Document:

Exhibit 10.5

 

THIS PROMISSORY NOTE (“NOTE”) HAS
NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”). THIS NOTE HAS BEEN ACQUIRED
FOR INVESTMENT ONLY AND MAY NOT BE SOLD, TRANSFERRED OR ASSIGNED IN THE ABSENCE OF REGISTRATION OF THE RESALE THEREOF UNDER THE
SECURITIES ACT OR AN OPINION OF COUNSEL REASONABLY SATISFACTORY IN FORM, SCOPE AND SUBSTANCE TO THE COMPANY THAT SUCH REGISTRATION
IS NOT REQUIRED.

 

PROMISSORY NOTE

 

	Principal Amount:  Up to $400,000	Dated as of February 3, 2022

 

Denali Capital Acquisition
Corp., a Cayman Islands exempted company and blank check company (the “Maker”), promises to pay to the order
of Denali Capital Global Investments LLC, a Cayman Islands limited liability company, or its registered assigns or successors in
interest (the “Payee”), or order, the principal sum of up to Four Hundred Thousand Dollars ($400,000) in lawful
money of the United States of America, on the terms and conditions described below. All payments on this Note shall be made by
check or wire transfer of immediately available funds or as otherwise determined by the Maker to such account as the Payee may
from time to time designate by written notice in accordance with the provisions of this Note.

 

1.             Principal.
The principal balance of this Note shall be payable by the Maker on the earlier of: (i) September 30, 2022 or (ii) the date
on which Maker consummates an initial public offering of its securities. The principal balance may be prepaid at any time. Under
no circumstances shall any individual, including but not limited to any officer, director, employee or shareholder of the Maker,
be obligated personally for any obligations or liabilities of the Maker hereunder.

 

2.             Interest.
No interest shall accrue on the unpaid principal balance of this Note.

 

3.             Drawdown
Requests. Maker and Payee agree that Maker may request up to Four Hundred Thousand Dollars ($400,000) for costs reasonably
related to Maker’s initial public offering (the “IPO”) of its securities. The principal of this Note may
be drawn down from time to time prior to the earlier of: (i) September 30, 2022 or (ii) the date on which Maker consummates an
initial public offering of its securities, upon written request from Maker to Payee (each, a “Drawdown Request”). Each
Drawdown Request must state the amount to be drawn down, and must not be an amount less than Ten Thousand Dollars ($10,000) unless
agreed upon by Maker and Payee. Payee shall fund each Drawdown Request no later than five (5) business days after receipt of a
Drawdown Request; provided, however, that the maximum amount of drawdowns collectively under this Note is Four Hundred Thousand
Dollars ($400,000). Once an amount is drawn down under this Note, it shall not be available for future Drawdown Requests even if
prepaid. No fees, payments or other amounts shall be due to Payee in connection with, or as a result of, any Drawdown Request by
Maker.

 

     

     

    

 

4.             Application
of Payments. All payments shall be applied first to payment in full of any costs incurred in the collection of any sum due
under this Note, including (without limitation) reasonable attorney’s fees, then to the payment in full of any late charges
and finally to the reduction of the unpaid principal balance of this Note.

 

5.            Events
of Default. The following shall constitute an event of default (“Event of Default”):

 

(a)       Failure
to Make Required Payments. Failure by Maker to pay the principal amount due pursuant to this Note within five (5) business
days of the date specified above.

 

(b)       Voluntary
Bankruptcy, Etc. The commencement by Maker of a voluntary case under any applicable bankruptcy, insolvency, reorganization,
rehabilitation or other similar law, or the consent by it to the appointment of or taking possession by a receiver, liquidator,
assignee, trustee, custodian, sequestrator (or other similar official) of Maker or for any substantial part of its property, or
the making by it of any assignment for the benefit of creditors, or the failure of Maker generally to pay its debts as such debts
become due, or the taking of corporate action by Maker in furtherance of any of the foregoing.

 

(c)       Involuntary
Bankruptcy, Etc. The entry of a decree or order for relief by a court having jurisdiction in the premises in respect of Maker
in an involuntary case under any applicable bankruptcy, insolvency or other similar law, or appointing a receiver, liquidator,
assignee, custodian, trustee, sequestrator (or similar official) of Maker or for any substantial part of its property, or ordering
the winding-up or liquidation of its affairs, and the continuance of any such decree or order unstayed and in effect for a period
of 60 consecutive days.

