Document:

Exhibit 10.2

 

February 27,
2020

 

Mr. Ping Chen

Chief Executive Officer

Lianluo Smart Limited

Room 1318, 13th Floor, No. 22 Shijingshan
Road,

Shijingshan District, Beijing 100040

 

People’s Republic
of China

 

Dear Mr. Chen:

 

This letter (the “Agreement”)
constitutes the agreement between Maxim Group LLC (“Maxim” or the “Placement Agent”) and
Lianluo Smart Limited, a company incorporated under the laws of the British Virgin Islands (the “Company”),
pursuant to which the Placement Agent shall serve as the placement agent for the Company, on a “reasonable best efforts”
basis, in connection with the proposed placement (the “Placement”) of Class A Common Shares of the Company,
par value $0.002731 per share (“Shares”), and warrants (“Warrants”) to purchase Shares of
the Company (the “Warrant Shares” and collectively with the Shares and the Warrants, the “Securities”).
The terms of the Placement and the Securities shall be mutually agreed upon by the Company and the purchasers (each, a “Purchaser”
and collectively, the “Purchasers”) and nothing herein constitutes that the Placement Agent would have the power
or authority to bind the Company or any Purchaser or an obligation for the Company to issue any Securities or complete the Placement.
This Agreement and the documents executed and delivered by the Company and the Purchasers in connection with the Placement, including
but not limited to the Purchase Agreement (as defined below) shall be collectively referred to herein as the “Transaction
Documents.” The date of the closing of the Placement shall be referred to herein as the “Closing Date.”
The Company expressly acknowledges and agrees that the Placement Agent’s obligations hereunder are on a reasonable best efforts
basis only and that the execution of this Agreement does not constitute a commitment by the Placement Agent to purchase the Securities
and does not ensure the successful placement of the Securities or any portion thereof or the success of the Placement Agent’s
with respect to securing any other financing on behalf of the Company. The Placement Agent may retain other brokers or dealers
to act as sub-agents or selected-dealers on its behalf in connection with the Placement. The sale of the Securities to any Purchaser
will be evidenced by a securities purchase agreement (the “Purchase Agreement”) between the Company and such
Purchaser in a form reasonably acceptable to the Company and the Placement Agent. Capitalized terms that are not otherwise defined
herein have the meanings given to such terms in the Purchase Agreement. Prior to the signing of any Purchase Agreement, officers
of the Company will be available to answer inquiries from prospective Purchasers.

 

     

     

    

 

SECTION 1. REPRESENTATIONS
AND WARRANTIES OF THE COMPANY; COVENANTS OF THE COMPANY.

 

A. 
Representations of the Company. Each of the representations and warranties (together with any related disclosure
schedules thereto) and covenants made by the Company to the Purchasers in the Purchase Agreement in connection with the Placement
is hereby incorporated herein by reference into this Agreement (as though fully restated herein) and is, as of the date of this
Agreement and as of the Closing Date, hereby made to, and in favor of, the Placement Agent. In addition to the foregoing, the Company
represents and warrants that:

 

1. 
The Company has prepared and filed with the Commission a registration statement on Form F-3 (Registration No. 333-227817),
and amendments thereto, and related preliminary prospectuses, for the registration under the Securities Act of 1933, as amended
(the “Securities Act”), of the Securities, which registration statement, as so amended (including post-effective
amendments, if any) became effective on November 8, 2018. At the time of such filing, the Company met the requirements of Form
F-3 under the Securities Act. Such registration statement meets the requirements set forth in Rule 415(a)(1)(x) under the Securities
Act and complies with said Rule. The Company will file with the Commission pursuant to Rule 424(b) under the Securities Act, and
the rules and regulations (the “Rules and Regulations”) of the Commission promulgated thereunder, a supplement
to the form of prospectus included in such registration statement relating to the placement of the Securities and the plan of
distribution thereof and has advised the Placement Agent of all further information (financial and other) with respect to the
Company required to be set forth therein. Such registration statement, including the exhibits thereto, as amended at the date
of this Agreement, is hereinafter called the “Registration Statement”; such prospectus in the form in which
it appears in the Registration Statement is hereinafter called the “Base Prospectus”; and the supplemented
form of prospectus, in the form in which it will be filed with the Commission pursuant to Rule 424(b) (including the Base Prospectus
as so supplemented) is hereinafter called the “Prospectus Supplement.” Any reference in this Agreement to the
Registration Statement, the Base Prospectus or the Prospectus Supplement shall each be deemed to refer to and include the documents
incorporated by reference therein (the “Incorporated Documents”) pursuant to Item 6 of Form F-3 which were
filed under the Exchange Act on or before the date of this Agreement, or the issue date of the Base Prospectus or the Prospectus
Supplement, as the case may be; and any reference in this Agreement to the terms “amend,” “amendment”
or “supplement” with respect to the Registration Statement, the Base Prospectus or the Prospectus Supplement shall
be deemed to refer to and include the filing of any document under the Exchange Act after the date of this Agreement, or the issue
date of the Base Prospectus or the Prospectus Supplement, as the case may be, deemed to be incorporated therein by reference.
All references in this Agreement to financial statements and schedules and other information which is “contained,”
“included,” “described,” “referenced,” “set forth” or “stated” in
the Registration Statement, the Base Prospectus or the Prospectus Supplement (and all other references of like import) shall be
deemed to mean and include all such financial statements and schedules and other information which is or is deemed to be incorporated
by reference in the Registration Statement, the Base Prospectus or the Prospectus Supplement, as the case may be. No stop order
suspending the effectiveness of the Registration Statement or the use of the Base Prospectus or the Prospectus Supplement has
been issued, and no proceeding for any such purpose is pending or has been initiated or, to the Company’s knowledge, is threatened
by the Commission. For purposes of this Agreement, “free writing prospectus” has the meaning set forth in Rule
405 under the Securities Act and the “Time of Sale Prospectus” means the preliminary prospectus, if any, together
with the free writing prospectuses, if any, used in connection with the Placement, including any documents incorporated by reference
therein.

