Document:

Exhibit 10.1

 

 

 

February
22, 2021

 

CONFIDENTIAL

MMTec,
Inc.

Attn:
Mr. Min Kong

AF,
16/F, Block B, Jiacheng Plaza, 18 Xiaguangli, Chaoyang District

Beijing,
China , 100027

China

 

	Re:	Terms
    of Engagement – Follow-On Offering 

 

This
letter (the “Agreement”) constitutes the agreement between MMTec, Inc., (the “Company”)
and A.G.P./Alliance Global Partners. (“A.G.P.”) that A.G.P. shall serve as the exclusive placement agent in
a registered direct offering to investors (each, an “Offering”) up to approximately $20 Million of shares of
common stock, par value $0.001 per share (“Common Stock”), of the Company (“Securities”)
during the Term (as defined below) of this Agreement. The terms of each Offering, the prospective investors and the Securities
issued in connection therewith shall be mutually agreed upon by the Company and A.G.P. and nothing herein implies that A.G.P.
would have the power or authority to bind the Company and nothing herein implies that the Company shall have an obligation to
issue any Securities. It is understood that A.G.P.’s assistance in an Offering will be subject to the satisfactory completion
of such investigation and inquiry into the affairs of the Company as A.G.P. deems appropriate under the circumstances and to the
receipt of all internal approvals of A.G.P. in connection with the transaction. The Company expressly acknowledges and agrees
that A.G.P.’s involvement in an Offering is strictly on a reasonable best efforts basis and that the consummation of an
Offering will be subject to, among other things, market conditions. The execution of this Agreement does not constitute a commitment
by A.G.P. to purchase the Securities and does not ensure a successful Offering of the Securities or the success of A.G.P. with
respect to securing any other financing on behalf of the Company. A.G.P. may retain other brokers, dealers or agents on its behalf
in connection with an Offering, subject to the prior written approval in each case of the Company.

 

A. Fees
and Expenses. In connection with the Services described above, the Company shall pay to A.G.P. the following compensation:

 

1. Cash
Fee. The Company shall pay to A.G.P. a cash fee equal to 7% of the aggregate gross proceeds raised in the Offering.

 

2. Expenses.
In addition to any fees payable to A.G.P. hereunder, the Company hereby agrees to reimburse A.G.P., from the gross proceeds of
the Securities sold, for reasonable expenses incurred by A.G.P. in connection with the transaction in the amount of up to 1% including,
but not limited to, legal expense, IPREO software related expenses, background check(s), tombstones, marketing related expenses
and any other expenses incurred by A.G.P. in connection with the transaction; provided that the Company will be required to reimburse
A.G.P for such expenses only if an Offering is consummated.

 

3.Right
of First Refusal. [INTENTIONALLY OMITTED]

  

590
Madison Avenue, 28th Floor, New York, NY 10022, 212-624-20602

Member
FINRA, SIPC

 

    1

     

    

 

4.Tail
Fee.[INTENTIONALLY OMITTED]

 

B. Term
and Termination of Engagement; Exclusivity. This Agreement and the term of A.G.P.’s exclusive engagement will begin
on the date hereof and end on the earlier of (i) thirty (30) days after the date hereof and (ii) the date of the closing of the
Offering (the “Closing” and as applicable, the “Term”). Either A.G.P. or the Company may
terminate this Agreement at any time upon prior written notice to the other party. In the event of such termination, the Company
shall pay and deliver to A.G.P. all compensation earned through the date of such termination pursuant to any provision of Section
A hereof, and shall reimburse A.G.P. for all expenses incurred by A.G.P. in connection with its services hereunder pursuant to
Section A hereof. Notwithstanding anything to the contrary contained herein, the Company agrees that the provisions relating to
the payment of fees, reimbursement of expenses, indemnification and contribution, confidentiality, conflicts, independent contractor
and waiver of the right to trial by jury will survive any termination of this Agreement. During the Term: (i) the Company will
not, and will not permit its representatives to, other than in coordination with A.G.P., contact or solicit institutions, corporations
or other entities or individuals as potential purchasers of the Securities with respect to the Offering, provided that this clause
(i) shall not be construed to limit in any manner the Company from selling or issuing securities to employees, directors or consultants
in the ordinary course of business or pursuant to agreements currently in place prior to this engagement, and (ii) the Company
will not pursue any equity financing transaction which would be in lieu of an Offering. Furthermore, the Company agrees that during
A.G.P.’s engagement hereunder, all inquiries, whether direct or indirect, from prospective investors will be referred to
A.G.P. However, if the Company does not enter into an agreement with any Purchaser within 10 days from the signing of this Agreement,
this agreement may be terminated by the Company upon written notice to the Placement Agent.

 

C. Use
of Information. The Company shall furnish, or cause to be furnished, to A.G.P. all information reasonably requested by A.G.P.
for the purpose of rendering services hereunder (all such information being the “Information”). In addition,
the Company agrees to make available to A.G.P. upon request from time to time the officers, directors, accountants, counsel and
other advisors of the Company. The Company recognizes and confirms that A.G.P. (a) will use and rely on the Information, including
any documents provided to investors in each Offering (the “Offering Documents” which shall include any Purchase
Agreements (as defined below)), and on information available from generally recognized public sources in performing the services
contemplated by this Agreement without having independently verified the same; (b) does not assume responsibility for the accuracy
or completeness of the Offering Documents or the Information and such other information; and (c) will not make an appraisal of
any of the assets or liabilities of the Company. Upon reasonable request, the Company will meet with A.G.P. or its representatives
to discuss all information relevant for disclosure in the Offering Documents and will cooperate in any reasonable investigation
undertaken by A.G.P. thereof, including any document included or incorporated by reference therein. At each Closing, at the request
of A.G.P., the Company shall deliver such legal letters and officers’ certificates, all in form and substance satisfactory
to A.G.P. and its counsel as is customary for such Offering. A.G.P. shall be a third-party beneficiary of any representations,
warranties, covenants and closing conditions made by the Company in any Offering Documents, including representations, warranties,
covenants and closing conditions made to any investor in an Offering.

  

590
Madison Avenue, 28th Floor, New York, NY 10022, 212-624-20602

Member
FINRA, SIPC 

 

    2

     

    

  

D. Related
Agreements. At each Offering, the Company shall enter into the following additional agreements:

 

1. Escrow
and Settlement. In respect of each Offering, the Company and A.G.P. shall enter into an escrow agreement with a third-party
escrow agent, which may also be A.G.P.’s clearing agent, pursuant to which A.G.P.’s compensation and expenses shall
be paid from the gross proceeds of the Securities sold. If the Offering is settled in whole or in part via delivery versus payment
(“DVP”), A.G.P. shall arrange for its clearing agent to provide the funds to facilitate such settlement. The
Company shall bear the cost of the escrow agent and the cost of such clearing agent settlement and financing, if any, up to $12,900.

 

2. FINRA
Amendments. Notwithstanding anything herein to the contrary, in the event that A.G.P. determines that any of the terms provided
for hereunder shall not comply with a FINRA rule, including but not limited to FINRA Rule 5110, then the Company shall agree to
amend this Agreement in writing upon the request of A.G.P. to comply with any such rules; provided that any such amendments shall
not provide for terms that are less favorable to the Company.

 

E. Publicity.
In the event of the consummation or public announcement of any Offering, A.G.P. shall have the right to disclose its participation
in such Offering, including, without limitation, the placement at its cost of “tombstone” advertisements in financial
and other newspapers and journals, subject to the Company’s review and input on such publicity.

 

 F. Indemnity.

 

1. 
In connection with the Company’s engagement of A.G.P. as placement agent, the Company hereby agrees to indemnify and hold
harmless A.G.P. and its affiliates, and the respective controlling persons, directors, officers, members, shareholders, agents
and employees of any of the foregoing (collectively the “Indemnified Persons”), from and against any and all
claims, actions, suits, proceedings (including those of shareholders), damages, liabilities and expenses incurred by any of them
(including the reasonable fees and expenses of counsel), as incurred, (collectively a “Claim”), that are (A)
related to or arise out of (i) any actions taken or omitted to be taken (including any untrue statements made or any statements
omitted to be made) by the Company, or (ii) any actions taken or omitted to be taken by any Indemnified Person in connection with
the Company’s engagement of A.G.P., or (B) otherwise relate to or arise out of A.G.P.’s activities on the Company’s
behalf under A.G.P.’s engagement, and the Company shall reimburse any Indemnified person for all expenses (including the
reasonable fees and expenses of counsel) as incurred by such Indemnified Person in connection with investigating, preparing or
defending any such claim, action, suit or proceeding, whether or not in connection with pending or threatened litigation in which
any Indemnified Person is a party. The Company will not, however, be responsible for any Claim to the extent resulting from the
gross negligence or willful misconduct of the Indemnified Persons. The Company further agrees that no Indemnified Person shall
have any liability to the Company for or in connection with the Company’s engagement of A.G.P. except for any breach of
this Agreement by such Indemnified Person or Claim incurred by the Company as a result of such Indemnified Person’s gross
negligence or willful misconduct.

 

2. The
Company further agrees that it will not, without the prior written consent of A.G.P., settle, compromise or consent to the entry
of any judgment in any pending or threatened Claim in respect of which indemnification may be sought hereunder (whether or not
any indemnified Person is an actual or potential party to such Claim), unless such settlement, compromise or consent includes
an unconditional, irrevocable release of each Indemnified Person from any and all liability arising out of such Claim.

  

590
Madison Avenue, 28th Floor, New York, NY 10022, 212-624-20602

Member
FINRA, SIPC

 

    3

     

    

 

3. Promptly
upon receipt by an Indemnified Person of notice of any complaint or the assertion or institution of any Claim with respect to
which indemnification is being sought hereunder, such Indemnified Person shall notify the Company in writing of such complaint
or of such assertion or institution but failure to so notify the Company shall not relieve the Company from any obligation it
may have hereunder, except and only to the extent such failure results in the forfeiture by the Company of substantial rights
and defenses. If the Company so elects or is requested by such Indemnified Person, the Company will assume the defense of such
Claim, including the employment of counsel reasonably satisfactory to such Indemnified Person and the payment of the fees and
expenses of such counsel. In the event, however, that legal counsel to such Indemnified Person reasonably determines that having
common counsel would present such counsel with a conflict of interest or if the defendant in, or target of, any such Claim, includes
an Indemnified Person and the Company, and legal counsel to such Indemnified Person reasonably concludes that there may be legal
defenses available to it or other Indemnified Persons different from or in addition to those available to the Company, then such
Indemnified Person may employ its own separate counsel to represent or defend him, her or it in any such Claim and the Company
shall pay the reasonable fees and expenses of such counsel. Notwithstanding anything herein to the contrary, if the Company fails
timely or diligently to defend, contest, or otherwise protect against any Claim, the relevant Indemnified Party shall have the
right, but not the obligation, to defend, contest, compromise, settle, assert crossclaims, or counterclaims or otherwise protect
against the same, and shall be fully indemnified by the Company therefor, including without limitation, for the reasonable fees
and expenses of its counsel and all amounts paid as a result of such Claim or the compromise or settlement thereof. In addition,
with respect to any Claim in which the Company assumes the defense, the Indemnified Person shall have the right to participate
in such Claim and to retain his, her or its own counsel therefor at his, her or its own expense.

 

4. The
Company agrees that if any indemnity sought by an Indemnified Person hereunder is held by a court to be unavailable for any reason
then (whether or not A.G.P. is the Indemnified Person), the Company and A.G.P. shall contribute to the Claim for which such indemnity
is held unavailable in such proportion as is appropriate to reflect the relative benefits to the Company, on the one hand, and
A.G.P. on the other, in connection with A.G.P.’s engagement referred to above, subject to the limitation that in no event
shall the amount of A.G.P.’s contribution to such Claim exceed the amount of fees actually received by A.G.P. from the Company
pursuant to A.G.P.’s engagement. The Company hereby agrees that the relative benefits to the Company, on the one hand, and
A.G.P. on the other, with respect to A.G.P.’s engagement shall be deemed to be in the same proportion as (a) the total value
paid or proposed to be paid or received by the Company or its stockholders as the case may be, pursuant to the Offering (whether
or not consummated) for which A.G.P. is engaged to render services bears to (b) the fee paid or proposed to be paid to A.G.P.
in connection with such engagement.

 

5. 
The Company’s indemnity, reimbursement and contribution obligations under his Agreement (a) shall be in addition to, and
shall in no way limit or otherwise adversely affect any rights that any Indemnified Party may have at law or at equity and (b)
shall be effective whether or not the Company is at fault in any way.

  

590
Madison Avenue, 28th Floor, New York, NY 10022, 212-624-20602

Member
FINRA, SIPC 

 

    4

     

    

 

G. Limitation
of Engagement to the Company. The Company acknowledges that A.G.P. has been retained only by the Company, that A.G.P. is providing
services hereunder as an independent contractor (and not in any fiduciary or agency capacity) and that the Company’s engagement
of A.G.P. is not deemed to be on behalf of, and is not intended to confer rights upon, any shareholder, owner or partner of the
Company or any other person not a party hereto as against A.G.P. or any of its affiliates, or any of its or their respective officers,
directors, controlling persons (within the meaning of Section 15 of the Securities Act or Section 20 of the Securities Exchange
Act of 1934, as amended (the “Exchange Act”)), employees or agents. Unless otherwise expressly agreed in writing
by A.G.P., no one other than the Company is authorized to rely upon this Agreement or any other statements or conduct of A.G.P.,
and no one other than the Company is intended to be a beneficiary of this Agreement. The Company acknowledges that any recommendation
or advice, written or oral, given by A.G.P. to the Company in connection with A.G.P.’s engagement is intended solely for
the benefit and use of the Company’s management and directors in considering a possible Offering, and any such recommendation
or advice is not on behalf of, and shall not confer any rights or remedies upon, any other person or be used or relied upon for
any other purpose. A.G.P. shall not have the authority to make any commitment binding on the company. The Company, in its sole
discretion, shall have the right to reject any investor introduced to it by A.G.P. The Company agrees that it will perform and
comply with the covenants and other obligations set forth in the purchase agreement and related transaction documents between
the Company and the investors in the Offering, and that A.G.P. will be entitled to rely on the representation, warranties, agreements
and covenants of the Company contained in such purchase agreement and related transaction documents as if such representations,
warranties, agreements and covenants were made directly to A.G.P. by the Company.