 

6.             Remedies.

 

(a)       Upon
the occurrence of an Event of Default specified in Section 5(a) hereof, Payee may, by written notice to Maker, declare this Note
to be due immediately and payable, whereupon the unpaid principal amount of this Note, and all other amounts payable hereunder,
shall become immediately due and payable without presentment, demand, protest or other notice of any kind, all of which are hereby
expressly waived, anything contained herein or in the documents evidencing the same to the contrary notwithstanding.

 

(b)       Upon
the occurrence of an Event of Default specified in Sections 5(b) and 5(c), the unpaid principal balance of this Note, and all other
sums payable with regard to this Note, shall automatically and immediately become due and payable, in all cases without any action
on the part of Payee.

 

7.             Waivers.
Maker and all endorsers and guarantors of, and sureties for, this Note waive presentment for payment, demand, notice of dishonor,
protest, and notice of protest with regard to the Note, all errors, defects and imperfections in any proceedings instituted by
Payee under the terms of this Note, and all benefits that might accrue to Maker by virtue of any present or future laws exempting
any property, real or personal, or any part of the proceeds arising from any sale of any such property, from attachment, levy or
sale under execution, or providing for any stay of execution, exemption from civil process, or extension of time for payment;
and Maker agrees that any real estate that may be levied upon pursuant to a judgment obtained by virtue hereof or any writ of execution
issued hereon, may be sold upon any such writ in whole or in part in any order desired by Payee.

 

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8.            Unconditional
Liability. Maker hereby waives all notices in connection with the delivery, acceptance, performance, default, or enforcement
of the payment of this Note, and agrees that its liability shall be unconditional, without regard to the liability of any other
party, and shall not be affected in any manner by any indulgence, extension of time, renewal, waiver or modification granted or
consented to by Payee, and consents to any and all extensions of time, renewals, waivers, or modifications that may be granted
by Payee with respect to the payment or other provisions of this Note, and agrees that additional makers, endorsers, guarantors,
or sureties may become parties hereto without notice to Maker or affecting Maker’s liability hereunder.

 

9.             Notices.
All notices, statements or other documents which are required or contemplated by this Note shall be made in writing and delivered:
(i) personally or sent by first class registered or certified mail, overnight courier service or facsimile or electronic transmission
to the address designated in writing, (ii) by facsimile to the number most recently provided to such party or such other address
or fax number as may be designated in writing by such party or (iii) by electronic mail, to the electronic mail address most recently
provided to such party or such other electronic mail address as may be designated in writing by such party. Any notice or other
communication so transmitted shall be deemed to have been given on the day of delivery, if delivered personally, on the business
day following receipt of written confirmation, if sent by facsimile or electronic transmission, one (1) business day after delivery
to an overnight courier service or five (5) days after mailing if sent by mail.

 

10.           Construction.
THIS NOTE SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE LAWS OF NEW YORK.

 

11.           Severability.
Any provision contained in this Note which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction,
be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and
any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any
other jurisdiction.

 

12.           Trust
Waiver. Notwithstanding anything herein to the contrary, the Payee hereby waives any and all right, title, interest or claim
of any kind (“Claim”) in or to any distribution of or from the trust account to be established in which the
proceeds of the IPO to be conducted by the Maker (including the deferred underwriting discounts and commissions) and the proceeds
of the sale of the warrants to be issued in a private placement to occur prior to the closing of the IPO are to be deposited, as
described in greater detail in the registration statement and prospectus to be filed with the Securities and Exchange Commission
in connection with the IPO, and hereby agrees not to seek recourse, reimbursement, payment or satisfaction for any Claim against
the trust account for any reason whatsoever.

 

13.           Amendment;
Waiver. Any amendment hereto or waiver of any provision hereof may be made with, and only with, the written consent of the
Maker and the Payee.

 

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14.           Assignment.
No assignment or transfer of this Note or any rights or obligations hereunder may be made by any party hereto (by operation
of law or otherwise) without the prior written consent of the other party hereto and any attempted assignment without the required
consent shall be void.

 

[Signature Page Follows]

 

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IN WITNESS WHEREOF,
Maker, intending to be legally bound hereby, has caused this Note to be duly executed by the undersigned as of the day and year
first above written.

 

	 	DENALI CAPITAL ACQUISITION CORP.
	 	 	 	 
	 	By:	/s/ Lei Huang
	 	 	Name:	Lei Huang
	 	 	Title:	CEO

 

Accepted and agreed this 3rd day of February, 2022

 

DENALI CAPITAL GLOBAL INVESTMENTS LLC

 

	By: 	/s/ Jiandong Xu	 
	Name:	Jiandong Xu	 
	Title:	Manager	 

 

[Signature Page to
Promissory Note]Exhibit 10.6

 

Denali Capital Acquisition Corp.