 

2. 
The Registration Statement (and any further documents to be filed with the Commission) contains all exhibits and schedules
as required by the Securities Act. Each of the Registration Statement and any post-effective amendment thereto, at the time it
became effective, complied in all material respects with the Securities Act and the Exchange Act and the applicable Rules and Regulations
and did not and, as amended or supplemented, if applicable, will not, contain any untrue statement of a material fact or omit to
state a material fact required to be stated therein or necessary to make the statements therein not misleading. The Base Prospectus,
the Time of Sale Prospectus and the Prospectus Supplement, each as of its respective date, comply in all material respects with
the Securities Act and the Exchange Act and the applicable Rules and Regulations. Each of the Base Prospectus, the Time of Sale
Prospectus and the Prospectus Supplement, as amended or supplemented, did not and will not contain as of the date thereof any untrue
statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in the light of
the circumstances under which they were made, not misleading. The Incorporated Documents, when they were filed with the Commission,
conformed in all material respects to the requirements of the Exchange Act and the applicable Rules and Regulations, and none of
such documents, when they were filed with the Commission, contained any untrue statement of a material fact or omitted to state
a material fact necessary to make the statements therein (with respect to Incorporated Documents incorporated by reference in the
Base Prospectus or Prospectus Supplement), in the light of the circumstances under which they were made not misleading; and any
further documents so filed and incorporated by reference in the Base Prospectus, the Time of Sale Prospectus or Prospectus Supplement,
when such documents are filed with the Commission, will conform in all material respects to the requirements of the Exchange Act
and the applicable Rules and Regulations, as applicable, and will not contain any untrue statement of a material fact or omit to
state a material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not
misleading. No post-effective amendment to the Registration Statement reflecting any facts or events arising after the date thereof
which represent, individually or in the aggregate, a fundamental change in the information set forth therein is required to be
filed with the Commission. There are no documents required to be filed with the Commission in connection with the transaction contemplated
hereby that (x) have not been filed as required pursuant to the Securities Act or (y) will not be filed within the requisite time
period. There are no contracts or other documents required to be described in the Base Prospectus, the Time of Sale Prospectus
or Prospectus Supplement, or to be filed as exhibits or schedules to the Registration Statement, which (x) have not been described
or filed as required or (y) will not be filed within the requisite time period.

 

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3. 
The Company is eligible to use free writing prospectuses in connection with the Placement pursuant to Rules 164 and 433
under the Securities Act. Any free writing prospectus that the Company is required to file pursuant to Rule 433(d) under the Securities
Act has been, or will be, filed with the Commission in accordance with the requirements of the Securities Act and the applicable
rules and regulations of the Commission thereunder. Each free writing prospectus that the Company has filed, or is required to
file, pursuant to Rule 433(d) under the Securities Act or that was prepared by or behalf of or used by the Company complies or
will comply in all material respects with the requirements of the Securities Act and the applicable rules and regulations of the
Commission thereunder. The Company will not, without the prior consent of the Placement Agent, prepare, use or refer to, any free
writing prospectus.

 

4. 
There are no affiliations with any FINRA member firm among the Company’s officers, directors or, to the knowledge of the
Company, any five percent (5.0%) or greater shareholder of the Company, except as set forth in the Registration Statement and SEC
Reports.

 

B. 
Covenants of the Company. The Company has delivered, or will as promptly as practicable deliver, to the Placement
Agent complete conformed copies of the Registration Statement and of each consent and certificate of experts, as applicable, filed
as a part thereof, and conformed copies of the Registration Statement (without exhibits), the Base Prospectus, the Time of Sale
Prospectus and the Prospectus Supplement, as amended or supplemented, in such quantities and at such places as the Placement Agent
reasonably requests. Neither the Company nor any of its directors and officers has distributed and none of them will distribute,
prior to the Closing Date, any offering material in connection with the offering and sale of the Securities pursuant to the Placement
other than the Base Prospectus, the Time of Sale Prospectus, the Prospectus Supplement, the Registration Statement, copies of the
documents incorporated by reference therein and any other materials permitted by the Securities Act.

 

SECTION 2.  REPRESENTATIONS
OF THE PLACEMENT AGENT. The Placement Agent represents and warrants that it (i) is a member in good standing of FINRA, (ii)
is registered as a broker/dealer under the Exchange Act, (iii) is licensed as a broker/dealer under the laws of the States applicable
to the offers and sales of the Securities by such Placement Agent, (iv) is and will be a body corporate validly existing under
the laws of its place of incorporation, and (v) has full power and authority to enter into and perform its obligations under this
Agreement. The Placement Agent will immediately notify the Company in writing of any change in its status as such. The Placement
Agent covenants that it will use its reasonable best efforts to conduct the Placement hereunder in compliance with the provisions
of this Agreement and the requirements of applicable law. 

