Document:

Golden Queen Mining Co. Ltd. - Exhibit 10.5 - Filed by newsfilecorp.com

OPTION AGREEMENT 

            OPTION
AGREEMENT made as of December 31, 2014 (this “Agreement”), by and among
GAUSS LLC (“Gauss”), GAUSS HOLDINGS LLC (“LUK Holdco”), AUVERGNE, LLC
(“Auvergne”), THE LANDON T. CLAY 2009 IRREVOCABLE TRUST DATED MARCH 6,
2009 (“LTC Lender”), HARRIS CLAY, an individual (“HC Lender” and,
together with LTC Lender, the “Lenders”), and GOLDEN QUEEN MINING
HOLDINGS, INC. (“GQ Holdco”). 

            WHEREAS,
Gauss, LUK Holdco and Auvergne are parties to that certain Amended and Restated
Limited Liability Company Agreement of Gauss, dated as of September 15, 2014
(the “LLC Agreement”) (capitalized terms used but not otherwise defined
herein shall have the meanings ascribed to such terms in the LLC Agreement);

           
WHEREAS, Gauss is a party to that certain Amended and Restated Limited Liability
Company Agreement of Golden Queen Mining Company, LLC, dated as of September 15,
2014 (the “JV LLC Agreement”); 

           
WHEREAS, on the date hereof, Golden Queen and the Lenders are entering into a
Term Loan Agreement (the “Term Loan Agreement”) pursuant to which (i) the
Lenders will make a term loan of USD 12,500,000 to Golden Queen, (ii) GQ Holdco
will guaranty the obligations of Golden Queen in respect of such term loan and
(iii) as a security for such guaranty, GQ Holdco will pledge the units
representing its limited liability company interests in the Joint Venture (the
“Pledged Units”) to the Lenders (the “Pledge”) on the terms and
conditions set forth in a Pledge Agreement of even date herewith (the “Pledge
Agreement”); 

           
WHEREAS, in connection with the execution of the Pledge Agreement, Gauss and GQ
Holdco, as the members of the Joint Venture, are consenting to the Pledge and to
the Lenders exercising their rights and remedies under the Pledge Agreement (the
“Consent”); and 

           
WHEREAS, in consideration of the Consent, the Lenders wish to grant Gauss an
option (the “Option”) to purchase the Pledged Units that are Transferred
(or proposed to be Transferred) upon foreclosure, forfeit, court order, or
otherwise pursuant to exercise of remedies under the Pledge Agreement in
connection with an Event of Default (as defined in the Term Loan Agreement) (an
“Involuntary Transfer”). 

            NOW,
THEREFORE, for good and valuable consideration, the receipt and adequacy of
which are hereby acknowledged, the parties hereto agree as follows: 

           
1.        Option.

            (a)       
The Lenders hereby agree that, in connection with any Involuntary Transfer,
Gauss shall have the right and option (the “Option”) to purchase all (but
not less than all) the Pledged Units that are the subject of such Involuntary
Transfer (the “Foreclosed Units”), and, if Gauss elects to exercise such
right and option, the Lenders agree to sell or otherwise cause the Transfer of
the Foreclosed Units to Gauss, in exchange for the payment in cash by Gauss of a
total price equal to the value at which the Foreclosed Units are Transferred (or
proposed to be Transferred) pursuant to the Involuntary Transfer (the
“Foreclosure Price”).

-1- 

            (b)       
The Lenders and GQ Holdco shall (and GQ Holdco shall cause Golden Queen to)
notify Gauss and LUK Holdco of the occurrence of an Event of Default (as defined
in the Term Loan Agreement) at the same time notice thereof is given to the
other parties to the Term Loan Agreement, but in any event no later than five
(5) calendar days after such Event of Default (whether or not notice thereof is
given to the other parties to the Term Loan Agreement). In addition, the Lenders
shall notify Gauss and LUK Holdco at least ten (10) Business Days before the
date of any Involuntary Transfer (the “Foreclosure Notice”), which notice
shall include the number of Foreclosed Units, the Foreclosure Price and any
other information as may be reasonably requested by Gauss. The Option shall be
exercisable by notice in writing (the “Option Exercise Notice”) given by
Gauss to the Lenders, copying Auvergne and LUK Holdco, within five (5) Business
Days after receipt by Gauss and LUK Holdco of the Foreclosure Notice. 

