Document:

Exhibit 10.26

Dated                                                   2018

________________________

HSBC BANK PLC

as Lender

-and-

EURODRY LTD.

as Guarantor

_________________________________________

GUARANTEE

relating to a financial facility to

EIRINI SHIPPING LTD

________________________________________

THIS GUARANTEE is made on                                    2018

BETWEEN

(1) EURODRY LTD., a corporation duly formed and validly existing under the laws of the Marshall Islands, having its registered place of address at 8 Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Republic of the Marshall Islands, lawfully represented (the "Guarantor"); and

(2) HSBC BANK PLC., a banking company duly incorporated under the laws of England whose registered office is at 8 Canada Square, London E14 5HQ United Kingdom, acting for the purposes hereof through the Athens Branch (109-111 Messoghion Ave, Athens, Greece, lawfully represented (the "Lender" which expression shall include its successors and assigns).

	1	
RECITAL

	1.01	
By a financial agreement dated 25 June 2014, as amended and supplemented by a first supplemental agreement dated 12 November 2015, a second supplemental agreement dated 30 September 2016, a third supplemental agreement dated 25 January 2017, a side letter dated 28 July 2017 and a fourth supplemental agreement dated                                          2018 (herein, as the same may from time to time hereafter be further amended, called the "Financial Agreement") between the Lender and EIRINI SHIPPING LTD of 80 Broad Street, Monrovia, Liberia, as borrower (the "Borrower"), the Lender agreed to make available to the Borrower certain facility (originally) not exceeding in aggregate the amount of Sixteen million Five hundred thousand Dollars ($16,500,000) (the "Facility") on the terms therein stated.

	1.02	
Following the release of Euroseas Ltd. as corporate guarantor under the Financial Agreement, it is a condition precedent to the Lender to continue advancing the Facility or any part thereof to the Borrower under the Financial Agreement that the Guarantor shall execute this Guarantee in favour of the Lender.

	2	
DEFINITIONS

	2.01	
In this Guarantee all capitalised terms not defined herein shall have the meaning stated in the Financial Agreement and in addition thereto:

"Accounting Information" means the audited by the Auditors annual and the unaudited semi-annual financial statements of the Group, each as provided or (as the context may require) to be provided to the Lender in accordance with Clause 20.01 of the Financial Agreement and Clause 9.01.01 of this Guarantee;

"Accounting Period" means (a) each financial year of the Guarantor and (b) each half of each financial year of the Guarantor, for which Accounting Information is required to be delivered pursuant to this Guarantee;

"Applicable Accounting Principles" means those accounting principles, standards and practices on which preparation of the Accounting Information is based, which are US GAAP and principles and practices adopted by the Guarantor and its Subsidiaries (including without

2

limitation the Borrower) at the date hereof or at any time thereafter and notified to and accepted by the Lender;

"Auditors" means any first class firm of international accountants to be approved by the Lender;

"Control" means in relation to a body corporate:

		(a)	
the power (whether by way of ownership of shares, proxy, contract, agency or otherwise) to:

		(i)	
cast, or control the casting of, more than fifty per cent (50%) of the maximum number of votes that might be cast at a general meeting of such body corporate; or

		(ii)	
appoint or remove all, or the majority, of the directors or other equivalent officers of such body corporate; or

		(ii)	
give directions with respect to the operating and financial polices of such body corporate with which the directors or other equivalent officers of such body corporate are obliged to comply; and/or

		(b)	
the holding beneficially of more than fifty per cent (50%) of the issued share capital of such body corporate (excluding any part of that issued capital that carries no right to participate beyond a specified amount in a distribution of either profits or capital),

and "Controlled" shall be construed accordingly;

"Controlling person(s)" has the meaning defined under local or foreign tax laws, regulatory guidance or intergovernmental cooperation agreements;

"Consolidated Debt" means, in respect of an Accounting Period, the aggregate amount of Debt owed by the members of the Group (other than any Debt owing by any member of the Group to another member of the Group), as stated in the then most recent Accounting Information relevant to such Accounting Period;

"Corporate Security Parties" means those of the Security Parties, which are companies or corporations and not natural persons and, in the singular, means any of them;

"Debt" means, in relation to any member of the Group (the "debtor"):

(a)          Financial Indebtedness of the debtor;

		(b)	
liability for any credit to the debtor from a supplier of goods or services or under any instalment purchase or payment plan or other similar arrangement;

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		(c)	
contingent liabilities of the debtor (including without limitation any taxes or other payments under dispute) which have been or, under the Applicable Accounting Principles consistently applied, should be recorded in the notes to the Accounting Information;

		(d)	
deferred tax of the debtor; and

		(e)	
liability under a guarantee, indemnity or similar obligation entered into by the debtor in respect of a liability of another person who is not a member of the Group which would fall within (a) to (d) above if the references to the debtor referred to the other person;

"Default Rate" means the interest rate referred to in Clause 8.01 of the Financial Agreement;

"Drawdown Date" means, the date requested by the Borrower for the Facility to be made available, or (as the context requires) the date on which the Facility is actually made available;

"Earnings" means all freight, hire, passage monies and any other amounts whatsoever which may at any time be earned by or become payable to or for the account of the Borrower or its agents arising out of or as a result of the ownership, possession, management and/or operation of the Ship by the Borrower or its agents or under any charter, contract of carriage or other contract (including a salvage or towage contract) for the use, operation or management of the Ship, all payments for any variation of any such contract and all damages for any breach of any such contract, all general average and salvage remuneration and all compensation for requisition for hire;

"Earnings Account" means the account opened by the Borrower with the Lender into which all the Earnings of the Ship are to be paid in accordance with Clause 27.01 of the Financial Agreement, such account to include any substitute accounts or sub-accounts or revised accounts or revised designation or number whatsoever and any deposit accounts to which monies from such accounts may from time to time be paid on a time deposit basis;

"Earnings Account Charge" means the assignment, pledge and charge granted by the Borrower to the Lender on the Earnings Account in form and substance satisfactory to the Lender, as the same may from time to time hereafter be amended or supplemented;

"Encumbrance" means any mortgage, charge (whether fixed or floating), pledge, lien, hypothecation, assignment, trust agreement or security interest or other encumbrance of any kind securing any obligation of any person or having the effect of conferring security or any type of preferential agreement (including without limitation, title transfer and/or retention arrangements having a similar effect);

"Event of Default" means any event referred to in Clause 24 of the Financial Agreement or so described in any other Finance Document;

"Facility" means (originally) the amount of up to Sixteen million Five hundred thousand Dollars ($16,500,000) made available to the Borrower by the Lender in one (1) advance pursuant to the terms of Clause 3 of the Financial Agreement or, if the context may so require, so much thereof as shall for the time being be outstanding to the Lender hereunder;

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"Finance Documents" means together all documents defined as Finance Documents in Clause 2.01 of the Financial Agreement as the same may from time to time be amended, varied or supplemented, in the singular, means any one of them;

"FATCA" means:

 

		(a)	
sections 1471 to 1474 of the Code or any associated regulations or other official guidance;

 

		(b)	
any treaty, law, regulation or other official guidance enacted in any other jurisdiction, or relating to an intergovernmental agreement between the US and any other jurisdiction, which (in either case) facilitates the implementation of (a); or

 

		(c)	
any agreement pursuant to the implementation of (a) or (b) with the US Internal Revenue Service, the US government or any governmental or taxation authority in any other jurisdiction;

"FATCA Application Date" means:

 

		(d)	
in relation to a "withholdable payment" described in section 1473(1)(A)(i) of the Code (which relates to payments of interest and certain other payments from sources within the US), 1 July 2014;

 

		(e)	
in relation to a "withholdable payment" described in section 1473(1)(A)(ii) of the Code (which relates to "gross proceeds" from the disposition of property of a type that can produce interest from sources within the US), 1 January 2017; or

 

		(f)	
in relation to a "passthru payment" described in section 1471(d)(7) of the Code not falling within (a) or (b), 1 January 2017,

 

or, in each case, such other date from which such payment may become subject to a deduction or withholding required by FATCA as a result of any change in FATCA after the date of this Guarantee.

"FATCA Deduction" means a deduction or withholding from a payment under a Finance Document required by FATCA.

"FATCA Exempt Party" means a Party that is entitled to receive payments free from any FATCA Deduction.

"FATCA FFI" means a foreign financial institution as defined in section 1471(d)(4) of the Code which, if the Lender is not a FATCA Exempt Party, could be required to make a FATCA Deduction.

"Financial Indebtedness" means any indebtedness for or in respect of:

 

		(g)	
moneys borrowed and debit balances at banks or other financial institutions;

 

		(h)	
any acceptance under any acceptance credit or bill discounting facility (or dematerialised equivalent);

 

		(i)	
any note purchase facility or the issue of bonds, notes, debentures, loan stock or any similar instrument;

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		(j)	
the amount of any liability in respect of any finance or capital lease;

 

		(k)	
receivables sold or discounted (other than any receivables to the extent they are sold on a non-recourse basis);

 

		(l)	
any Treasury Transaction (and, when calculating the value of that Treasury Transaction, only the marked to market value (or, if any actual amount is due as a result of the termination or close-out of that Treasury Transaction, that amount) shall be taken into account);

 

		(m)	
any counter-indemnity obligation in respect of a guarantee, bond, standby or documentary letter of credit or any other instrument issued by a bank or financial institution in respect of (i) an underlying liability of an entity which is not a Security Party which liability would fall within one of the other sections of this definition or (ii) any liabilities of any Security Party relating to any post-retirement benefit scheme;

 

		(n)	
any amount raised by the issue of shares which are redeemable (other than at the option of the issuer) before the Termination Date or are otherwise classified as borrowings under standard accounting principles;

 

		(o)	
any   amount   of   any   liability   under   an   advance   or   deferred   purchase agreement if (i) one of the primary reasons behind entering into the agreement is to raise finance or to finance the acquisition or construction of the asset or service in question or (ii) the agreement is in respect of the supply of assets or services and payment is due more than 30 days after the date of supply;

 

		(p)	
any amount raised under any other transaction (including any forward sale or purchase, sale and sale back or sale and leaseback agreement) having the commercial effect of a borrowing or otherwise classified as borrowings under standard accounting principles; and

 

		(q)	
the amount of any liability in respect of any guarantee or indemnity for any of the items referred to in (a) to (j).

"Fleet Book Value" means at the end of a relevant period the aggregate book value of the Fleet Vessels less depreciation as stated in the most recent Accounting Information of the Group delivered pursuant to Clause 20.01 of the Financial Agreement and Clause 9.01.01 of this Guarantee;

"Fleet Market Value" means at the date of calculation the aggregate of the Market Values of the Fleet Vessels;

"Fleet Vessels" means all of the vessels (including but not limited to the Ship) from time to time wholly owned by members of the Group (including, without limitation, the Borrower) and, in the singular means any of them;

"Group" means the Guarantor and its Subsidiaries (whether direct or indirect and including without limitation the Borrower and each other Corporate Security Party) from time to time during the Security Period and "members of the Group" shall be construed accordingly;

"Indebtedness" means the Facility and any and all moneys, liabilities and obligations (whether actual or contingent, whether existing or hereafter arising, whether or not for the payment of money, and including, without limitation, Broken Funding Costs (if any), and any obligation or

6

liability to pay damages) which are now or which may at any time and from time to time hereafter be due, owing, payable or incurred or expressed to be due, owing, payable or incurred from the Borrower, and/or the Guarantor (whether as principal, surety or otherwise) to the Lender under this Guarantee, the Financial Agreement and the other Finance Documents;

"Leverage Ratio" means, in respect of an Accounting Period, the ratio of the Consolidated Debt (as stated in the then most recent Accounting Information) to the Market Value Adjusted Total Assets of the Group, relevant to such Accounting Period;

"Liquidity" means, in respect of each period during which the consolidated financial statements provided pursuant to clause 18.01 of the Financial Agreement are delivered by the Guarantor (Eurodry), (i) cash at bank or in hand which is not subject to any Encumbrance, as shown in the applicable financial statements of the Guarantor (Eurodry), for such accounting period and determined in accordance with Applicable Accounting Principles plus (ii) cash pledged in favour of the Guarantor's (Eurodry) other financial banks for such accounting period Provided that in the case of Liquidity relating to each Ship and the Collateral Vessels only (but not the other Fleet Vessels) only cash held with the Lender which is not subject to any Encumbrance (other than in favour of the Lender) will be taken into account for the purposes of calculating the Liquidity in respect of the Ship and the Collateral Vessels.

"Market Value Adjusted Net Worth" means at any relevant time the amount obtained by deducting from the Market Value Adjusted Total Assets the amount of the Total Liabilities;

"Market Value Adjusted Total Assets" means at any relevant time the Total Assets as adjusted by replacing the Fleet Book Value with the Fleet Market Value;

"NASDAQ" means the National Association of Securities Dealers Automated Quotation;

"Party" means a party to this Guarantee;

"Prohibited Person" means any person (whether designated by name or by reason of being included in a class of persons) against whom Sanctions are directed;

"Sanctions" means any sanctions, embargoes, freezing provisions, prohibitions or other restrictions relating to trading, doing business, investment, exporting, financing or making assets available (or other activities similar to or connected with any of the forgoing):

 

		(a)	
imposed by any law or regulation of the United Kingdom, the Council of the European Union, the United Nations or its Security Council or the United States of America, whether or not any Security Party or any other member of the Group is legally bound to comply with the forgoing; or

 

		(b)	
otherwise imposed by any law or regulation by which any Security Party, or any other member of the Group, is bound or, as regards a regulation, compliance with which is reasonable in the ordinary course of business of any Security Party or any other member of the Group;

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"Ship" means the bulk carrier EIRINI P., registered at the Port of Monrovia, Liberia, under the Liberian flag, in the ownership of the Borrower with IMO number 9284879 and official Nr. 16408;

"Security Documents" means together this Guarantee, and all other documents defined as Security Documents in Clause 2.01 of the Financial Agreement as the same may from time to time be amended, varied or supplemented, in the singular, means any one of them;

"Security Period" means the period during which any one or more of the Finance Documents remain in effect and ending when the Indebtedness is paid in full to the satisfaction of the Lender;

"Substantial Owners" has the meaning defined under local or foreign tax laws, regulatory guidance or intergovernmental cooperation agreements.

"Subsidiary" of a person means: (a) any other person directly or indirectly Controlled by that person; or (b) any other person whose dividends or distributions on ordinary voting share capital that person is entitled to receive is more than fifty per cent (50%); or (c) any entity (whether or not so Controlled) treated as a Subsidiary in the financial statements of that person from time to time;

"Tax Authority" means any local or foreign regulatory or tax authority.

"Taxes" means all present and future taxes, levies, imposts, duties, charges, fees, deductions and withholdings, and any restrictions or conditions resulting in a charge (other than taxes on the overall net income of the Lender) and "Tax" and "Taxation" shall be construed accordingly;

"Total Assets" means at any relevant time the total assets (excluding cash and cash equivalents) of the Group as stated in the most recent combined Accounting Information of the Group;

"Total Liabilities" means at any relevant time the total liabilities of the Group as stated in the most recent combined Accounting Information of the Group;

"Treasury Transactions" means any derivative transaction entered into in connection with protection against or benefit from fluctuation in any rate or price;

"US GAAP" means generally accepted accounting principles adopted in the United States;

"US Tax Obligor" means (i) a Security Party which is resident for tax purposes in the United States of America; or (ii) a Security Party some or all of whose payments under the Finance Documents are from sources within the United States for US federal income tax purposes;

8

"VAT" means (i) any tax imposed in compliance with the Council Directive of 28 November 2006 on the common system of value added tax (EC Directive 2006/112); and (ii) any other tax of a similar nature, whether imposed in a member state of the European Union in substitution for, or levied in addition to, such tax referred to in (a), or imposed elsewhere.