 

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SECTION 3.  COMPENSATION.
In consideration of the services to be provided for hereunder, the Company shall pay to the Placement Agent or its designees the
following compensation with respect to the Securities which the Placement Agent is placing:

 

A. 
A cash fee (the “Cash Fee”) equal to an aggregate of seven percent (7.0%) of the aggregate gross proceeds
raised in the Placement, including any over-allotment subscription. The Cash Fee shall be paid at the Closing of the Placement.

 

B. 
Subject to compliance with FINRA Rule 5110(f)(2)(D), the Company also agrees to reimburse the Placement Agent for all travel
and other out-of-pocket expenses, including the reasonable fees, costs and disbursements of its legal counsel, in an amount not
to exceed an aggregate of $20,000. The Company will reimburse Placement Agent directly out of the Closing of the Placement. In
the event this Agreement shall terminate prior to the consummation of the Placement, the Placement Agent shall be entitled to reimbursement
for actual expenses; provided, however, such expenses shall not exceed $20,000.

 

C. 
The Placement Agent reserves the right to reduce any item of its compensation or adjust the terms thereof as specified herein
in the event that a determination shall be made by FINRA to the effect that the Placement Agent’s aggregate compensation
is in excess of FINRA Rules or that the terms thereof require adjustment.

 

SECTION 4. INDEMNIFICATION.
The Company agrees to the indemnification and other agreements set forth in the Indemnification Provisions (the “Indemnification”)
attached hereto as Addendum A, the provisions of which are incorporated herein by reference and shall survive the termination
or expiration of this Agreement.

 

SECTION 5. ENGAGEMENT
TERM. The Placement Agent’s engagement hereunder shall be until the earlier of (i) the final closing date of the Placement
and (ii) March 31, 2020 (such date, the “Termination Date”). If the Company elects to terminate this Agreement
for any reason even though the Placement Agent was prepared to proceed with the Placement reasonably within the intent of this
Agreement, and if within twelve (12) months following such termination, the Company completes any financing of equity, equity-linked
or debt or other capital raising activity of the Company (other than the exercise by any person or entity of any options, warrants
or other convertible securities) with any of the investors “wall crossed” by Placement Agent for purposes of the Placement
during the term of this Agreement (other than investors introduced to the Placement Agent by the Company, which the Placement Agent
agrees have been introduced by the Company), then the Company will pay the Placement Agent upon the closing of such financing the
compensation set forth in Section 3 herein to the extent of the gross proceeds received by the Company solely from such contacted
investors. Notwithstanding anything to the contrary contained herein, the provisions concerning the Company’s obligation
to pay any fees actually earned pursuant to Section 3 hereof and the provisions concerning confidentiality, indemnification and
contribution contained herein and the Company’s obligations contained in the Indemnification Provisions will survive any
expiration or termination of this Agreement. If this Agreement is terminated prior to the completion of the Placement, all fees
due to the Placement Agent shall be paid by the Company to the Placement Agent on or before the Termination Date (in the event
such fees are earned or owed as of the Termination Date). The Placement Agent agrees not to use any confidential information concerning
the Company provided to the Placement Agent by the Company for any purposes other than those contemplated under this Agreement.

 

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SECTION 6. PLACEMENT
AGENT INFORMATION. Notwithstanding anything herein to the contrary, if in the course of the Placement Agent’s performance
of due diligence, the Placement Agent deems it necessary to terminate this Agreement, the Placement Agent may do so at any time
upon immediate written notice. The Company agrees that any information or advice rendered by the Placement Agent in connection
with this engagement is for the confidential use of the Company only in their evaluation of the Placement and, except as otherwise
required by law, the Company will not disclose or otherwise refer to the advice or information in any manner without the Placement
Agent’s prior written consent.

 

SECTION 7. NO
FIDUCIARY RELATIONSHIP. This Agreement does not create, and shall not be construed as creating rights enforceable by any person
or entity not a party hereto, except those entitled hereto by virtue of the Indemnification Provisions hereof. The Company acknowledges
and agrees that the Placement Agent is not and shall not be construed as a fiduciary of the Company and shall have no duties or
liabilities to the equity holders or the creditors of the Company or any other person by virtue of this Agreement or the retention
of the Placement Agent hereunder, all of which are hereby expressly waived.

 

SECTION 8. CLOSING.
The obligations of the Placement Agent, and the closing of the sale of the Securities hereunder are subject to the accuracy, when
made and on the Closing Date, of the representations and warranties on the part of the Company and its Subsidiaries contained herein
and in the Purchase Agreement, to the accuracy of the statements of the Company and its Subsidiaries made in any certificates pursuant
to the provisions hereof, to the performance by the Company and its Subsidiaries of their obligations hereunder, and to each of
the following additional terms and conditions, except as otherwise disclosed to and acknowledged and waived by the Placement Agent.

 

A. 
No stop order suspending the effectiveness of the Registration Statement shall have been issued and no proceedings for that
purpose shall have been initiated or threatened by the Commission, and any request for additional information on the part of the
Commission (to be included in the Registration Statement, the Base Prospectus, the Prospectus Supplement or otherwise) shall have
been complied with to the reasonable satisfaction of the Placement Agent. Any filings required to be made by the Company in connection
with the Placement shall have been timely filed with the Commission.

 

B. 
The Placement Agent shall not have discovered and disclosed to the Company on or prior to the Closing Date that the Registration
Statement, the Base Prospectus, the Prospectus Supplement or any amendment or supplement thereto contains an untrue statement of
a fact which, in the opinion of counsel for the Placement Agent, is material or omits to state any fact which, in the opinion of
such counsel, is material and is required to be stated therein or is necessary to make the statements therein not misleading.