            (c)       
The closing of the purchase by Gauss of the Foreclosed Units (the “Option
Transfer”) shall take place on the date of the Involuntary Transfer. At
such closing, (i) Gauss shall pay the Lenders the aggregate Foreclosure Price by
wire transfer of immediately available funds, and (ii) the Lenders shall
Transfer the Foreclosed Units, or cause the Foreclosed Units to be Transferred,
to Gauss free and clear of any lien or encumbrance, with any documentation
reasonably requested by Gauss to evidence such Transfer. 

            (d)       
GQ Holdco hereby agrees, in connection with any exercise by Gauss of the Option
and the Transfer of Foreclosed Units, to use its commercially reasonable efforts
to take, or cause to be taken, all actions necessary or appropriate to
consummate such Transfer. 

            2.       
Purchase of New Units. Notwithstanding anything to the contrary in
Section 3.6 of the LLC Agreement, Auvergne and LUK Holdco hereby agree that (i)
in the issuance of New Units by Gauss in connection with, and in order to fund
the Purchase Price for, the Option Transfer, each Original Group shall be
entitled to purchase, at the price and on the other terms and conditions
specified in the Issuance Notice, a number of the New Units such that the
Aggregate Percentage Interest of each Original Group immediately following such
issuance of New Units shall be equal to the Aggregate Percentage Interest of
such Original Group immediately prior to such issuance, (ii) each of Auvergne
and LUK Holdco shall notify Gauss within 3 (three) calendar days of delivery of
the Option Exercise Notice (which shall serve as the Issuance Notice) whether it
elects to purchase New Units in such issuance, (iii) if either of Auvergne or
LUK Holdco does not elect to purchase all of the New Units it is entitled to
purchase or does not fund the purchase price in respect thereof, then the final
sentence of Section 3.6(b) shall apply, and (iv) each Original Group electing to
purchase New Units in such issuance shall fund the subscription price for such
New Units no later than on the date of the Involuntary Transfer. For the
avoidance of doubt, Auvergne and LUK Holdco acknowledge and agree that no
consent of any Member shall be required pursuant to Section 6.6 of the LLC
Agreement in connection with any of the transactions contemplated by this
Agreement. 

            3.       
No Amendment. Except as otherwise expressly amended or modified hereby,
all of the terms and conditions of the LLC Agreement and the JV LLC Agreement
shall continue in full force and effect. 

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4.        General. 

            (a)       
The parties hereto agree that, if any of the provisions of this Agreement were
not performed in accordance with their specific terms or were otherwise
breached, irreparable damage would occur, no adequate remedy at law would exist
and damages would be difficult to determine, and, therefore, it is agreed that
the parties shall be entitled to specific performance of the terms hereof, in
addition to any other remedy at law or in equity. 

            (b)       
This Agreement may be amended or supplemented only by written agreement of all
the parties to this Agreement. Neither this Agreement nor any of the rights,
interests or obligations hereunder shall be assigned, in whole or in part, by
operation of law or otherwise, by any of the parties without the prior written
consent of the other parties. Subject to the preceding sentence, this Agreement
shall be binding upon, inure to the benefit of, and be enforceable by, the
parties and their respective successors and assigns.

            (c)       
This Agreement, the LLC Agreement, the JV LLC Agreement and the Consent
constitute the entire agreement, and supersede all other prior agreements and
understandings, both written and oral, among the parties, or any of them, with
respect to the subject matter hereof. Nothing in this Agreement, express or
implied, is intended to or shall confer upon any person other than the parties
(and their respective successors and permitted assigns) any right or remedy of
any nature whatsoever under or by reason of this Agreement. 

            (d)       
This Agreement shall for all purposes be construed in accordance with and
governed by the laws of the State of Delaware without reference to its conflict
or choice of laws principles that would lead the laws of any other State to
apply. To the extent not prohibited by any provisions of applicable law that
cannot be waived, each of the parties hereby waives and covenants that he or it
will not assert (whether as plaintiff, defendant or otherwise) any right to
trial by jury in any forum in respect of any issue, claim, demand, action or
cause of action arising out of or based upon this Agreement or the subject
matter hereof, whether now existing or hereafter arising and whether sounding in
tort or contract or otherwise. 