 

H. Limitation
of A.G.P.’s Liability to the Company. A.G.P. and the Company further agree that neither A.G.P. nor any of its affiliates
or any of its or their respective officers, directors, controlling persons (within the meaning of Section 15 of the Securities
Act or Section 20 of the Exchange Act), employees or agents shall have any liability to the Company, its security holders or creditors,
or any person asserting claims on behalf of or in the right of the Company (whether direct or indirect, in contract, tort, for
an act of negligence or otherwise) for any losses, fees, damages, liabilities, costs, expenses or equitable relief arising out
of or relating to this Agreement or the Services rendered hereunder, except for losses, fees, damages, liabilities, costs or expenses
resulting from breach of this Agreement by A.G.P. or the gross negligence or willful misconduct of A.G.P.

 

I. FINRA
Member. A.G.P. represents and warrants to, and agrees with, the Company that A.G.P. is duly registered as a broker-dealer
pursuant to the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder, and is a member
in good standing of FINRA. In addition, A.G.P. hereby represents, warrants and covenants to the Company that A.G.P.’s performance
under this Agreement will comply, in all material respects, with all federal, state and local laws, rules, regulations and ordinances
relevant to its performance under this Agreement, including without limitation any applicable rules of FINRA and other federal,
state and local broker-dealer and securities laws, rules and regulations.

 

590
Madison Avenue, 28th Floor, New York, NY 10022, 212-624-20602

Member
FINRA, SIPC 

 

    5

     

    

  

J. Confidentiality.
All information given to A.G.P. by the Company, unless publicly available or otherwise available to A.G.P. without restriction
or breach of any confidentiality agreement (“Confidential Information”), will be held by A.G.P. and its affiliates,
and their respective members, officers, employees, agents and advisors (collectively, “Representatives”) in
confidence and will not be disclosed to anyone other than A.G.P.’s Representatives without the Company’s prior approval
or used for any purpose other than those referred to in this Agreement; provided that the Company agrees that A.G.P. may provide
Confidential Information, without liability hereunder, to (a) its co-placement agents, if any and if applicable, who agree to
maintain the confidentiality of such Confidential Information; or (b) as required by applicable law or legal, judicial or regulatory
process (including, without limitation, any subpoena, interrogatories, civil investigative demand or similar process) or lawful
document discovery demand, or at the request of, or pursuant to, any rule, order, regulation or requirement of any governmental,
judicial, regulatory or self-regulatory body, authority or agency having or claiming jurisdiction over A.G.P. or any Representative,
or (c) as A.G.P. or any Representative is reasonably required to introduce in a court of law or other similar forum or in connection
with any judicial or administrative proceeding, action or suit. Upon termination of this Agreement and if otherwise requested
by the Company at any time, A.G.P., upon request, will promptly deliver to the Company all Confidential Information, including
all copies thereof, that are in the possession or under the control of A.G.P. or its Representatives. Notwithstanding the foregoing,
A.G.P. may retain one copy of the Confidential Information pursuant to its document retention policy. Furthermore, A.G.P. will
be entitled to retain electronic copies in accordance with its customary electronic records and retrieval practices. If A.G.P.
or its Representatives receive a request to disclose all or any part of the Confidential Information in connection with a legal
proceeding, A.G.P. will promptly notify the Company of the existence, terms and circumstances surrounding such request so that
the Company, at its cost, may take legally available steps to resist or narrow such request. In the event the Company fails to
timely limit the scope of such request, A.G.P. and/or its Representatives, as the case may be, may disclose the Confidential Information
without liability hereunder. All material, non-public information concerning the Company that is provided to A.G.P. will be used
solely in the course of its performance of services rendered hereunder and, except as otherwise required by law, rule and/or regulation,
and except as set forth herein will not be disclosed to third parties without the Company’s prior written consent and will
not be used by A.G.P. or any of its Representatives to trade in the Company’s securities.

 

K. Governing
Law. This Agreement shall be exclusively governed by and construed in accordance with the laws of the State of New York applicable
to agreements made and to be fully performed therein. Any disputes that arise under this Agreement, even after the termination
of this Agreement, will be heard only in the state or federal courts located in the City of New York, State of New York. The parties
hereto expressly agree to submit themselves exclusively to the jurisdiction of the foregoing courts in the City of New York, State
of New York. The parties hereto expressly waive any rights they may have to contest the jurisdiction, venue or authority of any
court sitting in the City and State of New York. In the event of the bringing of any action, or suit by a party hereto against
the other party hereto, arising out of or relating to this Agreement, the party in whose favor the final judgment or award shall
be entered shall be entitled to have and recover from the other party the costs and expenses incurred in connection therewith,
including its reasonable attorneys’ fees. Any rights to trial by jury with respect to any such action, proceeding or suit
are hereby waived by A.G.P. and the Company.

 

L. Notices.
All notices hereunder will be in writing and sent by certified mail, hand delivery, overnight delivery or email, if sent to A.G.P.,
to the address set forth on the first page hereof, or email address investmentbanking@allianceg.com, Attention: Investment Banking.
Notices sent by certified mail shall be deemed received five days thereafter, notices sent by hand delivery or overnight delivery
shall be deemed received on the date of the relevant written record of receipt, and notices delivered by fax shall be deemed received
as of the date and time printed thereon by the fax machine.

 

M. Miscellaneous.
The parties represents that they are free to enter into this Agreement and the transactions contemplated hereby and that such
party will act in good faith. This Agreement shall not be modified or amended except in writing signed by A.G.P. and the Company.
This agreement shall be binding upon and inure to the benefit of A.G.P. and the Company and their respective assigns, successors,
and legal representatives. This Agreement constitutes the entire agreement of A.G.P. and the Company, and supersedes any prior
agreements, with respect to the subject matter hereof. If any provision of this Agreement is determined to be invalid or unenforceable
in any respect, such determination will not affect such provision in any other respect, and the remainder of the Agreement shall
remain in full force and effect. This Agreement may be executed in counterparts (including facsimile or .pdf counterparts), each
of which shall be deemed an original but all of which together shall constitute one and the same instrument.

 

[Signature
Page Follows]

  

590
Madison Avenue, 28th Floor, New York, NY 10022, 212-624-20602

Member
FINRA, SIPC

 

    6

     

    

 

In
acknowledgment that the foregoing correctly sets forth the understanding reached by A.G.P. and the Company, please sign in the
space provided below and return to us one signed copy of this Agreement, whereupon this letter shall constitute a binding Agreement
as of the date indicated above.

 

	 	Yours
    truly,
	 	 	 
	 	A.G.P./ALLIANCE
    GLOBAL PARTNERS
	 	 	 
	 	By:
    	/s/ Thomas
    J. Higgins
	 	Name:	Thomas
    J. Higgins
	 	Title:	Managing
    Director

 

Accepted
and agreed to as of

the
date first written above:

 

	MMTEC
    INC.	 
	 	 
	By:
    	/s/
    Xiangdong Wen	 
	Name:
    	Xiangdong
    Wen	 
	Title:
    	Chief
    Executive Officer	 

 

590
Madison Avenue, 28th Floor, New York, NY 10022, 212-624-20602

Member
FINRA, SIPC

 

 

 7Exhibit 10.2

 

SECURITIES PURCHASE AGREEMENT

 

This Securities Purchase Agreement (this
“Agreement”) is dated as of February [  ], 2021, and is between MMTEC, INC., a British Virgin Islands
company(the “Company”), and each purchaser identified on the signature pages hereto (each, including its successors
and assigns, a “Purchaser” and collectively the “Purchasers”).

 

WHEREAS, subject to the terms
and conditions set forth in this Agreement and pursuant to an effective registration statement under the Securities Act (as defined
below) as to the Shares, the Company desires to issue and sell to each Purchaser, and each Purchaser, severally and not jointly,
desires to purchase from the Company, securities of the Company as more fully described in this Agreement.

 

NOW, THEREFORE, IN CONSIDERATION
of the mutual covenants contained in this Agreement, and for other good and valuable consideration the receipt and adequacy of
which are hereby acknowledged, the Company and each Purchaser agree as follows:

 

ARTICLE I.

DEFINITIONS

 

1.1 Definitions. In
addition to the terms defined elsewhere in this Agreement, for all purposes of this Agreement, the following terms have the meanings
set forth in this Section 1.1:

 

“A.G.P.” means
A.G.P./Alliance Global Partners, sole placement agent.

 

“Acquiring Person”
shall have the meaning ascribed to such term in Section 4.5.

 

“Action” shall
have the meaning ascribed to such term in Section 3.1(m).

 

“Affiliate”
means any Person that, directly or indirectly through one or more intermediaries, controls or is controlled by or is under common
control with a Person as such terms are used in and construed under Rule 405 under the Securities Act.

 

“Authorization”
shall have the meaning ascribed to such term in Section 3.1(ss).

 

“BHCA” shall
have the meaning ascribed to such term in Section 3.1(oo).

 

“Board of Directors”
means the board of directors of the Company.

 

“Business Day”
means any day except any Saturday, any Sunday, any day which is a federal legal holiday in the United States or any day on which
banking institutions in the State of New York are authorized or required by law or other governmental action to close.

 

“Closing”
means the closing of the purchase and sale of the Shares pursuant to Section 2.1.

 

“Closing Date”
means the Trading Day on which all of the Transaction Documents have been executed and delivered by the applicable parties thereto,
and all conditions precedent to (i) the Purchasers’ obligations to pay the Subscription Amount and (ii) the Company’s
obligations to deliver the Shares, in each case, have been satisfied or waived, but in no event later than the second (2nd) Trading
Day following the date hereof.

 

“Code” means
the United States Internal Revenue Code of 1986, as amended.

 

“Commission”
means the United States Securities and Exchange Commission.

 

“Common Shares Equivalents” means
any securities of the Company or the Subsidiaries which would entitle the holder thereof to acquire at any time Common Shares,
including, without limitation, any debt, preferred stock, right, option, warrant or other instrument that is at any time convertible
into or exercisable or exchangeable for, or otherwise entitles the holder thereof to receive, Common Shares.

 

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“Common Shares” means the Common
Shares of the Company, par value $0.001 per share, and any other class of securities into which such securities may hereafter be
reclassified or changed.

 

“Company Counsel” means, Schiff
Hardin LLP, with offices located at 901 K Street NW, Suite 700, Washington, DC 20001.

 

“Disclosure Schedules” means the
Disclosure Schedules of the Company delivered concurrently herewith.

 

“Disclosure Time”
means, (i) if this Agreement is signed on a day that is not a Trading Day or after 9:00 a.m. (New York City time) and before midnight
(New York City time) on any Trading Day, 9:01 a.m. (New York City time) on the Trading Day immediately following the date hereof,
unless otherwise instructed as to an earlier time by A.G.P., and (ii) if this Agreement is signed between midnight (New York City
time) and 9:00 a.m. (New York City time) on any Trading Day, no later than 9:01 a.m. (New York City time) on the date hereof, unless
otherwise instructed as to an earlier time by A.G.P.

 

“DWAC” shall have the meaning ascribed
to such term in Section 2.2(a)(v).

 

“EDGAR” means the Commission’s
Electronic Data Gathering, Analysis and Retrieval System.

 

“Environmental Law” shall have
the meaning ascribed to such term in Section 3.1(p).

 

“Evaluation Date” shall have the
meaning ascribed to such term in Section 3.1(v).

 

“Exchange Act” means the Securities
Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.

 

“Exempt Issuance”
means the issuance of (a) Common Shares or options to employees, officers, directors, consultants or advisors of the Company pursuant
to any stock or option plan duly adopted for such purpose, by a majority of the non-employee members of the Board of Directors
or a majority of the members of a committee of non-employee directors established for such purpose, provided that such securities
are issued as “restricted securities” (as defined in Rule 144) and carry no registration rights that require or permit
the filing of any registration statement in connection therewith (b) securities upon the exercise or exchange of or conversion
of any Securities issued hereunder and/or other securities exercisable or exchangeable for or convertible into Common Shares issued
and outstanding on the date of this Agreement, provided that such securities have not been amended since the date of this Agreement
to increase the number of such securities or to decrease the exercise price, exchange price or conversion price of such securities
(other than in connection with stock splits or combinations) or to extend the term of such securities, and (c) securities issued
pursuant to acquisitions or strategic transactions approved by a majority of the disinterested directors of the Company, provided
that any such issuance shall only be to a Person (or to the equityholders of a Person) which is, itself or through its subsidiaries,
an operating company or an owner of an asset in a business synergistic with the business of the Company and shall provide to the
Company additional benefits in addition to the investment of funds, but shall not include a transaction in which the Company is
issuing securities primarily for the purpose of raising capital or to an entity whose primary business is investing in securities.

 

“FCPA” means the Foreign Corrupt
Practices Act of 1977, as amended, and the rules and regulations thereunder.

 

“Federal Reserve” shall have the
meaning ascribed to such term in Section 3.1(oo).

  

“Hazardous Substances” shall have
the meaning ascribed to such term in Section 3.1(q).

 

“Intellectual Property Rights”
shall have the meaning ascribed to such term in Section 3.1(s).

 

“Issuer Free Writing Prospectus”
shall have the meaning ascribed to such term in Section 3.1(f)(ii).

 

“IT Systems” shall have the meaning
ascribed to such term in Section 3.1(qq).

 

    	 	2	 

     

    

 

“Lien” means a lien, charge, mortgage,
pledge, security interest, claim, right of first refusal, pre-emptive right, or other encumbrance of any kind whatsoever.

 

“Lock-Up Agreement” means the Lock-Up
Agreements, each dated as of the date hereof, by and between the Company and the directors and officers of the Company, in the
form of Exhibit A attached hereto.

 

“Material Adverse Effect” shall
have the meaning assigned to such term in Section 3.1(b).

 

“Material Permits” shall have the
meaning assigned to such term in Section 3.1(r).

  

“Money Laundering Laws” shall have
the meaning assigned to such term in Section 3.1(pp).

 

“Person” means an individual or
corporation, partnership, trust, incorporated or unincorporated association, joint venture, limited liability company, joint stock
company, government (or an agency or subdivision thereof) or other entity of any kind.

 

“Per Share Purchase Price” equals
$3.70 per share.