PO Box 309,
Ugland House

Grand Cayman, KY1-1104, Cayman
Islands

 

February 3,
2022

 

Denali Capital Global Investments LLC

PO Box 309

Ugland House

George Town

Grand Cayman, KY1-1104

Cayman Islands

 

RE:  Securities
Subscription Agreement

 

Ladies and Gentlemen:

 

We are pleased to accept the
offer Denali Capital Global Investments LLC, a Cayman Islands limited liability company (the “Subscriber” or
“you”), has made to purchase 2,156,250 Class B ordinary shares (the “Shares”), US$0.0001
par value per share (shares of such class, the “Class B Ordinary Shares”), of the Company (as defined below),
up to 281,250 Class B Ordinary Shares of which are subject to complete or partial forfeiture by you if the underwriters of the
initial public offering (“IPO”) of Denali Capital Acquisition Corp., a Cayman Islands exempted company (the
“Company”), do not exercise their over-allotment option (the “Over-allotment Option”) in
the IPO in full. For the purposes of this Securities Subscription Agreement (this “Agreement”), references to
“Ordinary Shares” are to, collectively, the Class B Ordinary Shares and the Company’s Class A ordinary
shares, US$0.0001 par value per share (the “Class A Ordinary Shares”). Upon certain terms and conditions, the
Class B Ordinary Shares will automatically convert into Class A Ordinary Shares on a one-for-one basis, subject to adjustment.
Unless the context otherwise requires, as used herein “Shares” shall be deemed to include any Class A Ordinary Shares
issued upon conversion of the Class B Ordinary Shares comprising the Shares. The terms on which the Company is willing to sell
the Shares to the Subscriber, and the Company and the Subscriber’s agreements regarding the Shares, are as follows:

 

1.             Purchase
of Shares. For the sum of US$25,000 (the “Purchase Price”), which the Company acknowledges receiving in
cash, the Company hereby sells and issues the Shares to the Subscriber, and the Subscriber hereby purchases the Shares from the
Company, subject to the forfeiture provisions of Section 3 below and of the Forfeiture Agreements (as defined in Section 3.3),
on the terms and subject to the conditions set forth in this Agreement. All references in this Agreement to shares of the Company
being forfeited shall take effect as surrenders and cancellations for no consideration of such shares as a matter of Cayman Islands
law.

 

     

     

    

 

2.             Representations,
Warranties and Agreements.

 

2.1.          Subscriber’s
Representations, Warranties and Agreements. To induce the Company to issue the Shares to the Subscriber, the Subscriber hereby
represents and warrants to the Company and agrees with the Company as follows:

 

2.1.1.     No Government
Recommendation or Approval. The Subscriber understands that no U.S. federal or state agency or other non-U.S. governmental
authority has passed upon or made any recommendation or endorsement of the offering of the Shares.

 

2.1.2.     No Conflicts.
The execution, delivery and performance of this Agreement and the consummation by the Subscriber of the transactions contemplated
hereby do not violate, conflict with or constitute a default under (i) the formation and governing documents of the Subscriber,
(ii) any agreement, indenture or instrument to which the Subscriber is a party, (iii) any law, statute, rule or regulation
to which the Subscriber is subject, or (iv) any agreement, order, judgment or decree to which the Subscriber is subject.

 

2.1.3.     Registration
and Authority. The Subscriber is a Cayman Islands limited liability company, validly formed, registered and in good standing
under the laws of the Cayman Islands and possesses all requisite power and authority necessary to carry out the transactions contemplated
by this Agreement. Upon execution and delivery by you, this Agreement will be a legal, valid and binding agreement of the Subscriber,
enforceable against the Subscriber in accordance with its terms, except as such enforceability may be limited by applicable bankruptcy,
insolvency, fraudulent conveyance or similar laws affecting the enforcement of creditors’ rights generally and subject to
general principles of equity (regardless of whether enforcement is sought in a proceeding at law or in equity).