	3	
REPRESENTATIONS AND WARRANTIES

	3.01	
The Guarantor hereby represents and warrants to the Lender in the terms set out in the Schedule hereto.

	4	
GUARANTEE

	4.01	
The Guarantor unconditionally and irrevocably:

		(a)	
guarantees the punctual performance by the Borrower of all its obligations under or in connection with the Loan Agreement and every other Finance Document to which the Borrower is a party;

		(b)	
undertakes to pay to the Lender, on the Lender's demand, any such amount which is not paid by the Borrower when payable under or in connection with the Loan Agreement or any other Finance Document to which the Borrower is a party, as if it were the Borrower;

		(c)	
as a separate, continuing and primary obligation, agrees to fully indemnify the Lender on the Lender's demand in respect of all claims, expenses, liabilities and losses which are made or brought against or incurred by the Lender as a result of or in connection with any failure by the Borrower to comply with any of its obligations under any Finance Document to which the Borrower is a party or any obligation or liability guaranteed by the Guarantor being or becoming unenforceable, invalid, void or illegal; and the amount recoverable under this indemnity shall be equal to the amount which the Lender would otherwise have been entitled to recover; and

		(d)	
the Guarantor unconditionally and irrevocably undertakes to discharge all such obligations and liabilities whatsoever, whensoever and howsoever arising, as are now or may hereafter become incurred by the Borrower under or in connection with the Loan Agreement and every other Finance Document to which the Borrower is a party.

	4.02	
The Lender may serve more than one demand under Clause 4.01.

	5	
INTEREST, EXPENSES AND ADJUSTMENT OF TRANSACTIONS

	5.01	
In addition to the amounts referred to in Clause 4.01 the Guarantor undertakes to pay to the Lender on the Lender's written demand interest on all amounts due and payable under this Guarantee from the date of written demand under Clause 4.01 above to the date of payment in full (whether before or after judgement) at the Default Rate.

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	5.02	
The Guarantor shall pay to the Lender on its first demand the amount of all expenses incurred by the Lender in connection with any matter arising out of this Guarantee or any Encumbrance connected with it, including any advice, claim or proceedings relating to this Guarantee or such an Encumbrance.

	5.03	
Clause 5.02 is without prejudice to the Guarantor's liabilities in respect of the Borrower's obligations under clause 28 (expenses) of the Loan Agreement and under similar provisions of other Finance Documents.

	5.04	
The Guarantor shall pay to the Lender on its demand any amount which the Lender is required, or agrees, to pay pursuant to any claim by, or settlement with, a trustee in bankruptcy of the Borrower or of another Security Party (or similar person) on the ground that the Loan Agreement or any other Finance Document, or a payment by the Borrower or of another Security Party, was invalid or on any similar ground.

	6	
PAYMENT - ACCOUNTS

	6.01	
The Guarantor shall make all payments due to the Lender in Dollars in full in immediately available and freely transferable funds, without set off or counterclaim or retention and free and clear of and without any deduction or withholding for or on account of any Taxes.

	6.02	
In any legal action all proceedings arising out or in connection with this Guarantee, the entries made in the Loan Account maintained by the Lender pursuant to Clause 13.01 of the Financial Agreement or a certificate signed by any one authorized officers of the Lender shall be conclusive evidence (save in case of manifest error) of the existence and the amount of the liabilities of the Borrower therein recorded and of the Guarantor under this Guarantee.

	7	
TAX GROSS UP AND INDEMNITIES

Without prejudice to the generality of Clauses 6.01 and 13:

	7.01	
For the purposes of this Clause the following terms will have the meaning ascribed to them herein:

"Protected Party" means the Lender if it is or will be subject to any liability or required to make any payment for or on account of Tax in relation to a sum received or receivable (or any sum deemed for the purposes of Tax to be received or receivable) under a Finance Document.

"Tax Credit" means a credit against, relief or remission for, or repayment of any Tax.

"Tax Deduction" means a deduction or withholding for or on account of Tax from a payment under a Finance Document, other than a FATCA Deduction.

"Tax Payment" means either the increase in a payment made by the Guarantor to the Lender under Clause 7.02 (Tax gross-up) or a payment by the Guarantor under Clause 7.03 (Tax indemnity).

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	7.02	
the Guarantor shall (and shall procure that each other Security Party shall) make all payments to be made by them without any Tax Deduction, unless a Tax Deduction is required by law, subject as follows:

	7.02.01	
the Guarantor shall, promptly upon becoming aware, that the Guarantor or any other Security Party must make a Tax Deduction (or that there is any change in the rate or the basis of a Tax Deduction) notify the Lender accordingly.

Similarly, the Lender shall notify the Guarantor on becoming so aware in respect of a payment payable to the Lender;

	7.02.02	
if a Tax Deduction is required by law to be made by the Guarantor or any other Security Party, the amount of the payment due from the Guarantor or that other Security Party shall be increased to an amount which (after making any Tax Deduction) leaves an amount equal to the payment which would have been due if no Tax Deduction had been required;

	7.02.03	
if the Guarantor or any other Security Party is required to make a Tax Deduction, the Guarantor shall (and shall procure that such other Security Party shall) make that Tax Deduction and any payment required in connection with that Tax Deduction within the time allowed and in the minimum amount required by law;

	7.02.04	
within 30 days of making either a Tax Deduction or any payment required in connection with that Tax Deduction, the Guarantor shall (and shall procure that such other Security Party shall) deliver to the Lender a statement under section 975 of the ITA or other evidence reasonably satisfactory to the Lender that the Tax Deduction has been made or (as applicable) any appropriate payment paid to the relevant taxing authority;

	7.03	
Tax indemnity

	7.03.01	
the Guarantor shall (within three Banking Days of the written demand by the Lender) pay to the Lender, if the Lender is a Protected Party, an amount equal to the loss, liability or cost which the Lender determines will be or has been (directly or indirectly) suffered for or on account of Tax by the Lender in respect of a Finance Document.

	703.02	
Clause 7.03.01 shall not apply:

		(a)	
with respect to any Tax assessed on the Lender:

(i) under the law of the jurisdiction in which the Lender is incorporated or, if different, the jurisdiction (or jurisdictions) in which the Lender is treated as resident for tax purposes; or

(ii) under the law of the jurisdiction in which the Facility office of the Lender is located in respect of amounts received or receivable in that jurisdiction,

if that Tax is imposed on or calculated by reference to the net income received or receivable (but not any sum deemed to be received or receivable) by the Lender; or

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(b) to the extent a loss, liability or cost (i) is compensated for by an increased payment under Clause 7.02 (Tax gross-up), or Clause 7.07 (FATCA Deduction and gross-up by the Guarantor) or Clause 7.08 (FATCA Deduction by the Lender);

The Lender making, or intending to make, a claim under paragraph (a) above shall promptly notify the Guarantor in writing of the event which will give, or has given, rise to the claim.

	7.04	
Tax Credit

	7.04.01	
If the Guarantor makes a Tax Payment and the Lender determines that:

	7.04.01.1	
a Tax Credit is attributable to an increased payment of which that Tax Payment forms part, to that Tax Payment or to a Tax Deduction in consequence of which that Tax Payment was received; and

	7.04.01.2	
the Lender has obtained, utilised and retained that Tax Credit,

      the Lender shall pay an amount to the Guarantor which the Lender determines will leave it (after that payment) in the same after-Tax position as it would have been in had the Tax Payment not been required to be made by the Guarantor.

	7.05	
VAT

	7.05.01	
All amounts expressed to be payable under this Guarantee or the other Finance Documents by the Guarantor or any other Security Party to the Lender which (in whole or in part) constitute the consideration for any supply for VAT purposes are deemed to be exclusive of any VAT which is chargeable on that supply, and accordingly, if VAT is or becomes chargeable on any supply made by the Lender to any Security Party under a Finance Document and the Lender is required to account to the relevant tax authority for the VAT, that Security Party must pay to the Lender (in addition to and at the same time as paying any other consideration for such supply) an amount equal to the amount of the VAT (and the Lender must promptly provide an appropriate VAT invoice to the Guarantor).

	7.05.02	
Where a Finance Document requires the Guarantor to reimburse or indemnify the Lender for any cost or expense, the Guarantor shall reimburse or indemnify (as the case may be) the Lender for the full amount of such cost or expense, including such part thereof as represents VAT, save to the extent that the Lender reasonably determines that it is entitled to credit or repayment in respect of such VAT from the relevant tax authority.

	7.05.03	
Any reference in this Clause 7.05 to any Security Party shall, at any time when such Security Party is treated as a member of a group for VAT purposes, include (where appropriate and unless the context otherwise requires) a reference to the representative member of such group at such time (the term "representative member" to have the same meaning as in the Value Added Tax Act 1994).

	7.05.04	
In relation to any supply made by the Lender to the Guarantor under a Finance Document, if reasonably requested by the Lender, the Guarantor must promptly provide the Lender with

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      details of that the Guarantor's VAT registration (if available) and such other information as is reasonably requested in connection with the Lender's VAT reporting requirements in relation to such supply.

	7.06	
FATCA information

	7.06.01	
Subject to Clause 7.06.03, each Party shall, within ten Banking Days of a reasonable request by another Party:

      (a) confirm to that other Party whether it is: (i) a FATCA Exempt Party; or (ii) not a FATCA Exempt Party; and

      (b)          supply to that other Party such forms, documentation and other information relating to its status under FATCA (including its applicable "passthru payment percentage" or other information required under the US Treasury Regulations or other official guidance including intergovernmental agreements) as that other Party reasonably requests for the purposes of that other Party's compliance with FATCA.

	7.06.02	
If a Party confirms to another Party pursuant to Clause 7.06.01 (a)(i) that it is a FATCA Exempt Party and it subsequently becomes aware that it is not, or has ceased to be a FATCA Exempt Party, that Party shall notify that other Party reasonably promptly.

	7.06.03	
Clause 7.06.01 shall not oblige the Lender to do anything which would or might in its reasonable opinion constitute a breach of:

a. any law or regulation;

b. any fiduciary duty;

c. any duty of confidentiality; or

d. any policy of the Lender.

	7.06.04	
If a Party fails to confirm its status or to supply forms, documentation or other information requested in accordance with Clause 7.06.01 (including, for the avoidance of doubt, where Clause 7.06.03 applies), then:

	7.06.04.1	
if that Party failed to confirm whether it is (and/or remains) a FATCA Exempt Party then such Party shall be treated for the purposes of the Finance Documents as if it is not a FATCA Exempt Party; and

	7.06.04.2	
if that Party failed to confirm its applicable "passthru payment percentage" then such Party shall be treated for the purposes of the Finance Documents (and payments made thereunder) as if its applicable "passthru payment percentage" is 100%,

until   (in   each  case)   such  time  as  the   Party  in  question   provides  the requested confirmation, forms, documentation or other information.

	7.07	
FATCA Deduction and gross-up by the Guarantor

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	7.07.01	
If the Guarantor is required to make a FATCA Deduction, the Guarantor shall make that FATCA Deduction and any payment required in connection with that FATCA Deduction within the time allowed and in the minimum amount required by FATCA.

	7.07.02	
If a FATCA Deduction is required to be made by the Guarantor, the amount of the payment due from the Guarantor shall be increased to an amount which (after making any FATCA Deduction) leaves an amount equal to the payment which would have been due if no FATCA Deduction had been required.

	7.07.03	
the Guarantor shall promptly upon becoming aware that it must make a FATCA Deduction (or that there is any change in the rate or the basis of a FATCA Deduction) notify the Lender accordingly.  Similarly, the Lender shall notify the Guarantor in writing.

	7.07.04	
Within 30 days of making either a FATCA Deduction or any payment required in connection with that FATCA Deduction, the Guarantor making that FATCA Deduction or payment shall deliver to the Lender evidence reasonably satisfactory to the Lender that the FATCA Deduction has been made or (as applicable) any appropriate payment paid to the relevant governmental or taxation authority.

	7.08	
FATCA Deduction by the Lender

	7.08.01	
The Lender may make any FATCA Deduction it is required by FATCA to make, and any payment required in connection with that FATCA Deduction, and the Lender shall not be required to increase any payment in respect of which it makes such a FATCA Deduction or otherwise compensate the recipient of the payment for that FATCA Deduction.  The Lender shall notify the Guarantor accordingly.

	7.08.02	
the Guarantor shall (within three Banking Days of demand by the Lender) pay to the Lender an amount equal to the loss, liability or cost which the Lender determines will be or has been (directly or indirectly) suffered by the Lender as a result of making a FATCA Deduction in respect of a payment due to it under a Finance Document.

	7.08.03	
The Lender making, or intending to make, a claim under paragraph 7.08.02 above shall promptly notify in writing the Guarantor of the FATCA Deduction.

	8	
LIABILITY

	8.01	
The Guarantor shall be liable under this Guarantee as a principal and independent debtor and accordingly it shall not have, as regards this Guarantee, any of the rights or defences of a surety.

	8.02	
Without limiting the generality of Clause 8.01, the Guarantor shall neither be discharged by, nor have any claim against the Lender in respect of:

		(a)	
any amendment or supplement being made to the Finance Documents;

		(b)	
any arrangement or concession (including a rescheduling or acceptance of partial payments) relating to, or affecting, the Finance Documents;

14

		(c)	
any release or loss (even though negligent) of any right or Encumbrance created by the Finance Documents;

		(d)	
any failure (even though negligent) promptly or properly to exercise or enforce any such right or Encumbrance, including a failure to realise for its full market value an asset covered by such an Encumbrance; or

		(e)	
any other Finance Document or any Encumbrance now being or later becoming void, unenforceable, illegal or invalid or otherwise defective for any reason, including a neglect to register it.

	9	
UNDERTAKINGS

	9.01	
The Guarantor hereby covenants and undertakes with the Lender that throughout the Security Period the Guarantor shall comply with the following provisions of this Clause 9.01 except as the Lender may otherwise permit in writing:

	9.01.01	
to (and ensure and procure that each other Security Party shall) supply the Lender with such number of copies as the Lender may require of (a) the annual Accounting Information as soon as available but in any event not later than one hundred and fifty (150) days after the end of the relevant period to which they relate starting with the 2013 financial statements and (b) such other information with regard to the business, properties or condition, financial or otherwise, of the Guarantor, the Manager and the other members of the Group as the Lender may from time to time reasonably request;

	9.01.02	
to procure that the Accounting Information to be delivered from time to time in accordance with Clause 9.01.01 shall be prepared in accordance with the Applicable Accounting Principles and practices consistently applied, which shall present fairly the financial positions, as at the end of each such financial year to which they relate, of the Group and the results of their operations for the year to which the Accounting Information relates.