            (e)       
All notices, requests and other communications to any party hereunder shall be
in writing and shall be deemed given if delivered personally, telecopy faxed
(which is confirmed) or sent by overnight courier (providing proof of delivery)
to the parties at the following addresses: 

If to Auvergne or the Lenders, to:

c/o East Hill Management Company

10 Memorial Drive 
Suite 902 
Providence, RI 02903 
Fax: (401)
490-0749 

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with a copy (which shall not
constitute notice) to: 

Sullivan & Worcester LLP 
One
Post Office Square 
Boston, MA 02109 
Attention: William A. Levine, Esq.

Fax: (617) 338-2880 

If to Gauss or LUK Holdco, to: 

c/o Leucadia National Corporation

520 Madison Avenue 
New York, NY 10022 
Attention: H. Jimmy Hallac

Email: jhallac@leucadia.com 
Fax: 212-598-4869 

with a copy (which shall not
constitute notice) to: 

Weil, Gotshal & Manges LLP 
767
Fifth Avenue 
New York, NY 10153 
Attention: Andrea A. Bernstein, Esq.

Fax: (212) 310-8007

If to GQ Holdco, to: 

Golden Queen Mining Holdings, Inc.

15772 K Street 
Mojave, CA 93501 
Attention: H. Lutz Klingmann

or such other address or telecopy fax number as such party may
hereafter specify by like notice to the other parties. All such notices,
requests and other communications shall be deemed received on the date of
receipt by the recipient thereof if received prior to 5 P.M. in the place of
receipt and such day is a business day in the place of receipt. Otherwise, any
such notice, request or communication shall be deemed not to have been received
until the next succeeding business day in the place of receipt. 

[Remainder of page intentionally left blank] 

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     IN WITNESS WHEREOF, the parties have caused this
Option Agreement to be duly executed and delivered as of the date first above
written. 

	GAUSS LLC 	 	THE LANDON T. CLAY 2009 IRREVOCABLE 
	 	 	TRUST DATED MARCH 6, 2009 
	 	 	  
	 	 	  
	By: /s/ H. Jimmy
      Hallac 	 	By:/s/
      Thomas M. Clay
	Name: H. Jimmy Hallac 	 	           
             Thomas M. Clay, Trustee 
	Title: President 	 	  
	 	 	  
	 	 	  
	GAUSS HOLDINGS LLC 	 	HARRIS CLAY 
	 	 	  
	 	 	  
	By: /s/ H. Jimmy
      Hallac 	 	/s/
      Harris Clay
	Name: H. Jimmy Hallac 	 	  
	Title: President 	 	  
	 	 	  
	AUVERGNE, LLC 	 	GOLDEN QUEEN MINING HOLDINGS, INC. 
	 	 	  
	 	 	  
	By:/s/ Thomas M.
      Clay 	 	By:
      /s/ Lutz Klingmann
	Thomas M. Clay, Manager 	 	Name: Lutz Klingmann 
	 	 	Title: President 

[Option Agreement]Exhibit 4.2

 

NEITHER THIS NOTE NOR THE SECURITIES
THAT ARE ISSUABLE UPON CONVERSION HEREOF OR UPON EXCHANGE HEREUNDER (COLLECTIVELY, THE “SECURITIES”) HAVE BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “1933 ACT”), OR THE SECURITIES LAWS OF ANY STATE OR OTHER JURISDICTION.
NEITHER THE SECURITIES NOR ANY INTEREST OR PARTICIPATION THEREIN MAY BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED: (I) IN
THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE 1933 ACT OR APPLICABLE STATE SECURITIES LAWS;
OR (II) IN THE ABSENCE OF AN OPINION OF COUNSEL, IN A FORM ACCEPTABLE TO THE ISSUER, THAT REGISTRATION IS NOT REQUIRED UNDER THE
1933 ACT OR; (III) UNLESS SOLD, TRANSFERRED OR ASSIGNED PURSUANT TO RULE 144 UNDER THE 1933 ACT.

