, directly or indirectly (i) other
than Permitted Indebtedness, enter into, create, incur, assume, guarantee or suffer to exist any indebtedness for borrowed money
of any kind, including, but not limited to, a guarantee, on or with respect to any of its property or assets now owned or hereafter
acquired or any interest therein or any income or profits therefrom, (ii) other than Permitted Liens, enter into, create, incur,
assume or suffer to exist any lien, security interest, option or other charge or encumbrance (each, a “Lien”)
of any kind, on or with respect to any of its property or assets now owned or hereafter
acquired or any interest therein or any income or profits therefrom, or (iii) amend its charter documents, including, without
limitation, its certificate of incorporation and bylaws, in any manner that materially and adversely affects any rights of the
holders of the Convertible Debentures. 

 

“Permitted
Indebtedness” shall mean: (i) indebtedness evidenced by the Convertible Debentures; (ii) indebtedness described on a
Disclosure Schedule attached hereto; (iii) indebtedness incurred solely for the purpose of financing the acquisition or lease
of any equipment, including capital lease obligations with no recourse other than to such equipment; (iv) indebtedness (A) the
repayment of which has been subordinated to the payment of the Convertible Debentures on terms and conditions acceptable to the
Buyers, including with regard to interest payments and repayment of principal, (B) which does not mature or otherwise require
or permit redemption or repayment prior to or on the 91st day after the maturity date of any Convertible Debentures then outstanding;
and (C) which is not secured by any assets of the Company or its subsidiaries; (v) indebtedness associated with acquiring new
intellectual property assets and licenses, so long as the proceeds are going to the party(ies) from which the Company is acquiring
the assets, licenses, and other properties and (vi) any indebtedness (other than the indebtedness set out in (i) – (v) above)
incurred after the date hereof, provided that such indebtedness does not exceed $20,000 at any given time.

 

    17

     

    

 

“Permitted
Liens” shall mean (1) any security interest granted to the Buyers to secure the obligations under the Convertible Debentures,
(2) any prior security interest granted to the Buyers, (3) existing Liens disclosed by the Company on a Disclosure Schedule attached
hereto; (4) inchoate Liens for taxes, assessments or governmental charges or levies not yet due, as to which the grace period,
if any, related thereto has not yet expired, or being contested in good faith and by appropriate proceedings for which adequate
reserves have been established in accordance with GAAP; (5) Liens of carriers, materialmen, warehousemen, mechanics and landlords
and other similar Liens which secure amounts which are not yet overdue by more than 60 days or which are being contested in good
faith by appropriate proceedings for which adequate reserves have been established in accordance with GAAP; (6) licenses, sublicenses,
leases or subleases granted to other persons not materially interfering with the conduct of the business of the Company; (7) Liens
securing capitalized lease obligations and purchase money indebtedness incurred solely for the purpose of financing an acquisition
or lease; (8) easements, rights-of-way, restrictions, encroachments, municipal zoning ordinances and other similar charges or
encumbrances, and minor title deficiencies, in each case not securing debt and not materially interfering with the conduct of
the business of the Company and not materially detracting from the value of the property subject thereto; (9) Liens arising out
of the existence of judgments or awards which judgments or awards do not constitute an Event of Default; (10) Liens incurred in
the ordinary course of business in connection with workers compensation claims, unemployment insurance, pension liabilities and
social security benefits and Liens securing the performance of bids, tenders, leases and contracts in the ordinary course of business,
statutory obligations, surety bonds, performance bonds and other obligations of a like nature (other than appeal bonds) incurred
in the ordinary course of business (exclusive of obligations in respect of the payment for borrowed money); (11) Liens in favor
of a banking institution arising by operation of law encumbering deposits (including the right of set-off) and contractual set-off
rights held by such banking institution and which are within the general parameters customary in the banking industry and only
burdening deposit accounts or other funds maintained with a creditor depository institution; (12) usual and customary set-off
rights in leases and other contracts; (13) escrows in connection with acquisitions and dispositions and (14) royalties and other
rights to revenue derived from the sale of the Company’s products that are granted in the ordinary course of business.