	9.01.03	
to obtain promptly at any time and from time to time such registrations, licenses, consents and approvals as may be required in respect of this Guarantee and the other Finance Documents under any applicable law or regulation to enable the Guarantor to perform and discharge its duties and liabilities hereunder and thereunder and promptly supply the Lender with copies thereof;

	9.01.04	
to execute and procure the execution of any further document or documents reasonably required by the Lender in order to perfect or complete the security created by this Guarantee and the other Finance Documents;

	9.01.05	
to ensure that at all times the claims of the Lender against it under this Guarantee and the other Finance Documents rank at least pari passu with the claims of all other unsecured creditors of the Guarantor save those whose claims are preferred by any bankruptcy, insolvency or other similar laws of general application;

	9.01.06	
to maintain its corporate existence under the laws of its Original Jurisdiction and not to amend its articles of incorporation or other constitutional documents;

15

	9.01.07	
to comply (and ensure that each other Security Party will comply) with all laws regulations (including but not limited to the laws and regulations relating to the listing of the shares of the Guarantor in NASDAQ, as the case may be), treaties and conventions applicable to the Guarantor, the Borrower, the other Security Parties and the Ship;

	9.01.08	
from time to time on request by the Lender to (and ensure and procure that each other Security Party shall) deliver to it a certificate signed by a director or officer of such Corporate Security Party confirming that, save as may be notified in detail in such certificate, no Event of Default or Potential Event of Default has occurred and is then subsisting, to be accompanied by such evidence as to the information and matters contained in such certificate as the Lender may from time to time reasonably require;

	9.01.09	
to promptly notify the Lender in writing of any Event of Default or any Potential Event of Default and of the steps (if any) which are being taken to nullify or mitigate its effect and of any occurrence of which it becomes aware which might adversely affect the ability of the Guarantor and/or any one or more of the other Security Parties to perform and discharge their respective duties and liabilities under this Guarantee and/or the Financial Agreement and/or the other Finance Documents;

	9.01.10	
to send (or procure that it is sent) to the Lender as soon as the same is instituted (or, to the knowledge of the Guarantor threatened), details of any litigation, arbitration or administrative proceedings against or involving a Security Party, or the Ship which is likely to have a Material Adverse Effect on a Security Party or the operation of the Ship;

	9.01.11	
not to and ensure and procure that the Borrower and the Manager and any corporate shareholder(s) thereof shall not dissolve, merge into or consolidate with any other company or person;

	9.01.12	
to (and procure that each other relevant Security Party shall) ensure and procure that no change in

(a) the registered ownership of the shares of the Borrower; and

(b) the registered or beneficial ownership of the shares of the Manager and the Ship

shall occur;

	9.01.13	
not to declare or pay any dividends or make any distributions to its respective shareholders in any form whatsoever if:

	9.01.13.1	
an Event of Default which is continuing or a Potential Event of Default has occurred; or

	9.01.13.2	
immediately following such payment of dividends and/or distributions the test set out in Clause 23 of the Financial Agreement was applied and the Borrower would be obliged to provide additional security or prepay part of the Facility as therein provided; or

	9.01.13.3	
immediately following such payment of dividends and/or distributions the Guarantor would be in breach of Clause 9.01.31

16

Provided that even when the above restrictions do not apply the Guarantor until the Total Deferred Amount is reduced to zero the Guarantor will not

		(i)	
declare, make or pay dividend, charge, fee or other distribution (or interest on any unpaid dividend, charge, fee or other distribution) (whether in cash or in kind) on or in respect of its share capital ;

		(ii)	
repay or distribute any dividend or share premium reserve; or

		(iii)	
redeem, repurchase, defease, retire or repay any of its share capital or resolve to do so,

But for the avoidance of doubt these restrictions apply to the Guarantor common shares only;

	9.01.14	
not to (save and except as provided in this Guarantee or otherwise in favour of the Lender), create or permit to exist any Encumbrance whatsoever on any of its property or assets, real or personal, whether now owned or hereafter acquired, other than a Permitted Lien;

	9.01.15	
to ensure and procure that other than in accordance with the Financial Documents the Borrower will not convey, assign, transfer, sell or otherwise dispose of or deal with any of their assets or rights whether present or future;

	9.01.16	
to (and ensure and procure that each other Security Party shall) pay all Taxes, assessments and other governmental charges when the same fall due, except to the extent that the same are being contested in good faith by appropriate proceedings and adequate reserves have been set aside for their payment if such proceedings fail and ensure and procure that all its relevant tax returns shall be properly and timely filed;

	9.01.17	
not to (and ensure and procure that no Security Party will) become a FATCA FFI or a US Tax Obligor;

	9.01.18	
to (and ensure and procure that the Security Parties and the other members of the Group will) comply, in all respects, with all Sanctions;

	9.01.19	
not to (and ensure and procure that none of the Security Parties and the other members of the Group will) become a Prohibited Person or become owned or controlled by, or act directly or indirectly on behalf of, a Prohibited Person, or become the owner or controller of a Prohibited Person;

	9.01.20	
not to make, directly or indirectly, available any proceeds of the Facility to or for the benefit of a Prohibited Person and to ensure and procure that any proceeds of the Facility is not, directly or indirectly, applied in a manner or for a purpose prohibited by Sanctions;

	9.01.21	
not to and to procure that the Borrower will not materially amend, modify, vary or supplement or terminate or agree to any material amendment, modification, variation or supplement or cancellation of the Management Agreements;

	9.01.22	
to ensure that no change in the Chief Executive Officer and/or the Chairman of the Guarantor shall occur;

17

	9.01.23	
not to (and ensure and procure that no other Security Party will) directly or indirectly use the proceeds of he Facility for any purpose which would breach the Bribery Act 2010, the United States Foreign Corrupt Practices Act of 1977 or other similar legislation in other jurisdictions;

	9.01.24	
to (and ensure and procure that each of the Security Parties and each member of the Group will) conduct its businesses in compliance with applicable anti-corruption laws and has instituted and maintained policies and procedures designed to promote and achieve compliance with such laws;

	9.01.25	
to ensure and procure that, throughout the Security Period, all payments in relation to the operation of the Ship will be effected through the Lender (either via the Piraeus branch or any other branch reasonably nominated by the Lender);

	9.01.26	
to (and ensure and procure that each other Security Party will) deliver promptly to the Lender such documents and evidence as the Lender shall from time to time require relating to the ultimate beneficial ownership of the Borrower, the Manager and the other members of the Group and their respective corporate shareholder(s);

	9.01.27	
to (and ensure and procure that each other Security Party will) deliver to the Lender such documents and evidence as the Lender shall from time to time require relating to the verification of identity and knowledge of the Lender's customers and the compliance by the Lender with all necessary "know your customer" or similar checks, and to comply within thirty (30) days from the Lender's written notice to the Guarantor to that effect, to the full satisfaction of the Lender, with any requirements of the Lender in relation to the shares of the Borrower and the other members of the Group and their respective corporate shareholder(s) [including but without limitation any requirements of the Lender as to the approved form of the shares (registered or otherwise) of the Borrower and the other members of the Group and their corporate shareholder(s)], always on the basis of applicable laws and regulations or the Lender's own internal (generally applied) guidelines, in each case as such laws, regulations or internal guidelines apply from time to time;

	9.01.28	
to (i) provide the Lender with any documentation or information, as the Lender may request, which relates to individual or entity tax status and (ii) inform the Lender, or respond to any request from the Lender, if there are any changes to tax information previously provided;

	9.01.29	
upon request by the Lender, to obtain, and to ensure and procure that each other Security Party will obtain a written waiver or consent from its respective Substantial Owners or Controlling Persons, which will be provided to the Lender to permit the Lender and other members of the HSBC Group to disclose and report tax and account specific financial information to any local or foreign Tax Authority. Where any one of the Guarantor and/or the Borrower and/or the other Security Parties fails to comply with requests for tax information, or fails to respond to requests for waivers or consents for tax information disclosure, or fails to respond to requests to obtain waivers or consents from Substantial Owners or Controlling Persons, the Lender may take, and may instruct members of the HSBC Group to take whatever actions are necessary to comply with the Lender's local or foreign tax reporting obligations, including without limitation any of the following action:

18

(a) the Lender may withhold taxes that may be due from certain payments made to or on behalf of any one of the Guarantor and/or the Borrower and/or the other Security Parties; and/or

(b) The Lender shall have the right to pay relevant taxes to the appropriate Tax Authority; and/or

(c) The Lender shall have the right to refuse to provide certain services to any one of the Guarantor and/or the Borrower and/or the other Security Parties; and/or

(d) the Lender shall have the right to close any account to which the provision of any facility may relate; and

	9.01.30	
to ensure and procure that at all times during the Security Period, the Borrower and/or the Guarantor shall maintain with the London  branch of the Lender (or any other branch of the Lender with the consent of the Borrower and the Guarantor) to the credit of any account held with the Lender in the name of the Borrower and/or the Guarantor, Liquidity being not less than  Three hundred thousand Dollars ($300,000), per Ship,;

	9.01.31	
to ensure that throughout the Security Period:

	9.01.31.1	
the Market Value Adjusted Net Worth of the Guarantor shall not be less than Fifteen million Dollars ($15,000,000);

	9.01.31.2	
the Leverage Ratio will not be higher than one hundred fifteen per cent. (115%)  Provided that if the Guarantor has not agreed such a high percentage with its other financing banks, the lowest percentage required to be maintained with another financing bank will also apply in this case; and

	9.01.31.3	
Liquidity shall not be less than three hundred thousand Dollars ($300,000 per Fleet Vessel);

	9.01.32	
to ensure and procure that the Borrower shall comply with all covenants and undertakings set out in the Financial Agreement and the other Finance Documents.

	9.01.33	
to ensure and procure that all the Earnings of the Ship shall be assigned to the Lender, and shall be paid to the credit of the Earnings Account, which shall be charged to the Lender by the Earnings Account Charge.

	9.02	
The Guarantor confirms that it has not taken, and will not take without the prior written consent of the Lender (and then only on such terms and subject to such conditions as the Lender may impose), any security from the Borrower or from any other person (other than the Borrower and who has given or who may in the future give to the Lender any security, guarantee or indemnity for or in relation to the Indebtedness (each such person being hereinafter referred to as "Surety") in connection with this Guarantee, and any security taken by the Guarantor notwithstanding this Clause shall be held by the Guarantor in trust for the Lender absolutely as a continuing security for the Guarantor's Liabilities.

	9.03	
Until all claims of the Lender in respect of the Indebtedness have been discharged in full:-

19

	9.03.01	
the Guarantor shall not be entitled to participate in any security held or sums received by the Lender in respect of all or any part of the Indebtedness;

	9.03.02	
the Guarantor shall not stand in the place of, or be subrogated for the Lender in respect of any security, nor take any step to enforce any claim against the Borrower or any Surety (or their respective estates or effects), nor claim or exercise any right of set off or counterclaim against the Borrower or any Surety, nor make any claim in the bankruptcy or liquidation of the Borrower or any Surety in respect of any sums paid by the Guarantor to the Lender or in respect of any sum which includes the proceeds of realisation of any security at any time held by the Lender in respect of any of the Guarantor's liabilities hereunder; and

	9.03.03	
the Guarantor shall not take any steps to enforce any claim which it may have against the Borrower or any Surety without the prior written consent of the Lender and then only on such terms and subject to such conditions as the Lender may impose.

	9.04	
The Guarantor shall throughout the Security Period duly observe and perform all of the covenants, obligations and conditions which are required to be observed and performed on its part under this Guarantee and each of the other Finance Documents to which it is a party and shall use its best endeavours to procure that all covenants, obligations and conditions required to be observed and performed, and undertakings made, by any of the other Security Parties under any of the Finance Documents shall be observed and complied with in their entirety.

	9.05	
Until the Total Deferred Amount is reduced to zero the Guarantor (Eurodry) will not (through its Subsidiaries or otherwise) acquire any vessels and/or companies without the prior written consent of the Lender, unless if the initial acquisition amount of such vessels and/or companies is financed with newly raised equity and the Leverage Ratio of the Guarantor (Eurodry) is not more than 75% and/or if the Guarantor (Eurodry) is in compliance with its original financial covenants, namely it maintains maximum Leverage Ratio of less than 75%, Liquidity being not less than US$300,000 per Fleet Vessel and Market Value Adjusted Net Worth of not less than US$15,000,000.

	9.06	
Until the Total Deferred Amount is reduced to zero, the Guarantor (Euroseas) will not (through its Subsidiaries or otherwise) make any voluntary prepayments to its other financing banks without the prior written consent of the Lender.

	10	
VARIATIONS

	10.01	
The Lender shall have the right and power at all times whether before or after any demand hereunder for payment and without prejudice to the terms of this Guarantee, so that the Guarantor shall not be exonerated or discharged hereunder or its liability in any way limited, to:

	10.01.01	
vary or increase the Repayment Instalments, the rate of interest, the fees and other amounts payable under the Financial Agreement,  or vary or waive any of the terms and conditions of the Financial Agreement and/or the other Finance Documents; and

	10.01.02	
grant to the Borrower or to any other person any waiver or extension of time; and

20

	10.01.03	
release, vary or waive any securities, guarantees or rights which the Lender may now or hereafter have from or against the Borrower or any other person.

	11	
WAIVER

	11.01	
Any failure on the part of the Lender to exercise or any delay in the exercise of any right or power hereunder shall not operate as a waiver thereof.

	11.02	
The granting of time or indulgence by the Lender to, or compounding with, any other person or company liable to the Lender on any guarantee or any security or negotiable instrument for the time being held by the Lender or to which the Lender may be entitled pursuant to the Finance Documents shall not in any way prejudice the rights of the Lender against the Guarantor hereunder.

	11.03	
It shall not be necessary for the Lender before claiming payment hereunder to endeavour to enforce any other guarantee or security whether from the Guarantor, the Borrower or any other person.

	11.04	
The Lender has the right and power to claim all amounts due and payable hereunder against the Guarantor and/or against any other Security Party in such order and at such time as the Lender in its absolute discretion considers to its advantage.

	11.05	
The rights and powers of the Lender hereunder are cumulative and in addition to any rights and powers under law or otherwise.

	12	
DISCHARGE AND SET-OFF

	12.01	
This Guarantee shall be a continuing guarantee and remain in full force and effect until all amounts due and payable under the Financial Agreement and/or the other Finance Documents, whether actually or contingently, are paid in full to the Lender (which expression shall not include payment of a dividend in liquidation or bankruptcy of less than one hundred percent (100%)). The Lender may make claims and demands under this Guarantee without limit of number. Upon payment and discharge of the Indebtedness in full to the full satisfaction of the Lender, the Lender, at the written request of the Guarantor, will release the Guarantee and return same to the Guarantor.

	12.02	
Any amounts received under or in connection with this Guarantee shall be applied by the Lender in payment of the Indebtedness in accordance with the terms of Clause 12 of the Financial Agreement, and the Lender may prove in respect of all amounts due from the or any other person liable in the event of any insolvency, liquidation, composition or arrangement proceedings.

	12.03	
The Guarantor hereby agrees that the Lender shall have the right at any time without notice to set-off or transfer any amounts standing to the credit of any account of the Guarantor with the Lender (whether in the Guarantor's sole name or jointly with any other person and whether current, deposit or otherwise whatsoever and whether subject to notice or not) in any currency against the liability of the Guarantor hereunder or under any other agreement with or facility made available to the Guarantor by the Lender.