 

CONVERTIBLE
PROMISSORY NOTE

 

Note No. ____

 

	Issuance Date:  ______________	 	US $_______

 

FOR
VALUE RECEIVED, MOXIAN CHINA, INC., a Nevada Corporation (the “Company”) located at Room
2313-2315, Block B, Zhongshen Garden, Caitian South Road, Futian District, Shenzhen, Guangdong Province, China 518101 hereby promises
to pay to the order of MOXIAN CHINA LIMITED located at Offshore Chambers, P.O. Box 217, Apia, Samoa or its successors or
assigns (the “Holder”), the principal amount of __________ United States Dollars (US$_________) on or
prior to one (1) year after the issuance of this Note (the “Maturity Date”), in accordance with the terms
hereof. This Convertible Promissory Note (this note, and all notifications, extensions, future advances, supplements, and renewals
thereof, and any substitutions therefor, hereinafter referred to as the “Note” together with other notes
that are issued pursuant to the Loan Agreement, the “Notes”) was issued pursuant to the Loan Agreement,
dated as of the even date hereof (the “Loan Agreement”), entered into by and between the Company and
the Holder. Capitalized terms not otherwise defined herein shall have the meanings ascribed to them in the Loan Agreement. 

 

1.       Payments
of Principal and Interest.

 

(a)     Payment of Principal. The principal amount of this Note shall be paid to the Holder on or prior to the Maturity Date.

 

(b)    Payment
of Interest. This Note shall be interest free and shall not accrue any interest. Upon the occurrence of an Event of
Default, the Note shall bear interest at the lesser of (i) the compounded rate of five (5%) percent per year until such Event
of Default is cured or (ii) the maximum permitted under applicable law.

 

(c)     General Payment Provisions. So long as a Holder or any of its nominees shall
be the holder of any Note, and notwithstanding anything contained elsewhere in this Note to the contrary, all sums of principal,
interest or otherwise becoming due on this Note shall be made in lawful money of the United States of America by certified bank
check or wire transfer to such account as the Holder may designate by written notice to the Company no later than 4:00 p.m. New
York time, on the date such payment is due, without the presentation or surrender of such Note or the making of any notation thereon.
Any payment made after 4:00 p.m. New York time, on a Business Day will be deemed made on the next following Business Day. Whenever
any amount expressed to be due by the terms of this Note is due on any day which is not a Business Day, the same shall instead
be due on the next succeeding Business Day, and interest shall be payable on any principal so extended for the period of such extension.
All amounts payable under this Note shall be paid free and clear of, and without reduction by reason of, any deduction, set-off
or counterclaim. The Company will afford the benefits of this Section to the Holder and to each other Person holding this Note.
For purposes of this Note, “Business Day” shall mean any day other than a Saturday, Sunday or a day on which commercial
banks in the State of New York are authorized or required by law or executive order to remain closed.

 

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(d)    Optional Prepayment. At any time prior to the Maturity Date, the Company may pre-pay
this Note without penalty and, upon such prepayment in full, the Holder shall have no further rights under this Note, including
no rights of conversion.

 

2.      Conversion
of Note. 

 

(a)    Mandatory
Conversion. On the date when the Company consummates a Qualified Financing (as defined below), all or any portion of the outstanding
and unpaid principal and interest of this Note shall automatically convert into fully paid and non- assessable shares of the Company’s
$.001 par value per share common stock (the “Common Stock”) at a conversion price equal to the per share
price of the Qualified Securities (as defined below), subject to adjustment to reflect forward or reverse stock splits, recapitalizations,
stock dividends as set forth herein (the “Mandatory Conversion Price”). The number of shares of Common
Stock to be issued as a result of the automatic conversion of the Note (the “Conversion Shares”) shall
be calculated by dividing: (x) all or any portion of the outstanding and unpaid principal and interest of this Note, by (y) the
Mandatory Conversion Price. For the purpose of this Note, the term “Qualified Financing” is defined
as the sale for cash by the Company of any equity or convertible securities (“Qualified Securities”)
generating aggregate gross proceeds of at least $5,000,000.