 

“Personal Data” shall have the
meaning ascribed to such term in Section 3.1(qq).

 

“Placement Agent” means A.G.P./Alliance
Global Partners.

 

“Placement Agent Engagement Letter”
means that certain Engagement Letter Agreement dated February 20, 2021 between the Company and the Placement Agent.

 

“Placement Agent’s Counsel”
means Hunter Taubman Fischer & Li LLC, with offices located at 800 Third Avenue, Suite 2800, New York, NY 10022.

 

“Proceeding” means an action, claim,
suit, investigation or proceeding (including, without limitation, an informal investigation or partial proceeding, such as a deposition)
pending or, to the Company’s knowledge, threatened in writing against or affecting the Company, any Subsidiary or any of
their respective properties before or by any court, arbitrator, governmental or administrative agency or regulatory authority (federal,
state, county, local or foreign).

 

“Prospectus” means the final base
prospectus filed for the Registration Statement.

 

“Prospectus Supplement”
means the supplement to the Prospectus complying with Rule 424(b) of the Securities Act that is filed with the Commission and delivered
by the Company to each Purchaser at the Closing.

 

“Purchaser Party” shall have the
meaning ascribed to such term in Section 4.8.

  

“Registration Statement” shall
have the meaning ascribed to such term in Section 3.1(f)(ii).

 

“Required Approvals” shall have
the meaning ascribed to such term in Section 3.1(e).

 

“Sanctions” shall have the meaning
ascribed to such term in Section 3.1(kk).

 

“SEC Reports” shall have the meaning
ascribed to such term in Section 3.1(j).

 

“Securities Act” means the Securities
Act of 1933, as amended, and the rules and regulations promulgated thereunder.

 

“Shares” means the Common Shares
issued or issuable to each Purchaser pursuant to this Agreement.

 

“Shelf Procedures” shall have the
meaning ascribed to such term in Section 3.1(f)(i).

 

    	 	3	 

     

    

 

“Short Sales” means all “short
sales” as defined in Rule 200 of Regulation SHO under the Exchange Act (but shall not be deemed to include locating and/or
borrowing Common Shares).

 

“Specified Person” shall have the
meaning ascribed to such term in Section 3.1(kk).

 

“Subscription Amount”
means, as to each Purchaser, the aggregate amount to be paid for Shares purchased hereunder as specified below such Purchaser’s
name on the signature page of this Agreement and next to the heading “Subscription Amount,” in United States dollars
and in immediately available funds.

 

“Subsidiary”
and “Subsidiaries” shall have the meanings ascribed to such terms in Section 3.1(a).

 

“Trading Day”
means a day on which the New York Stock Exchange is open for trading.

 

“Trading Market”
means any of the following markets or exchanges on which the Common Shares are listed or quoted for trading on the date in question:
the NYSE American, the Nasdaq Capital Market, the Nasdaq Global Market, the Nasdaq Global Select Market, the New York Stock Exchange
(or any successors to any of the foregoing).

 

“Transaction Documents”
means this Agreement, the Lock-Up Agreements and the Placement Agency Agreement, all exhibits and schedules thereto and hereto
and any other documents or agreements executed in connection with the transactions contemplated hereunder.

 

“Transfer Agent”
means  Computershare Trust Company, Inc., the current transfer agent of the Company, at its office at 350 Indiana Street,
Suite 800, Golden, Colorado 80401, and any successor transfer agent of the Company.

 

ARTICLE II.

PURCHASE AND SALE

 

2.1 Closing.
On the Closing Date, upon the terms and subject to the conditions set forth herein, the Company agrees to sell, and the Purchasers,
severally and not jointly, agree to purchase, up to an aggregate of 4,300,000 common shares, for the gross proceeds of approximately
$15.91 million. The Company shall deliver to each Purchaser its respective Shares, and the Company and each Purchaser shall deliver
the other items set forth in Section 2.2 deliverable at the Closing. Upon satisfaction of the covenants and conditions set forth
in Sections 2.2 and 2.3, the Closing shall occur at the offices of Schiff Hardin LLP or such other location as the parties shall
mutually agree. Unless otherwise directed by A.G.P., settlement of the Shares shall occur via “Delivery Versus Payment”
(“DVP”) (i.e., on the Closing Date, the Company shall issue the Shares registered in the Purchasers’
names and addresses and released by the Transfer Agent directly to the account(s) at A.G.P. identified by each Purchaser; upon
receipt of such Shares, A.G.P. shall promptly electronically deliver such Shares to the applicable Purchaser, and payment therefor
shall be made by the Placement Agent (or its clearing firm) by wire transfer to the Company).

 

2.2 Deliveries.

 

(a) On or prior
to the Closing Date, the Company shall deliver or cause to be delivered to each Purchaser the following:

 

(i) this
Agreement duly executed by the Company;

 

(ii) a
legal opinion of Company Counsel, in a form reasonably acceptable to A.G.P. and the Purchasers;

 

(iii) a
certificate executed by the Chief Financial Officer of the Company, in form and substance reasonably satisfactory to A.G.P.;

 

    	 	4	 

     

    

 

(iv) the
Company shall have provided each Purchaser with the Company’s wire instructions, on Company letterhead and executed by the
Chief Executive Officer or Chief Financial Officer;

 

(v) a
copy of the irrevocable instructions to the Transfer Agent instructing the Transfer Agent to deliver on an expedited basis via
The Depository Trust Company Deposit or Withdrawal at Custodian system (“DWAC”) Shares equal to such Purchaser’s
Subscription Amount divided by the Per Share Purchase Price, registered in the name of such Purchaser;

 

(vi) Officer’s
Certificate, in form and substance satisfactory to the Purchasers;

 

(vii) Secretary’s
Certificate, in form and substance satisfactory to the Purchasers;

 

(viii) the
Lock-Up Agreements; and

 

(ix)  the
Prospectus and Prospectus Supplement (which may be delivered in accordance with Rule 172 under the Securities Act).

 

(b) On or prior
to the Closing Date, each Purchaser shall deliver or cause to be delivered to the Company the following:

 

(i) this
Agreement duly executed by such Purchaser; and

 

(ii) such
Purchaser’s Subscription Amount, which shall be made available for “Delivery Versus Payment” settlement with
the Company or its designees.

 

2.3 Closing
Conditions.

 

(a)   The obligations
of the Company hereunder in connection with the Closing are subject to the following conditions being met:

 

(i) the
accuracy in all material respects (or, to the extent representations or warranties are qualified by materiality or Material Adverse
Effect, in all respects) when made and on the Closing Date of the representations and warranties of the Purchasers contained herein
(unless as of a specific date therein in which case they shall be accurate as of such date);

 

(ii) all
obligations, covenants and agreements of each Purchaser required to be performed at or prior to the Closing Date shall have been
performed; and

 

(iii) the
delivery by each Purchaser of the items set forth in Section 2.2(b) of this Agreement.

 

(b) The respective
obligations of the Purchasers hereunder in connection with the Closing are subject to the following conditions being met:

 

(i) the
accuracy in all material respects (or, to the extent representations or warranties are qualified by materiality or Material Adverse
Effect, in all respects) when made and on the Closing Date of the representations and warranties of the Company contained herein
(unless as of a specific date therein in which case they shall be accurate as of such date);

 

(ii) all
obligations, covenants and agreements of the Company required to be performed at or prior to the Closing Date shall have been performed;

 

(iii) the
delivery by the Company of the items set forth in Section 2.2(a) of this Agreement;

 

(iv) there
shall have been no Material Adverse Effect with respect to the Company since the date hereof; and

 

    	 	5	 

     

    

 

(v) from
the date hereof to the Closing Date, trading in the Common Shares shall not have been suspended by the Commission or the Nasdaq
Capital Market, and, at any time prior to the Closing Date, trading in securities generally as reported by Bloomberg L.P. shall
not have been suspended or limited, or minimum prices shall not have been established on securities whose trades are reported by
such service, or on any Trading Market, nor shall a banking moratorium have been declared either by the United States or New York
State authorities nor shall there have occurred any material outbreak or escalation of hostilities or other national or international
calamity of such magnitude in its effect on, or any material adverse change in, any financial market which, in each case, in the
reasonable judgment of such Purchaser, makes it impracticable or inadvisable to purchase the Shares at the Closing.

 

ARTICLE III.

REPRESENTATIONS AND WARRANTIES

 

3.1 Representations
and Warranties of the Company. Except as set forth in the Disclosure Schedules, which Disclosure Schedules shall be deemed
a part hereof and shall qualify any representation or otherwise made herein to the extent of the disclosure contained in the corresponding
section of the Disclosure Schedules, the Company hereby makes the following representations and warranties to each Purchaser :

 

(a) Subsidiaries
and Affiliated Entities. Each of the Company’s direct and indirect subsidiaries as defined under Rule 405 (each a “Subsidiary”
and collectively, the “Subsidiaries”) has been identified on Schedule 3.1(a) hereto, and each of the consolidated
entities which the Company controls and through which the Company conducts its operations in the People’s Republic of China
(“PRC”) by way of contractual arrangements (each an “Affiliated Entity” and collectively,
the “Affiliated Entities”) has been identified on Schedule 3.1(a) hereto. Each of the Subsidiaries and Affiliated
Entities has been duly incorporated, is validly existing as a corporation in good standing under the laws of the jurisdiction of
its incorporation, has the corporate power and authority to own its property and to conduct its business as described in the Prospectus,
Prospectus Supplement and SEC Reports; all of the equity interests of each Subsidiary have been duly and validly authorized and
issued, are owned directly or indirectly by the Company, are fully paid and non-assessable and, are free and clear of all liens,
encumbrances, equities or claims; all of the equity interests in each Affiliated Entity have been duly and validly authorized and
issued, are fully paid in accordance with its constitutive or organizational documents and non-assessable and are owned directly
as described in the Prospectus, Prospectus Supplement and SEC Reports, free and clear of all liens, encumbrances, equities or claims.
None of the outstanding share capital or equity interest in any Subsidiary was issued in violation of pre-emptive or similar rights
of any security holder of such Subsidiary. All of the constitutive or organizational documents of each of the Subsidiaries and
Affiliated Entities comply with the requirements of applicable laws of its jurisdiction of incorporation or organization and are
in full force and effect. Apart from the Subsidiaries and Affiliated Entities, the Company has no direct or indirect Subsidiaries.

 

(i)
The description of the corporate structure of the Company and each of the contracts among the Subsidiaries, the shareholders of
the Affiliated Entities and the Affiliated Entities, as the case may be (each a “VIE Agreement” and collectively
the “VIE Agreements”), as set forth in the Prospectus, Prospectus Supplement and SEC Reports, is true and accurate
and nothing has been omitted from such description which would make it misleading. There is no other agreement, contract or other
document relating to the corporate structure or the operation of the Company together with its Subsidiaries and Affiliated Entities
taken as a whole, which has not been previously disclosed or made available to the Underwriters and disclosed in Prospectus, Prospectus
Supplement and SEC Reports.

 

(ii) Each
VIE Agreement has been duly authorized, executed and delivered by the parties thereto and constitutes a valid and legally binding
obligation of the parties thereto, enforceable in accordance with its terms, subject, as to enforceability, to bankruptcy, insolvency,
fraudulent transfer, reorganization, moratorium and similar laws of general applicability relating to or affecting creditors’
rights and general equity principles. No consent, approval, authorization, or order of, or filing or registration with, any person
(including any governmental agency or body or any court) is required for the performance of the obligations under any VIE Agreement
by the parties thereto, except as already obtained or disclosed in the Prospectus, Prospectus Supplement and SEC Reports; no consent,
approval, authorization, order, filing or registration that has been obtained is being withdrawn or revoked or is subject to any
condition precedent which has not been fulfilled or performed. The corporate structure of the Company complies with all applicable
laws and regulations of the PRC, and neither the corporate structure nor the VIE Agreements violate, breach, contravene or otherwise
conflict with any applicable laws of the PRC. There is no legal or governmental proceeding, inquiry or investigation pending against
the Company, the Subsidiaries and Affiliated Entities or shareholders of the Affiliated Entities in any jurisdiction challenging
the validity of any of the VIE Agreements, and, to the best knowledge of the Company, no such proceeding, inquiry or investigation
is threatened in any jurisdiction.

 

    	 	6	 

     

    

 

(iii) The
execution, delivery and performance of each VIE Agreement by the parties thereto do not and will not result in a breach or violation
of any of the terms and provisions of or constitute a default under, or result in the imposition of any lien, encumbrance, equity
or claim upon any property or assets of the Company or any of the Subsidiaries and Affiliated Entities pursuant to (A) the constitutive
or organizational documents of the Company or any of the Subsidiaries and Affiliated Entities, (B) any statute, rule, regulation
or order of any governmental agency or body or any court, domestic or foreign, having jurisdiction over the Company or any of the
Subsidiaries and Affiliated Entities or any of their properties, or any arbitration award, or (C) any indenture, mortgage, deed
of trust, loan agreement or other agreement or instrument to which the Company or any of the Subsidiaries and Affiliated Entities
is a party or by which the Company or any of the Subsidiaries and Affiliated Entities is bound or to which any of the properties
of the Company or any of the Subsidiaries and Affiliated Entities is subject, except, in the case of (B) and (C), where such conflict,
breach, violation or default would not reasonably be expected to have a Material Adverse Effect (as defined below). Each VIE Agreement
is in full force and effect and none of the parties thereto is in breach or default in the performance of any of the terms or provisions
of such VIE Agreement. None of the parties to any of the VIE Agreements has sent or received any communication regarding termination
of, or intention not to renew, any of the VIE Agreements, and no such termination or non-renewal has been threatened by any of
the parties thereto.

 

(iv) The
Company possesses, directly or indirectly, the power to direct or cause the direction of the management and policies of the Affiliated
Entities, through its rights to authorize the shareholders of the Affiliated Entities to exercise their voting rights.