 

2.1.4.     Experience,
Financial Capability and Suitability. The Subscriber is: (i) sophisticated in financial matters and is able to evaluate
the risks and benefits of the investment in the Shares and (ii) able to bear the economic risk of its investment in the Shares
for an indefinite period of time because the Shares have not been registered under the Securities Act (as defined below) and therefore
cannot be resold unless subsequently registered under the Securities Act or an exemption from such registration is available. The
Subscriber is capable of evaluating the merits and risks of its investment in the Company and has the capacity to protect its own
interests. The Subscriber must bear the economic risk of this investment until the Shares are sold pursuant to: (i) an effective
registration statement under the Securities Act or (ii) an exemption from registration available with respect to such sale. The
Subscriber is able to bear the economic risks of an investment in the Shares and to afford a complete loss of the Subscriber’s
investment in the Shares.

 

2.1.5.     Access to
Information; Independent Investigation. Prior to the execution of this Agreement, the Subscriber has had the opportunity to
ask questions of and receive answers from representatives of the Company concerning an investment in the Company, as well as the
finances, operations, business and prospects of the Company, and the opportunity to obtain additional information to verify the
accuracy of all information so obtained. In determining whether to make this investment, the Subscriber has relied solely on the
Subscriber’s own knowledge and understanding of the Company and its business based upon the Subscriber’s own due diligence
investigation and the information furnished pursuant to this paragraph. The Subscriber understands that no person has been authorized
to give any information or to make any representations which were not furnished pursuant to this Section 2 and the Subscriber
has not relied on any other representations or information in making its investment decision, whether written or oral, relating
to the Company, its operations and/or its prospects.

 

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2.1.6.     Private Placement.
The Subscriber represents that it is an “accredited investor” as such term is defined in Rule 501(a) of Regulation
D under the Securities Act of 1933, as amended (the “Securities Act”) and acknowledges the sale contemplated
hereby is being made in reliance on a private placement exemption applicable to “accredited investors” within the meaning
of Section 501(a) of Regulation D under the Securities Act or similar exemptions under state law.

 

2.1.7.     Investment
Purposes. The Subscriber is purchasing the Shares solely for investment purposes, for the Subscriber’s own account and
not for the account or benefit of any other person, and not with a view towards the distribution or dissemination thereof that
would result in a violation of the Securities Act. The Subscriber did not enter into this Agreement as a result of any general
solicitation or general advertising within the meaning of Rule 502 of Regulation D under the Securities Act.

 

2.1.8.     Restrictions
on Transfer; Shell Company. The Subscriber understands the Shares are being offered in a transaction not involving a public
offering within the meaning of the Securities Act. The Subscriber understands the Shares will be “restricted securities”
within the meaning of Rule 144(a)(3) under the Securities Act and the Subscriber understands that any certificates or book-entries
representing the Shares will contain a legend in respect of such restrictions. If in the future the Subscriber decides to offer,
resell, pledge, charge or otherwise transfer the Shares, such Shares may be offered, resold, pledged, charged or otherwise transferred
only pursuant to: (i) registration under the Securities Act, or (ii) an available exemption from registration. The Subscriber agrees
that if any transfer of its Shares or any interest therein is proposed to be made, as a condition precedent to any such transfer,
the Subscriber may, at the Company’s option, be required to deliver to the Company an opinion of counsel satisfactory to
the Company. Absent registration or an exemption, the Subscriber agrees not to offer, resell, pledge, charge or otherwise transfer
the Shares. The Subscriber further acknowledges that because the Company is a shell company, Rule 144 may not be available
to the Subscriber for the resale of the Shares until at least one year following consummation of the initial business combination
of the Company, despite technical compliance with the requirements of Rule 144 and the release or waiver of any contractual
transfer restrictions.

 

2.1.9.     No Governmental
Consents. No governmental, administrative or other third party consents or approvals are required, necessary or appropriate
on the part of Subscriber in connection with the transactions contemplated by this Agreement.

 

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2.2.          Company’s
Representations, Warranties and Agreements. To induce the Subscriber to purchase the Shares, the Company hereby represents
and warrants to the Subscriber and agrees with the Subscriber as follows:

 

2.2.1.     Incorporation
and Corporate Power. The Company is a Cayman Islands exempted company and is qualified to do business in every jurisdiction
in which the failure to so qualify would reasonably be expected to have a material adverse effect on the financial condition, operating
results or assets of the Company. The Company possesses all requisite corporate power and authority necessary to carry out the
transactions contemplated by this Agreement.

 

2.2.2.     No Conflicts.
The execution, delivery and performance of this Agreement and the consummation by the Company of the transactions contemplated
hereby do not violate, conflict with or constitute a default under (i) the Company’s Memorandum and Articles of Association
(the “Memorandum and Articles”), (ii) any agreement, indenture or instrument to which the Company is a
party, (iii) any law, statute, rule or regulation to which the Company is subject, or (iv) any agreement, order, judgment
or decree to which the Company is subject.