 

(b)    Optional Conversion.If no Qualified Financing is consummated prior to the Maturity Date (as extended by the Holder
from time to time) and as long as there remains outstanding principal or interest of this Note, the Holder shall have the right,
within 30 days after the Maturity Date (as extended by the Holder from time to time) of this Note, to convert all or any portion
of the outstanding and unpaid principal and interest of this Note into Conversion Shares at the volume weighted average price (“VWAP”)
of the Company’s Common Stock as reported by Bloomberg for a period of twenty (20) trading days immediately prior to the
date of conversion (“Optional Conversion Price”). The number of Conversion Shares to be issued as a result
of the optional conversion of the Note shall be calculated by dividing: (x) all or any portion of the outstanding and unpaid principal
and interest of this Note, by (y) the Optional Conversion Price.

 

    	2

    	 

    

 

(c)    Mechanics of Holders Conversion. The conversion of this Note shall be conducted in the following manner:

 

(i)     Subject to Section 2(b) hereof, this Note may be converted by the Holder in whole or in part at any time from time to time
after the Issuance Date, by (A) submitting to the Company a Notice of Conversion in the form of Exhibit A (by
facsimile, e-mail or other reasonable means of communication dispatched on the Conversion Date prior to 6:00 p.m., New York, New
York time) and (B) surrendering this Note at the principal office of the Company. Notwithstanding anything to the contrary set
forth herein, upon conversion of this Note in accordance with the terms hereof, the Holder shall not be required to physically
surrender this Note to the Company unless the entire unpaid principal amount of this Note is so converted.  The Holder and
the Company shall maintain records showing the principal amount so converted and the dates of such conversions or shall use such
other method, reasonably satisfactory to the Holder and the Company, so as not to require physical surrender of this Note upon
each such conversion.  In the event of any dispute or discrepancy, such records of the Company shall, prima facie, be
controlling and determinative in the absence of manifest error.  Notwithstanding the foregoing, if any portion of this Note
is converted as aforesaid, the Holder may not transfer this Note unless the Holder first physically surrenders this Note to the
Company, whereupon the Company will forthwith issue and deliver upon the order of the Holder a new Note of like tenor, registered
as the Holder (upon payment by the Holder of any applicable transfer taxes) may request, representing in the aggregate the remaining
unpaid principal amount of this Note.  The Holder and any assignee, by acceptance of this Note, acknowledge and agree that,
by reason of the provisions of this paragraph, following conversion of a portion of this Note, the unpaid and unconverted principal
and interest of this Note represented by this Note may be less than the amount stated on the face hereof. At such time as such
conversion has been effected, the rights of the Holder of this Note as the Holder of such Note shall cease (with respect to the
amount so converted), and the Person or Persons in whose name or names any certificate or certificates for the Common Stock are
to be issued upon such conversion shall be deemed to have become the holder or holders of record of the Common Stock represented
thereby.

 

(ii)    As soon as possible after the conversion has been effected, the Company or acquirer shall deliver to the converting holder
a certificate or certificates representing the Conversion Shares issuable by reason of such conversion in such name or names and
such denomination or denominations as the converting holder has specified.

 

(iii)   No fraction of shares or scrip representing fractions of shares will be issued on conversion. Upon any conversion of the
entire outstanding principal of and interest on this Note, the number of shares or other securities issuable shall be rounded up
to the nearest whole number.

 

(iv)   The issuance of certificates for Conversion Shares upon conversion of this Note shall be made without charge to the holder
hereof in respect thereof or other cost incurred by the Company or acquirer in connection with such conversion and the related
issuance of Conversion Shares.

 

(v)    Neither the Company nor acquirer shall close its books against the transfer of this Note in any manner which interferes
with the timely conversion of this Note. The Company shall assist and cooperate with any holder of this Note required to make any
governmental filings or obtain any governmental approval prior to or in connection with the conversion of this Note (including,
without limitation, making any filings required to be made by the Company).