 

C. 
All corporate proceedings and other legal matters incident to the authorization, form, execution, delivery and validity
of each of this Agreement, the Securities, the Registration Statement, the Base Prospectus and the Prospectus Supplement and all
other legal matters relating to this Agreement and the transactions contemplated hereby shall be reasonably satisfactory in all
material respects to counsel for the Placement Agent, and the Company shall have furnished to such counsel all documents and information
that they may reasonably request to enable them to pass upon such matters.

 

D. 
The Placement Agent shall have completed its due diligence investigation of the Company to the satisfaction of the Placement
Agent and its counsel.

 

E. 
The Placement Agent shall have received from outside counsels to the Company such counsels’ written opinions, addressed
to the Placement Agent and the Purchasers and dated as of the Closing Date, in form and substance reasonably satisfactory to the
Placement Agent; provided, however, that the negative assurance letter will be only addressed to the Placement Agent.

 

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F. 
On the date of this Agreement and on the Closing Date, the Placement Agent shall have received a “comfort” letter
from Centurion ZD CPA & Co. as of each such date, addressed to the Placement Agent and in form and substance satisfactory in
all respects to the Placement Agent and Placement Agent’s counsel.

 

G. 
On the Closing Date, Placement Agent shall have received a certificate of the chief executive officer of the Company, dated,
as applicable, as of the date of such Closing, to the effect that, as of the date of this Agreement and as of the applicable date,
the representations and warranties of the Company contained herein and in the Purchase Agreement were and are accurate in all material
respects, except for such changes as are contemplated by this Agreement and except as to representations and warranties that were
expressly limited to a state of facts existing at a time prior to the applicable Closing Date, and that, as of the applicable date,
the obligations to be performed by the Company hereunder on or prior thereto have been fully performed in all material respects.

 

H. 
On the Closing Date, Placement Agent shall have received a certificate of an Officer of the Company, dated, as applicable,
as of the date of such Closing, certifying to, among others, the organizational documents and board resolutions relating to the
Placement of the Securities from the Company.

 

I. 
Lock-Up Agreements. On or before the date hereof, the Placement Agent shall have received, and the Company shall have caused
to be delivered to the Placement Agent, lock-up agreements from the persons set forth on Exhibit A hereto, addressed to the Placement
Agent, dated as of the date hereof, in the form set forth on Exhibit B hereto.

 

J. 
Neither the Company nor any of its Subsidiaries (i) shall have sustained since the date of the latest audited financial
statements included or incorporated by reference in the Registration Statement, the Base Prospectus and the Prospectus Supplement,
any loss or interference with its business from fire, explosion, flood, terrorist act or other calamity, whether or not covered
by insurance, or from any labor dispute or court or governmental action, order or decree, otherwise than as set forth in or contemplated
by the Registration Statement, the Base Prospectus and the Prospectus Supplement, or (ii) since such date there shall not have
been any change in the capital stock or long-term debt of the Company or any of its Subsidiaries or any change, or any development
involving a prospective change, in or affecting the business, general affairs, management, financial position, stockholders’ equity,
results of operations or prospects of the Company and its Subsidiaries, otherwise than as set forth in or contemplated by the Registration
Statement, the Base Prospectus and the Prospectus Supplement, the effect of which, in any such case described in clause (i) or
(ii), is, in the judgment of the Placement Agent, so material and adverse as to make it impracticable or inadvisable to proceed
with the sale or delivery of the Securities on the terms and in the manner contemplated by the Base Prospectus, Time of Sale Prospectus
and Prospectus Supplement.

 

K. 
The Company’s Class A Common Shares, par value $0.002731 per share (the “Common Shares”) are registered
under the Exchange Act and, as of the Closing Date, the Company has submitted the notification of listing of additional shares
including Shares and the Warrant Shares to the Trading Market or other U.S. applicable national exchange and has not received any
information indicating that the such listing will be rejected and satisfactory evidence of such action shall have been provided
to the Placement Agent. The Company shall have taken no action designed to, or likely to have the effect of terminating the registration
of the Common Shares under the Exchange Act or delisting or suspending from trading the Shares or the Warrant Shares from the Trading
Market or other applicable U.S. national exchange, nor has the Company received any information suggesting that the Commission
or the Trading Market or other U.S. applicable national exchange is contemplating terminating such registration or listing.

 

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L. 
No action shall have been taken and no statute, rule, regulation or order shall have been enacted, adopted or issued by
any governmental agency or body which would, as of the Closing Date, prevent the issuance or sale of the Securities or materially
and adversely affect or potentially and adversely affect the business or operations of the Company; and no injunction, restraining
order or order of any other nature by any federal or state court of competent jurisdiction shall have been issued as of the Closing
Date which would prevent the issuance or sale of the Securities or materially and adversely affect or potentially and adversely
affect the business or operations of the Company.

 

M. 
The Company shall have prepared and filed with the Commission a Report of Foreign Private Issuer on Form 6-K with respect
to the Placement, including as an exhibit thereto this Agreement.

 

N. 
The Company shall have entered into a Purchase Agreement with each of the Purchasers and such agreements shall be in full
force and effect and shall contain representations, warranties and covenants of the Company as agreed between the Company and the
Purchasers.

 

O. 
FINRA shall have raised no objection to the fairness and reasonableness of the terms and arrangements of this Agreement.
In addition, the Company shall, if requested by the Placement Agent, make or authorize Placement Agent’s counsel to make
on the Company’s behalf, any filing with the FINRA Corporate Financing Department pursuant to FINRA Rule 5110 with respect
to the Placement and pay all filing fees required in connection therewith.