 

(b) Organization
and Qualification. The Company and each of the Subsidiaries has been duly organized and validly exists as a corporation, limited
partnership or company in good standing (or the foreign equivalent thereof, if any) under the laws of its jurisdiction of organization,
with the requisite power and authority to own and use its properties and assets and to carry on its business as currently conducted.
The Company and each of the Subsidiaries is duly qualified to do business and is in good standing as a foreign or extra-provincial
corporation, partnership, company or limited liability company in each jurisdiction in which the character or location of its properties
(owned, leased or licensed) or the nature or conduct of its business makes such qualification necessary, except for those failures
to be so qualified or in good standing which (individually and in the aggregate) would not have a Material Adverse Effect. No Proceeding
has been instituted in any such jurisdiction revoking, limiting or curtailing or seeking to revoke, limit or curtail such power
and authority or qualification. Neither the Company nor any Subsidiary is in violation nor default of any of the provisions of
its respective certificate or articles of incorporation, bylaws or other organizational or charter documents. The term “Material
Adverse Effect” means an effect, change, event or occurrence that, alone or in conjunction with any other or others:
(i) has or would reasonably be expected to have a material adverse effect on: (A) the business, general affairs, management, condition
(financial or otherwise), results of operations, shareholders’ equity, properties or prospects of the Company and the Subsidiaries,
taken as a whole, or (B) the legality, validity or enforceability of any Transaction Document, (ii) the Company’s ability
to perform in any material respect on a timely basis its obligations under any Transaction Document or (iii) would result in the
Prospectus or any amendment thereto containing a misrepresentation within the meaning of applicable securities laws; provided
that a change in the market price or trading volume of the Common Shares alone shall not be deemed, in and of itself, to constitute
a Material Adverse Effect.

 

(c) Authorization;
Enforcement. The Company has the requisite corporate power and authority to enter into and to consummate the transactions contemplated
by this Agreement and each of the other Transaction Documents and otherwise to carry out its obligations hereunder and thereunder.
The execution and delivery of this Agreement and each of the other Transaction Documents by the Company and the consummation by
it of the transactions contemplated hereby and thereby have been duly authorized by all necessary action on the part of the Company
and no further action is required by the Company, the Board of Directors or the Company’s shareholders in connection herewith
or therewith other than in connection with the Required Approvals. This Agreement and each other Transaction Document to which
the Company is a party has been (or upon delivery will have been) duly executed by the Company and, when delivered in accordance
with the terms hereof and thereof, will constitute the valid and binding obligation of the Company enforceable against the Company
in accordance with its terms, except (i) as limited by general equitable principles and applicable bankruptcy, insolvency, reorganization,
moratorium and other laws of general application affecting enforcement of creditors’ rights generally, (ii) as limited by
laws relating to the availability of specific performance, injunctive relief or other equitable remedies and (iii) insofar as indemnification
and contribution provisions may be limited by applicable law.

 

    	 	7	 

     

    

 

(d) No
Conflicts. The execution, delivery and performance by the Company of this Agreement and the other Transaction Documents to
which it is a party, the issuance and sale of the Shares and the consummation by it of the transactions contemplated hereby and
thereby do not and will not (i) conflict with or violate any provision of the Company’s or any Subsidiary’s certificate
or articles of incorporation, bylaws or other organizational or charter documents, or (ii) conflict with, or constitute a default
(or an event that with notice or lapse of time or both would become a default) under, result in the creation of any Lien upon any
of the properties or assets of the Company or any Subsidiary, or give to others any rights of termination, amendment, anti-dilution
or similar adjustments, acceleration or cancellation (with or without notice, lapse of time or both) of, any agreement, credit
facility, debt or other instrument (evidencing a Company or Subsidiary debt or otherwise) or other understanding to which the Company
or any Subsidiary is a party or by which any property or asset of the Company or any Subsidiary is bound or affected, or (iii)
subject to the Required Approvals, conflict with or result in a violation of any law, rule, regulation, order, judgment, injunction,
decree or other restriction of any court or governmental authority, to which the Company or a Subsidiary is subject (including
federal and state securities laws and regulations),or by which any property or asset of the Company or a Subsidiary is bound or
affected; except in the case of each of clauses (ii) and (iii), such as could not have or reasonably be expected to result in a
Material Adverse Effect.

 

(e) Filings,
Consents and Approvals. The Company is not required to obtain any consent, waiver, authorization or order of, give any notice
to, or make any filing or registration with, any court or other federal, state, local or other governmental authority or other
Person in connection with the execution, delivery and performance by the Company of this Agreement, other than: (i) the filings
required pursuant to Section 4.4 of this Agreement, (ii) the filing with the Commission of the Prospectus Supplement and the 462(b)
Registration Statement, and (iv) application to the Nasdaq Capital Market for the listing of the Shares for trading thereon in
the time and manner required thereby (collectively, the “Required Approvals”).

 

(f) Issuance
of the Shares; Qualification; Registration.

 

(i) The
Shares are duly authorized and, when issued and paid for in accordance with the applicable Transaction Documents, will be duly
and validly issued, fully paid and non-assessable, free and clear of all Liens imposed by the Company. The Company has reserved
from its duly authorized capital stock the maximum number of shares of Common Shares issuable pursuant to this Agreement.

 

(ii)  The
Company was at the time of the filing of the Registration Statement eligible to use Form F-3. The Company is eligible to use
Form F-3 under the Securities Act and it meets the transaction requirements with respect to the aggregate market value of securities
being sold pursuant to this offering and during the twelve (12) calendar months prior to this offering, as set forth in General
Instruction I.B.5 of Form F-3. The Company has prepared and filed with the Commission a registration statement under the Securities
Act on Form F-3 (File No. 333-239731) on July 7, 2020, providing for the offer and sale, from time to time, of up to $25,000,000
of the Company’s securities (the “Registration Statement”). The Registration Statement became effective
on July 21, 2020. The prospectus included in the Registration Statement at the time it became effective, including documents incorporated
therein by reference, is referred to herein as the “Base Prospectus”. No stop order suspending the effectiveness of
the Registration Statement has been issued under the Securities Act and no proceedings for that purpose have been instituted or
are pending or, to the knowledge of the Company, are contemplated by the Commission and any request on the part of the Commission
for additional information has been complied with.

 

Any “issuer free writing
prospectus” (as defined in Rule 433 under the Securities Act) relating to the Shares is hereafter referred to as an “Issuer
Free Writing Prospectus”. Any reference herein to the Base Prospectus and the Prospectus shall be deemed to refer to
and include the documents incorporated by reference therein as of the date of filing thereof; and any reference herein to any “amendment”
or “supplement” with respect to any of the Base Prospectus and the Prospectus shall be deemed to refer to and include
(i) the filing of any document with the Commission incorporated or deemed to be incorporated therein by reference after the date
of filing of such Base Prospectus or Prospectus and (ii) any such document so filed.

 

    	 	8	 

     

    

 

All references in this Agreement
to the Registration Statement, the Base Prospectus, or the Prospectus, or any Issuer Free Writing Prospectus, or any amendments
or supplements to any of the foregoing, shall be deemed to include any copy thereof filed with the Commission on EDGAR.

 

The Company has filed the registration
statement with FINRA or meets the definition of an Eligible Issuer.

 

(g) Securities
Act Compliance. The Registration Statement complies, and the Prospectus and any further amendments or supplements to the Registration
Statement or the Prospectus will comply, with the applicable provisions of the Securities Act. Each part of the Registration Statement,
when such part became effective, did not and will not contain an untrue statement of a material fact or omit to state a material
fact required to be stated therein or necessary to make the statements therein not misleading The Prospectus, as of its filing
date, and any amendment thereof or supplement thereto, did not and will not contain an untrue statement of a material fact or omit
to state a material fact necessary to make the statements therein, in the light of the circumstances under which they were made,
not misleading.

 

(h) No
Stop Orders. No order preventing or suspending the use of the Base Prospectus has been issued by the Commission.

 

(i) Capitalization.
The capitalization of the Company is as set forth on Schedule 3.1(i), which Schedule 3.1(i) shall also include the number of
Common Shares owned beneficially, and of record, by Affiliates of the Company as of the date hereof. All of the issued
and outstanding shares of Common Shares are duly authorized, validly issued, fully paid and non-assessable and have been duly and
validly authorized and issued, in compliance with all federal and state securities laws and not in violation of or subject to any
preemptive or similar right that entitles any person to acquire from the Company any Common Shares or other security of the Company
or any security convertible into, or exercisable or exchangeable for, Common Shares or any other such security, except for such
rights as may have been fully satisfied or waived prior to the date hereof. The Company has not issued any capital stock since
its most recently filed periodic report under the Exchange Act, other than pursuant to the exercise of employee stock options under
the Company’s stock option plans, the issuance of Common Shares to employees pursuant to the Company’s employee stock
purchase plans and pursuant to the conversion and/or exercise of Common Shares Equivalents outstanding as of the date of the most
recently filed periodic report under the Exchange Act. Except as set forth on Schedule 3.1(i), the Company has no outstanding
options, warrants, scrip rights to subscribe to, calls or commitments of any character whatsoever relating to, or securities, rights
or obligations convertible into or exercisable or exchangeable for, or giving any Person any right to subscribe for or acquire,
any Common Shares, or contracts, commitments, understandings or arrangements by which the Company is or may become bound to issue
additional Common Shares or Common Shares Equivalents. No Person has any right of first refusal, pre-emptive right, right of participation,
or any similar right to participate in the transactions contemplated by the Transaction Documents. The issuance and sale of the
Shares will not obligate the Company to issue Common Shares or other securities to any Person (other than the Purchasers) and will
not result in a right of any holder of Company securities to adjust the exercise, conversion, exchange or reset price under any
of such securities. There are no outstanding securities or instruments of the Company with any provision that adjusts the exercise,
conversion, exchange or reset price of such security or instrument upon an issuance of securities by the Company. Other than the
unsecured convertible debentures of the Company, there are no outstanding securities or instruments of the Company that contain
any redemption or similar provisions, and there are no contracts, commitments, understandings or arrangements by which the Company
is or may become bound to redeem a security of the Company. Except for the Required Approvals, no further approval or authorization
of any shareholder of the Company, the Board of Directors or others is required for the issuance and sale of the Shares. There
are no shareholders agreements, voting agreements or other similar agreements with respect to the Company’s capital stock
to which the Company is a party or, to the knowledge of the Company, between or among any of the Company’s shareholders.
The Company does not have any stock appreciation rights or “phantom stock” plans or agreements or any similar plan
or agreement.

 

    	 	9	 

     

    

 

(j) 
Reports. The Company has filed all reports, schedules, forms, statements and other documents required to be filed by the
Company under the Securities Act and Exchange Act, including pursuant to Section 13(a) or 15(d) thereof (the foregoing materials,
including the exhibits thereto and documents incorporated by reference therein, together with the Prospectus and the Prospectus
Supplements, being collectively referred to herein as the “SEC Reports”) on a timely basis or has received a valid
extension of such time of filing and has filed any such SEC Reports prior to the expiration of any such extension. As of their
respective dates, the SEC Reports complied in all material respects with the requirements of the Securities Act and the Exchange
Act, as applicable, and none of the SEC Reports, when filed, contained any untrue statement of a material fact or omitted to state
a material fact required to be stated therein or necessary in order to make the statements therein, in the light of the circumstances
under which they were made, not misleading.

 

(k) Financial
Statements. The consolidated financial statements, including the notes thereto, included or incorporated by reference in the
Registration Statement and the Prospectus comply in all material respects with applicable accounting requirements and the rules
and regulations of the Commission with respect thereto as in effect at the time of filing. Such financial statements have been
prepared in accordance with generally accepted accounting principles applied on a consistent basis during the periods involved,
except as may be otherwise specified in such financial statements or the notes thereto and except that unaudited financial statements
may not contain all footnotes required by generally accepted accounting principles, and fairly present in all material respects
the financial position of the Company and its consolidated Subsidiaries as of and for the dates thereof and the results of operations
and cash flows for the periods then ended, subject, in the case of unaudited statements, to normal, immaterial, year-end audit
adjustments.

 

(l) 
Material Changes; Undisclosed Events, Liabilities or Developments. Since the date of the latest consolidated financial statements
included in or incorporated by reference into the Registration Statement and the Prospectus, except as set forth on Schedule 3.1(l),
(i) there has been no event, occurrence or development that has had or that could reasonably be expected to result in a Material
Adverse Effect, (ii) neither the Company nor any Subsidiary has incurred any liabilities (contingent or otherwise) other than (A)
trade payables and accrued expenses incurred in the ordinary course of business consistent with past practice and (B) liabilities
not required to be reflected in the Company’s financial statements pursuant to generally accepted accounting principles or
disclosed in filings made with the Commission, (iii) the Company has not altered its method of accounting, (iv) the Company has
not declared or made any dividend or distribution of cash or other property to its stockholders or purchased, redeemed or made
any agreements to purchase or redeem any shares of its capital stock and (v) the Company has not issued any equity securities to
any officer, director or Affiliate, except pursuant to existing Company stock option plans. The Company does not have pending before
the Commission any request for confidential treatment of information. Except for the issuance of the Shares contemplated by this
Agreement or as set forth on Schedule 3.1(l), no event, liability, fact, circumstance, occurrence or development has occurred
or exists or is reasonably expected to occur or exist with respect to the Company or its Subsidiaries or their respective businesses,
prospects, properties, operations, assets or financial condition that would be required to be disclosed by the Company under applicable
securities laws at the time this representation is made or deemed made that has not been publicly disclosed at least 1 Trading
Day prior to the date that this representation is made.

 

(m) Litigation.
Except as set forth on Schedule 3.1(m), there is no material action, suit, inquiry, notice of violation, proceeding or investigation
pending or, to the knowledge of the Company, threatened against or affecting the Company, any Subsidiary or any of their respective
properties before or by any court, arbitrator, governmental or administrative agency or regulatory authority (federal, state, county,
local or foreign) (collectively, an “Action”). None of the Actions set forth on Schedule 3.1(m) (i) adversely
affects or challenges the legality, validity or enforceability of any of the Transaction Documents or the Shares, or (ii) is expected
to result in a Material Adverse Effect. The Company has disclosed, in the documents filed by the Company pursuant to Sections 12,
13, 14 or 15 of the Exchange Act and incorporated or deemed to be incorporated by reference into the Prospectus, all such information
that it is required to disclose in respect of any Action pursuant to the requirements of the Securities Act and the Exchange Act,
as applicable. Neither the Company nor any Subsidiary, nor any director or officer thereof, is or has been the subject of any Action
involving a claim of violation of or liability under federal or state securities laws or a claim of breach of fiduciary duty. There
has not been, and to the knowledge of the Company, there is not pending or contemplated, any material investigation by the Commission
involving the Company or any current or former director or officer of the Company which is required to be disclosed in the SEC
Reports. The Commission has not issued any stop order or other order suspending the effectiveness of any registration statement
filed by the Company or any Subsidiary under the Exchange Act or the Securities Act.