 

		5.	REGISTER; TRANSFER AGENT
                                         INSTRUCTIONS; LEGEND.

 

(a)        
          Register. The Company shall maintain at its principal executive
offices or with the Transfer Agent (or at such other office or agency of the Company as it may designate by notice to each holder
of Securities), a register for the Convertible Debentures in which the Company shall record the name and address of the Person
in whose name the Convertible Debentures have been issued (including the name and address of each transferee), the amount of Convertible
Debentures held by such Person, and the number of Conversion Shares issuable upon conversion of the Convertible Debentures held
by such Person. The Company shall keep the register open and available at all times during business hours for inspection of any
Buyer or its legal representatives.

 

(b)                 
Transfer Restrictions. The Securities may only be disposed of in compliance with state and federal securities laws.
In connection with any transfer of Securities other than pursuant to an effective registration statement or Rule 144, to the Company
or to an Affiliate of a Buyer or in connection with a pledge as contemplated herein, the Company may require the transferor thereof
to provide to the Company an opinion of counsel selected by the transferor and reasonably acceptable to the Company, the form
and substance of which opinion shall be reasonably satisfactory to the Company, to the effect that such transfer does not require
registration of such transferred Securities under the Securities Act. As a condition of transfer, any such transferee shall agree
in writing to be bound by the terms of this Agreement and shall have the rights and obligations of a Buyer under this Agreement.

  

    18

     

    

 

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

 

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

 

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

 

(b)                 
Such Buyer and each other Buyer shall have delivered to the Company the Purchase Price (less, in the case of any Buyer,
the amounts withheld pursuant to Section 4(d)) for the Convertible Debentures being purchased by such Buyer at the Closing by
wire transfer of immediately available funds in accordance with the Closing Statement.

 

(c)                 
The representations and warranties of such Buyer shall be true and correct in all material respects as of the date when
made and as of each Closing Date as though originally made at that time (except for representations and warranties that speak
as of a specific date, which shall be true and correct as of such specific date), and such Buyer shall have performed, satisfied
and complied in all material respects with the covenants, agreements and conditions required by this Agreement to be performed,
satisfied or complied with by such Buyer at or prior to such Closing Date.

 

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

 

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

 

(a)                  
The Company shall have duly executed and delivered to such Buyer each of the Transaction Documents to which it is a party
and the Company shall have duly executed and delivered to such Buyer such aggregate principal amount of Convertible Debentures
as is set forth opposite such Buyer's name in column (b) of the Schedule of Buyers for each Closing.

 

(b)                 
RESERVED.

 

    19

     

    

 

(c)                 
 The Company shall have delivered to each Buyer copies of its and each Subsidiaries certified copies of its charter, as
well as any shareholder or operating agreements by or among the shareholders or members of any of the Company’s Subsidiaries.

 

(d)                 
The Company shall have delivered to such Buyer a certificate evidencing the incorporation and good standing of the Company
issued by the Registrar for the Cayman Islands as of a date within ten (10) days of the Closing Date.

 

(e)                  
Each and every representation and warranty of the Company shall be true and correct in all material respects (other than
representations and warranties qualified by materiality, which shall be true and correct in all respects) as of the date when
made and as of each Closing Date as though originally made at that time (except for representations and warranties that speak
as of a specific date, which shall be true and correct as of such specific date) and the Company shall have performed, satisfied
and complied in all respects with the covenants, agreements and conditions required to be performed, satisfied or complied with
by the Company at or prior to each Closing Date, as set forth in section 3 and 4.

 

(f)                  
The Common Stock (A) shall be designated for quotation or listed (as applicable) on the Principal Market and (B) shall
not have been suspended, as of each Closing Date, by the SEC or the Principal Market from trading on the Principal Market nor
shall suspension by the SEC or the Principal Market have been threatened, as of each Closing Date, either (I) in writing by the
SEC or the Principal Market or (II) by falling below the minimum maintenance requirements of the Principal Market.

 

(g)                 
The Company shall have obtained all governmental, regulatory or third-party consents and approvals, if any, necessary for
the sale of the Securities, including without limitation, those required by the Principal Market, if any.

 

(h)                 
No statute, rule, regulation, executive order, decree, ruling or injunction shall have been enacted, entered, promulgated
or endorsed by any court or Governmental Entity of competent jurisdiction that prohibits the consummation of any of the transactions
contemplated by the Transaction Documents.

 

(i)               
Since the date of execution of this Agreement, no event or series of events shall have occurred that has resulted in or
would reasonably be expected to result in a Material Adverse Effect.

 

(j)                  
The Company shall have obtained approval of the Principal Market to list or designate for quotation (as the case may be)
the Conversion Shares, if applicable.