 

P. 
On or prior to the Closing Date and for a period of three (3) years from the initial Closing Date, the Company has and shall
retain Computershare Limited as its transfer agent and registrar or another transfer agent and registrar that is registered
with the Commission under Section 17A(c) of the Securities Exchange Act of 1934 and authorized, experienced and able to provide
such services.

 

Q. 
On or prior to the Closing Date and for a period of three (3) years from the initial Closing Date, the Company has and shall
retain, at its expense, BDO China Shu Lun Pan Certified Public Accountants LLP as its independent registered accountants or another
independent registered accounting firm that is a PCAOB registered auditor authorized, experienced and able to provide such services,
and shall cause such independent registered accounting firm to audit the Company’s annual financial statements and to review
the Company’s interim financial statements during such period.

 

R. 
Prior to the Closing Date, the Company shall have furnished to the Placement Agent such further information, certificates
and documents as the Placement Agent may reasonably request.

 

If any of the conditions
specified in this Section 8 shall not have been fulfilled when and as required by this Agreement, or if any of the certificates,
opinions, written statements or letters furnished to the Placement Agent or to Placement Agent’s counsel pursuant to this
Section 8 shall not be reasonably satisfactory in form and substance to the Placement Agent and to Placement Agent’s counsel,
all obligations of the Placement Agent hereunder may be cancelled by the Placement Agent at, or at any time prior to, the consummation
of the Closing. Notice of such cancellation shall be given to the Company in writing or orally. Any such oral notice shall be confirmed
promptly thereafter in writing.

 

SECTION 9. RIGHT
OF FIRST REFUSAL AND PARTICIPATION RIGHTS. Subject to consummation of this offering, if, from the date hereof until the 4-month
anniversary following the consummation of this offering (the “ROFR Period”), the Company or any of its subsidiaries
decides to raise funds by means of a public offering (including at-the-market facility) or a private placement or any other capital
raising financing of equity or equity-linked securities using an underwriter or placement agent, Maxim (or any affiliate designated
by Maxim) shall have the right to act as sole book-running manager, sole underwriter or sole placement agent for such financing.
If Maxim or one of its affiliates decides to accept any such engagement, the agreement governing such engagement will contain,
among other things, provisions for customary fees for transactions of similar size and nature and the provisions of this Agreement,
including indemnification, which are appropriate to such a transaction.  During the period after the ROFR Period but before
the 12-month anniversary following the consummation of this offering, if the Company or any of its subsidiaries decides to raise
funds by means of a public offering (including at-the-market facility) or a private placement or any other capital raising financing
of equity or equity-linked securities using an underwriter or placement agent, the Company grants Maxim the right to join as a
participating dealer in such transaction with at least 50% of the economics thereof.

 

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SECTION 10. GOVERNING
LAW. This Agreement will be governed by, and construed in accordance with, the laws of the State of New York applicable to
agreements made and to be performed entirely in such State. This Agreement may not be assigned by either party without the prior
written consent of the other party. This Agreement shall be binding upon and inure to the benefit of the parties hereto, and their
respective successors and permitted assigns. Any right to trial by jury with respect to any dispute arising under this Agreement
or any transaction or conduct in connection herewith is waived. Any dispute arising under this Agreement may be brought into the
courts of the State of New York or into the Federal Court located in New York, New York and, by execution and delivery of this
Agreement, the Company hereby accepts for itself and in respect of its property, generally and unconditionally, the jurisdiction
of aforesaid courts. Each party hereto hereby irrevocably waives personal service of process and consents to process being served
in any such suit, action or proceeding by delivering a copy thereof via overnight delivery (with evidence of delivery) to such
party at the address in effect for 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. If either party shall commence an action or proceeding to enforce any provisions of a Transaction
Document, then the prevailing party in such action or proceeding shall be reimbursed by the other party for its attorney’s fees
and other costs and expenses incurred with the investigation, preparation and prosecution of such action or proceeding.

 

SECTION 11. ENTIRE
AGREEMENT/MISC. This Agreement (including the attached Indemnification Provisions) embodies the entire agreement and understanding
between the parties hereto, and supersedes all prior agreements and understandings, relating to the subject matter hereof. If any
provision of this Agreement is determined to be invalid or unenforceable in any respect, such determination will not affect such
provision in any other respect or any other provision of this Agreement, which will remain in full force and effect. This Agreement
may not be amended or otherwise modified or waived except by an instrument in writing signed by the Placement Agent and the Company.
The representations, warranties, agreements and covenants contained herein shall survive the closing of the Placement and delivery
of the Securities. This Agreement may be executed in two or more counterparts, all of which when taken together 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, it being understood that both parties need not sign the same counterpart. In the event that any signature is delivered by
facsimile transmission or a .pdf format file, such signature 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 facsimile or .pdf signature page were
an original thereof.