 

2.2.3.     Title to Securities.
Upon issuance in accordance with, and payment pursuant to, the terms hereof and the Memorandum and Articles, and registration in
the Company’s register of members, the Shares will be duly and validly issued as fully paid and nonassessable. Upon issuance
in accordance with, and payment pursuant to, the terms hereof and the Memorandum and Articles, and registration in the Company’s
register of members, the Subscriber will have or receive good title to the Shares, free and clear of all liens, claims and encumbrances
of any kind, other than (i) transfer restrictions hereunder and under other agreements to which the Shares may be subject
which have been notified to the Subscriber in writing, (ii) transfer restrictions under U.S. federal and state securities
laws, and (iii) liens, claims or encumbrances imposed due to the actions of the Subscriber.

 

2.2.4.     No Adverse
Actions. There are no actions, suits, investigations or proceedings pending, threatened against or affecting the Company which:
(i) seek to restrain, enjoin, prevent the consummation of or otherwise affect the transactions contemplated by this Agreement
or (ii) question the validity or legality of any transactions or seek to recover damages or to obtain other relief in connection
with any transactions.

 

3.             Forfeiture
of Shares.

 

3.1.          Partial
or No Exercise of the Over-allotment Option. In the event the Over-allotment Option is not exercised in full (or if the underwriters
of the IPO waive their ability to exercise such Over-allotment Option), the Subscriber acknowledges and agrees that it shall forfeit
any and all rights to such number of Shares (which, if the number of shares of the Company’s Class A Ordinary Shares included
in the Company’s units sold in the IPO (such units, the “Units”) (not taking into account any exercise
of the Over-allotment Option) (the “IPO Base”) is 7,500,000 (the “IPO Base Number”), will
be up to an aggregate of 281,250 Shares) (pro rata based upon the percentage of the Over-allotment Option exercised) such
that immediately following such forfeiture, the Subscriber (and any other person or entity owning Class B Ordinary Shares) will
own an aggregate number of Shares equal to 20% of the issued and outstanding Ordinary Shares immediately following the IPO.

 

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3.2.          Reduction
in IPO Base Amount. In addition, in the event that the number of shares of the Company’s Class A Ordinary Shares included
in the Units is less than the IPO Base Number, the Subscriber acknowledges and agrees that it shall forfeit any and all rights
to such number of Shares such that immediately following such forfeiture, the Subscriber (and any other person or entity owning
Class B Ordinary Shares) will own an aggregate number of Shares equal to 20% of the issued and outstanding Ordinary Shares immediately
following the IPO.

 

3.3.          Other
Forfeitures. The Subscriber further acknowledges and agrees that, in addition to the forfeiture provisions of Sections 3.1
and 3.2, the Shares shall be subject to further forfeiture, and the Subscriber acknowledges and agrees that it shall forfeit any
and all rights to such number of Shares as it may be required to forfeit, under and in accordance with the provisions of one or
more written agreements (collectively, the “Forfeiture Agreements”) to be dated on or prior to the closing of
the IPO by and among the Subscriber, the Company and any other persons or entities that may be deemed appropriate to be parties
thereto, including forfeitures of the Shares in connection with certain redemptions of the Units, as well as the implementation
of a post-business combination price protection feature for the benefit of holders of the Company’s Class A Ordinary Shares
included in the Units.

 

3.4.          Termination
of Rights as Shareholder. If any of the Shares are forfeited in accordance with this Section 3 or any Forfeiture Agreement,
then after such time the Subscriber (or successor in interest), shall no longer have any rights as a holder of such Shares, and
the Company shall take such action as is appropriate to cancel such Shares.

 

4.             Waiver
of Liquidation Distributions; Redemption Rights. With respect to the Shares purchased pursuant to this Agreement, the Subscriber
hereby waives any and all right, title, interest or claim of any kind in or to any distributions by the Company from any trust
account or accounts and any escrow account that is established for the benefit of the Company’s public shareholders and into
which proceeds of the IPO will be deposited (such trust account or accounts and escrow account, collectively, the “Trust
Account”), in the event of a liquidation of the Company upon the Company’s failure to timely complete an initial
business combination. For purposes of clarity, in the event the Subscriber purchases Units in the IPO or in the aftermarket, any
Units so purchased shall be eligible to receive any liquidating distributions by the Company. However, in no event will the Subscriber
have the right to redeem any Shares into funds held in the Trust Account upon the successful completion of an initial business
combination.