21

	13	
STAMP DUTIES – TAXES ETC

	13.01	
The Guarantor shall pay any and all stamp, registration and similar taxes and charges of whatsoever nature which may be payable or determined to be payable on, or in connection with, the execution, registration, notarisation, performance or enforcement of this Guarantee. The Guarantor shall indemnify the Lender against any and all liabilities with respect to or resulting from any delay or omission on the part of the Guarantor to pay any such taxes.

	14	
TRANSFER / ASSIGNMENT

	14.01	
This Guarantee shall be binding upon and inure to the benefit of the Lender and its successors and permitted assigns and references in this Guarantee to the Lender shall be construed accordingly.

	14.02	
The Guarantor may not assign or transfer any of its rights and/or obligations under this Guarantee.

	14.03	
The provisions of Clause 39 (Notices) of the Financial Agreement shall apply to the Lender in relation to the assignment of any of its rights and/or obligations under this Guarantee.

	15	
CONFIDENTIALITY

	15.01	
The provisions of Clause 31 (Confidentiality) of the Financial Agreement shall apply in relation this Guarantee mutatis mutandis.

	16	
RELEASE

	16.01	
Any release or settlement between the Guarantor and the Lender shall be conditional upon no security, disposition or payment to the Lender by the Borrower, the Guarantor or any other person being avoided or limited pursuant to any provisions relating to bankruptcy, liquidation or insolvency and if there shall be any avoidance or limitation as aforesaid the Lender shall have the right to enforce this Guarantee against the Guarantor subsequently as if such release or settlement had not occurred.

	16.02	
If any amounts paid to the Lender in reduction of the amounts hereby guaranteed have to be repaid by the Lender on the ground of unfair or fraudulent preference or on any other ground, the Lender shall have the same rights hereunder against the Guarantor as if such amounts had never been paid to the Lender.

	17	
SUBORDINATION

	17.01	
The Guarantor agrees to and does hereby subordinate any and all present or future claims whatsoever that it may have against the Borrower or any other guarantor of the Borrower's obligations to the Lender or any other member of the Group, to any and all claims by the Lender for amounts owing from the Borrower and/or any other Security Party to the Lender under the Financial Agreement and the other Finance Documents and undertakes to deliver such further documents as the Lender may reasonably request evidencing such subordination.

22

	17.02	
Until all amounts due under the Financial Agreement and the other Finance Documents from the Borrower to the Lender shall have been paid in full the Guarantor shall have no right of subrogation and agrees not to:

	17.02.01	
demand or accept repayment in whole or in part of any loans or advances then or thereafter due to the Guarantor from the Borrower or any other Security Party or to demand or accept any security in respect thereof, or to assign or charge the same as security; or

	17.02.02	
take any action or to submit or enforce any claim against the Borrower; or

	17.02.03	
claim any set-off or counterclaim against the Borrower; or

	17.02.04	
claim or prove in competition with the Lender in any bankruptcy or liquidation or accept the benefit of any share in any payment or composition from the Borrower or any other guarantor of the Borrower's obligations to the Lender or in any other guarantee or security now or hereafter held by the Lender.

	17.03	
Any security created or amount received in breach of this Clause 15 shall be held on trust for the Lender and forthwith transferred to the Lender on demand.

	18	
INVALIDITY

	18.01	
In the event that any term or condition of this Guarantee is rendered or declared illegal, invalid or inoperative in whole or in part by any statute, rule or regulation or any decision of any court or tribunal of competent jurisdiction then such determination or declaration shall neither affect the validity of any other term or condition of this Guarantee which (save as aforesaid) will remain in full force and effect nor the legality, validity or enforceability of such term or condition under the law of any other jurisdiction.

	19	
NOTICES

	19.01	
Unless otherwise specifically provided, any notice under or in connection with this Guarantee shall be given by letter or fax; and references in this Guarantee to written notices, notices in writing and notices signed by particular persons shall be construed accordingly.

	19.02	
A notice shall be sent:

		(a)	
to the Guarantor:

4, Messogiou & Evropis Street

151 24 Maroussi

Greece

Fax No.: +30 211 1804097

 

23

		(b)	
to the Lender:

109-111 Messoghion Ave,

Athens,

Greece, Tel: +30 210 6961457

 Attn. Ms Katerina Eleftheriou.

or to such other address as the relevant party may notify the other in writing.

	19.03	
Subject to Clauses 19.04 and 19.05:

(a)          a notice which is delivered personally or posted shall be deemed to be served, and shall take effect, at the time when it is delivered;

(b)          a notice which is sent by fax shall be deemed to be served, and shall take effect, 2 hours after its transmission is completed.

	19.04	
However, if under Clause 19.03 a notice would be deemed to be served:

(a)          on a day which is not a Banking Day in the place of receipt; or

(b)          on such a Banking Day, but after 5 p.m. local time;

the notice shall (subject to Clause 19.05) be deemed to be served, and shall take effect, at 9 a.m. on the next day which is such a Banking Day.

	19.05	
Clauses 19.03 and 19.04 do not apply if the recipient of a notice notifies the sender within one hour after the time at which the notice would otherwise be deemed to be served that the notice has been received in a form which is illegible in a material respect.

	19.06	
A notice under or in connection with this Guarantee shall not be invalid by reason that the manner of serving it does not comply with the requirements of this Guarantee if the failure to serve it in accordance with the requirements of this Guarantee has not caused any party to suffer any significant loss or prejudice.

	19.07	
In this Clause "notice" includes any demand, consent, authorisation, approval, instruction, waiver or other communication.

	20	
PROPER LAW AND JURISDICTION

	20.01	
This Guarantee and any non-contractual obligations arising out of or in connection with it shall be governed by, and construed in accordance with, English law.

	20.02	
Subject to Clause 20.03, the courts of England shall have exclusive jurisdiction to settle any Dispute.

	20.03	
Clause 20.02 is for the exclusive benefit of the Lender, which reserves the rights:

		(a)	
to commence proceedings in relation to any Dispute in the courts of any country other than England and which have or claim jurisdiction to that Dispute; and

24

		(b)	
to commence such proceedings in the courts of any such country or countries concurrently with or in addition to proceedings in England or without commencing proceedings in England.

The Guarantor shall not commence any proceedings in any country other than England in relation to a Dispute.

	20.04	
The Guarantor irrevocably appoints Hill Dickinson Service (London) Limited, presently at Irongate House, Duke's Place, London EC3A 7LP England, to act as its agent to receive and accept on its behalf any process or other document relating to any proceedings in the English courts which are connected with a Dispute.

	20.05	
Nothing in this Clause 20 shall exclude or limit any right which the Lender may have (whether under the law of any country, an international convention or otherwise) with regard to the bringing of proceedings, the service of process, the recognition or enforcement of a judgment or any similar or related matter in any jurisdiction.

	20.06	
In this Clause 20, "proceedings" means proceedings of any kind, including an application for a provisional or protective measure and a "Dispute" means any dispute arising out of or in connection with this Guarantee (including a dispute relating to the existence, validity or termination of this Guarantee) or any non-contractual obligation arising out of or in connection with this Guarantee.

25

IN WITNESS WHEREOF this Guarantee has been duly executed as a Deed by each of the parties hereto the day and year first above written.

	
SIGNED

	
)

	 
	
by [Ÿ]

	
)

	 
	
for and on behalf of

	
)

	 
	
EURODRY LTD.

	
)

	 

	
SIGNED

	
)

	 
	
by [Ÿ]

	
)

	 
	
for and on behalf of

	
)

	 
	
HSBC BANK PLC

	
)

	 

26

SCHEDULE

Representations and Warranties

		1.	
The Guarantor is a corporation duly formed and validly existing under the laws of the country of its Original Jurisdiction and has the power and authority to own its assets and carry on business in each Relevant Jurisdiction.

		2.	
The Guarantor has the power to enter into this Guarantee and to perform and discharge its duties and liabilities hereunder and it has taken all necessary action (whether corporate or otherwise) required to authorise the execution, delivery and performance of this Guarantee.

		3.	
The giving of this Guarantee and Indemnity is to the commercial benefit of the Guarantor in that the Borrower is its wholly owned Subsidiary and the Guarantor has a commercial interest in the Facility to continue being extended to the Borrower and by giving this Guarantee and Indemnity, the Guarantor furthers its own business interests within the scope of its constitutional documents;

		4.	
The execution, delivery and performance of this Guarantee will not violate or exceed the powers granted to the Guarantor by, or any provision of, any law or regulation in any Relevant Jurisdiction, any order or decree of any governmental agency or court of or in any Relevant Jurisdiction, the articles of incorporation and by-laws of the Guarantor or any mortgage, deed, contract or agreement to which the Guarantor is a party and which is binding upon the Guarantor or its assets, and will not cause any Encumbrance to arise over or attach to all or any part of its revenues or assets nor require the Guarantor to create any such Encumbrance (other than Permitted Liens) other than any Encumbrance to be created hereunder.

		5.	
All consents, licences, approvals, registrations, authorisations or declarations (including, without limitation, all foreign exchange approvals) in any Relevant Jurisdiction required to enable the Guarantor lawfully to enter into and perform and discharge its duties and liabilities under this Guarantee, to ensure that the duties and liabilities of the Guarantor hereunder are legal, valid and enforceable in accordance with the terms of this Guarantee and to make this Guarantee admissible in evidence in such aforesaid jurisdictions, have been obtained or made and are in full force and effect.

		6.	
This Guarantee constitutes the legal, valid, binding and unconditional duties and liabilities of the Guarantor, enforceable against the Guarantor in accordance with the terms hereof.

		7.	
Neither the Guarantor nor any other Security Party has failed to pay when due any material amount or to perform any material duty under the provisions of any agreement to which it is a party relating to Financial Indebtedness in excess in aggregate of US$1,000,000 and no event has occurred and is continuing which constitutes, or which with the giving of notice or lapse of time or both would constitute, a material breach or default by the Guarantor under any such agreement;

		8.	
No litigation, arbitration, tax claim or administrative proceedings before or of any court, arbitration tribunal or governmental authority are pending or, to the knowledge of the Guarantor, is threatened against the Guarantor or its assets which might have a Material Adverse Effect on the business, assets or financial condition of the Guarantor or the Guarantor's ability to perform and discharge its duties and liabilities hereunder.

27

		9.	
The Accounting Information provided by the Guarantor to the Lender is complete and correct in all material respects and presents fairly the position of the members of the Group therein stated and the results of the operations of the members of the Group therein stated ended on the relevant date, and have been prepared in accordance with the Applicable Accounting Principles and practices consistently applied and give a true and fair view of the financial condition, assets and liabilities of the members of the Group therein stated at the date to which such Accounting Information have been prepared and since that date there has been no adverse change in the financial condition of the business, assets or operation of the members of the Group therein stated or the Group taken as a whole.

		10.	
The information provided to the Lender in relation to this transaction is true and correct in all material respects and does not omit any material detail.

		11.	
It is not necessary or advisable to ensure the legality, validity, enforceability or admissibility in evidence of this Guarantee that it be filed, recorded or enrolled with any governmental authority or agency or that it be stamped with any stamp, registration or similar transaction tax.

		12.	
The selection of English law to govern this Guarantee is a valid and binding selection and the submission to each jurisdiction referred into Clause 20.01 is a valid and binding submission.

		13.	
The Guarantor is not entitled to claim any immunity in relation to itself or its assets under any law or in any jurisdiction in connection with any legal proceedings, set-off or counterclaim relating to this Guarantee or in connection with the enforcement of any judgment or order arising from such proceedings.

		14.	
No Taxes are imposed by withholding or otherwise on any payment to be made by the Guarantor under this Guarantee or any other document or agreement to be executed or delivered pursuant hereto or thereto.

		15.	
Neither the Guarantor nor any other Security Party is a FATCA FFI or a US Tax Obligor.

		16.	
Neither the Guarantor nor any other Security Party is materially overdue in the filing of any Tax returns or is overdue in the payment of any amount in respect of Tax.

		17.	
No claims or investigations are being, or are reasonably likely to be, made or conducted against any of the Guarantor or the other Security Parties with respect to Taxes.

		18.	
The Guarantor is resident for Tax purposes only in its Original Jurisdiction.

		19.	
The Guarantor, the other Security Parties and each member of the Group conducts its businesses in compliance with applicable anti-corruption laws and has instituted and maintained policies and procedures designed to promote and achieve compliance with such laws.

28

		20.	
The Guarantor, the other Security Parties and each member of the Group is in compliance, in all respects, with all Sanctions;

		21.	
None of the Guarantor, the other Security Parties and/or the other members of the Group is a Prohibited Person or is owned or controlled by, or acting directly or indirectly on behalf of or for the benefit of, a Prohibited Person and it does not own or control a Prohibited Person; and

		22.	
No proceeds of the Facility shall be made available, directly or indirectly, to or for the benefit of a Prohibited Person or otherwise shall be, directly or indirectly, applied in a manner or for a purpose prohibited by Sanctions.

The representations and warranties of the Guarantor set out above shall survive the execution of this Guarantee and shall be deemed to be repeated on the Drawdown Date, on each date a Designated Transaction is entered, on each Repayment Date, and each Interest Payment Date, with respect to the facts and circumstances existing at each such time as if made at such time.

29

A N N E X   1

FINANCIAL AGREEMENT

30Exhibit 10.1

 

 

 

 

 

 

 

 

 

 

 

Dated
8th May, 2018

 

Ecrent
Capital Holdings Limited

 

and

 

Sharing
Economy Investment Limited

 

 

 

LICENSE

AGREEMENT

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

     

     

    

 

Table of Contents

 

	 	 	Page
	 	 	
	1.	definitions
    and interpretations	1
	 	 	 
	2.	Grant of licenses	7
	 	 	 
	3.	delivery of the licensed
    software	9
	 	 	 
	4.	Acceptance testing	9
	 	 	 
	5.	operation of the Websites	11
	 	 	 
	6.	performance of services	11
	 	 	 
	7.	consideration and conditions
    precedent	12
	 	 	 
	8.	guaranteed revenue and
    Guaranteed gross profit	13
	 	 	 
	9.	transfer of revenues	13
	 	 	 
	10.	intellectual property
    rights	14
	 	 	 
	11.	Confidentiality	15
	 	 	 
	12.	term and termination	16
	 	 	 
	13.	Representations and
    warranties	18
	 	 	 
	14.	indemnification	22
	 	 	 
	15.	notices	23
	 	 	 
	16.	force majeure	24
	 	 	 
	17.	miscellaneous	24

 

    i

     

    

 

THIS
AGREEMENT is made the 8th day of May, 2018

 

BETWEEN:

 

	(1)	ECRENT
                                         CAPITAL HOLDINGS LIMITED, a company incorporated in the British Virgin Islands and whose
                                         registered office is at Sea Meadow House, Blackburne Highway, (P.O. Box 116), Road Town,
                                         Tortola, British Virgin Islands (the “Licensor”); and
	 	 

	(2)	SHARING
                                         ECONOMY INVESTMENT LIMITED, a company incorporated in the British Virgin Islands and
                                         whose registered office is at Sea Meadow House, Blackburne Highway, (P.O. Box 116), Road
                                         Town, Tortola, British Virgin Islands (the “Licensee”).

 

		WHEREAS:	

 

	(A)	The
                                         Licensor was granted an exclusive and sublicensable license from its Affiliates under
                                         a separate license agreement to utilise certain software and trademarks in order to develop,
                                         launch, operate, commercialise, and maintain an online website platform in a number of
                                         countries.
	 	 