 

(vi)   The Company or its acquirer shall at all times reserve and keep available out of its authorized but unissued shares of the
common stock, solely for the purpose of issuance upon conversion hereunder, such number of shares of other type of capital securities
of the Company or its acquirer issuable upon conversion. All Conversion Shares which are so issuable shall, when issued, be duly
authorized and validly issued, fully paid and nonassessable and free from all taxes, liens and charges. The Company or its acquirer
shall take all such actions as may be necessary to assure that all such Conversion Shares may be so issued without violation of
any applicable law or governmental regulation or any requirements of any domestic securities exchange upon which such shares of
capital stock are quoted.

 

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3.      Adjustment to the Conversion Price. 

 

(a)     Adjustment Due to Merger, Consolidation, Etc. At the option of the Holder, the sale, conveyance or disposition of
all or substantially all of the assets of the Company, the effectuation by the Company of a transaction or series of related transactions
in which more than 50% of the voting power of the Borrower is disposed of, or the consolidation, merger or other business combination
of the Company with or into any other Person or Persons when the Company is not the survivor shall be treated pursuant to Section
3(b) hereof. “Person” shall mean any individual, corporation, limited liability company, partnership,
association, trust or other entity or organization.

 

(b)     Adjustment Due to Merger, Consolidation, Etc. If, at any time when this Note is issued and outstanding, there shall
be any merger, consolidation, exchange of shares, recapitalization, reorganization, or other similar event, as a result of which
shares of Common Stock of the Company shall be changed into the same or a different number of shares of another class or classes
of stock or securities of the Company or another entity, or in case of any sale or conveyance of all or substantially all of the
assets of the Company other than in connection with a plan of complete liquidation of the Company, then the Holder of this Note
shall thereafter have the right to receive upon conversion of this Note, upon the basis and upon the terms and conditions specified
herein and in lieu of the shares of Common Stock immediately theretofore issuable upon conversion, such stock, securities or assets
which the Holder would have been entitled to receive in such transaction had this Note been converted in full immediately prior
to such transaction (without regard to any limitations on conversion set forth herein), and in any such case appropriate provisions
shall be made with respect to the rights and interests of the Holder of this Note to the end that the provisions hereof (including,
without limitation, provisions for adjustment of the Conversion Price and of the number of shares of Conversion Shares issuable
upon conversion of the Note) shall thereafter be applicable, as nearly as may be practicable in relation to any securities or assets
thereafter deliverable upon the conversion hereof.

 

(c)     Purchase Rights. If, at any time when the Note is issued and outstanding, the Company issues any convertible securities
or rights to purchase stock, warrants, securities or other property (the “Purchase Rights”) pro rata
to the record holders of any class of Common Stock, then the Holder of this Debenture will be entitled to acquire, upon the terms
applicable to such Purchase Rights, the aggregate Purchase Rights which such Holder could have acquired if such Holder had held
the number of units of Conversion Shares acquirable upon complete conversion of this Note (without regard to any limitations on
conversion contained herein) immediately before the date on which a record is taken for the grant, issuance or sale of such Purchase
Rights or, if no such record is taken, the date as of which the record holders of Common Stock are to be determined for the grant,
issue or sale of such Purchase Rights.

 

4.       Transfer, Exchange and Replacement.

 

(a)     Transfer.
This Note has not been and is not being registered under the provisions of the Act or any state securities laws and this Note
may not be transferred prior to the end of the holding period applicable to sales under Rule 144 unless in accordance with applicable
law and unless (1) the transferee is an “accredited investor” (as defined in Regulation D under the Securities Act)
and (2) the holder shall have delivered to the Company an opinion of counsel, reasonably satisfactory in form, scope and substance
to the Company, to the effect that this Note may be sold or transferred without registration under the Act. Prior to any such
transfer, such transferee shall have represented in writing to the Company that such transferee has requested and received from
the Company all information relating to the business, properties, operations, condition (financial or other), results of operations
or prospects of the Company deemed relevant by such transferee, and that such transferee has been afforded the opportunity to
ask questions of the Company concerning the foregoing. Upon surrender of any Note for registration of transfer or for exchange
to the Company at its principal office, the Company at its sole expense will execute and deliver in exchange therefor a new Note
or Notes, as the case may be, as requested by the holder or transferee, which aggregate principal amount is equal the unpaid principal
amount of such Note, registered as such holder or transferee may request, dated so that there will be no loss of interest on the
Note and otherwise of like tenor; provided that this Note may not be transferred by Holder to any Person other than Holder’s
affiliates without the prior written consent of the Company (which consent shall not be unreasonably withheld or delayed). The
issuance of new Notes shall be made without charge to the holder(s) of the surrendered Note for any issuance tax in respect thereof
or other cost incurred by the Company in connection with such issuance, provided that each holder of the Note shall pay any transfer
taxes associated therewith. The Company shall be entitled to regard the registered holder of this Note as the holder of the Note
so registered for all purposes until the Company or its agent, as applicable, is required to record a transfer of this Note on
its register.