 

    	 	10	 

     

    

  

(n) Labor
Relations. No labor dispute exists or, to the knowledge of the Company, is imminent with respect to any of the employees of
the Company, which could reasonably be expected to result in a Material Adverse Effect. None of the Company’s or its Subsidiaries’
employees is a member of a union that relates to such employee’s relationship with the Company or such Subsidiary, and neither
the Company nor any of its Subsidiaries is a party to a collective bargaining agreement, and the Company and its Subsidiaries believe
that their relationships with their employees are good. To the knowledge of the Company, no executive officer of the Company or
any Subsidiary, is, or is now expected to be, in violation of any material term of any employment contract, confidentiality, disclosure
or proprietary information agreement or non-competition agreement, or any other contract or agreement or any restrictive covenant
in favor of any third party, and the continued employment of each such executive officer does not subject the Company or any of
its Subsidiaries to any liability with respect to any of the foregoing matters. The Company and its Subsidiaries are in compliance
with all U.S. federal, state, local and foreign laws and regulations relating to employment and employment practices, terms and
conditions of employment and wages and hours, except where the failure to be in compliance could not, individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect

 

(o) Compliance.
Neither the Company nor any Subsidiary: (i) is in default under or in violation of (and no event has occurred that has not been
waived that, with notice or lapse of time or both, would result in a default by the Company or any Subsidiary under), nor has the
Company or any Subsidiary received notice of a claim that it is in default under or that it is in violation of, any indenture,
loan or credit agreement or any other agreement or instrument to which it is a party or by which it or any of its properties is
bound (whether or not such default or violation has been waived), (ii) is in violation of any judgment, decree or order of any
court, arbitrator or other governmental authority or (iii) is or has been in violation of any statute, rule, ordinance or regulation
of any governmental authority, including without limitation all foreign, federal, state and local laws relating to taxes, environmental
protection, occupational health and safety, product quality and safety and employment and labor matters, except in each case of
(i), (ii) and (iii) as could not have or reasonably be expected to result in a Material Adverse Effect.

 

(p) Environmental
Law. There has been no storage, generation, transportation, handling, use, treatment, disposal, discharge, emission, contamination,
release or other activity involving any kind of hazardous, toxic or other wastes, pollutants, contaminants, petroleum products
or other hazardous or toxic substances, chemicals or materials (“Hazardous Substances”) by, due to, on behalf
of, or caused by the Company or any Subsidiary (or, to the Company’s knowledge, any other entity for whose acts or omissions
the Company is or may be liable) upon any property now or previously owned, operated, used or leased by the Company or any Subsidiary,
or upon any other property, which would be a violation of or give rise to any liability under any applicable law, rule, regulation,
order, judgment, decree or permit, common law provision or other legally binding standard relating to pollution or protection of
human health and the environment (“Environmental Law”), except for violations and liabilities which, individually
or in the aggregate, would not have a Material Adverse Effect. There has been no disposal, discharge, emission contamination or
other release of any kind at, onto or from any such property or into the environment surrounding any such property of any Hazardous
Substances with respect to which the Company or any Subsidiary has knowledge, except as would not, individually or in the aggregate,
have a Material Adverse Effect. There is no pending or, to the best of the Company’s knowledge, threatened administrative,
regulatory or judicial action, claim or notice of noncompliance or violation, investigation or proceedings relating to any Environmental
Law against the Company or any Subsidiary, except as would not, individually or in the aggregate, have a Material Adverse Effect.
No property of the Company or any Subsidiary is subject to any Lien under any Environmental Law. Except as disclosed in the Prospectus,
neither the Company nor any Subsidiary is subject to any order, decree, agreement or other individualized legal requirement related
to any Environmental Law, which, in any case (individually or in the aggregate), would have a Material Adverse Effect. The Company
and each Subsidiary are in compliance with all applicable federal, state, local and Environmental Laws and has all permits, authorizations
and approvals required under any applicable Environmental Laws and are each in compliance with their requirements. In the ordinary
course of its business, the Company periodically reviews the effect of Environmental Laws on the business, operations and properties
of the Company and the Subsidiaries, in the course of which it identifies and evaluates associated costs and liabilities (including,
without limitation, any capital or operating expenditures required for clean-up, closure or remediation of properties or compliance
with Environmental Laws, or any permit, license or approval, any related constraints on operating activities and any potential
liabilities to third parties). On the basis of such review, the Company has reasonably concluded that such associated costs and
liabilities would not, individually or in the aggregate, have a Material Adverse Effect.

 

    	 	11	 

     

    

 

(q) Title
to Assets. The Company and the Subsidiaries have good and marketable title in fee simple to all real property owned by them
and good and marketable title in all personal property owned by them that is material to the business of the Company and the Subsidiaries,
in each case free and clear of all Liens, except for (i) Liens as do not materially affect the value of such property and do not
materially interfere with the use made and proposed to be made of such property by the Company and the Subsidiaries and (ii) Liens
for the payment of federal, state or other taxes, for which appropriate reserves have been made therefor in accordance with generally
accepted accounting principles and, the payment of which is neither delinquent nor subject to penalties. Any real property and
facilities held under lease by the Company and the Subsidiaries are held by them under valid, subsisting and enforceable leases
with which the Company and the Subsidiaries are in compliance in all material respects.

 

(r) Regulatory
Permits. The Company and the Subsidiaries possess all certificates, authorizations and permits issued by the appropriate federal,
state, local or foreign regulatory authorities necessary to conduct their respective businesses as described in the SEC Reports,
except where the failure to possess such permits could not reasonably be expected to result in a Material Adverse Effect (“Material
Permits”), and neither the Company nor any Subsidiary has received any notice of proceedings relating to the revocation
or modification of any Material Permit.

 

(s) Intellectual
Property. The Company and the Subsidiaries have, or have rights to use, all patents, patent applications, trademarks, trademark
applications, service marks, trade names, trade secrets, inventions, copyrights, licenses and other intellectual property rights
and similar rights necessary or required for use in connection with their respective businesses as described in the SEC Reports
and which the failure to so have could have a Material Adverse Effect (collectively, the “Intellectual Property Rights”).
None of, and neither the Company nor any Subsidiary has received a notice (written or otherwise) that any of, the Intellectual
Property Rights has expired, terminated or been abandoned, or is expected to expire or terminate or be abandoned, within two (2)
years from the date of this Agreement except as would not reasonably be expected to have a Material Adverse Effect. Neither the
Company nor any Subsidiary has received, since the date of the latest audited financial statements included within the SEC Reports,
a written notice of a claim or otherwise has any knowledge that the Intellectual Property Rights violate or infringe upon the rights
of any Person and neither is aware of any facts which would form a reasonable basis for any such claim, except as could not have
or reasonably be expected to not have a Material Adverse Effect. To the knowledge of the Company, all such Intellectual Property
Rights are enforceable and there is no existing infringement by another Person of any of the Intellectual Property Rights. The
Company and its Subsidiaries have taken reasonable security measures to protect the secrecy, confidentiality and value of all of
their intellectual properties, except where failure to do so could not, individually or in the aggregate, reasonably be expected
to have a Material Adverse Effect. None of the Intellectual Property Rights used by the Company or any of its Subsidiaries in their
respective businesses has been obtained or is being used by the Company or such Subsidiary in violation of any contractual obligation
binding on the Company or any of its subsidiaries in violation of the rights of any person. The Company and its subsidiaries have
taken all reasonable steps in accordance with normal industry practice to protect and maintain the Intellectual Property Rights
including, without limitation, the execution of appropriate nondisclosure and invention assignment agreements. The consummation
of the transactions contemplated by this Agreement will not result in the loss or impairment of, or payment of, and additional
amounts with respect to, nor require the consent of, any other person regarding the Company’s or any of its subsidiaries’
right to own or use any of the Intellectual Property Rights as owned or used in the conduct of such party’s business as currently
conducted. To the knowledge of the Company and its Subsidiaries, no employee of any of the Company or its subsidiaries is the subject
of any pending claim or proceeding involving a violation of any term of any employment contract, invention disclosure agreement,
patent disclosure agreement, noncompetition agreement, non-solicitation agreement, nondisclosure agreement or restrictive covenant
to or with a former employer, where the basis of such violation relates to such employee’s employment with the Company or
its subsidiaries or actions undertaken by the employee while employed with the Company or its Subsidiaries.

 

(t) Insurance.
The Company and the Subsidiaries are insured by insurers of recognized financial responsibility against such losses and risks and
in such amounts as are prudent and customary in the businesses in which the Company and the Subsidiaries are engaged, including,
but not limited to, directors and officers insurance coverage. Neither the Company nor any Subsidiary has any reason to believe
that it will not be able to renew its existing insurance coverage as and when such coverage expires or to obtain similar coverage
from similar insurers as may be necessary to continue its business without a significant increase in cost.

 

    	 	12	 

     

    

 

(u) Transactions
With Affiliates and Employees. Except as set forth on Schedule 3.1(u), none of the officers or directors of the Company
or any Subsidiary and, to the knowledge of the Company, none of the employees of the Company or any Subsidiary is presently a party
to any transaction with the Company or any Subsidiary (other than for services as employees, officers and directors), including
any contract, agreement or other arrangement providing for the furnishing of services to or by, providing for rental of real or
personal property to or from, providing for the borrowing of money from or lending of money to or otherwise requiring payments
to or from any officer, director or such employee or, to the knowledge of the Company, any entity in which any officer, director,
or any such employee has a substantial interest or is an officer, director, trustee, stockholder, member or partner, in each case
in excess of $120,000 other than for (i) payment of salary or consulting fees for services rendered, (ii) reimbursement for expenses
incurred on behalf of the Company and (iii) other employee benefits, including stock option agreements under any stock option plan
of the Company.

 

(v) Sarbanes-Oxley;
Internal Accounting Controls. The Company and the Subsidiaries and their respective officers and directors are in compliance
with the applicable provisions of the Sarbanes-Oxley Act of 2002, as amended. The Company and the Subsidiaries maintain a system
of internal accounting controls sufficient to provide reasonable assurance that: (i) transactions are executed in accordance with
management’s general or specific authorizations, (ii) transactions are recorded as necessary to permit preparation of financial
statements in conformity with IFRS and to maintain asset accountability, (iii) access to assets is permitted only in accordance
with management’s general or specific authorization, and (iv) the recorded accountability for assets is compared with the
existing assets at reasonable intervals and appropriate action is taken with respect to any differences. The Company and the Subsidiaries
have established disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the Company
and the Subsidiaries and designed such disclosure controls and procedures to ensure that information required to be disclosed by
the Company in the reports it files or submits under the Exchange Act is recorded, processed, summarized and reported, within the
time periods specified in the Commission’s rules and forms. The Company’s certifying officers have evaluated the effectiveness
of the disclosure controls and procedures of the Company and the Subsidiaries as of applicable dates specified under the Exchange
Act (such date, the “Evaluation Date”). The Company presented in its most recently filed annual report on Form
20-F the conclusions of the certifying officers about the effectiveness of the disclosure controls and procedures based on their
evaluations as of the Evaluation Date. Except as set forth in the Prospectus, since the Evaluation Date, there have been no changes
in the internal control over financial reporting (as such term is defined in the Exchange Act) of the Company and the Subsidiaries
that have materially affected, or is reasonably likely to materially affect, the internal control over financial reporting of the
Company and the Subsidiaries.

 

(w)  Certain
Fees. Except as set forth in Schedule 3.1(i) hereto and for fees payable to A.G.P as will be as set forth in the Prospectus,
no brokerage or finder’s fees or commissions are or will be payable by the Company, any Subsidiary or any Related Entity
to any broker, financial advisor or consultant, finder, placement agent, investment banker, bank or other Person with respect to
the transactions contemplated by the Transaction Documents. The Purchasers shall have no obligation with respect to any fees or
with respect to any claims made by or on behalf of other Persons for fees of a type contemplated in this Section that may be due
in connection with the transactions contemplated by the Transaction Documents.

 

(x) Investment
Company. The Company is not, and is not an Affiliate of, and immediately after receipt of payment for the Shares, will not
be or be an Affiliate of, an “investment company” within the meaning of the Investment Company Act of 1940, as amended.
The Company shall conduct its business in a manner so that it will not become an “investment company” subject to registration
under the Investment Company Act of 1940, as amended.

 

(y)   Registration
Rights. No Person has any right to cause the Company or any Subsidiary to effect the registration under the Securities Act
of any securities of the Company or any Subsidiary.

 

    	 	13	 

     

    

 

(z) Listing
and Maintenance Requirements. The Company is subject to the reporting requirements of Section 13 of the Exchange Act and files
periodic reports with the SEC; the Shares are registered with the SEC under Section 12(b) of the Exchange Act and the Company is
not in breach of any filing or other requirements under the Exchange Act. The Company taken no action designed to or which is likely
to have the effect of terminating the registration of its Common Shares under the Exchange Act nor has not received any notice
from that the Commission is contemplating terminating such registration. Except as disclosed in the SEC Reports, the Company has
not, in the 12 months preceding the date hereof, received notice from any Trading Market on which the Common Shares are or have
been listed or quoted to the effect that the Company is not in compliance with the listing or maintenance requirements of such
Trading Market. The Company is, and has no reason to believe that it will not in the foreseeable future continue to be, in compliance
with all such listing and maintenance requirements. The Common Shares is currently eligible for electronic transfer through the
Depository Trust Company or another established clearing corporation and the Company is current in payment of the fees to the Depository
Trust Company (or such other established clearing corporation) in connection with such electronic transfer.

 

(aa)  Application
of Takeover Protections. The Company and the Board of Directors have taken all necessary action, if any, in order to render
inapplicable any control share acquisition, business combination, poison pill (including any distribution under a rights agreement)
or other similar anti-takeover provision under the Company’s articles of incorporation (or similar charter documents) or
the laws of its jurisdiction of incorporation that is or could become applicable to the Purchasers as a result of the Purchasers
and the Company fulfilling their obligations or exercising their rights under the Transaction Documents, including without limitation
as a result of the Company’s issuance of the Shares and the Purchasers’ ownership of the Shares.