 

5.             Restrictions
on Transfer.

 

5.1.          Securities
Law Restrictions. In addition to any restrictions to be contained in that certain letter agreement (commonly known as an “Insider
Letter”) to be dated on or prior to the closing of the IPO by and among the Subscriber, the Company and the other parties
thereto (including the Company’s directors and officers), the Subscriber agrees not to sell, transfer, pledge, charge, hypothecate
or otherwise dispose of all or any part of the Shares unless, prior thereto (a) a registration statement on the appropriate form
under the Securities Act and applicable state securities laws with respect to the Shares proposed to be transferred shall then
be effective or (b) the Company has received, if requested by the Company, an opinion from counsel reasonably satisfactory to the
Company, that such registration is not required because such transaction is exempt from registration under the Securities Act and
the rules promulgated by the Securities and Exchange Commission thereunder and with all applicable state securities laws.

 

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5.2.          Lock-up.
The Subscriber acknowledges that the Shares will be subject to the restrictions and other provisions contained in the Insider Letter.

 

5.3.          Restrictive
Legends. All certificates or book entries representing the Shares shall have endorsed thereon legends substantially as follows:

 

“THE SECURITIES REPRESENTED HEREBY
HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS AND NEITHER THE
SECURITIES NOR ANY INTEREST THEREIN MAY BE OFFERED, SOLD, TRANSFERRED, PLEDGED, CHARGED OR OTHERWISE DISPOSED OF EXCEPT PURSUANT
TO AN EFFECTIVE REGISTRATION STATEMENT UNDER SUCH ACT OR SUCH LAWS OR AN EXEMPTION FROM REGISTRATION UNDER SUCH ACT AND SUCH LAWS
WHICH, IN THE OPINION OF COUNSEL (IF THE COMPANY SO REQUESTS), IS AVAILABLE.”

 

“THE SECURITIES REPRESENTED BY THIS
CERTIFICATE ARE SUBJECT TO LOCKUP PROVISIONS AND MAY NOT BE OFFERED, SOLD, TRANSFERRED, PLEDGED, CHARGED OR OTHERWISE DISPOSED
DURING THE TERM OF THE LOCKUP PERIOD.”

 

5.4.          Additional
Shares or Substituted Securities. In the event of the declaration of a share capitalization, the declaration of a special dividend
payable in a form other than Ordinary Shares, a spin-off, a share sub-division, an adjustment in conversion ratio, a recapitalization
or a similar transaction affecting the Company’s issued and outstanding Ordinary Shares without receipt of consideration,
any new, substituted or additional securities or other property which are by reason of such transaction distributed with respect
to any Shares subject to this Section 5 or into which such Shares thereby become convertible shall immediately be subject
to this Section 5, Section 3 and the provisions of the Forfeiture Agreements. Appropriate adjustments to reflect the
distribution of such securities or property shall be made to the number or class of Shares subject to this Section 5, Section 3
and the Forfeiture Agreements.

 

5.5.          Registration
Rights. The Subscriber acknowledges that the Shares are being purchased pursuant to an exemption from the registration requirements
of the Securities Act and will become freely tradable only after certain conditions are met or they are registered pursuant to
a registration rights agreement to be entered into with the Company prior to the closing of the IPO (the “Registration
and Shareholder Rights Agreement”).

 

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6.             Other
Agreements.

 

6.1.          Further
Assurances. The Subscriber agrees to execute such further instruments and to take such further action as may reasonably be
necessary to carry out the intent of this Agreement.

 

6.2.          Notices.
All notices, statements or other documents which are required or contemplated by this Agreement shall be in writing and delivered:
(i) personally or sent by first class registered or certified mail, overnight courier service or facsimile or electronic transmission
to the address designated in writing, (ii) by facsimile to the number most recently provided to such party or such other address
or fax number as may be designated in writing by such party or (iii) by electronic mail, to the electronic mail address most
recently provided to such party or such other electronic mail address as may be designated in writing by such party. Any notice
or other communication so transmitted shall be deemed to have been given on the day of delivery, if delivered personally, on the
business day following receipt of written confirmation, if sent by facsimile or electronic transmission, one (1) business
day after delivery to an overnight courier service or five (5) days after mailing if sent by mail.