 

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(b)    Replacement.
Upon notice to the Company of the loss, theft, destruction or mutilation of this Note, and, in the case of loss, theft or
destruction, of an indemnification undertaking by the Holder to the Company in a form reasonably acceptable to the Company and,
in the case of mutilation, upon surrender and cancellation of the Note, the Company shall execute and deliver a new Note of like
tenor and date and in substantially the same form as this Note; provided, however, the Company shall not be obligated to
re-issue a Note if the Holder contemporaneously requests the Company to convert such remaining principal amount and interest into
Common Stock.

 

5.      Defaults and Remedies.

 

(a)     Events of Default. An “Event of Default” means any of the following events which
is not cured within 10 business days (the “Cure Period”) provided however that such Cure Period is not
applicable to paragraph (i) below:

 

(i)      failure
by the Company to pay any principal amount or interest due hereunder within thirty (30) Business Days of the date such payment
is due;

 

(ii)     the Company shall:

 

 (1) make
a general assignment for the benefit of its creditors;

 

 (2) apply
for or consent to the appointment of a receiver, trustee, assignee, custodian, sequestrator, liquidator or similar official for
itself or any of its assets and properties;

 

 (3) commence
a voluntary case for relief as a debtor under the United States Bankruptcy Code;

 

 (4) file
with or otherwise submit to any governmental authority any petition, answer or other document seeking: (A) reorganization,
(B) an arrangement with creditors or (C) to take advantage of any other present or future applicable law respecting
bankruptcy, reorganization, insolvency, readjustment of debts, relief of debtors, dissolution or liquidation;

 

 (5) file
or otherwise submit any answer or other document admitting or failing to contest the material allegations of a petition or other
document filed or otherwise submitted against it in any proceeding under any such applicable law, or

 

 (6) be adjudicated a
bankrupt or insolvent by a court of competent jurisdiction;

 

(iii)    any
receiver, trustee, assignee, custodian, sequestrator, liquidator or other official shall be appointed with respect to the Company,
or shall be appointed to take or shall otherwise acquire possession or control of all or a substantial part of the assets and
properties of the Company, and any of the foregoing shall continue unstayed and in effect for any period of sixty (60) days;

 

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(iv)   any
material breach by the Company of any of its representations or warranties under the Loan Agreement; or

 

(v)    any
default, whether in whole or in part, shall occur in the due observance or performance of any obligations or other covenants,
terms or provisions to be performed under this Note or the Loan Agreement which is not cured by the Company within the Cure Period
after receipt of written notice thereof.

 

(b)    Remedies. Holder of the Note at its option may declare all principal and accrued and unpaid interest thereon and
all other amounts payable under this Note immediately due and payable; provided, however, that this Note shall automatically
become due and payable without any declaration in the case of an Event of Default specified in clause (ii) of Section 6(a) above.

 

6.      Amendment and Waiver. The provisions of this Note may not be modified, amended or waived, without a written amendment
executed by the Company and holders of the Notes consisting of a majority of the outstanding principal amount.

 

7.      Voting Rights. Upon Conversion into the Common Stock the Holder shall have the voting rights applicable to the Common
Stock consistent with the Company’s Articles of Incorporation and By-laws. 

 

8.      Investment Representations. This Note has been issued subject to certain investment representations of the original
Holder set forth in the Loan Agreement and may be transferred or exchanged only in compliance with the Loan Agreement and applicable
federal and state securities laws and regulations.