 

(bb) Disclosure.
Except with respect to the material terms and conditions of the transactions contemplated by the Transaction Documents, the Company
confirms that neither it nor any other Person acting on its behalf has provided any of the Purchasers or their agents or counsel
with any information that it believes constitutes or might constitute material, non-public information which is not otherwise disclosed
in the Prospectus Supplement. The Company understands and confirms that the Purchasers will rely on the foregoing representation
in effecting transactions in securities of the Company. All of the disclosure furnished by or on behalf of the Company to the Purchasers
regarding the Company and its Subsidiaries, their respective businesses and the transactions contemplated hereby, including the
Disclosure Schedules to this Agreement, is true and correct in all material respects and does not contain any untrue statement
of a material fact or omit to state any material fact necessary in order to make the statements made therein, in the light of the
circumstances under which they were made, not misleading. The press releases disseminated by the Company during the twelve months
preceding the date of this Agreement taken as a whole do not contain any untrue statement of a material fact or omit to state a
material fact required to be stated therein or necessary in order to make the statements therein, in the light of the circumstances
under which they were made and when made, not misleading. The Company acknowledges and agrees that no Purchaser makes or has made
any representations or warranties with respect to the transactions contemplated hereby other than those specifically set forth
in Section 3.2 hereof.

 

    	 	14	 

     

    

 

(cc)  No
Integrated Offering. Assuming the accuracy of the Purchasers’ representations and warranties set forth in Section 3.2,
neither the Company, nor any of its Affiliates, nor any Person acting on its or their behalf has, directly or indirectly, made
any sales of any security or solicited any offers to buy any security, under circumstances that would cause this offering of the
Securities to be integrated with prior offerings by the Company for purposes of (i) the Securities Act, or (ii) any applicable
shareholder approval provisions of any Trading Market on which any of the securities of the Company are listed or designated.

 

(dd)  Solvency.
Based on the consolidated financial condition of the Company as of the Closing Date, after giving effect to the receipt by the
Company of the proceeds from the sale of the Shares hereunder, (i) the fair saleable value of the Company’s assets exceeds
the amount that will be required to be paid on or in respect of the Company’s existing debts and other liabilities (including
known contingent liabilities) as they mature, (ii) the Company’s assets do not constitute unreasonably small capital to carry
on its business as now conducted and as proposed to be conducted including its capital needs taking into account the particular
capital requirements of the business conducted by the Company, consolidated and projected capital requirements and capital availability
thereof, and (iii) the current cash flow of the Company, together with the proceeds the Company would receive, were it to liquidate
all of its assets, after taking into account all anticipated uses of the cash, would be sufficient to pay all amounts on or in
respect of its liabilities when such amounts are required to be paid. The Company does not intend to incur debts beyond its ability
to pay such debts as they mature (taking into account the timing and amounts of cash to be payable on or in respect of its debt).
The Company has no knowledge of any facts or circumstances which lead it to believe that it will file for reorganization or liquidation
under the bankruptcy or reorganization laws of any jurisdiction within one year from the Closing Date. Schedule 3.1(dd)
sets forth as of the date hereof all outstanding secured and unsecured Indebtedness of the Company or any Subsidiary, or for which
the Company or any Subsidiary has commitments. For the purposes of this Agreement, “Indebtedness” means (x) any liabilities
for borrowed money or amounts owed by the Company in excess of $50,000 (other than trade accounts payable incurred in the ordinary
course of business), (y) all guaranties, endorsements and other contingent obligations in respect of indebtedness of others to
third parties, whether or not the same are or should be reflected in the Company’s consolidated balance sheet (or the notes
thereto), except guaranties by endorsement of negotiable instruments for deposit or collection or similar transactions in the ordinary
course of business; and (z) the present value of any lease payments in excess of $50,000 due under leases required to be capitalized
in accordance with GAAP. Neither the Company nor any Subsidiary is in default with respect to any Indebtedness.

 

(ee)  Tax
Status. Except for matters that would not, individually or in the aggregate, have or reasonably be expected to result in a
Material Adverse Effect, the Company and its Subsidiaries each (i) has made or filed all United States federal, state and local
income and all foreign tax returns, reports and declarations required by any jurisdiction to which it is subject, (ii) has paid
all taxes and other governmental assessments and charges that are material in amount, shown or determined to be due on such returns,
reports and declarations and (iii) has set aside on its books provision reasonably adequate for the payment of all material taxes
for periods subsequent to the periods to which such returns, reports or declarations apply. There are no unpaid taxes in any material
amount claimed to be due by the taxing authority of any jurisdiction, and the officers of the Company or of any Subsidiary know
of no basis for any such claim.

 

(ff)  Foreign
Corrupt Practices; Criminal Acts. Neither the Company nor any Subsidiary, nor to the knowledge of the Company or any Subsidiary,
any agent or other person acting on behalf of the Company or any Subsidiary, has (i) directly or indirectly, used any funds for
unlawful contributions, gifts, entertainment or other unlawful expenses related to foreign or domestic political activity, (ii)
made any unlawful payment to foreign or domestic government officials or employees or to any foreign or domestic political parties
or campaigns from corporate funds, (iii) failed to disclose fully any contribution made by the Company or any Subsidiary (or made
by any person acting on its behalf of which the Company is aware) which is in violation of law, or (iv) violated in any material
respect any provision of FCPA.

 

(gg) Accountants.
The Company’s independent registered public accounting firm is as set forth in the Prospectus. To the knowledge and belief
of the Company, such accounting firm (i) is a registered public accounting firm as required by the Exchange Act and (ii) shall
express its opinion with respect to the financial statements to be included in the Company’s Annual Report on Form 20-F
for the fiscal year ended December 31, 2020.

 

(hh) Acknowledgment
Regarding Purchasers’ Purchase of Shares. The Company acknowledges and agrees that each of the Purchasers is acting
solely in the capacity of an arm’s length purchaser with respect to the Transaction Documents and the transactions contemplated
thereby. The Company further acknowledges that no Purchaser is acting as a financial advisor or fiduciary of the Company (or in
any similar capacity) with respect to the Transaction Documents and the transactions contemplated thereby and any advice given
by any Purchaser or any of their respective representatives or agents in connection with the Transaction Documents and the transactions
contemplated thereby is merely incidental to the Purchasers’ purchase of the Shares. The Company further represents to each
Purchaser that the Company’s decision to enter into this Agreement and the other Transaction Documents has been based solely
on the independent evaluation of the transactions contemplated hereby by the Company and its representatives.

 

(ii) Acknowledgment
Regarding Purchaser’s Trading Activity. Anything in this Agreement or elsewhere herein to the contrary notwithstanding
(except for Sections 3.2(e) and 4.14 hereof), it is understood and acknowledged by the Company that: (i) none of the Purchasers
has been asked by the Company to agree, nor has any Purchaser agreed, to desist from purchasing or selling, long and/or short,
securities of the Company, or “derivative” securities based on securities issued by the Company or to hold the Shares
for any specified term; (ii) past or future open market or other transactions by any Purchaser, specifically including, without
limitation, Short Sales or “derivative” transactions, before or after the closing of this or future private placement
transactions, may negatively impact the market price of the Company’s publicly-traded securities; (iii) any Purchaser, and
counter-parties in “derivative” transactions to which any such Purchaser is a party, directly or indirectly, presently
may have a “short” position in the Common Shares, and (iv) each Purchaser shall not be deemed to have any affiliation
with or control over any arm’s length counter-party in any “derivative” transaction. The Company further understands
and acknowledges that (y) one or more Purchasers may engage in hedging activities at various times during the period that the Shares
are outstanding, and (z) such hedging activities (if any) could reduce the value of the existing shareholders’ equity interests
in the Company at and after the time that the hedging activities are being conducted. The Company acknowledges that such aforementioned
hedging activities do not constitute a breach of any of the Transaction Documents.

 

    	 	15	 

     

    

 

(jj) Regulation
M Compliance. The Company has not, and to its knowledge no one acting on its behalf has, (i) taken, directly or indirectly,
any action designed to cause or to result in the stabilization or manipulation of the price of any security of the Company to facilitate
the sale or resale of any of the Shares, (ii) sold, bid for, purchased, or, paid any compensation for soliciting purchases of,
any of the Shares, or (iii) paid or agreed to pay to any Person any compensation for soliciting another to purchase any other securities
of the Company, other than, in the case of clauses (ii) and (iii), compensation paid to A.G.P.

 

(kk)  Office
of Foreign Assets Control. Neither the Company nor any Subsidiary nor, to the Company's knowledge, any director, officer, agent,
employee or affiliate of the Company or any Subsidiary is currently subject to any U.S. sanctions administered by the Office of
Foreign Assets Control of the U.S. Treasury Department (“OFAC”) and the Company will not, directly or indirectly, use
the proceeds of the Offering hereunder, or lend, contribute or otherwise make available such proceeds to any subsidiary, joint
venture partner or other person or entity, for the purpose of financing the activities of any person currently subject to any U.S.
sanctions administered by OFAC.

 

(ll) Stock
Option Plans. Each stock option granted by the Company under the Company’s stock option plan or omnibus long-term incentive
plan was granted (i) in accordance with the terms of such plan and (ii) with an exercise price at least equal to the fair market
value of the Common Shares on the date such stock option would be considered granted under GAAP and applicable law. No stock option
granted under the Company’s stock option plan or omnibus long-term incentive plan has been backdated. The Company has not
knowingly granted, and there is no and has been no Company policy or practice to knowingly grant, stock options prior to, or otherwise
knowingly coordinate the grant of stock options with, the release or other public announcement of material information regarding
the Company or the Subsidiaries or their financial results or prospects.

 

(mm)  Intentionally
Omitted.

 

(nn) U.S. Real Property
Holding Corporation. The Company is not and has never been a United States real property holding corporation within the meaning
of Section 897 of the Internal Revenue Code of 1986, as amended, and the Company shall so certify upon Purchaser’s request.

 

(oo) Bank Holding Company
Act. Neither the Company nor any of its Subsidiaries or Affiliates is subject to the Bank Holding Company Act of 1956, as
amended (the “BHCA”) and to regulation by the Board of Governors of the Federal Reserve System (the “Federal
Reserve”). Neither the Company nor any of its Subsidiaries or Affiliates owns or controls, directly or indirectly, five
percent (5%) or more of the outstanding shares of any class of voting securities or twenty-five percent or more of the total equity
of a bank or any entity that is subject to the BHCA and to regulation by the Federal Reserve. Neither the Company nor any of its
Subsidiaries or Affiliates exercises a controlling influence over the management or policies of a bank or any entity that is subject
to the BHCA and to regulation by the Federal Reserve.

 

(pp)  Money
Laundering. The operations of the Company and its Subsidiaries are and have been conducted at all times in compliance with
applicable financial record-keeping and reporting requirements of the Currency and Foreign Transactions Reporting Act of 1970,
as amended, applicable money laundering statutes and applicable rules and regulations thereunder (collectively, the “Money
Laundering Laws”), and no action, suit or proceeding by or before any court or governmental agency, authority or body
or any arbitrator involving the Company or any Subsidiary with respect to the Money Laundering Laws is pending or, to the knowledge
of the Company or any Subsidiary, threatened.

 

    	 	16	 

     

    

 

(qq)  Information
Technology. The Company’s, the Subsidiaries’ and, to the knowledge of the Company, the Related Parties’ information
technology assets and equipment, computers, systems, networks, hardware, software, websites, applications, and databases (collectively,
“IT Systems”) operate and perform in all material respects as required in connection with the operation of the
business of the Company, the Subsidiaries and the Related Entities as currently conducted. The Company, the Subsidiaries and, to
the knowledge of the Company, the Related Parties maintain commercially reasonable controls, policies, procedures, and safeguards
to maintain and protect their material confidential information and the integrity, continuous operation, redundancy and security
of all IT Systems and all personal, personally identifiable, sensitive, confidential or regulated data (“Personal Data”)
processed and stored thereon, and to the knowledge of the Company, there have been no breaches, incidents, violations, outages,
compromises or unauthorized uses of or accesses to same, except for those that have been remedied without material cost or liability
or the duty to notify any other person, nor any incidents under internal review or investigations relating to the same. The Company,
the Subsidiaries and, to the knowledge of the Company, the Related Parties are presently in compliance in all material respects
with all applicable laws or statutes and all applicable judgments, orders, rules and regulations of any court or arbitrator or
governmental or regulatory authority, internal policies and contractual obligations relating to the privacy and security of IT
Systems and Personal Data and to the protection of such IT Systems and Personal Data from unauthorized use, access, misappropriation
or modification, except for any such noncompliance that would not have a Material Adverse Effect.

 

(rr) Other
Covered Persons. Other than A.G.P., the Company is not aware of any person that has been or will be paid (directly or indirectly)
remuneration for solicitation of purchasers in connection with the sale of any Shares.

 

(ss) Regulatory.
Except as described in the Registration Statement and the Prospectus, as applicable, the Company and its Subsidiaries (i) have
not received any notice from any court or arbitrator or governmental or regulatory authority or third party alleging or asserting
noncompliance with any laws or any licenses, exemptions, certificates, approvals, clearances, authorizations, permits, registrations
and supplements or amendments thereto required to conduct the Company’s business as presently conducted (“Authorizations”);
(ii) possess all material Authorizations and such Authorizations are valid and in full force and effect and are not in violation
of any term of any such Authorizations; (iii) have not received any written notice that any court or arbitrator or governmental
or regulatory authority has taken, is taking or intends to take, action to limit, suspend, materially modify or revoke any Authorizations
nor is any such limitation, suspension, modification or revocation threatened; (iv) have filed, obtained, maintained or submitted
all material reports, documents, forms, notices, applications, records, claims, submissions and supplements or amendments as required
by any Authorizations and that all such reports, documents, forms, notices, applications, records, claims, submissions and supplements
or amendments were complete and accurate on the date filed (or were corrected or supplemented by a subsequent submission); and
(v) are not a party to any corporate integrity agreements, monitoring agreements, consent decrees, settlement orders, or similar
agreements with or imposed by any governmental or regulatory authority.