	(B)	The
                                         Licensor wishes to sublicense to the Licensee and the Licensee wishes to receive from
                                         the Licensor such exclusive license to utilize the software and trademarks, and grant
                                         other rights that the Licensee may need, for the purpose of the Business (as hereinafter
                                         defined).
	 	 

	(C)	The
                                         Parties wish to ultimately expand upon their business relationship under this Agreement
                                         as part of achieving a world-wide and global scope to the services related to the license
                                         hereunder.

 

IT
IS HEREBY AGREED as follows:

 

	1.	DEFINITIONS
AND INTERPRETATIONS

 

	1.1	In
                                         this Agreement, unless the context requires otherwise, the following terms shall have
                                         the following meanings:

 

	 	“Acceptance”	has
    the meaning set forth in Clause 4.8
	 	 	 
	 	“Acceptance
    Tests”	such
    tests as may be conducted in accordance with Clause 4 to determine whether the Licensed Software meets the requirements of
    this Agreement and the Documentation
	 	 	 
	 	“Affiliate”	in
    relation to a corporation or person, a legal entity directly or indirectly controlled by, controlling, or under common control
    with, such corporation or person

 

    1

     

    

 

	 	“Authorised
    Services”	any
    and all services performed by any Authorised User for the Licensee or any of the Licensee’s Affiliates for or in connection
    with the Licensee’s or the Licensee’s Affiliate’s use of the Licensed Software or Documentation in accordance
    with this Agreement, including any services comprising or relating to the analysis, development, delivery, hosting, installation,
    configuration, integration, testing, deployment, maintenance, support, repair, storage, copying, reproduction, modification,
    enhancement, improvement or disaster recovery of, or training of Authorised Users concerning, the Licensed Software or Documentation.
	 	 	 
	 	“Authorised
    Users”	all
    officers, directors, employees, consultants or independent contractors of the Licensee or any of the Licensee’s Affiliates
    authorised under this Agreement to use the Licensed Software, the Documentation, the Licensed Trademarks, the Licensed Domain
    Names, and/or the Licensed Content. Authorised Users also include all persons, including all agents, contractors, consultants,
    and their respective employees that the Licensee or any of the Licensee’s Affiliates retains or grants any sublicense
    to hereunder to provide Authorised Services
	 	 	 
	 	“Business”	operation
    of the Websites, mobile applications and business services
	 	 	 
	 	“Business
    Days”	a
    day other than a Saturday, Sunday or other day on which commercial banks in Hong Kong are authorised or required by Law to
    be closed for business
	 	 	 
	 	“Confidential
    Information”	has
    the meaning set forth in Clause 11.1
	 	 	 
	 	“Disclosing
    Party”	has
    the meaning set forth in Clause 11.1
	 	 	 
	 	“Documentation”	all
    user manuals, operating manuals, technical manuals and any other instructions, specifications, documents or materials, in
    any form or media, that describe the functionality, installation, testing, operation, use, maintenance, support, or technical
    or other components, features or requirements, of the Licensed Software
	 	 	 
	 	“Effective
    Date”	has
    the meaning set forth in Clause 12.1

 

    2

     

    

 

	 	“Expiration
    Date”	has
    the meaning set forth in Clause 12.1
	 	 	 
	 	“Force
    Majeure”	has
    the meaning set forth in Clause 16.1
	 	 	 
	 	“Guaranteed
    Gross Profit”	has
    the meaning set forth in Clause 8.1
	 	 	 
	 	“Guaranteed
    Revenue”	has
    the meaning set forth in Clause 8.1
	 	 	 
	 	“Harmful
    Code”	any
    virus, Trojan horse, worm, backdoor or other software or hardware devices the effect of which is to permit unauthorised access
    to, or to disable, erase, or otherwise harm, any computer, systems or software; or any time bomb, drop dead device, or other
    software or hardware device designed to disable a computer program automatically with the passage of time or under the positive
    control of any person, or otherwise deprive the Licensee of its lawful right to use such software
	 	 	 
	 	“Hong
    Kong”	the
    Hong Kong Special Administrative Region of the People’s Republic of China
	 	 	 
	 	“Hosting
    Services”	has
    the meaning set forth in Clause 6.1
	 	 	 
	 	“Intellectual
    Property Rights”	any
    and all registered and unregistered rights granted, applied for or otherwise now or hereafter in existence under or related
    to any patent, copyright, trademark, trade secret, database protection or other intellectual property rights laws, and all
    similar or equivalent rights or forms of protection, in any part of the world
	 	 	 
	 	“Issued
    Price”	has
    the meaning set forth in Clause 7
	 	 	 
	 	“Issued
    Shares”	has
    the meaning set forth in Clause 7
	 	 	 
	 	“Law”	any
    statute, law, ordinance, regulation, rule, code, order, constitution, treaty, common law, judgment, decree or other requirement
    of any federal, state, local or foreign government or political subdivision thereof, or any arbitrator, court or tribunal
    of competent jurisdiction
	 	 	 
	 	“Licensed
    Content”	all
    content (including but not limited to text, graphics, information and data) associated with the Website. The copyright of
    such content is (a) owned by the Licensor; or (b) owned by a third party provider but is sub licensable by the Licensor to
    the Licensee without requiring the payment of any additional fee to any third party and without violating the terms of any
    agreement with such third party provider, together with all updates to and substitutions therefor as may be implemented by
    Licensor or such third party provider.

 

    3

     

    

 

	 	“Licensed
    Domain Names”	the
    domain names described in Schedule 3
	 	 	 
	 	“Licensed
    Software”	the
    computer and mobile application software described in Schedule 2, Maintenance Releases of the same provided to the Licensee
    or any of the Licensee’s Affiliates pursuant to this Agreement, and all copies of the foregoing permitted under this
    Agreement
	 	 	 
	 	“Licensed
    Trademarks”	the
    trademarks described in Schedule 4
	 	 	 
	 	“Licensee’s
    Data”	means
    all data, information and other content of any type and in any format, medium or form, whether audio, visual, digital, screen,
    graphical user interface or other, that is input, uploaded to, placed into or collected, stored, processed, generated or output
    by any device, system or network by or on behalf of the Licensee or any of its Affiliates, including any and all works, inventions,
    data, analyses, and other information and materials resulting from any use of the Licensed Software by or on behalf of the
    Licensee or any of its Affiliates under this Agreement, except that Licensee’s Data does not include the Licensed Software
    or data, information or content, including any graphical user interface, audio, visual or digital or other display or output,
    that is generated automatically upon executing the Licensed Software without additional user input
	 	 	 
	 	“Licensee’s
    Modifications”	all
    modifications, corrections, repairs, translations, enhancements and other derivative works and improvements of the Licensed
    Software or Documentation permitted by the Licensor with prior written consent to be made by the Licensee or any of its Affiliates,
    or for the Licensee or any of its Affiliates by any Authorised User pursuant to this Agreement
	 	 	 
	 	“Licensee’s
    Systems”	the
    Licensee’s information technology infrastructure, including but not limited to, computers, servers, software, hardware,
    databases, electronic systems (including database management systems) and networks, whether operated directly by the Licensee
    or through the use of third-party services or contractors
	 	 	 
	 	“Losses”	all
    losses, damages, liabilities, deficiencies, claims, actions, judgments, settlements, interest, awards, penalties, fines, costs
    or expenses of whatever kind, including reasonable attorneys’ fees and the costs of enforcing any right to indemnification
    hereunder and the cost of pursuing any insurance providers

 

    4

     

    

 

	 	“Maintenance
    Release”	any
    update, upgrade, release or other adaptation or modification of the Licensed Software, including any updated Documentation,
    that the Licensor may develop and launch or utilise in connection with the Websites from time to time during the Term, which
    may contain, among other tines error corrections, enhancements, improvements or other changes to the user interface, functionality,
    compatibility, capabilities, performance, efficiency or quality of the Licensed Software or the Websites
	 	 	 
	 	“Month
    End Report”	has
    the meaning set forth in Clause 9.4
	 	 	 
	 	“Nonconformance
    Notice”	has
    the meaning set forth in Clause 4.5
	 	 	 
	 	“Nonconformity”	any
    failure or failures of the Licensed Software to conform to the requirements of this Agreement, including any applicable Documentation
	 	 	 
	 	“Receiving
    Party”	has
    the meaning set forth in Clause 11.1
	 	 	 
	 	“Regions”	the
    countries, territories or regions described in Schedule 1
	 	 	 
	 	“Reported
    Month”	has
    the meaning set forth in Clause 9.4
	 	 	 
	 	“Representatives”	with
    respect to a Party, that Party’s and its Affiliates’ employees, officers, directors, consultants, agents, independent
    contractors, service providers, sublicensees, subcontractors and legal advisors
	 	 	 
	 	“Securities
    Act”	the
    Securities Act of 1933, as amended
	 	 	 
	 	“SEII”	Sharing
    Economy International Inc., a company incorporated in Nevada, the U.S. with limited liability, the shares of which are listed
    on the NASDAQ stock market
	 	 	 
	 	“Support
    Services”	has
    the meaning set forth in Clause 6.2
	 	 	 
	 	“Term”	has
    the meaning set forth in Clause 12.1

 

    5

     

    

 

	 	“Testing
    Period”	has
    the meaning set forth in Clause 4.3(b)
	 	 	 
	 	“Training
    Services”	has
    the meaning set forth in Clause 6.6
	 	 	 
	 	“US$”	United
    States Dollar
	 	 	 
	 	“U.S.”	the
    United States of America

	 	 	 	 
	 	“U.S.
    Person”	means:

	 	 	 	 
	 	 	(i)	any
    natural person who is a citizen of, or resident in, the U.S. (meaning the United States of America, its territories and possessions,
    any State of the United States, and the District of Columbia);
	 	 	 	 
	 	 	(ii)	any
    partnership, corporation or other entity organized or incorporated in, or under the laws of the U.S.;
	 	 	 	 
	 	 	(iii)	any
    estate of which any executor or administrator is a U.S. Person;
	 	 	 	 
	 	 	(iv)	any
    trust of which any trustee is a U.S. Person;
	 	 	 	 
	 	 	(v)	any
    agency or branch of a foreign entity located in the U.S., or the income of which is subject to U.S. income tax, regardless
    of source;
	 	 	 	 
	 	 	(vi)	any
    non-discretionary account or similar account (other than an estate or trust) held by a dealer or other fiduciary for the benefit
    or account of a U.S. Person;
	 	 	 	 
	 	 	(vii)	any
    discretionary account or similar account (other than an estate or trust) held by a dealer or other fiduciary organized, incorporated,
    or (if an individual) resident in the U.S.; and
	 	 	 	 
	 	 	(viii)	any
    partnership or corporation if: (A) organized or incorporated under the laws of any foreign jurisdiction; and (B) formed by
    a U.S. Person principally for the purpose of investing in securities not registered under the 1933 Act, unless it is organized
    or incorporated, and owned, by “accredited investors” (as defined in Rule 501(a) of Regulation D of the 1933 Act)
    who are not natural persons, estates or trusts.

 

	 	“Warranties”	the
    representations and warranties which are set out in Clause 13
	 	 	 
	 	“Websites”	the
    online websites and platforms at the Licensed Domain Names which the Licensee shall operate through the Licensee’s use
    of the rights granted under this Agreement
	 	 

    6

     

    

	

                                                                                 
	 

	1.2	In
                                         this Agreement:
	 	 

	(a)	the
                                         Recitals and the Schedules form part of this Agreement and shall have the same force
                                         and effect as if expressly set out in the body of this Agreement and any reference to
                                         this Agreement shall be to this Agreement as from time to time supplemented, varied or
                                         amended and shall include the Recitals and Schedules;
	 	 

	(b)	statutes
                                         or statutory provisions shall be construed as references to those statutes or provisions
                                         as amended from time to time (whether before or after the date of this Agreement) and
                                         to any orders, regulations, instruments or subordinate legislation under the relevant
                                         statute or statutory provisions;
	 	 

	(c)	words
                                         denoting the singular include the plural and vice versa, words denoting any gender include
                                         all genders, and words denoting persons include firms and corporations and vice versa.
                                         “Parties” or “Party” shall mean the parties or
                                         a party to this Agreement;
	 	 

	(d)	the
                                         headings are for convenience only and shall not affect the construction of this Agreement;
                                         and
	 	 

	(e)	unless
                                         otherwise specified, all acts required to be done under this Agreement on a day which
                                         is not a Business Day shall be done on the next Business Day.

 

	2.	GRANT
OF LICENSES

 

	 	 

	2.1	Subject
                                         to the terms and conditions of this Agreement, the Licensor hereby grants to the Licensee
                                         during the Term exclusive, transferrable, royalty-free rights and licenses to use the
                                         following in connection with the Business in the Regions:
	 	 

	(a)	the
                                         Licensed Software; and
	 	 

	(b)	the
                                         Documentation.
	 	 

	2.2	Subject
                                         to the terms and conditions of this Agreement, the Licensor hereby grants to the Licensee
                                         during the Term exclusive, transferrable, royalty-free rights and licenses to use the
                                         following in connection with the Business:
	 	 

	(a)	the
                                         Licensed Trademarks;
	 	 

	(b)	the
                                         Licensed Domain Names; and
	 	 

	(c)	the
                                         Licensed Content.

 

    7

     

    

 

	2.3	The
                                         rights and licenses hereby granted in Clauses 2.1 and 2.2 are sublicensable by the Licensee
                                         as may be necessary to the Licensee’s Affiliates and to the extent necessary for
                                         the Licensee to meet its obligations under this Agreement provided that the Licensee
                                         shall ensure that any such sublicense shall incorporate terms and conditions sufficient
                                         to enable the Licensee to comply with this Agreement and the Licensee remains responsible
                                         for compliance with the terms of the sublicense by the sublicensees. For the avoidance
                                         of doubt, to the extent necessary this Agreement includes all rights that the Licensee
                                         may need in order for Licensee to grant access and use to end users of the Websites and
                                         any mobile application software.
	 	 

	2.4	Pursuant
                                         to the rights and licenses granted under Clause 2.1 and in accordance with the terms
                                         and conditions of this Agreement, the Licensee, and as necessary each of the Licensee’s
                                         Affiliates, has the right and license to do each of the following for or in connection
                                         with the Business:
	 	 

	(a)	install,
                                         execute, host, and run as many copies of the Licensed Software on the Licensee’s
                                         Systems as may be needed by the Licensee and its Authorised Users in connection with
                                         the Business;
	 	 

	(b)	generate,
                                         print, copy, download and store all Licensee’s Data and other data, information
                                         and content, including all graphical user interfaces, audio, visual or digital and other
                                         displays and output, as may result from any execution or other use of the Licensed Software;
	 	 

	(c)	use
                                         the Licensed Software in object code form;
	 	 

	(d)	grant
                                         any and all such sublicenses as may be required to authorise any Authorised Users to
                                         perform any of the Authorised Services in connection with the Business;
	 	 

	(e)	train
                                         Authorised Users in any and all uses of the Licensed Software and the Documentation permitted
                                         hereunder; and
	 	 

	(f)	perform,
                                         and have Authorised Users perform, any other act, including the provision of any service,
                                         that is reasonably incidental to the operation of the Licensed Software for the Business
                                         in accordance with the terms and conditions of this Agreement.
	 	 