 

6.3.          Entire
Agreement. This Agreement, together with that certain Insider Letter to be entered into by the Subscriber, the Company and
the other parties thereto, the Forfeiture Agreements and the Registration and Shareholder Rights Agreement, each substantially
in the form to be filed as an exhibit to the registration statement for the IPO, embodies the entire agreement and understanding
between the Subscriber and the Company with respect to the subject matter hereof and supersedes all prior oral or written agreements
and understandings relating to the subject matter hereof. No statement, representation, warranty, covenant or agreement of any
kind not expressly set forth in this Agreement shall affect, or be used to interpret, change or restrict, the express terms and
provisions of this Agreement.

 

6.4.          Modifications
and Amendments. The terms and provisions of this Agreement may be modified or amended only by written agreement executed by
all parties hereto.

 

6.5.          Waivers
and Consents. The terms and provisions of this Agreement may be waived, or consent for the departure therefrom granted, only
by a written document executed by the party entitled to the benefits of such terms or provisions. No such waiver or consent shall
be deemed to be or shall constitute a waiver or consent with respect to any other terms or provisions of this Agreement, whether
or not similar. Each such waiver or consent shall be effective only in the specific instance and for the purpose for which it was
given, and shall not constitute a continuing waiver or consent.

 

6.6.          Assignment.
The rights and obligations under this Agreement may not be assigned by either party hereto without the prior written consent of
the other party.

 

6.7.          Benefit.
All statements, representations, warranties, covenants and agreements in this Agreement shall be binding on the parties hereto
and shall inure to the benefit of the respective successors and permitted assigns of each party hereto. Nothing in this Agreement
shall be construed to create any rights or obligations except among the parties hereto, and no person or entity shall be regarded
as a third-party beneficiary of this Agreement.

 

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6.8.          Governing
Law. This Agreement and the rights and obligations of the parties hereunder shall be construed in accordance with and governed
by the laws of the State of New York applicable to contracts wholly performed within the borders of such state without giving effect
to the conflict of law principles thereof. The parties hereto irrevocably submit to the exclusive jurisdiction of any federal court
sitting in the Southern District of New York or any state court located in New York County, State of New York, over any suit, action
or proceeding arising out of or relating to this Agreement. To the fullest extent they may effectively do so under applicable law,
the parties hereto irrevocably waive and agree not to assert, by way of motion, as a defense or otherwise, any claim that they
are not subject to the jurisdiction of any such court, any objection that they may now or hereafter have to the laying of the venue
of any such suit, action or proceeding brought in any such court and any claim that any such suit, action or proceeding brought
in any such court has been brought in an inconvenient forum.

 

6.9.          Severability.
In the event that any court of competent jurisdiction shall determine that any provision, or any portion thereof, contained in
this Agreement shall be unreasonable or unenforceable in any respect, then such provision shall be deemed limited to the extent
that such court deems it reasonable and enforceable, and as so limited shall remain in full force and effect. In the event that
such court shall deem any such provision, or portion thereof, wholly unenforceable, the remaining provisions of this Agreement
shall nevertheless remain in full force and effect.

 

6.10.        No
Waiver of Rights, Powers and Remedies. No failure or delay by a party hereto in exercising any right, power or remedy under
this Agreement, and no course of dealing between the parties hereto, shall operate as a waiver of any such right, power or remedy
of such party. No single or partial exercise of any right, power or remedy under this Agreement by a party hereto, nor any abandonment
or discontinuance of steps to enforce any such right, power or remedy, shall preclude such party from any other or further exercise
thereof or the exercise of any other right, power or remedy hereunder. The election of any remedy by a party hereto shall not constitute
a waiver of the right of such party to pursue other available remedies. No notice to or demand on a party not expressly required
under this Agreement shall entitle the party receiving such notice or demand to any other or further notice or demand in similar
or other circumstances or constitute a waiver of the rights of the party giving such notice or demand to any other or further action
in any circumstances without such notice or demand.

 

6.11.        Survival
of Representations and Warranties. All representations and warranties made by the parties hereto in this Agreement or in any
other agreement, certificate or instrument provided for or contemplated hereby, shall survive the execution and delivery hereof
and any investigations made by or on behalf of the parties.

 

6.12.        No
Broker or Finder. Each of the parties hereto represents and warrants to the other that no broker, finder or other financial
consultant has acted on its behalf in connection with this Agreement or the transactions contemplated hereby in such a way as to
create any liability on the other. Each of the parties hereto agrees to indemnify and hold the other harmless from any claim or
demand for commission or other compensation by any broker, finder, financial consultant or similar agent claiming to have been
employed by or on behalf of such party and to bear the cost of legal expenses incurred in defending against any such claim.