 

(tt) Material
Agreements. The agreements and documents described in the Registration Statement or Prospectus conform in all material respects
to the descriptions thereof contained or incorporated by reference therein conformed in all material respects to the requirements
of the Securities Act or the Exchange Act, as applicable at the time filed, and were filed on a timely basis with the Commission
and none of such documents contained an untrue statement of a material fact or omitted to state a material fact necessary to make
the statements therein, in the light of the circumstances under which they were made, not misleading; any further documents so
filed and there are no agreements or other documents required by the Securities Act and the rules and regulations thereunder to
be described in the Prospectus or to be filed with the Commission as exhibits to the Registration Statement or to be incorporated
by reference in the Registration Statement or Prospectus, that have not been so described or filed or incorporated by reference.

 

(uu)  Communist
Chinese Military Companies.  The Company does not constitute a “Communist Chinese Military Company” under
Executive Order 13959, issued by former President Trump on November 12, 2020 under the authority of Section 1237 of the National
Defense Authorization Act for Fiscal Year 1999.

  

3.2 Representations
and Warranties of the Purchasers. Each Purchaser, for itself and for no other Purchaser, hereby represents and warrants as
of the date hereof and as of the Closing Date to the Company as follows (unless as of a specific date therein, in which case they
shall be accurate as of such date):

 

(a) Organization;
Authority. Such Purchaser is either an individual or an entity duly incorporated or formed, validly existing and in good standing
under the laws of the jurisdiction of its incorporation or formation with full right, corporate, partnership, limited liability
company or similar power and authority to enter into and to consummate the transactions contemplated by the Transaction Documents
and otherwise to carry out its obligations hereunder and thereunder. The execution and delivery of the Transaction Documents and
performance by such Purchaser of the transactions contemplated by the Transaction Documents have been duly authorized by all necessary
corporate, partnership, limited liability company or similar action, as applicable, on the part of such Purchaser. Each Transaction
Document to which it is a party has been duly executed by such Purchaser, and when delivered by such Purchaser in accordance with
the terms hereof or thereof, will constitute the valid and legally binding obligation of such Purchaser, enforceable against it
in accordance with its terms, except: (i) as limited by general equitable principles and applicable bankruptcy, insolvency, reorganization,
moratorium and other laws of general application affecting enforcement of creditors’ rights generally; (ii) as limited by
laws relating to the availability of specific performance, injunctive relief or other equitable remedies; and (iii) insofar as
indemnification and contribution provisions may be limited by applicable law.

 

    	 	17	 

     

    

 

(b) Understandings
or Arrangements. Such Purchaser is acquiring the Shares as principal for its own account and has no direct or indirect arrangement
or understandings with any other persons to distribute or regarding the distribution of such Shares (this representation and warranty
not limiting such Purchaser’s right to sell the Shares pursuant to the Registration Statement or otherwise in compliance
with applicable federal and state securities laws). Such Purchaser is acquiring the Shares hereunder in the ordinary course of
its business. Such Purchaser is acquiring such Shares as principal for his, her or its own account and not with a view to or for
distributing or reselling such Shares or any part thereof in violation of the Securities Act or any applicable state securities
law, has no present intention of distributing any of such Securities in violation of the Securities Act or any applicable state
securities law and has no direct or indirect arrangement or understandings with any other persons to distribute or regarding the
distribution of such Shares in violation of the Securities Act or any applicable state securities law (this representation and
warranty not limiting such Purchaser’s right to sell such Shares pursuant to a registration statement or otherwise in compliance
with applicable federal and state securities laws).

 

(c) Purchaser
Status. At the time such Purchaser was offered the Shares, it was, and as of the date hereof it is, either: (i) an “accredited
investor” as defined in Rule 501(a)(1), (a)(2), (a)(3), (a)(7) or (a)(8) under the Securities Act or (ii) a “qualified
institutional buyer” as defined in Rule 144A(a) under the Securities Act.

 

(d) Experience
of Such Purchaser. Such Purchaser, either alone or together with its representatives, 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 Shares, and has so evaluated the merits and risks of such investment. Such Purchaser is able to bear the economic risk of
an investment in the Shares and, at the present time, is able to afford a complete loss of such investment.

 

(e) Access
to Information. Such Purchaser acknowledges that it has had the opportunity to review the Transaction Documents (including
all exhibits and schedules thereto) and the reports filed with the Commission and has been afforded: (i) the opportunity to ask
such questions as it has deemed necessary of, and to receive answers from, representatives of the Company concerning the terms
and conditions of the offering of the Shares and the merits and risks of investing in the Shares; (ii) access to information about
the Company 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 the Company possesses or can
acquire without unreasonable effort or expense that is necessary to make an informed investment decision with respect to the investment.
Such Purchaser acknowledges and agrees that neither A.G.P. nor any Affiliate of A.G.P. has provided such Purchaser with any information
or advice with respect to the Shares nor is such information or advice necessary or desired. Neither A.G.P. nor any Affiliate has
made or makes any representation as to the Company or the quality of the Shares and A.G.P. and any Affiliate may have acquired
non-public information with respect to the Company which such Purchaser agrees need not be provided to it. In connection with the
issuance of the Shares to such Purchaser, neither A.G.P. nor any of their Affiliates has acted as a financial advisor or fiduciary
to such Purchaser.

 

    	 	18	 

     

    

 

(f) 
Certain Transactions and Confidentiality. Other than consummating the transactions contemplated hereunder, such Purchaser
has not, nor has any Person acting on behalf of or pursuant to any understanding with such Purchaser, directly or indirectly executed
any purchases or sales, including Short Sales, of the securities of the Company during the period commencing as of the time that
such Purchaser first received a term sheet (written or oral) from the Company or any other Person representing the Company setting
forth the material terms of the transactions contemplated hereunder and ending immediately prior to the execution hereof. Notwithstanding
the foregoing, in the case of a Purchaser that is a multi-managed investment vehicle whereby separate portfolio managers manage
separate portions of such Purchaser’s assets and the portfolio managers have no direct knowledge of the investment decisions
made by the portfolio managers managing other portions of such Purchaser’s assets, the representation set forth above shall
only apply with respect to the portion of assets managed by the portfolio manager that made the investment decision to purchase
the Shares covered by this Agreement. Other than to other Persons party to this Agreement or to such Purchaser’s representatives,
including, without limitation, its officers, directors, partners, legal and other advisors, employees, agents and Affiliates, such
Purchaser has maintained the confidentiality of all disclosures made to it in connection with this transaction (including the existence
and terms of this transaction). Notwithstanding the foregoing, for the avoidance of doubt, nothing contained herein shall constitute
a representation or warranty against, or a prohibition of, any actions with respect to the borrowing of, arrangement to borrow,
identification of the availability of, and/or securing of, securities of the Company in order for such Purchaser (or its broker
or other financial representative) to effect Short Sales or similar transactions in the future.

 

(g) General Solicitation.
Such Purchaser is not purchasing the Shares as a result of any advertisement, article, notice or other communication regarding
the Shares published in any newspaper, magazine or similar media or broadcast over television or radio or presented at any seminar
or, to the knowledge of such Purchaser, any other general solicitation or general advertisement.

 

The Company acknowledges and
agrees that the representations contained in this Section 3.2 shall not modify, amend or affect such Purchaser’s right to
rely on the Company’s representations and warranties contained in this Agreement or any representations and warranties contained
in any other Transaction Document or any other document or instrument executed and/or delivered in connection with this Agreement
or the consummation of the transactions contemplated hereby. Notwithstanding the foregoing, for the avoidance of doubt, nothing
contained herein shall constitute a representation or warranty, or preclude any actions, with respect to locating or borrowing
shares in order to effect Short Sales or similar transactions in the future.

 

ARTICLE IV.

OTHER AGREEMENTS OF THE PARTIES

 

4.1 Legends. The
Shares shall be issued free of legends.

 

4.2 Lock-Up.
 The Company shall not amend, modify, waive or terminate any provision of any of the Lock-Up Agreements except to extend the
term of the lock-up period and shall enforce the provisions of each Lock-Up Agreement in accordance with its terms. If any party
to a Lock-Up Agreement breaches any provision of a Lock-Up Agreement, the Company shall promptly use its commercially reasonable
efforts to seek specific performance of the terms of such Lock-Up Agreement.

 

4.3 Integration.
The Company shall not sell, offer for sale or solicit offers to buy or otherwise negotiate in respect of any security (as defined
in Section 2 of the Securities Act) that would be integrated with the offer or sale of the Shares for purposes of the rules and
regulations of any Trading Market such that it would require shareholder approval prior to the closing of such other transaction
unless shareholder approval is obtained before the closing of such subsequent transaction.

 

4.4 Securities
Laws Disclosure; Publicity. The Company shall (a) by the Disclosure Time issue a press release disclosing the material terms
of the transactions contemplated hereby, (b) file a Current Report on Form 6-K, including the Transaction Documents as exhibits
thereto, with the Commission within the time required by the Exchange Act. From and after the issuance of such press release, the
Company represents to the Purchasers that it shall have publicly disclosed all material, non-public information delivered to any
of the Purchasers by the Company or any of the Subsidiaries, or any of their respective officers, directors, employees or agents
in connection with the transactions contemplated by the Transaction Documents. In addition, effective upon the issuance of such
press release, the Company acknowledges and agrees that any and all confidentiality or similar obligations under any agreement,
whether written or oral, between the Company, any of the Subsidiaries or any of their respective officers, directors, agents, employees
or Affiliates on the one hand, and any of the Purchasers or any of their Affiliates on the other hand, shall terminate. The Company
and each Purchaser shall consult with each other in issuing any other press releases with respect to the transactions contemplated
hereby, and neither the Company nor any Purchaser shall issue any such press release nor otherwise make any such public statement
without the prior consent of the Company, with respect to any press release of any Purchaser, or without the prior consent of each
Purchaser, with respect to any press release of the Company, which consent shall not unreasonably be withheld or delayed, except
if such disclosure is required by law, in which case the disclosing party shall promptly provide the other party with prior notice
of such public statement or communication. Notwithstanding the foregoing, the Company shall not publicly disclose the name of any
Purchaser, or include the name of any Purchaser in any filing with the Commission or any regulatory agency or Trading Market, without
the prior written consent of such Purchaser, except (a) as required by federal securities law in connection with the filing of
final Transaction Documents with the Commission and (b) to the extent such disclosure is required by law or Trading Market regulations,
in which case the Company shall provide the Purchasers with prior notice of such disclosure permitted under this clause (b).

 

    	 	19	 

     

    

 

4.5 Shareholder
Rights Plan. No claim will be made or enforced by the Company or, with the consent of the Company, any other Person, that any
Purchaser is an “Acquiring Person” under any control share acquisition, business combination, poison pill (including
any distribution under a rights agreement) or similar anti-takeover plan or arrangement in effect or hereafter adopted by the Company,
or that any Purchaser could be deemed to trigger the provisions of any such plan or arrangement, by virtue of receiving Shares
under the Transaction Documents or under any other agreement between the Company and the Purchasers.

 

 4.6 Non-Public
Information. Except with respect to the material terms and conditions of the transactions contemplated by the Transaction Documents,
which shall be disclosed pursuant to Section 4.4, the Company covenants and agrees that neither it, nor any other Person acting
on its behalf will provide any Purchaser or any Purchaser’s agents or counsel with any information that constitutes, or the
Company reasonably believes constitutes, material non-public information, unless prior thereto such Purchaser shall have consented
to the receipt of such information and agreed with the Company to keep such information confidential. The Company understands and
confirms that each Purchaser shall be relying on the foregoing covenant in effecting transactions in securities of the Company.
To the extent that the Company delivers any material, non-public information to a Purchaser without such Purchaser’s consent,
the Company hereby covenants and agrees that such Purchaser shall not have any duty of confidentiality to the Company, any of the
Subsidiaries, or any of their respective officers, directors, agents, employees or Affiliates, or a duty to the Company, any of
the Subsidiaries or any of their respective officers, directors, agents, employees or Affiliates not to trade on the basis of,
such material, non-public information, provided that the Purchaser shall remain subject to applicable law. To the extent that any
notice provided pursuant to any Transaction Document constitutes, or contains, material, non-public information regarding the Company
or any Subsidiaries, the Company shall simultaneously file such material non-public information on with the Commission pursuant
to a Current Report on Form 6-K. The Company understands and confirms that each Purchaser shall be relying on the foregoing covenant
in effecting transactions in securities of the Company.

 

4.7 Use
of Proceeds. The Company shall use the net proceeds from the sale of the Shares hereunder for working capital purposes, and
shall not use such proceeds: (a) for the satisfaction of any portion of the Company’s debt (other than payment of trade payables
in the ordinary course of the Company’s business and prior practices), (b) for the redemption of any Common Shares or Common
Shares Equivalents, (c) for the settlement of any outstanding litigation, or (d) in violation of FCPA or OFAC regulations.