 

SECTION 12. CONFIDENTIALITY.
The Placement Agent (i) will keep the Confidential Information (as such term is defined below) confidential and will not (except
as required by applicable law or stock exchange requirement, regulation or legal process), without the Company’s prior written
consent, disclose to any person any Confidential Information, and (ii) will not use any Confidential Information other than in
connection with the Placement. The Placement Agent further agrees to disclose the Confidential Information only to its Representatives
(as such term is defined below) who need to know the Confidential Information for the purpose of the Placement, and who are informed
by the Placement Agent of the confidential nature of the Confidential Information. The term “Confidential Information”
shall mean, all confidential, proprietary and non-public information (whether written, oral or electronic communications) furnished
by the Company to a Placement Agent or its Representatives in connection with such Placement Agent’s evaluation of the Placement.
Information communicated orally or otherwise than in writing, shall only be considered Confidential Information if such information
is designated as being confidential at the time of disclosure (or promptly thereafter) and is reduced in writing and identified
to the Placement Agent as being Confidential Information immediately after the initial disclosure. The term “Confidential
Information” will not, however, include information which (i) is or becomes publicly available other than as a result
of a disclosure by a Placement Agent or its Representatives in violation of this Agreement, (ii) is or becomes available to a Placement
Agent or any of its Representatives on a non-confidential basis from a third-party, (iii) is known to a Placement Agent or any
of its Representatives prior to disclosure by the Company or any of its Representatives, (iv) is or has been independently developed
by a Placement Agent and/or the Representatives without use of any Confidential Information furnished to it by the Company, or
(v) is required to be disclosed pursuant to applicable legal or regulatory authority. The term “Representatives” shall
mean each Placement Agent’s directors, board committees, officers, employees, financial advisors, attorneys and accountants.
This provision shall be in full force until the earlier of (a) the date that the Confidential Information ceases to be confidential
and (b) two years from the date hereof.

 

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SECTION 13. NOTICES.
Any and all notices or other communications or deliveries required or permitted to be provided hereunder shall be in writing and
shall be deemed given and effective on the earliest of (a) the date of transmission, if such notice or communication is sent to
the email address specified on the signature pages attached hereto prior to 6:30 p.m. (New York City time) on a business day, (b)
the next business day after the date of transmission, if such notice or communication is sent to the email address on the signature
pages attached hereto on a day that is not a business day or later than 6:30 p.m. (New York City time) on any business day, (c)
the third business day following the date of mailing, if sent by U.S. internationally recognized air courier service, or (d) upon
actual receipt by the party to whom such notice is required to be given. The address for such notices and communications shall
be as set forth on the signature pages hereto.

 

SECTION 14. Press
Announcements. The Company agrees that the Placement Agent shall, from and after any Closing, have the right to reference
the Placement and the Placement Agent’s role in connection therewith in the Placement Agent’s marketing materials and
on its website and to place advertisements in financial and other newspapers and journals, in each case at its own expense.

 

[The remainder of
this page has been intentionally left blank.]

 

    9

     

    

 

Please confirm that
the foregoing correctly sets forth our agreement by signing and returning to Maxim the enclosed copy of this Agreement.

 

	 	Very truly yours,
	 	 
	 	Maxim GROUP LLC
	 	 
	 	By: 	 
	 	 	Name: Clifford A. Teller
	 	 	
        Title:   Executive Managing Director,
                    Investment Banking

 

	 	 	Address for notice:
	 	 	405 Lexington Avenue
	 	 	New York, NY 10174
	 	 	
        Attention: James Siegel, General Counsel

        Email: jsiegel@maximgrp.com

 

Accepted and Agreed to
as of

the date first written
above:

 

	LIANLUO SMART LIMITED
	 	 
	By: 	 	 
	 	Name: Ping Chen	 
	 	Title: Chief Executive Officer	 

 

Address for notice:

Room 2108, 21st Floor,

China Railway Construction Building,

No. 20 Shijingshan Road, 100040, Beijing

People’s Republic
of China

Attn: Ping Chen

Email:  [________

 

 

[Signature Page to
Placement Agency Agreement Between 

Lianluo Smart Limited
and Maxim Group LLC]

 

    10

     

    

 

ADDENDUM A

INDEMNIFICATION
PROVISIONS

 

In connection
with the engagement of Maxim Group LLC (the “Lead Manager”) by Lianluo Smart Limited (the “Company”)
pursuant to a placement agency agreement dated as of the date hereof, between the Company and the Lead Manager, as it may be amended
from time to time in writing (the “Agreement”), the Company hereby agrees as follows:

 

1. 
To the extent permitted by law, the Company will indemnify the Lead Manager and each of its affiliates, directors, officers,
employees and controlling persons (within the meaning of Section 15 of the Securities Act of 1933, as amended, or Section 20 of
the Securities Exchange Act of 1934) against all losses, claims, damages, expenses and liabilities, as the same are incurred (including
the reasonable fees and expenses of counsel), relating to or arising out of its activities hereunder or pursuant to the Agreement,
except, with regard to the Lead Manager, to the extent that any losses, claims, damages, expenses or liabilities (or actions in
respect thereof) are found in a final judgment (not subject to appeal) by a court of law to have resulted primarily and directly
from the Lead Manager’s willful misconduct or gross negligence in performing the services described herein, as the case may
be.

 

2. 
Promptly after receipt by the Lead Manager of notice of any claim or the commencement of any action or proceeding with respect
to which the Lead Manager is entitled to indemnity hereunder, the Lead Manager will notify the Company in writing of such claim
or of the commencement of such action or proceeding, and the Company will assume the defense of such action or proceeding and will
employ counsel reasonably satisfactory to the Lead Manager and will pay the fees and expenses of such counsel. Notwithstanding
the preceding sentence, the Lead Manager will be entitled to employ counsel separate from counsel for the Company and from any
other party in such action if counsel for the Lead Manager reasonably determines that it would be inappropriate under the applicable
rules of professional responsibility for the same counsel to represent both the Company and the Lead Manager. In such event, the
reasonable fees and disbursements of no more than one such separate counsel will be paid by the Company. The Company will have
the exclusive right to settle the claim or proceeding provided that the Company will not settle any such claim, action or proceeding
without the prior written consent of the Lead Manager, which will not be unreasonably withheld.