 

(k)                 
Such Buyer shall have received a letter, duly executed by an officer of the Company, setting forth the wire amounts of
each Buyer and the wire transfer instructions of the Company (the “Closing Statement”).

 

(l)                  
From the date hereof to the applicable Closing Date, (i) trading in the Common Stock shall not have been suspended by the
SEC or the Principal Market (except for any suspension of trading of limited duration agreed to by the Company, which suspension
shall be terminated prior to the Closing), (ii) the closing price of the Common Stock during each of the five (5) consecutive
Trading Days immediately prior to the applicable Closing Date shall be at least 120% of the Floor Price (as defined in the Convertible
Debentures), and (iii) at any time prior to the applicable Closing Date, trading in securities generally as reported by Bloomberg
L.P. shall not have been suspended or limited, or minimum prices shall not have been established on securities whose trades are
reported by such service, or on the Principal Market, nor shall a banking moratorium have been declared either by the United States
or New York State authorities nor shall there have occurred any material outbreak or escalation of hostilities or other national
or international calamity of such magnitude in its effect on, or any material adverse change in, any financial market which, in
each case, in the reasonable judgment of each Buyer, makes it impracticable or inadvisable to purchase the Securities at the Closing.

 

    20

     

    

 

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

 

		8.	TERMINATION.

 

In the
event that the First Closing shall not have occurred with respect to a Buyer within five (5) days of the date hereof, then such
Buyer shall have the right to terminate its obligations under this Agreement with respect to itself at any time on or after the
close of business on such date without liability of such Buyer to any other party; provided, however, (i) the right to terminate
this Agreement under this Section 8 shall not be available to such Buyer if the failure of the transactions contemplated by this
Agreement to have been consummated by such date is the result of such Buyer's breach of this Agreement and (ii) the abandonment
of the sale and purchase of the Convertible Debentures shall be applicable only to such Buyer providing such written notice, provided
further that no such termination shall affect any obligation of the Company under this Agreement to reimburse such Buyer for the
expenses described herein. Nothing contained in this Section 8 shall be deemed to release any party from any liability for any
breach by such party of the terms and provisions of this Agreement or the other Transaction Documents or to impair the right of
any party to compel specific performance by any other party of its obligations under this Agreement or the other Transaction Documents.

 

		9.	MISCELLANEOUS.

 

(a)                 
Governing Law; Jurisdiction; Jury Trial. All questions concerning the construction, validity, enforcement
and interpretation of this Agreement shall be governed by the internal laws of the State of New York, without giving effect to
any choice of law or conflict of law provision or rule (whether of the State of New York or any other jurisdictions) that would
cause the application of the laws of any jurisdictions other than the State of New York. The Company hereby irrevocably submits
to the exclusive jurisdiction of the state and federal courts sitting in The City of New York, Borough of Manhattan, for the adjudication
of any dispute hereunder or in connection herewith or under any of the other Transaction Documents or with any transaction contemplated
hereby or thereby, and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it
is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is brought in an inconvenient
forum or that the venue of such suit, action or proceeding is improper. Each party hereby irrevocably waives personal service
of process and consents to process being served in any such suit, action or proceeding by mailing a copy thereof to such party
at the address for such notices to it under this Agreement and agrees that such service shall constitute good and sufficient service
of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any
manner permitted by law. Nothing contained herein shall be deemed or operate to preclude any Buyer from bringing suit or taking
other legal action against the Company in any other jurisdiction to collect on the Company's obligations to such Buyer or to enforce
a judgment or other court ruling in favor of such Buyer. EACH PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE TO, AND
AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR UNDER ANY OTHER TRANSACTION DOCUMENT OR IN
CONNECTION WITH OR ARISING OUT OF THIS AGREEMENT, ANY OTHER TRANSACTION DOCUMENT OR ANY TRANSACTION CONTEMPLATED HEREBY OR THEREBY.