	2.5	During
                                         the Term, the Licensor shall provide the Licensee and its Affiliates, at no additional
                                         charge, with all Maintenance Releases, each of which will constitute Licensed Software
                                         and be subject to the terms and conditions of this Agreement.

 

    8

     

    

 

	3.	DELIVERY
OF THE LICENSED SOFTWARE

 

	3.1	Within
                                         ten (10) Business Days after the Effective Date, the Licensor shall deliver the Licensed
                                         Software to the Licensee in a form mutually agreed to by the parties.
	 	 

	3.2	Risk
                                         of loss of any tangible media on which any Licensed Software is delivered shall not pass
                                         to the Licensee unless and until Licensee’s Acceptance of such Licensed Software
                                         in accordance with Clause 4.
	 	 

	3.3	The
                                         Licensor shall provide the Licensee with complete and accurate Documentation for all
                                         Licensed Software prior to or concurrently with its delivery of the Licensed Software,
                                         including any necessary translations of such Documentation into the English language.
                                         The Documentation shall include all technical and functional specifications and other
                                         such information as may be reasonably necessary for the effective installation, testing,
                                         use, support, maintenance of the Licensed Software on the Licensee’s Systems, including
                                         the effective configuration, integration, and systems administration of the Licensed
                                         Software, and the operation and the performance of all its functions.
	 	 

	3.4	Licensor
                                         shall provide all Documentation in both hard copy and electronic form, or as the Licensee
                                         may otherwise request.
	 	 

	4.	ACCEPTANCE
TESTING

 

	4.1	All
                                         Licensed Software shall be tested in accordance with the terms of this Clause 4 to determine
                                         whether it is fully operate, meets all applicable specifications and will function in
                                         accordance with the Documentation when properly installed and used for its intended purpose
                                         on the Licensee’s Systems (the “Acceptance Tests”).
	 	 

	4.2	Upon
                                         the delivery of the Licensed Software, the Licensee shall conduct all Acceptance Tests
                                         to determine whether, and the extent to which:
	 	 

	(a)	the
                                         Licensed Software conforms to the requirements of this Agreement, including the full
                                         operability, integration, interoperability and compatibility of the Licensed Software
                                         with the components and functions of the Licensee’s Systems in accordance with
                                         the Documentation; and
	 	 

	(b)	the
                                         Documentation effectively supports the Licensed Software, is complete and free of any
                                         deficiencies.
	 	 

	4.3	All
                                         Acceptance Tests shall:
	 	 

	(a)	begin
                                         with a commercially reasonable time following delivery of the Licensed Software; and
	 	 

		(b)	be
                                         conducted by the Licensee for up to one-hundred and eighty (180) days from the date of
                                         the Licensee’s receipt of the Licensed Software (the “Testing Period”).

 

    9

     

    

 

	4.4	The
                                         Licensee may suspend the Acceptance Tests and the corresponding Test Period by written
                                         notice to the Licensor if the Licensee discovers a Nonconformity in the tested Licensed
                                         Software or part or feature thereof. In such event, the Licensor shall immediately, and
                                         in any case within ten (10) Business Days, correct such Nonconformity, whereupon the
                                         Acceptance Tests and Testing Period shall resume for the balance of the Testing Period.
	 	 

	4.5	Within
                                         ten (10) Business Days following the completion of any Acceptance Tests, the Licensee
                                         shall prepare and provide to the other party written notice of the completion of the
                                         tests. Such notice shall include a report describing in reasonable detail the tests conducted
                                         and the results thereof, including any uncorrected Nonconformity in the tested Licensed
                                         Software (a “Nonconformance Notice”). If such notice identifies any
                                         Nonconformities, the parties’ rights, remedies and obligations will be as set forth
                                         in Clauses 4.6 and 4.7. If such notice provided by the Licensee identifies no Nonconformities,
                                         such notice shall constitute the Licensee’s Acceptance of the tested Licensed Software.
	 	 

	4.6	If
                                         the Acceptance Tests identify any Nonconformities, the Licensor, at the Licensor’s
                                         sole cost and expense, shall remedy all such Nonconformities and redeliver the Licensed
                                         Software, in accordance with the applicable requirements of this Agreement and the Documentation
                                         as promptly as commercially possible and, in any case, within ten (10) days following
                                         its receipt of the Licensee’s Nonconformance Notice.
	 	 

	4.7	If
                                         Acceptance Tests identify any Nonconformity in any Licensed Software after a second or
                                         subsequent delivery thereof, or the Licensor fails to redeliver any Licensed Software
                                         on a timely basis, the Licensee may, in its sole discretion, by written notice to the
                                         Licensor:
	 	 

	(a)	continue
                                         the process set forth in this Clause 4; or
	 	 

	(b)	accept
                                         the nonconforming Licensed Software, in which case the Issued Shares shall be reduced
                                         equitably to reflect the value of the Licensed Software as received relative to the value
                                         of the Licensed Software had it conformed to the requirements and specifications of this
                                         Agreement and the Documentation; or
	 	 

	(c)	deem
                                         the failure to be a non-curable material breach of this Agreement and terminate this
                                         Agreement pursuant to Clause 12.3.
	 	 

	4.8	Acceptance
                                         of the Licensed Software (“Acceptance”) shall occur, if at all, on
                                         the date that is the earlier of:
	 	 

	(a)	the
                                         Licensee’s delivery of a notice accepting such Licensed Software pursuant to Clause
                                         4.5; or
	 	 

	(b)	ten
                                         (10) Business Days after the expiration of the Testing Period if the Licensee has not
                                         notified the Licensor of one or more Nonconformities prior thereto.

 

    10

     

    

 

	5.	OPERATION
OF THE WEBSITES

 

Following
Acceptance of the Licensed Software, the Licensee shall use reasonable commercial effects to utilise the rights licensed under
this Agreement to commercialize the Websites in the Regions in connection with the Business. Toward that end, the Licensee shall
be responsible for:

 

	(a)	all
                                         costs associated with the Websites, including but not limited to, the operation, advertising,
                                         and marketing of the Websites;
	 	 

	(b)	publishing
                                         the Licensed Content;
	 	 

	(c)	disseminating
                                         all promotional and advertising materials in the Regions in connection with the Websites.
	 	 

	6.	PERFORMANCE
OF SERVICES

 

	6.1	The
                                         Licensor shall provide hosting services to the Licensee (the “Hosting Services”).
                                         Subject to the terms and conditions of this Agreement or any separate hosting agreement
                                         the parties may wish to enter into, the Licensor will use commercially reasonable efforts
                                         to make the Websites available for the authorised access and use by the Licensee over
                                         the internet at least ninety-nine point nine per cent (99.9%) of the time as measured
                                         over the course of each calendar month during the Term excluding unavailability due,
                                         in whole or in part, to:
	 	 

	(a)	act
                                         or omission by the Licensee;
	 	 

	(b)	failure
                                         by the Licensee to adequately maintain the Licensee’s System;
	 	 

	(c)	the
                                         Licensee’s internet connectivity or failure thereof;
	 	 

	(d)	Force
                                         Majeure;
	 	 

	(e)	failure,
                                         crash, degradation, suspension, interruption, outage or other problem with any software,
                                         hardware, system, infrastructure, network, facility or other matter not supplied by or
                                         reasonably under the control of the Licensor; or
	 	 

	(f)	downtime
                                         scheduled by the Licensor for routine maintenance or services.
	 	 

	6.2	During
                                         the Term, the Licensor shall provide the Licensee with support services consisting of
                                         technical support in connection with the function and operation of the Licensed Software,
                                         Maintenance Releases and Websites (the “Support Services”).
	 	 

	6.3	The
                                         Licensor shall provide the Support Services hereunder in a timely, skilful, professional
                                         and workmanlike manner by qualified personnel exercising care, skill and diligence consistent
                                         with best practices in the industry, and will devote adequate resources to meet its obligations
                                         hereunder, in accordance with the terms and conditions of this Agreement and the Documentation.

 

    11

     

    

 

	6.4	The
                                         Licensor acknowledges that time is of the essence with respect to the Licensor’s
                                         performance of the Support Services hereunder and agrees that prompt and timely performance
                                         of all Support Services and other Licensor’s obligations in accordance with this
                                         Agreement is strictly required.
	 	 

	6.5	The
                                         Licensor shall continue to develop and create new application of the Websites as the
                                         Licensee may direct from time to time during the Term.
	 	 

	6.6	The
                                         Licensor shall provide training on all uses of the Licensed Software and Websites, including
                                         any new application of the Websites as may be developed during the Term (the “Training
                                         Services”). Upon the Licensee’s request, the Licensor shall timely provide
                                         training for additional Authorised Users or other additional training on all uses of
                                         the Licensed Software for which the Licensee requests such training, at such reasonable
                                         times and locations as the Licensee requests.
	 	 

	7.	CONSIDERATION
AND CONDITIONS PRECEDENT

 

	7.1	Subject
                                         to Clause 7.2, and in consideration of and as payment in full for the rights and licenses
                                         hereby granted and the services provided by the Licensor in accordance with this Agreement,
                                         the Licensee shall issue to the Licensor 530,000 shares in SEII at the Issued Price of
                                         US$4 per share (the “Issued Shares”).
	 	 

	7.2	The
                                         issue of the Issued Shares is conditional upon:
	 	 

	(a)	all
                                         necessary approvals and consents in respect to this Agreement and the transactions contemplated
                                         hereunder having been obtained by SEII; and
	 	 

	(b)	if
                                         so required under the NASDAQ Stock Market Rules, any applicable laws and/or regulations,
                                         the constitutional documents of SEII and/or by the U.S. Securities and Exchange Commission
                                         or other relevant authority, the passing by the shareholders of SEII of resolution(s)
                                         approving this Agreement and the transactions contemplated thereunder, including the
                                         issue of the Issued Shares.
	 	 

	7.3	If
                                         the conditions set out in Clause 7.2 have not been satisfied on or before December 31,
                                         2018, this Agreement shall cease and determine (save and except Clause 11 which shall
                                         continue to have full force and effect) and thereafter none of the Parties shall have
                                         any obligations and liabilities towards each other hereunder save for any antecedent
                                         breaches of the terms hereof.
	 	 

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	8.	GUARANTEED
REVENUE AND GUARANTEED GROSS PROFIT

 

	8.1	The
                                         Licensor guarantees that the Business will generate revenue of US$15,000,000 (the “Guaranteed
                                         Revenue”) and gross profit of US$2,910,000 (the “Guaranteed Gross
                                         Profit”) for the Term.
	 	 

	8.2	If
                                         the Business fails to generate either or both of the guaranteed amounts set forth in
                                         Clause 8.1 (unless such failure is caused solely by the Licensee’s material breach
                                         of any of its obligations under this Agreement), the Licensor shall compensate the Licensee
                                         as follows:
	 	 

	(a)	in
                                         the event that the Business fails to generate the Guaranteed Revenue only, the Licensor
                                         shall, no later than one (1) calendar month after the date of the audited financial statement
                                         for the year ending 31 December 2019, return to the Licensee such proportion of the Issued
                                         Shares as is equal to the ratio of the amount of shortfall in revenue for the Term to
                                         the Guaranteed Revenue; or pay to the Licensee an amount equivalent to such proportion
                                         of Issued Shares at the Issued Price in cash, the choice of which will be made by the
                                         Licensee at its sole and absolute discretion;
	 	 

	(b)	in
                                         the event that the Business fails to generate the Guaranteed Gross Profit only, the Licensor
                                         shall, no later than one (1) calendar month after the date of the audited financial statement
                                         for the year ending 31 December 2019, return to the Licensee such proportion of the Issued
                                         Shares as is equal to the ratio of the amount of shortfall in gross profit for the Term
                                         to the Guaranteed Gross Profit; or pay to the Licensee an amount equivalent to such proportion
                                         of Issued Shares at the Issued Price in cash, the choice of which will be made by the
                                         Licensee at its sole and absolute discretion; or
	 	 

	(c)	in
                                         the event that the Business fails to generate the Guaranteed Revenue and the Guaranteed
                                         Gross Profit, the Licensor shall compensate the Licensee in accordance with Clause 8.2(a)
                                         or Clause 8.2(b), whichever is more favourable to the Licensee in the circumstances.

 

	9.	TRANSFER
OF REVENUES

 

	9.1	The
                                         Licensee shall own all revenues and accounts receivable generated by the Business during
                                         the Term.
	 	 

	9.2	The
                                         Licensor shall collect all revenues generated by the Business and any monies owed to
                                         the Licensee in connection with the Business. The Licensor shall transfer any monies
                                         collected to the Licensee on a monthly basis.
	 	 

	9.3	The
                                         Licensor shall keep and maintain accurate and adequate books and records of the revenue
                                         generated by the Business any monies owed to the Licensee in connection with the Business.
                                         The Licensee shall be allowed to conduct on-site audit of any such books or records upon
                                         reasonable notice.
	 	 

	9.4	On
                                         or before the fifteen day of each month, the Licensor shall render a report to the Licensee
                                         setting out, inter alia, the revenue generated and monies collected during the period
                                         commencing on the first day of the previous month and ending on the last day of the previous
                                         month (the “Reported Month”) in full detail (the “Month End
                                         Report”).

 

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	9.5	The
                                         Licensor shall transfer to the Licensee the monies collected in full amount as set forth
                                         in the Month End Report no later than 30 days after the last day of the Reported Month.
	 	 

	9.6	Notwithstanding
                                         any dispute concerning, arising out of or in connection with any Month End Report or
                                         the amount to be transferred to the Licensee for any given Reported Month, the Licensor
                                         shall, in accordance with Clauses 9.4 and 9.5, transfer the monies collected for such
                                         Reported Month, and continue to render Month End Report to the Licensee and transfer
                                         any monies collected for any subsequent Reported Month.
	 	 

	9.7	In
                                         case of any dispute concerning, arising out of or in connection with any Month End Report
                                         or the amount to be transferred to the Licensee for any given Reported Month, the Licensee’s
                                         determination shall be final and binding on the Parties.
	 	 

	10.	INTELLECTUAL
PROPERTY RIGHTS

 

	10.1	Subject
                                         to the rights and licenses granted by the Licensor hereunder, and the provisions of Clause
                                         10.2:
	 	 

	(a)	the
                                         Licensor and its licensor(s) reserve and retain their rights, titles and interests in
                                         and to all Intellectual Property Rights arising out of or relating to the Licensed Software,
                                         the Documentation, and the Maintenance Releases; and
	 	 

	(b)	none
                                         of the Licensee, Licensee’s Affiliates or Authorized Users acquire any ownership
                                         of Intellectual Property Rights in or to the Licensed Software, the Documentation, and
                                         the Maintenance Releases as a result of this Agreement.
	 	 