 

    	 	8	 

     

    

 

6.13.        Headings
and Captions. The headings and captions of the various sections of this Agreement are for convenience of reference only and
shall in no way modify or affect the meaning or construction of any of the terms or provisions hereof.

 

6.14.        Counterparts;
Electronic Signatures. This Agreement may be executed in counterparts, each of which when so executed shall be deemed to be
an original and all of which when taken together shall constitute one and the same instrument. The words “execution,”
“signed,” “signature,” and words of like import in this Agreement or in any other certificate, agreement
or document related to this Agreement shall include images of manually executed signatures transmitted by facsimile or other electronic
format (including, without limitation, “pdf,” “tif” or “jpg”) and other electronic signatures
(including, without limitation, DocuSign and AdobeSign). The use of electronic signatures and electronic records (including, without
limitation, any contract or other record created, generated, sent, communicated, received, or stored by electronic means) shall
be of the same legal effect, validity and enforceability as a manually executed signature or use of a paper-based record-keeping
system to the fullest extent permitted by applicable law, including the Federal Electronic Signatures in Global and National Commerce
Act, the New York State Electronic Signatures and Records Act and any other applicable law, including, without limitation, any
state law based on the Uniform Electronic Transactions Act or the Uniform Commercial Code.

 

6.15.        Construction.
The words “include,” “includes,” and “including” will be deemed to be
followed by “without limitation.” Pronouns in masculine, feminine, and neuter genders will be construed to include
any other gender, and words in the singular form will be construed to include the plural and vice versa, unless the context otherwise
requires. The words “this Agreement,” “herein,” “hereof,” “hereby,”
“hereunder,” and words of similar import refer to this Agreement as a whole and not to any particular section
unless expressly so limited. The parties hereto intend that each representation, warranty, and covenant contained herein will have
independent significance. If any party hereto has breached any representation, warranty, or covenant contained herein in any respect,
the fact that there exists another representation, warranty or covenant relating to the same subject matter (regardless of the
relative levels of specificity) which such party hereto has not breached will not detract from or mitigate the fact that such party
hereto is in breach of the first representation, warranty, or covenant.

 

6.16.        Mutual
Drafting. This Agreement is the joint product of the Subscriber and the Company and each provision hereof has been subject
to the mutual consultation, negotiation and agreement such parties and shall not be construed for or against any party hereto.

 

7.             Voting
and Redemption of Shares. The Subscriber agrees to vote the Shares in favor of an initial business combination that the Company
negotiates and submits for approval to the Company’s shareholders and shall not seek redemption with respect to the Shares.
Additionally, the Subscriber agrees not to redeem any Shares or Units in connection with a redemption or tender offer presented
to the Company’s shareholders in connection with an initial business combination negotiated by the Company.

 

    	 	9	 

     

    

 

8.             Indemnification.
Each party shall indemnify (such party, the “Indemnifying Party”) the other party (such party, the “Indemnified
Party”) and its respective officers, employees, and controlling persons to the fullest extent permitted by law from and
against any and all losses, damages, expenses (including reasonable attorneys’ fees and expenses) or other liabilities resulting
from or arising out of such party’s breach of any representation, warranty, covenant or agreement in this Agreement. The
foregoing indemnification rights apply so long as the action or failure to act by the Indemnified Party does not constitute fraud,
bad faith, willful misconduct or gross negligence. Notwithstanding any of the foregoing to the contrary, indemnification protections
will not be construed so as to relieve (or attempt to relieve) any Indemnified Party of any liability (including liability under
U.S. federal securities laws which, under certain circumstances, impose liability even on persons that act in good faith), to the
extent (but only to the extent) that such liability may not be waived, modified or limited under applicable law, but will only
be construed so as to effectuate the indemnification protections to the fullest extent permitted by law.

 

[Signature Page Follows]

 

    	 	10	 

     

    

 

If the foregoing accurately
sets forth our understanding and agreement, please sign the enclosed copy of this Agreement and return it to us.

 

	 	Very truly yours,
	 	 
	 	DENALI CAPITAL ACQUISITION CORP.
	 	 	 
	 	By:	/s/ Lei Huang
	 	 	Name:	Lei Huang
	 	 	Title:   	CEO

 

Accepted and agreed, this 3rd day of February, 2022

 

	DENALI CAPITAL GLOBAL INVESTMENTS LLC 	 
	 	 	 
	By: 	/s/ Jiandong Xu	 
	 	Name:	Jiandong Xu	 
	 	Title:	Manager	 

 

[Signature
Page to Securities Subscription Agreement]

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