 

    21

     

    

 

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

 

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

 

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

 

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

  

    22

     

    

 

	If to the Company, to:	CHINA XIANGTAI FOOD CO., LTD.
	 	Xinganxian Plaza, Building B, Suite 21-1

        Lianglukou, Yuzhong District

        Chongqing, People’s Republic of China 400800

        Attention: Chief Executive Officer

        Telephone: +86 (023) 86330158

        Email: ir@cqplinfood.com

         

	With Copy to:	William Rosenstadt

        Ortoli Rosenstadt

        366 Madison Avenue, 3rd Floor

        New York, NY 10017

        Telephone:  212-588-0022

        E-Mail:  wsr@orllp.legal

	 	 
	If to a Buyer, to its address and e-mail address set forth on the Schedule of Buyers,
    with copies to such Buyer's representatives as set forth on the Schedule of Buyers,
	 	 
	With copy to:	David Gonzalez, Esq.

        c/o Yorkville Advisors Global, LP

        1012 Springfield Avenue

        Mountainside, NJ 07092

        Email: legal@yorkvilleadvisors.com

	 	 

or to such other address,
e-mail address and/or to the attention of such other Person as the recipient party has specified by written notice given to each
other party five (5) days prior to the effectiveness of such change. Written confirmation of receipt (A) given by the recipient
of such notice, consent, waiver or other communication, (B) electronically generated by the sender's e-mail service provider containing
the time, date, recipient e-mail address or (C) provided by an overnight courier service shall be rebuttable evidence of personal
service, receipt by facsimile or receipt from an overnight courier service in accordance with clause (i), (ii) or (iii) above,
respectively

 

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

 

    23

     

    

 

(g)                 
Indemnification.

 

(i)                
 In consideration of each Buyer's execution and delivery of the Transaction Documents and acquiring the Securities thereunder
and in addition to all of the Company's other obligations under the Transaction Documents, the Company shall defend, protect,
indemnify and hold harmless each Buyer and each holder of any Securities and all of their stockholders, partners, members, officers,
directors, employees and direct or indirect investors and any of the foregoing Persons' agents or other representatives (including,
without limitation, those retained in connection with the transactions contemplated by this Agreement) (collectively, the “Indemnitees”)
from and against any and all actions, causes of action, suits, claims, losses, costs, penalties, fees, liabilities and damages,
and expenses in connection therewith (irrespective of whether any such Indemnitee is a party to the action for which indemnification
hereunder is sought), and including reasonable attorneys' fees and disbursements (the “Indemnified Liabilities”),
incurred by any Indemnitee as a result of, or arising out of, or relating to (i) any misrepresentation or breach of any representation
or warranty made by the Company in any of the Transaction Documents, (ii) any breach of any covenant, agreement or obligation
of the Company or any Subsidiary contained in any of the Transaction Documents or (iii) any cause of action, suit, proceeding
or claim brought or made against such Indemnitee by a third party (including for these purposes a derivative action brought on
behalf of the Company or any Subsidiary) or which otherwise involves such Indemnitee that arises out of or results from (A) the
execution, delivery, performance or enforcement of any of the Transaction Documents, (B) any transaction financed or to be financed
in whole or in part, directly or indirectly, with the proceeds of the issuance of the Securities, or (C) any disclosure properly
made by such Buyer pursuant to Section 4(f), or (D) the status of such Buyer or holder of the Securities either as an investor
in the Company pursuant to the transactions contemplated by the Transaction Documents or as a party to this Agreement (including,
without limitation, as a party in interest or otherwise in any action or proceeding for injunctive or other equitable relief).
To the extent that the foregoing undertaking by the Company may be unenforceable for any reason, the Company shall make the maximum
contribution to the payment and satisfaction of each of the Indemnified Liabilities which is permissible under applicable law.

 

    24

     

    

 