 

3. 
The Company agrees to notify the Lead Manager promptly of the assertion against it or any other person of any claim or the
commencement of any action or proceeding relating to a transaction contemplated by the Agreement.

 

4. 
If for any reason the foregoing indemnity is unavailable to the Lead Manager or insufficient to hold the Lead Manager harmless,
then the Company shall contribute to the amount paid or payable by the Lead Manager, as the case may be, as a result of such losses,
claims, damages or liabilities in such proportion as is appropriate to reflect not only the relative benefits received by the Company
on the one hand, and the Lead Manager on the other, but also the relative fault of the Company on the one hand and the Lead Manager
on the other that resulted in such losses, claims, damages or liabilities, as well as any relevant equitable considerations. The
amounts paid or payable by a party in respect of losses, claims, damages and liabilities referred to above shall be deemed to include
any legal or other fees and expenses incurred in defending any litigation, proceeding or other action or claim. Notwithstanding
the provisions hereof, the Lead Manager’s share of the liability hereunder shall not be in excess of the amount of fees actually
received, or to be received, by the Lead Manager under the Agreement (excluding any amounts received as reimbursement of expenses
incurred by the Lead Manager).

 

5. 
These Indemnification Provisions shall remain in full force and effect whether or not the transaction contemplated by the
Agreement is completed and shall survive the termination of the Agreement, and shall be in addition to any liability that the Company
might otherwise have to any indemnified party under the Agreement or otherwise.

 

 

[The remainder of this
page has been intentionally left blank.] 

 

     

     

    

  

	 	Very truly yours,
	 	 
	 	Maxim GROUP LLC
	 	 
	 	By: 	 
	 	 	Name: Clifford A. Teller
	 	 	
        Title:   Executive Managing Director,
                    Investment Banking

 

	 	 	Address for notice:
	 	 	405 Lexington Avenue
	 	 	New York, NY 10174
	 	 	
        Attention: James Siegel, General Counsel

        Email: jsiegel@maximgrp.com

 

Accepted and Agreed to
as of

the date first written
above:

 

	LIANLUO SMART LIMITED
	 	 
	By: 	 	 
	 	Name: Ping Chen	 
	 	Title: Chief Executive Officer	 

 

Address for notice:

Room 1318, 13th Floor, No. 22 Shijingshan
Road,

Shijingshan District,
Beijing 100040 People’s Republic of China

Attn: Ping Chen

Email:  [________

 

 

[Signature Page to
Indemnification Provisions

Pursuant to Placement
Agency Agreement

between Lianluo Smart
Limited and Maxim Group LLC]

 

     

     

    

 

Exhibit A

 

Lock-Up Parties

 

	Name	 	Relationship to the Company
	Zhitao He	 	Chairman and Director
	Ping Chen	 	Chief Executive Officer,  Director and Shareholder
	Yingmei Yang	 	Interim Chief Financial Officer
	Richard Zhiqiang Chang	 	Independent Director
	Bin Pan	 	Independent Director
	Xiaogang Tong	 	Independent Director
	Hangzhou Lianluo Interactive Information Technology Co., Ltd.	 	Shareholder

 

     

     

    

 

Exhibit B

 

Form of Lock-Up AgreementExhibit 10.3

 

LOCK-UP AGREEMENT

 

_____________, 2020

 

Maxim Group LLC

405 Lexington Avenue

New York, NY 10174

 

Re: Placement of Lianluo Smart Limited

 

Ladies and Gentlemen:

 

The undersigned, a
holder of securities of Lianluo Smart Limited (the “Company”), understands that you are the placement agent
(the “Placement Agent”) named in the placement agency agreement (the “Placement Agency Agreement”)
to be entered into among the Placement Agent and the Company, providing for the placement (the “Placement”)
of Shares and Warrants (collectively, the “Securities”) pursuant to a registration statement and related prospectuses
and supplements thereto filed or to be filed with the U.S. Securities and Exchange Commission (the “SEC”). Capitalized
terms used herein and not otherwise defined shall have the meanings set forth for them in the Placement Agency Agreement.

 

In consideration of
the Placement Agent’s agreement to enter into the Placement Agency Agreement and to proceed with the Placement of the Securities,
and for other good and valuable consideration, receipt of which is hereby acknowledged, the undersigned hereby agrees, for the
benefit of the Company, the Placement Agent that, without the prior written consent of the Placement Agent, the undersigned will
not, during the period specified in the following paragraph (the “Lock-Up Period”), directly or indirectly,
unless otherwise provided herein, (a) offer, sell, agree to offer or sell, solicit offers to purchase, convert, exercise, exchange,
grant any call option or purchase any put option with respect to, pledge, encumber, assign, borrow or otherwise dispose of or transfer
(each a “Transfer”) any Relevant Security (as defined below) or otherwise publicly disclose the intention to
do so, or (b) establish or increase any “put equivalent position” or liquidate or decrease any “call equivalent
position” (in each case within the meaning of Section 16 of the Securities Exchange Act of 1934 (the “Exchange Act”)
and the rules and regulations thereunder) with respect to any Relevant Security or otherwise enter into any swap, derivative or
other transaction or arrangement that Transfers to another, in whole or in part, any economic consequence of ownership of a Relevant
Security, whether or not such transaction is to be settled by the delivery of Relevant Securities, other securities, cash or other
consideration, or otherwise publicly disclose the intention to do so. As used herein, the term “Relevant Security”
means any Share, warrant to purchase Shares or any other security of the Company or any other entity that is convertible into,
or exercisable or exchangeable for, Shares or any other equity security of the Company, in each case owned beneficially or otherwise
by the undersigned on the date set forth on the front cover of the final prospectus used in connection with the Placement of the
Securities (the “Effective Date”) or acquired by the undersigned during the Lock-Up Period.