 

9.      Cancellation. After all principal owed on this Note has been paid in full, this Note shall automatically be deemed
canceled, shall be surrendered to the Company for cancellation and shall not be re-issued.

 

10.    Waiver of Notice. To the extent permitted by law, the Company hereby waives demand, notice, protest and all other
demands and notices in connection with the delivery, acceptance, performance, default or enforcement of this Note.

 

11.    Governing Law. This Note shall be construed and enforced in accordance with, and all questions concerning the construction,
validity, interpretation and performance of this Note shall be governed by, the laws of the State of Nevada, without giving effect
to provisions thereof regarding conflict of laws. Each party hereto hereby irrevocably submits to the non-exclusive jurisdiction
of the state and federal courts sitting in the State of Florida for the adjudication of any dispute hereunder or in connection
herewith or with any transaction contemplated hereby or discussed herein, and hereby irrevocably waives, and agrees not to assert
in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such
suit, action or proceeding is brought in an inconvenient forum or that the venue of such suit, action or proceeding is improper.
Each party hereto hereby irrevocably waives personal service of process and consents to process being served in any such suit,
action or proceeding by sending by certified mail or overnight courier a copy thereof to such party at the address indicated in
the preamble hereto and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing
contained herein shall be deemed to limit in any way any right to serve process in any manner permitted by law. EACH PARTY HERETO
HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE
HEREUNDER OR IN CONNECTION HEREWITH OR ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY.

 

    	6

    	 

    

 

12.     Remedies, Characterizations, Other Obligations, Breaches and Injunctive Relief.

 

The remedies provided
in this Note shall be cumulative and in addition to all other remedies available under this Note, at law or in equity.

 

13.     Specific Shall Not Limit General; Construction. No specific provision contained in this Note shall limit or modify
any more general provision contained herein. This Note shall be deemed to be jointly drafted by the Company and the Holder and
shall not be construed against any person as the drafter hereof.

 

14.     Failure or Indulgence Not Waiver. No failure or delay on the part of this Note in the exercise of any power, right
or privilege hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such power, right or
privilege preclude other or further exercise thereof or of any other right, power or privilege.

 

15.     Assignments. The Holder may assign, participate, transfer or otherwise convey this Note and any of its rights or
obligations hereunder or interest herein, in whole or part, to any other Person and this Note shall inure to the benefit of the
Payee’s successors and assigns. The Company shall not assign or delegate this Note or any of its liabilities or obligations
hereunder without the prior written consent from the Holder.

 

16.     Notice. Notice shall be given to each party at the address indicated in the preamble hereto or at such other address
as provided to the other party in writing.

 

[-Signature Page Follows-]

 

    	7

    	 

    

 

IN WITNESS WHEREOF, the Company
has caused this Note to be executed on and as of the Issuance Date.

 

	 	Moxian China, Inc.
	 	 	 
	 	By:  	 
	 	Name:	Ng Kian Yong
	 	Title:	Chief Executive Officer

 

[-Signature Page to Convertible Promissory
Note-]

 

    	8

    	 

    

  

EXHIBIT A

 

NOTICE OF CONVERSION

 

The undersigned hereby elects
to convert $_____________ amount of the Note (defined below) into that number of shares of Common Stock (“Common Stock”)
to be issued pursuant to the conversion of the Note as set forth below, of Moxian China, Inc., a Nevada corporation (the “Company”)
according to the conditions of the convertible promissory note of the Company dated as of __________ (the “Note”),
as of the date written below.  No fee will be charged to the Holder for any conversion, except for transfer taxes, if any.

 

The undersigned hereby requests
that the Company issue a certificate or certificates for the number of shares of Common Stock set forth below (which numbers are
based on the Holder’s calculation attached hereto) in the name(s) specified immediately below or, if additional space is
necessary, on an attachment hereto:

 

___________________________

___________________________

___________________________

	 	Date of Conversion: 	 	 
	 	Applicable Conversion Price: 	 	 
	 	Number of Shares of Common Stock to be issued pursuant to Conversion of the Note:	 	 
	 	Amount of Principal due remaining under the Note after this conversion:	 	 

 

HOLDER

 

By:_____________________________

Name:

Title:

Date:  __________________________

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