(ii)             
Promptly after receipt by an Indemnitee under this Section 9(g) of notice of the commencement of any action or proceeding
(including any governmental action or proceeding) involving an Indemnified Liability, such Indemnitee shall, if a claim in respect
thereof is to be made against the Company under this Section 9(g), deliver to the Company a written notice of the commencement
thereof, and the Company shall have the right to participate in, and, to the extent the Company so desires, to assume control
of the defense thereof with counsel mutually reasonably satisfactory to the Company and the Indemnitee; provided, however,
that an Indemnitee shall have the right to retain its own counsel with the fees and expenses of such counsel to be paid by the
Company if: (A) the Company has agreed in writing to pay such fees and expenses; (B) the Company shall have failed promptly
to assume the defense of such Indemnified Liability and to employ counsel reasonably satisfactory to such Indemnitee in any such
Indemnified Liability; or (C) the named parties to any such Indemnified Liability (including any impleaded parties) include
both such Indemnitee and the Company, and such Indemnitee shall have been advised by counsel that a conflict of interest is likely
to exist if the same counsel were to represent such Indemnitee and the Company (in which case, if such Indemnitee notifies the
Company in writing that it elects to employ separate counsel at the expense of the Company, then the Company shall not have the
right to assume the defense thereof and such counsel shall be at the expense of the Company), provided further, that in the case
of clause (C) above the Company shall not be responsible for the reasonable fees and expenses of more than one (1) separate legal
counsel for the Indemnitees. The Indemnitee shall reasonably cooperate with the Company in connection with any negotiation or
defense of any such action or Indemnified Liability by the Company and shall furnish to the Company all information reasonably
available to the Indemnitee which relates to such action or Indemnified Liability. The Company shall keep the Indemnitee reasonably
apprised at all times as to the status of the defense or any settlement negotiations with respect thereto. The Company shall not
be liable for any settlement of any action, claim or proceeding effected without its prior written consent, provided, however,
that the Company shall not unreasonably withhold, delay or condition its consent. The Company shall not, without the prior written
consent of the Indemnitee, 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 Indemnitee of a release from all liability in
respect to such Indemnified Liability or litigation, and such settlement shall not include any admission as to fault on the part
of the Indemnitee. Following indemnification as provided for hereunder, the Company shall be subrogated to all rights of the Indemnitee
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 Company within a reasonable time of the commencement of any such action shall not relieve the
Company of any liability to the Indemnitee under this Section 9(g), except to the extent that the Company is materially and adversely
prejudiced in its ability to defend such action.

 

(iii)           
The indemnification required by this Section 9(g) shall be made by periodic payments of the amount thereof during the course
of the investigation or defense, within ten (10) days after bills supporting the Indemnified Liabilities are received by the Company.

 

(iv)            
The indemnity agreement contained herein shall be in addition to (A) any cause of action or similar right of the Indemnitee
against the Company or others, and (B) any liabilities the Company may be subject to pursuant to the law.

 

(h)                 
No Strict Construction. The language used in this Agreement will be deemed to be the language chosen by the parties
to express their mutual intent, and no rules of strict construction will be applied against any party.

  

[REMAINDER
PAGE INTENTIONALLY LEFT BLANK]

 

    25

     

    

 

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

 

	 	COMPANY:

        

	 	 
	 	CHINA XIANGTAI FOOD CO., LTD.
	 	 
	 	By:	/s/ Zeshu Dai
	 	Name:	Zeshu Dai
	 	Title:	Chief Executive Officer

 

    26

     

    

 

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

  

	 	BUYER:
	 	 
	 	YA II PN, LTD. 
	 	 
	 	By:	Yorkville Advisors Global, LP
	 	Its:	Investment Manager

 

	 	 	By:	Yorkville Advisors Global II, LLC
	 	 	Its:	General Partner
	 	 	 
	 	 	By:	/s/ Matt Beckman
	 	 	Name:	Matt Beckman
	 	 	Title:	Member

 

    27

     

    

 

LIST OF EXHIBITS:

  

    28

     

    

EXHIBIT A

 

FORM OF CONVERTIBLE DEBENTURES

 

    29

     

    

 

SCHEDULE OF BUYERS

  

	(a)	 	 	 	(b)	 	 	(c)	 
	Buyer	 	 	 	Principal Amount

    of Convertible 

    Debentures	 	 	Purchase Price
    

    (100% of Face

    Value)	 
	YA II PN, Ltd.	 	 	 	 	 	 	 	 	 	 
	1012 Springfield Avenue	 	First Closing:	 	$	700,000.00	 	 	$	700,000.00	 
	Mountainside, NJ 07092	 	Second Closing	 	$	700,000.00	 	 	$	700,000.00	 
	Email: Legal@yorkvilleadvisors.com	 	Third Closing	 	$	300,000.00	 	 	$	300,000.00	 
	 	 	Fourth Closing	 	$	300,000.00	 	 	$	300,000.00	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	Aggregate:	 	$	2,000,000.00	 	 	$	2,000,000.00	 
	 	 	 	 	 	 	 	 	 	 	 
	Legal Representative’s Address and E-Mail Address	 	 	 	 	 	 	 	 
	David Gonzalez, Esq.	 	 	 	 	 	 	 	 	 	 
	1012 Springfield Avenue	 	 	 	 	 	 	 	 	 	 
	Mountainside, NJ 07092	 	 	 	 	 	 	 	 	 	 
	Email: Legal@yorkvilleadvisors.com

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