	10.2	As
                                         between the Licensee and its Affiliates, on the one hand, and the Licensor and its licensors,
                                         on the other hand, the Licensee and its Affiliates reserve and retain sole and exclusive
                                         ownership of all rights, titles and interests in and to the Licensee’s Data, the
                                         Licensee’s Modifications, the Licensee’s Systems, and the Licensee’s
                                         advertising materials including all Intellectual Property Rights arising therefrom or
                                         relating thereto. The Licensee’s Data, the Licensee’s Modifications, and
                                         the Licensee’s Systems are the Confidential Information of the Licensee and its
                                         Affiliates, and neither the Licensor nor any third party (other than a Licensee’s
                                         Affiliate) shall:
	 	 

	(a)	have,
                                         acquire or claim any right, title or interest in or to any Licensee’s Data, Licensee’s
                                         Modifications, and Licensee’s Systems as a result of this Agreement or any interest
                                         they may have in the Licensed Software, the Documentation, or the Maintenance Releases;
                                         or
	 	 

	(b)	have
                                         any right or license to, and shall not, use any Licensee’s Data, Licensee’s
                                         Modifications, and Licensee’s Systems except solely as and to the extent necessary
                                         to perform the Support Services under this Agreement.
	 	 

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	11.	CONFIDENTIALITY

 

	11.1	In
                                         connection with this Agreement, each party (as the “Disclosing Party”)
                                         may disclose or make available Confidential Information to the other party (as the “Receiving
                                         Party”). Subject to Clause 11.2, “Confidential Information”
                                         means information in any form or medium (whether oral, written, electronic or other)
                                         that the Disclosing Party considers confidential or proprietary, including information
                                         consisting or relating to the Disclosing Party’s technology, trade secrets, know-how,
                                         business operations, plans, strategies, customers, financial information, and pricing,
                                         and information with respect to which the Disclosing Party has contractual or other confidentiality
                                         obligations, in each case whether or not marked, designated or otherwise identified as
                                         “confidential”. Without limiting the foregoing, the Licensee’s Data
                                         are the Confidential Information of the Licensee and the financial terms of this Agreement
                                         are the Confidential Information of both parties.
	 	 

	11.2	Confidential
                                         Information does not include information that the Receiving Party can demonstrate by
                                         written or other documentary records:
	 	 

	(a)	was
                                         rightfully known to the Receiving Party without restriction on use or disclosure prior
                                         to such information being disclosed or made available to the Receiving Party in connection
                                         with this Agreement;
	 	 

	(b)	was
                                         or becomes generally known by the public other than by the Receiving Party’s or
                                         any of its Representatives’ noncompliance with this Agreement;
	 	 

	(c)	was
                                         or is received by the Receiving Party on a non-confidential basis from a third party
                                         that, to the Receiving Party’s knowledge, was not or is not, at the time of such
                                         receipt, under any obligation to maintain its confidentiality; or
	 	 

	(d)	was
                                         or is independently developed by the Receiving Party without reference to or use of any
                                         Confidential Information.
	 	 

	11.3	Upon
                                         being provided with any disclosure of or access to the Confidential Information, the
                                         Receiving Party shall, for the Term of this Agreement,:
	 	 

	(a)	not
                                         access or use Confidential Information other than as necessary to exercise its rights
                                         or perform its obligations under and in accordance with this Agreement;
	 	 

	(b)	not,
                                         except as may be permitted by and subject to its compliance with Clause 11.4, disclose
                                         or permit access to Confidential Information other than to its Representatives who:
	 	 

		(i)	need
                                         to know such Confidential Information for purposes of the Receiving Party’s exercise
                                         of its rights or performance of its obligations under and in accordance with this Agreement;
	 	 	 

		(ii)	have
                                         been informed of the confidential nature of the Confidential Information and the Receiving
                                         Party’s obligations under this Clause 11.3; and
	 	 	 

		(iii)	are
                                         bound by written confidentiality and restricted use obligations at least as protective
                                         of the Confidential Information as the terms set forth in this Clause 11.3;
	 	 	 

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	(c)	safeguard
                                         the Confidential Information from unauthorised use, access or disclosure using at least
                                         the degree of care it uses to protect its similarly sensitive information and in no event
                                         less than a reasonable degree of care; and
	 	 

	(d)	ensure
                                         its Representatives’ compliance with, and be responsible and liable for any of
                                         its Representatives’ noncompliance with, the terms of this Clause 11.
	 	 

	11.4	If
                                         the Receiving Party or any of its Representatives is compelled by applicable Law to disclose
                                         any Confidential Information then, to the extent permitted by applicable Law, the Receiving
                                         Party shall:
	 	 

	(a)	promptly,
                                         and prior to such disclosure, notify the Disclosing Party in writing of such requirement
                                         so that the Disclosing Party can seek a protective order or other remedy, or waive its
                                         rights under Clause 11.3; and
	 	 

	(b)	provide
                                         reasonable assistance to the Disclosing Party, at the Disclosing Party’s sole cost
                                         and expense, in opposing such disclosure or seeking a protective order or other limitations
                                         on disclosure.
	 	 

If
the Disclosing Party waives compliance or, after providing the notice and assistance required under this Clause 11.4, the Receiving
Party remains required by Law to disclose any Confidential Information, the Receiving Party shall disclose only that portion of
the Confidential Information that, on the advice of the Receiving Party’s legal counsel, the Receiving Party is legally
required to disclose and, upon the Disclosing Party’s request, shall use commercially reasonable efforts to obtain assurances
from the applicable court or other presiding authority that such Confidential Information will be afforded confidential treatment.

 

	12.	TERM
AND TERMINATION

 

	12.1	The
                                         Term of this Agreement shall be effective on the date the conditions precedent set forth
                                         in Clause 7.2 have been satisfied (the “Effective Date”) and continue
                                         in effect until 31 December 2019 (the “Expiration Date”) unless terminated
                                         earlier in accordance with any of the express provisions of this Agreement.
	 	 

	12.2	Unless
                                         this Agreement is terminated in accordance with any of the express provisions of this
                                         Agreement before the Expiration Date, the Licensee may, at its option, renew this Agreement
                                         for a term, which will be mutually agreed upon by the Parties, by providing the Licensor
                                         with written notice not earlier than 3 months before the Expiration Date and not later
                                         than the Expiration Date.
	 	 

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	12.3	In
                                         addition to any other express termination right set forth elsewhere in this Agreement,
                                         either Party may terminate this Agreement, effective on written notice to the other Party,
                                         if the other Party:
	 	 

	(a)	commits
                                         a material breach of any provision thereof, and such breach is not remediable or, if
                                         remediable, is not remedied within thirty (30) days after the non-breaching Party provides
                                         the breaching Party with written notice of such breach;
	 	 

	(b)	is
                                         dissolved or liquidated or takes any corporate action for such purpose;
	 	 

	(c)	becomes
                                         insolvent or is generally unable to pay, or fails to pay, its debts as they become due;
	 	 

	(d)	files
                                         or has filed against it a petition for voluntary or involuntary bankruptcy or otherwise
                                         becomes subject, voluntarily or involuntarily, to any proceeding under any domestic or
                                         foreign bankruptcy or insolvency Law; or
	 	 

	(e)	applies
                                         for or has appointed a receiver, trustee, custodian or similar agent appointed by order
                                         of any court of competent jurisdiction to take charge of or sell any material portion
                                         of its property or business;
	 	 

	12.4	In
                                         the event that this Agreement is terminated by the Licensee before the Expiration Date
                                         due to a material breach committed by the Licensor, the Licensor shall return to the
                                         Licensee the Issued Shares on a pro-rata basis.
	 	 

	12.5	Upon
                                         any expiration (save that the Licensee exercises its right to renew this Agreement in
                                         accordance with Clause 12.2) or termination of this Agreement for any reason:
	 	 

	(a)	all
                                         rights and licenses granted to the Licensee under this Agreement shall cease;
	 	 

	(b)	the
                                         Licensee shall cease all activities authorised by this Agreement; and
	 	 

	(c)	the
                                         Licensee shall, within thirty (30) days after any such expiration or termination, destroy
                                         or return to the Licensor all copies of the Licensed Software and the Maintenance Releases
                                         then in its possession, custody or control.
	 	 

	12.6	The
                                         provisions set forth in the following sections, and any other right or obligation of
                                         the parties in this Agreement that, by its nature, should survive termination or expiration
                                         of this Agreement, will survive any expiration or termination of this Agreement: Clauses
                                         9, 10, 11, 12.4, 12.5, 12.6, 13, 14 and 17.

 

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	13.	REPRESENTATIONS
AND WARRANTIES

 

	13.1	Each
                                         Party represents and warrants to the other Party that:
	 	 

	(a)	it
                                         is a duly organised, validly existing and in good standing as a corporation or other
                                         entity under the Laws of the jurisdiction of its incorporation or other organisation;
	 	 

	(b)	it
                                         has the full right, power and authority to enter into, and to perform its obligations
                                         and grant the rights and licenses it grants or is required to grant under, this Agreement;
	 	 

	(c)	the
                                         execution of this Agreement by its Representative whose signature is set forth at the
                                         end of this Agreement has been duly authorised by all necessary corporate or organisational
                                         action of such Party; and
	 	 

	(d)	when
                                         executed and delivered by both Parties, this Agreement will constitute the legal, valid
                                         and binding obligation of such Party, enforceable against such Party in accordance with
                                         its terms.
	 	 

	13.2	The
                                         Licensor further represents, warrants and covenants to the Licensee that:
	 	 

	(a)	it
                                         has obtained all necessary consents and approvals that are required for the execution,
                                         delivery and performance of this Agreement, and such execution, delivery and performance
                                         of this Agreement will not constitute a default under any agreement to which it is a
                                         party;
	 	 

	(b)	it
                                         is and throughout the Term will remain the sole and exclusive legal and beneficial owner,
                                         and throughout the Term will retain sole and exclusive control (by ownership, license
                                         or otherwise), of the entire right, title and interest in and to the Licensed Software,
                                         the Documentation, the Maintenance Releases, the Licensed Trademarks, the Licensed Domain
                                         Names, and the Licensed Content including all Intellectual Property Rights relating thereto;
	 	 

	(c)	it
                                         has and throughout the Term will retain the unconditional and irrevocable right, power
                                         and authority to grant and perform the licenses under this Agreement;
	 	 

	(d)	the
                                         Licensed Software, the Documentation, the Maintenance Releases, the Licensed Trademarks,
                                         the Licensed Domain Names, the Licensed Content, and the Licensee’s use thereof,
                                         is and throughout the Term will be free and clear of all encumbrances, liens and security
                                         interests of any kind;
	 	 

	(e)	its
                                         grant of the licenses under this Agreement, the Hosting Services, the Support Service,
                                         the Training Services or any other performance by or on behalf of the Licensor under
                                         this Agreement does not or to its knowledge will not at any time:
	 	 

		(i)	conflict
                                         with or violate any applicable Law of Hong Kong;
	 	 	 

		(ii)	require
                                         the consent, approval or authorisation of any governmental or regulatory authority in
                                         Hong Kong or other third party; or
	 	 	 

		(iii)	require
                                         the provision of any payment or other consideration to any third party;
	 	 	 

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	(f)	it
                                         has not granted and will not at any time during the Term grant any license or other contingent
                                         or non-contingent right, title or interest in the Regions under or relating to the Licensed
                                         Software, the Documentation, the Maintenance Releases, the Licensed Trademarks, the Licensed
                                         Domain Names, and the Licensed Content that does or will conflict with or otherwise affect
                                         this Agreement, including any of the Licensor’s representations, warranties, or
                                         performance or the Licensee’s rights or licenses hereunder;
	 	 

	(g)	when
                                         used by the Licensee or any Authorised User in accordance with this Agreement, the Licensed
                                         Software, the Documentation, the Maintenance Releases, the Licensed Trademarks, the Licensed
                                         Domain Names, and the Licensed Content does not or will not:
	 	 

		(i)	infringe,
                                         misappropriate or otherwise violate any Intellectual Property Rights or other rights
                                         of any third party; or
	 	 	 

		(ii)	fail
                                         to comply with any applicable Law;
	 	 	 

	(h)	there
                                         is no settled, pending or to its knowledge threatened litigation, claim or proceeding
                                         (including in the form of any offer to obtain a license):
	 	 

		(i)	alleging
                                         that any use of the Licensed Software, the Documentation, the Maintenance Releases, the
                                         Licensed Trademarks, the Licensed Domain Names, and the Licensed Content in the Regions
                                         does or would infringe, misappropriate or otherwise violate any copyright, trademark,
                                         patent, trade secret or other Intellectual Property Right of any third party;
	 	 	 

		(ii)	challenging
                                         the Licensor’s ownership of, or right to use or license, any of the Licensed Software,
                                         the Documentation, the Maintenance Releases, the Licensed Trademarks, the Licensed Domain
                                         Names, and the Licensed Content, or alleging any adverse right, title or interest with
                                         respect thereto;
	 	 	 

		(iii)	alleging
                                         the invalidity, misuse, un-registrability, unenforceability or non-infringement of any
                                         copyrights, trade secret rights or patent rights in the Licensed Software, the Documentation,
                                         the Maintenance Releases, the Licensed Trademarks, the Licensed Domain Names, and/or
                                         the Licensed Content; or
	 	 	 

		(iv)	alleging
                                         any third-party infringement, misappropriation or violation of any copyrights, trademarks,
                                         trade secrets or patent rights in the Licensed Software, the Documentation, the Maintenance
                                         Releases, the Licensed Trademarks, the Licensed Domain Names, or the Licensed Content,
                                         nor to its knowledge, is any third party infringing, misappropriating or violating, or
                                         preparing or threatening to infringe, misappropriate or violate, any copyrights, trademarks,
                                         trade secrets or patent rights in the Licensed Software, the Documentation, the Maintenance
                                         Releases, the Licensed Trademarks, the Licensed Domain Names, and/or the Licensed Content,
                                         and it has no knowledge after reasonable investigation of any factual, legal or other
                                         reasonable basis for any such litigation, claim or proceeding;
	 	 	 

    19

     

    

 

	(i)	it
                                         has not received any written, oral or other notice of any litigation, claim or proceeding
                                         described in Clause 13.2 (g);
	 	 

	(j)	no
                                         expiration or loss of any patent or application for patent rights in the Licensed Software
                                         is pending, or, to the Licensor’s knowledge after reasonable inquiry, threatened
                                         or reasonably foreseeable, and the Licensor has no reason to believe that any claims
                                         of any such patent or patent application are or will be invalid, unenforceable, fail
                                         to issue, or be materially limited or restricted beyond the current claims, except for
                                         patent rights expiring at the end of their statutory term;
	 	 

	(k)	as
                                         provided by the Licensor, none of the Licensed Software or the Maintenance Releases does
                                         or will at any time during the Term contain any Harmful Code;
	 	 

	(l)	all
                                         Documentation is and will be complete and accurate in all material aspects when provided
                                         to the Licensee such that at no time during the Term will the Licensed Software have
                                         any material undocumented feature;
	 	 

	(m)	it
                                         will perform all Hosting Services, Support Services and Training Services in a timely,
                                         skilful, professional and workmanlike manner in accordance with the best industry standards
                                         and practices for similar services, using personnel with the requisite skill, experience
                                         and qualifications, and will devote adequate resources to meet its obligations under
                                         this Agreement;
	 	 

	(n)	it
                                         understands that the Issued Shares are “restricted securities” and have not
                                         been registered under the Securities Act and is acquiring the Issued Shares as principal
                                         for its own account and not with a view to or for distributing or reselling such Issued
                                         Shares or any part thereof in violation of the Securities Act, has no present intention
                                         of distributing any of such Issued Shares in violation of the Securities Act and has
                                         no direct or indirect arrangement or understandings with any other persons to distribute
                                         or regarding the distribution of such Issued Shares in violation of the Securities Act;
	 	 

	(o)	it
                                         has satisfied itself as to the full observance of the laws of its jurisdiction in connection
                                         with any invitation to subscribe for the Issued Shares, including (i) the legal requirements
                                         within its jurisdiction for the subscription of the Issued Shares, (ii) any foreign exchange
                                         restrictions applicable to such subscription, (iii) any governmental or other consents
                                         that may need to be obtained, and (iv) the income tax and other tax consequences, if
                                         any, that may be relevant to the purchase, holding, redemption, sale, or transfer of
                                         the Issued Shares.
	 	 