 

The Lock-Up Period
will commence on the date of this Lock-up Agreement and continue and include the date that is ninety (90) days after the closing
of the Placement.

 

In addition, the undersigned
further agrees that, without the prior written consent of the Placement Agent, during the Lock-Up Period the undersigned will not:
(i) file or participate in the filing with the SEC of any registration statement or circulate or participate in the circulation
of any preliminary or final prospectus or other disclosure document, in each case with respect to any proposed offering or sale
of a Relevant Security, or (ii) exercise any rights the undersigned may have to require registration with the SEC of any proposed
offering or sale of a Relevant Security.

 

     

     

    

 

In addition, if: (i) the
Company issues an earnings release or material news or a material event relating to the Company occurs during the last seventeen
(17) days of the Lock-Up Period, or (ii) prior to the expiration of the Lock-Up Period, the Company announces that it
will release earnings results during the sixteen (16)-day period beginning on the last day of the Lock-Up Period, then the restrictions
imposed by this Lock-Up Agreement shall continue to apply until the expiration of the eighteen (18)-day period beginning on the
issuance of the earnings release or the occurrence of the material news or material event (the “Extension Period”).
However, for purposes of clarity, only one Extension Period may occur.

 

In furtherance of the
undersigned’s obligations hereunder, the undersigned hereby authorizes the Company during the Lock-Up Period to cause any
transfer agent for the Relevant Securities to decline to transfer, and to note stop transfer restrictions on the stock register
and other records relating to, Relevant Securities for which the undersigned is the record owner and the transfer of which would
be a violation of this Lock-Up Agreement and, in the case of Relevant Securities for which the undersigned is the beneficial but
not the record owner, agrees that during the Lock-Up Period it will cause the record owner to cause the relevant transfer agent
to decline to transfer, and to note stop transfer restrictions on the stock register and other records relating to, such Relevant
Securities to the extent such transfer would be a violation of this Lock-Up Agreement.

 

Notwithstanding the
foregoing, the undersigned may transfer the undersigned’s Relevant Securities:

 

		(i)	as a bona fide gift or gifts,
		(ii)	to any trust for the direct or indirect benefit of the undersigned or a member of members of the
immediate family of the undersigned,
		(iii)	if the undersigned is a corporation, partnership, limited liability company, trust or other business
entity (1) to another corporation, partnership, limited liability company, trust or other business entity that is a direct or indirect
affiliate (as defined in Rule 405 under the Securities Act of 1933) of the undersigned, (2) to limited partners, limited liability
company members or stockholders of the undersigned, or (3) in connection with a sale, merger or transfer of all or substantially
all of the assets of the undersigned or any other change of control of the undersigned, not undertaken for the purpose of avoiding
the restrictions imposed by this Lock-Up Agreement,
		(iv)	if the undersigned is a trust, to the beneficiary of such trust,
		(v)	by testate or intestate succession,
		(vi)	by operation of law, such as pursuant to a qualified domestic order or in connection with a divorce
settlement, or
		(vii)	pursuant to the Placement Agency Agreement;

 

provided, in the case of clauses
(i)-(vi), that (A) such transfer shall not involve a disposition for value, (B) the transferee agrees in writing with the Placement
Agent and the Company to be bound by the terms of this Lock-Up Agreement, and (C) such transfer would not require any filing under
Section 16(a) of the Exchange Act and no such filing is voluntarily made.

 

For purposes of this
Lock-Up Agreement, “immediate family” shall mean any relationship by blood, marriage or adoption, not more remote than
first cousin.

 

    2

     

    

 

The undersigned hereby
represents and warrants that the undersigned has full power and authority to enter into this Lock-Up Agreement and that this Lock-Up
Agreement has been duly authorized (if the undersigned is not a natural person) and constitutes the legal, valid and binding obligation
of the undersigned, enforceable in accordance with its terms. Upon request, the undersigned will execute any additional documents
necessary in connection with the enforcement hereof. Any obligations of the undersigned shall be binding upon the successors and
assigns of the undersigned from the date of this Lock-Up Agreement.

 

The undersigned understands
that, if the Placement Agency Agreement does not become effective, or if the Placement Agency Agreement (other than the provisions
thereof which survive termination) shall terminate or be terminated prior to payment for and delivery of the Securities to be sold
thereunder, the undersigned shall be released from all obligations under this Lock-Up Agreement.

 

The undersigned, whether
or not participating in the Placement, understands that the Placement Agent is entering into the Placement Agency Agreement and
proceeding with the Placement in reliance upon this Lock-Up Agreement.

 

This Lock-Up Agreement
shall be governed by and construed in accordance with the laws of the State of New York, without regard to the conflict of laws
principles thereof. Delivery of a signed copy of this Lock-Up Agreement by facsimile or e-mail/.pdf transmission shall be effective
as the delivery of the original hereof.

  

	 	Very truly yours,
	 	 	 
	 	Signature: 	 
	 	Name (printed):
	 	Title (if applicable):
	 	Entity (if applicable):

 

 

3

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