	(p)	it
                                         has such knowledge, sophistication and experience in business and financial matters so
                                         as to be capable of evaluating the merits and risks of the prospective investment in
                                         the Issued Shares, and has so evaluated the merits and risks of such investment. The
                                         Licensor is able to bear the economic risk of an investment in the Issued Shares and,
                                         at the present time, is able to afford a complete loss of such investment;
	 	 

	(q)	it
                                         has not subscribed the Issued Shares as a result of any advertisement, articles, notice
                                         or other communication regarding the Issued Shares published in any newspaper, magazine
                                         or similar media or broadcast over television or radio or presented at any seminar or
                                         any other general solicitation or general advertisement.
	 	 

    20

     

    

 

	(r)	it
                                         acknowledges that it has been afforded (i) the opportunity to ask such questions as it
                                         has deemed necessary of, and to receive answers from, representatives of SEII concerning
                                         the terms and conditions of the offering of the Issued Shares and the merits and risks
                                         of investing in the Issued Shares; (ii) access to information about SEII and its financial
                                         condition, results of operations, business, properties, management and prospects sufficient
                                         to enable it to evaluate its investment; and (iii) the opportunity to obtain such additional
                                         information that SEII possesses or can acquire without unreasonable effort or expense
                                         that is necessary to make an informed investment decision with respect to the investment.
                                         The Licensor acknowledges and agrees that neither SEII nor any Affiliate of SEII has
                                         provided it with any information or advice with respect to the Issued Shares nor is such
                                         information or advice necessary or desired. Neither SEII nor any Affiliate has made or
                                         makes any representation as to SEII or the quality of the Issued Shares and SEII and
                                         any Affiliate may have acquired non-public information with respect to SEII which the
                                         Licensor agrees need not be provided to it; and
	 	 

	(s)	neither
                                         the Licensor nor any person acting on its behalf has engaged, nor will engage, in any
                                         directed selling efforts to a U.S. Person with respect to the Issued Shares and the Licensor
                                         and any person acting on its behalf has complied and will comply with the “offering
                                         restrictions” requirements of Regulation S. The transactions contemplated by this
                                         Agreement have not been pre-arranged with a buyer located in U.S. or with a U.S. Person,
                                         and are not part of a plan or scheme to evade the registration requirements of the Securities
                                         Act. Neither the Vendor nor any person acting on its behalf has undertaken or carried
                                         out any activity for the purpose of, or that could reasonably be expected to have the
                                         effect of, conditioning the market in U.S., its territories or possessions, for any of
                                         the Issued Shares. The Licensor agrees not to cause any advertisement of the Issued Shares
                                         to be published in any newspaper or periodical or posted in any public place and not
                                         to issue any circular relating to such issue of shares, except such advertisements that
                                         include the statements required by Regulation S, and only offshore and not in the U.S.
                                         or its territories, and only in compliance with any local applicable securities laws.
	 	 

	13.3	The
                                         Licensor represents, warrants and covenants to the Licensee that throughout the Term
                                         (provided that the Licensee or anyone acting with the authority of the Licensee has not
                                         amended the Licensed Software and/or the Maintenance Releases):
	 	 

	(a)	when
                                         used on the Licensee’s Systems (or any successor thereto) in accordance with the
                                         Documentation, all Licensed Software, and Maintenance Releases as provided by the Licensor
                                         in all material aspects will be fully operable, meet all applicable specifications, and
                                         function in all respects, in conformity with this Agreement and the Documentation;
	 	 

	(b)	any
                                         media on which any Licensed Software, Documentation, or Maintenance Releases is delivered
                                         will be free of any damage or defect in all material respects in design, material or
                                         workmanship, and will remain so under ordinary use as contemplated by this Agreement
                                         and, with respect to the Licensed Software, the Documentation; and
	 	 

	(c)	no
                                         Maintenance Release when installed by the Licensee in accordance with this Agreement,
                                         will have an adverse effect on the functionality or operability of the Licensed Software
                                         or the Websites.
	 	 

    21

     

    

 

	13.4	If
                                         the Licensor breaches any of the warranties set forth in Clause 13.3, provided that the
                                         Licensee provides all the information that may be necessary to assist the Licensor in
                                         resolving the defect or fault (and provided that such defect or default does not result
                                         from the Licensee or anyone acting with the authority of the Licensee) including a documented
                                         example of any defect or fault or sufficient information to enable the Licensor to re-create
                                         the defect or fault, the Licensor shall upon written notice from the Licensee and at
                                         the Licensor’s sole cost and expense remedy such breach within a commercially reasonable
                                         time by repairing or replacing the Licensed Software and/or the Maintenance Releases
                                         so as the Licensee’s operation of the Websites is not adversely affected. In the
                                         event that the Licensor fails to remedy such breach on a timely basis as abovementioned,
                                         the Licensee shall be entitled to terminate this Agreement immediately by written notice
                                         to the Licensor.

 

	14.	INDEMNIFICATION

 

	14.1	Without
                                         prejudice and in addition to the Licensee’s rights, claims and remedies for a breach
                                         of the Warranties, the Licensor covenants with the Licensee to indemnify and keep indemnified
                                         the Licensee and each of the Licensee’s Affiliates, and their respective officers,
                                         directors, employees, consultants, agents, contractors, permitted successors and permitted
                                         assignees (each of the foregoing, an “Indemnitee”) at all times on
                                         demand against any and all Losses incurred by the Licensee or the Indemnitee as a result
                                         of or in connection with any of the Warranties being untrue, inaccurate, incomplete or
                                         misleading.
	 	 

	14.2	The
                                         Licensor shall defend, indemnify and hold harmless the Licensee and the Indemnitee from
                                         and against any and all Losses incurred by the Licensee or the Indemnitee arising out
                                         of or relating to any claim, suit, action or proceeding (each of the foregoing, an “Action”)
                                         by a third party to the extent that such Losses are alleged to arise out of or result
                                         from (a) the Licensor’s entering into or execution of this Agreement; or (b) the
                                         Licensor’s failure to comply with its obligation under Clause 10 (INTELLECTUAL
                                         PROPERTY RIGHTS) or Clause 11 (CONFIDENTIALITY). The Licensee shall promptly notifies
                                         the Licensor in writing of such Action and the Licensor is permitted to control fully
                                         the defense and any settlement of such Action as long as such settlement shall not include
                                         a financial obligation on the Licensee. The Licensee may participate in and observe the
                                         proceedings at its own cost and expense with counsel of its own choosing.
	 	 

    22

     

    

 

	15.	NOTICES

 

	15.1	Any
                                         notice given by a Party in connection with this Agreement shall be in writing and deemed
                                         given at the time of actual delivery if delivered by hand, at the time of delivery if
                                         delivered by electronic means with proof of delivery, or two days after posting (if sent
                                         by registered post within Hong Kong) or seven days after posting (if sent from Hong Kong
                                         to an address outside Hong Kong or vice versa), subject to proof of posting.
	 	 

	15.2	Unless
                                         otherwise specified in writing by the receiving party in accordance with this Clause
                                         15, all notices in connection with this Agreement must be addressed and sent to:
	 	 

	 	Ecrent
    Capital Holdings Limited	 
	 	 	 
	 	address:	Cornwall
    Centre, 85 Castle Peak Road, Coffee Bay, Tuen Mun, N.T., Hong Kong
	 	 	 
	 	for
    the attention of:	Mr
    Chan Tin Chi
	 	 	 
	 	email:	tc@ecrent.com
	 	 	 
	 	Sharing
    Economy Investment Limited	 
	 	 	 
	 	address:	Units
    315-6, 3/F, Building 12W, Hong Kong Science Park, Shatin, N.T., Hong Kong
	 	 	 
	 	for
    the attention of:	 Mr
    Parkson Yip
	 	 	 
	 	email:	parkson.yip@seii.com
	 	 	 

	15.3	Nothing
                                         in this Clause 15 shall preclude the service of documents or the proof of such service
                                         by any other mode permitted by law.
	 	 

    23

     

    

 

	16.	FORCE
MAJEURE

 

	16.1	In
                                         no event will either Party be liable or responsible to the other Party, or be deemed
                                         to have defaulted under or breached this Agreement, for any failure or delay in fulfilling
                                         or performing any term of this Agreement when and to the extent such failure or delay
                                         is caused by any of the following circumstances beyond such Party’s reasonable
                                         control (each a “Force Majeure Event”) including: acts of God, flood,
                                         fire, earthquake or explosion, war, terrorism, invasion, riot or other civil unrest,
                                         embargoes or blockades in effect on or after the Effective Date, notional or regional
                                         emergency, strikes, labour stoppages or slowdowns or other industrial disturbances, passage
                                         of Law or any action taken by a governmental or public authority, including imposing
                                         an embargo, export or import restriction, quota or other restriction or prohibition or
                                         any complete or partial government shutdown, or national or regional shortage of adequate
                                         power or telecommunications or transportation. The Licensee may terminate this Agreement
                                         if a Force Majeure Event affecting the Licensor continues substantially uninterrupted
                                         for a period of thirty (30) days or more.
	 	 

	16.2	In
                                         the event of any failure or delay caused by a Force Majeure Event, the affected Party
                                         shall give prompt notice to the other Party, stating the period of the time the occurrence
                                         is expected to continue and use diligent efforts to end the failure or delay and minimise
                                         the effects of such Force Majeure Event.
	 	 

	17.	MISCELLANEOUS

 

	17.1	No
                                         amendment or variation of or supplement to this Agreement shall be valid unless it is
                                         in writing and signed by or on behalf of each of the Parties.
	 	 

	17.2	Save
                                         as agreed in writing by all Parties, the rights and/or benefits of any Party under this
                                         Agreement may not be assigned or transferred to, or become the subject of any encumbrance
                                         in favour of, any third party and no Party shall transfer, or attempt to transfer, any
                                         of its duties or liabilities hereunder to any third party.
	 	 

	17.3	The
                                         Parties agree that they are independent contractors and will always represent themselves
                                         to any third parties only as an independent contractor. The Parties are not, and nothing
                                         in this Agreement shall be interpreted that the Parties are, partners, joint venturers,
                                         co-owners, Affiliate of each other, or otherwise participants in a joint or common undertaking.
	 	 

    24

     

    

 

	17.4	If
                                         at any time any one or more of the provisions of this Agreement is or becomes illegal,
                                         invalid or unenforceable in any respect under the laws of any jurisdiction, the remaining
                                         provisions of this Agreement shall continue in full force and effect as if the illegal,
                                         invalid or unenforceable provision were omitted herefrom. The illegal, invalid or unenforceable
                                         provision shall be deemed to be substituted by a suitable and equitable provision which,
                                         to the extent legally permissible, comes as close as possible to the intent and purpose
                                         of the invalid or unenforceable provision.
	 	 

	17.5	No
                                         failure to exercise and no delay in exercising any right, power, remedy or privilege
                                         arising hereunder shall operate as a waiver thereof, nor shall any single or partial
                                         exercise of any such right, power, remedy or privilege preclude any other or further
                                         exercise thereof or the exercise of any other right, power, remedy or privilege. Without
                                         limiting the foregoing, no waiver by any Party of any breach of any provision hereof
                                         shall be deemed to be a waiver of any subsequent breach of that or any other provision
                                         hereof.
	 	 

	17.6	This
                                         Agreement shall be governed by, and construed in all respects in accordance with, the
                                         laws of Hong Kong.
	 	 

	17.7	Except
                                         as expressly set forth in this Agreement, the application of the Contracts (Rights of
                                         Third Parties) Ordinance is expressly excluded and the terms of this Agreement are not
                                         intended to confer any rights or remedies upon, and shall not be enforceable by, any
                                         person other than the Parties.
	 	 

	17.8	Except
                                         for any dispute concerning, arising out of or in connection with any Month End Report
                                         or the amount to be transferred to the Licensee for any given Reported Month which shall
                                         be determined in accordance with Clause 9.7, any other dispute concerning, arising out
                                         of or in connection with this Agreement shall be referred to the representative of each
                                         of the Parties as named in Clause 15.2 (or notified by any of the Parties to the other
                                         in writing) for discussion in good faith with a view to resolving such dispute. If such
                                         dispute cannot be resolved within thirty (30) days after commencement of such discussion,
                                         it shall be finally settled under the Rules of Arbitration of the International Chamber
                                         of Commerce by three arbitrators appointed in accordance with such Rules. The place of
                                         arbitration shall be Hong Kong and the language of arbitration shall be English.
	 	 

	17.9	This
                                         Agreement constitutes the entire agreement between the Parties relating to the subject
                                         matter hereof and supersedes all prior agreements or undertakings oral or written.
	 	 

	17.10	This
                                         Agreement may be executed in counterparts, each of which is deemed an original, but all
                                         of which together are deemed to be one and the same agreement. A signed copy of this
                                         Agreement delivered by facsimile, e-mail or other means of electronic transmission is
                                         deemed to have the same legal effect as delivery of an original signed copy of this Agreement.

 

    25

     

    

 

Schedules:

 

Schedule
1: Regions

 

Schedule
2: Licensed Software

 

Schedule
3: Licensed Domain Names

 

Schedule
4: Licensed Trademarks

 

    26

     

    

 

IN WITNESS whereof
this Agreement has been executed on the day and year first above written.

 

	SIGNED BY TIN CHI CHAN	)
	 	 
	for and on behalf of	)
	 	 
	Ecrent Capital Holdings Limited	)
	 	 
	SIGNED BY PING KEE LAU	)
	 	 
	for and on behalf of	)
	 	 
	Sharing Economy Investment Limited	)

 

    27

     

    

 

SCHEDULE 1

 

Regions

 

Taiwan,
Thailand, India, Indonesia, Singapore, Malaysia, Philippines, Vietnam, Cambodia, Japan, and Korea

 

 

 

 

 

 

 

 

    1

     

    

 

SCHEDULE
2

 

Licensed
Software

 

	1.	The
                                         website http://www.ecrent.com

 

	2.	Apple
                                         IOS ECrent mobile application

 

		3.	Android
                                         ECrent mobile application

  

    2

     

    

 

SCHEDULE
3

 

Licensed
Domain Names

 

http://www.ecrent.com

 

 

 

 

 

 

 

 

    3

     

    

 

SCHEDULE
4

 

Licensed
Trademarks

 

	Trademark	Country/Region
    of Registration	Registration
    Number	Status
		The
    People’s Republic of China	14223429	Registered
		The
    People’s Republic of China	14223415	Registered
		The
    People’s Republic of China	14223445	Registered

 

    4

     

    

 

		U.S.	4787366	Registered
		Europe	013218871	Registered
		Australia	1644832	Registered
		Hong
    Kong	302942596	Registered
	ECRENT	Unregistered
    (rights based on common law usage)

 

 

5

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