 

    	 	20	 

     

    

 

4.8 Indemnification
of Purchasers. Subject to the provisions of this Section 4.8, the Company will indemnify and hold each Purchaser and its directors,
officers, shareholders, members, partners, employees and agents (and any other Persons with a functionally equivalent role of a
Person holding such titles notwithstanding a lack of such title or any other title), each Person who controls such Purchaser (within
the meaning of Section 15 of the Securities Act and Section 20 of the Exchange Act), and the directors, officers, shareholders,
agents, members, partners or employees (and any other Persons with a functionally equivalent role of a Person holding such titles
notwithstanding a lack of such title or any other title) of such controlling persons (each, a “Purchaser Party”)
harmless from any and all losses, liabilities, obligations, claims, contingencies, damages, costs and expenses, including all judgments,
amounts paid in settlements, court costs and reasonable attorneys’ fees and costs of investigation that any such Purchaser
Party may suffer or incur caused by or based upon (a) any breach of any of the representations or warranties made by the Company
in this Agreement or in the other Transaction Documents or (b) any action instituted against the Purchaser Parties in any capacity,
or any of them or their respective Affiliates, by any shareholder of the Company who is not an Affiliate of such Purchaser Party,
with respect to any of the transactions contemplated by the Transaction Documents (unless such action is solely based upon a material
breach of such Purchaser Party’s representations, warranties or covenants under the Transaction Documents or any agreements
or understandings such Purchaser Party may have with any such shareholder or any violations by such Purchaser Party of state or
federal securities laws or any conduct by such Purchaser Party which is finally judicially determined to constitute fraud, gross
negligence or willful misconduct). The Company will indemnify each Purchaser Party, to the fullest extent permitted by applicable
law, from and against any and all losses, claims, damages, liabilities, costs (including, without limitation, reasonable attorneys’
fees) and expenses, as incurred, caused by or based upon (i) any untrue or alleged untrue statement of a material fact contained
in the Registration Statement or any amendment thereto, any Issuer Free Writing Prospectus, the Prospectus or any amendment or
supplement thereto, or caused by or based upon any omission or alleged omission of a material fact required to be stated therein
or necessary to make the statements therein (in the case of any prospectus or supplement thereto, in the light of the circumstances
under which they were made) not misleading, except to the extent, but only to the extent, that such untrue statements or omissions
are based solely upon information regarding such Purchaser Party furnished in writing to the Company by such Purchaser Party expressly
for use therein, or (ii) any violation or alleged violation by the Company of the Securities Act, the Exchange Act or any state
securities law, or any rule or regulation thereunder in connection therewith. If any action shall be brought against any Purchaser
Party in respect of which indemnity may be sought pursuant to this Agreement, such Purchaser Party shall promptly notify the Company
in writing, and the Company shall have the right to assume the defense thereof with counsel of its own choosing reasonably acceptable
to the Purchaser Party. Any Purchaser Party shall have the right to employ separate counsel in any such action and participate
in the defense thereof, but the fees and expenses of such counsel shall be at the expense of such Purchaser Party except to the
extent that (x) the employment thereof has been specifically authorized by the Company in writing, (y) the Company has failed after
a reasonable period of time to assume such defense and to employ counsel or (z) in such action there is, in the reasonable opinion
of counsel, a material conflict on any material issue between the position of the Company and the position of such Purchaser Party,
in which case the Company shall be responsible for the reasonable fees and expenses of no more than one such separate counsel.
The Company will not be liable to any Purchaser Party under this Agreement (1) for any settlement by a Purchaser Party effected
without the Company’s prior written consent, which shall not be unreasonably withheld or delayed; or (2) to the extent, but
only to the extent that a loss, claim, damage or liability is attributable to any Purchaser Party’s breach of any of the
representations, warranties, covenants or agreements made by such Purchaser Party in this Agreement or in the other Transaction
Documents. The indemnification required by this Section 4.8 shall be made by periodic payments of the amount thereof during the
course of the investigation or defense, as and when bills are received or are incurred. The indemnity agreements contained herein
shall be in addition to any cause of action or similar right of any Purchaser Party against the Company or others and any liabilities
the Company may be subject to pursuant to law.

 

4.9 Reservation
of Common Shares. As of the date hereof, the Company has reserved and the Company shall continue to reserve and keep available
at all times, free of preemptive rights, a sufficient number of shares of Common Shares for the purpose of enabling the Company
to issue the Shares pursuant to this Agreement.

 

4.10  Listing
of Common Shares. The Company hereby agrees to use commercially reasonable best efforts to maintain the listing or quotation
of the Common Shares on the Nasdaq, and concurrently with the Closing, the Company shall apply to list or quote all of the Stock
on the Nasdaq and promptly secure the listing of all of the Stock on the Nasdaq. The Company further agrees, if the Company applies
to have the Common Shares traded on any other Trading Market, it will then include in such application all of the Stock, and will
take such other action as is necessary to cause all of the Shares to be listed or quoted on such other Trading Market as promptly
as possible. The Company will then take all action reasonably necessary to continue the listing and trading of its Common Shares
on a Trading Market and will comply in all respects with the Company’s reporting, filing and other obligations under the
bylaws or rules of the Trading Market. For so long as the Company maintains a listing or quotation of the Common Shares on a Trading
Market, the Company agrees to maintain the eligibility of the Common Shares for electronic transfer through the Depository Trust
Company or another established clearing corporation, including, without limitation, by timely payment of fees to the Depository
Trust Company or such other established clearing corporation in connection with such electronic transfer.

 

    	 	21	 

     

    

 

4.11 Sales During
Pre-Settlement Period. Notwithstanding anything herein to the contrary, if at any time on or after the time of execution of
this Agreement by the Company and an applicable Purchaser, through, and including the time immediately prior to the Closing, such
Purchaser sells (excluding “short sales” as defined in Rule 200 of Regulation SHO) to any Person all, or any portion,
of any Shares to be issued hereunder to such Purchaser at the Closing (collectively, the “Pre-Settlement Shares”),
such Purchaser shall, automatically hereunder (without any additional required actions by such Purchaser or the Company), be deemed
to be unconditionally bound to purchase, and the Company shall be deemed unconditionally bound to sell, such Pre-Settlement Shares
to such Purchaser at the Closing; provided, that the Company shall not be required to deliver any Pre-Settlement Shares to such
Purchaser prior to the Company's receipt of the purchase price of such Pre-Settlement Shares hereunder; and provided further that
the Company hereby acknowledges and agrees that the forgoing shall not constitute a representation or covenant by such Purchaser
as to whether or not during the Pre-Settlement Period such Purchaser shall sell any Pre-Settlement Shares to any Person and that
any such decision to sell any Pre-Settlement Shares by such Purchaser shall be made, in the sole discretion of such Purchaser,
at the time such Purchaser elects to effect any such sale, if any.  

 

4.12  Subsequent
Equity Sales.

 

(a) From
the date hereof until 90 days after the Closing Date, neither the Company nor any Subsidiary shall (i) issue, enter into any agreement
to issue or announce the issuance or proposed issuance of any Common Shares or Common Shares Equivalents or (ii) file any registration
statement or any amendment or supplement thereto, other

than the Prospectus Supplement.

 

(b) Notwithstanding the
foregoing, this Section 4.12 shall not apply in respect of an Exempt Issuance; provided, however that such securities are issued
as “restricted securities” (as defined in Rule 144 of the Securities Act) and carry no registration rights that require
or permit the filing of any registration statement in connection therewith during the prohibition period in Section 4.12(a) herein.

  

4.13   Equal Treatment
of Purchasers. No consideration (including any modification of any Transaction Document) shall be offered or paid to any Person
to amend or consent to a waiver or modification of any provision of the Transaction Documents unless the same consideration is
also offered to all of the parties to such Transaction Documents. For clarification purposes, this provision constitutes a separate
right granted to each Purchaser by the Company and negotiated separately by each Purchaser, and is intended for the Company to
treat the Purchasers as a class and shall not in any way be construed as the Purchasers acting in concert or as a group with respect
to the purchase, disposition or voting of Shares or otherwise.

 

4.14   Certain Transactions
and Confidentiality. Each Purchaser, severally and not jointly with the other Purchasers, covenants that neither it nor any
Affiliate acting on its behalf or pursuant to any understanding with it will execute any purchases or sales, including Short Sales
of any of the Company’s securities during the period commencing with the execution of this Agreement and ending at such time
that the transactions contemplated by this Agreement are first publicly announced pursuant to the initial press release as described
in Section 4.4. Each Purchaser, severally and not jointly with the other Purchasers, covenants that until such time as the transactions
contemplated by this Agreement are publicly disclosed by the Company pursuant to the initial press release as described in Section
4.4, such Purchaser will maintain the confidentiality of the existence and terms of this transaction and the information included
in this Agreement, including the schedules hereto. Notwithstanding the foregoing, and notwithstanding anything contained in this
Agreement to the contrary, the Company expressly acknowledges and agrees that (i) no Purchaser makes any representation, warranty
or covenant hereby that it will not engage in effecting transactions in any securities of the Company after the time that the transactions
contemplated by this Agreement are first publicly announced pursuant to the initial press release as described in Section 4.4,
(ii) no Purchaser shall be restricted or prohibited from effecting any transactions in any securities of the Company in accordance
with applicable securities laws from and after the time that the transactions contemplated by this Agreement are first publicly
announced pursuant to the initial press release as described in Section 4.4 and (iii) no Purchaser shall have any duty of confidentiality
or duty not to trade in the securities of the Company to the Company or the Subsidiaries after the issuance of the initial press
release as described in Section 4.4. Notwithstanding the foregoing, in the case of a Purchaser that is a multi-managed investment
vehicle whereby separate portfolio managers manage separate portions of such Purchaser’s assets and the portfolio managers
have no direct knowledge of the investment decisions made by the portfolio managers managing other portions of such Purchaser’s
assets, the covenant set forth above shall only apply with respect to the portion of assets managed by the portfolio manager that
made the investment decision to purchase the Shares covered by this Agreement.

 

    	 	22	 

     

    

 

ARTICLE V.

MISCELLANEOUS

 

 

5.1 Termination.
This Agreement may be terminated by any Purchaser, as to such Purchaser’s obligations hereunder only and without any effect
whatsoever on the obligations between the Company and the other Purchasers, by written notice to the other parties, if the Closing
has not been consummated on or before February 28, 2021; provided, however, that no such termination
will affect the right of any party to sue for any breach by any other party (or parties).

 

5.2 Fees
and Expenses. At the Closing, pursuant to the Letter of Engagement, the Company has agreed to reimburse the Placement Agent
1% of the gross proceeds for the non-accountable expenses. Except as expressly set forth in the Transaction Documents to the contrary,
each party shall pay the fees and expenses of its advisers, counsel, accountants and other experts, if any, and all other expenses
incurred by such party incident to the negotiation, preparation, execution, delivery and performance of this Agreement. The Company
shall pay all Transfer Agent fees (including, without limitation, any fees required for same-day processing of any instruction
letter delivered by the Company and any exercise notice delivered by a Purchaser), stamp taxes and other taxes and duties levied
in connection with the delivery of any Shares to the Purchasers.

 

5.3 Entire
Agreement. The Transaction Documents, together with the exhibits and schedules thereto, and the Prospectus contain the entire
understanding of the parties with respect to the subject matter hereof and thereof and supersede all prior agreements and understandings,
oral or written, with respect to such matters, which the parties acknowledge have been merged into such documents, exhibits and
schedules.

 

5.4 Notices.
Any and all notices or other communications or deliveries required or permitted to be provided hereunder shall be in writing and
shall be deemed given and effective on the earliest of: (a) the time of transmission, if such notice or communication is delivered
via facsimile at the facsimile number or email attachment at the email address as set forth on the signature pages attached hereto
at or prior to 5:30 p.m. (New York City time) on a Trading Day, (b) the next Trading Day after the time of transmission, if such
notice or communication is delivered via facsimile at the facsimile number or email attachment at the email address as set forth
on the signature pages attached hereto on a day that is not a Trading Day or later than 5:30 p.m. (New York City time) on any Trading
Day, (c) the second (2nd)Trading Day following the date of mailing, if sent by U.S. nationally recognized overnight courier service
or (d) upon actual receipt by the party to whom such notice is required to be given. The address for such notices and communications
shall be as set forth on the signature pages attached hereto. To the extent that any notice provided pursuant to any Transaction
Document constitutes, or contains, material, non-public information regarding the Company or any Subsidiaries, the Company shall
simultaneously disclose such information in accordance with applicable law and file such notice with the Commission pursuant to
a Current Report on Form 6-K.

 

5.5 Amendments;
Waivers. No provision of this Agreement may be waived, modified, supplemented or amended except in a written instrument signed,
in the case of an amendment, by the Company and Purchasers which purchased a majority in interest of the Shares based on the initial
Subscription Amounts hereunder or, in the case of a waiver, by the party (or with respect to the Purchasers, a majority thereof)
against whom enforcement of any such waived provision is sought. No waiver of any default with respect to any provision, condition
or requirement of this Agreement shall be deemed to be a continuing waiver in the future or a waiver of any subsequent default
or a waiver of any other provision, condition or requirement hereof, nor shall any delay or omission of any party to exercise any
right hereunder in any manner impair the exercise of any such right.

 

5.6 Headings.
The headings herein are for convenience only, do not constitute a part of this Agreement and shall not be deemed to limit or affect
any of the provisions hereof.

  

5.7 Successors
and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their successors and permitted
assigns. The Company may not assign this Agreement or any rights or obligations hereunder without the prior written consent of
each Purchaser (other than by merger). Any Purchaser may assign any or all of its rights under this Agreement to any Person to
whom such Purchaser assigns or transfers any Shares, provided that such transferee agrees in writing to be bound, with respect
to the transferred Shares, by the provisions of the Transaction Documents that apply to the “Purchasers.”

 

    	 	23	 

     

    

 

5.8 No
Third-Party Beneficiaries. A.G.P. shall be the third party beneficiaries of the representations and warranties of the Company
in Section 3.1 and the representations and warranties of the Purchasers in Section 3.2. This Agreement is intended for the benefit
of the parties hereto and their respective successors and permitted assigns and is not for the benefit of, nor may any provision
hereof be enforced by, any other Person, except as otherwise set forth in Section 4.8 and this Section 5.8.

 

5.9 Governing
Law. All questions concerning the construction, validity, enforcement and interpretation of the Transaction Documents shall
be governed by and construed and enforced in accordance with the internal laws of the State of New York, without regard to the
principles of conflicts of law thereof. Each party agrees that all legal proceedings concerning the interpretations, enforcement
and defense of the transactions contemplated by this Agreement and any other Transaction Documents (whether brought against a party
hereto or its respective affiliates, directors, officers, shareholders, partners, members, employees or agents) shall be commenced
exclusively in the state and federal courts sitting in the City of New York. Each party hereby irrevocably submits to the exclusive
jurisdiction of the state and federal courts sitting in the City of New York, Borough of Manhattan for the adjudication of any
dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein (including with respect
to the enforcement of any of the Transaction Documents), and hereby irrevocably waives, and agrees not to assert in any action
or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such action or proceeding
is improper or is an inconvenient venue for such Proceeding. Each party hereby irrevocably waives personal service of process and
consents to process being served in any such action or proceeding by mailing a copy thereof via registered or certified mail or
overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under this Agreement and
agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall
be deemed to limit in any way any right to serve process in any other manner permitted by law. If any party shall commence an action
or proceeding to enforce any provisions of the Transaction Documents, then, in addition to the obligations of the Company under
Section 4.8, the prevailing party in such action or proceeding shall be reimbursed by the non-prevailing party for its reasonable
attorneys’ fees and other costs and expenses incurred with the investigation, preparation and prosecution of such action
or proceeding.

 

5.10 Survival.
The representations and warranties contained herein shall survive the Closing and the delivery of the Shares for a period of not
longer than five (5) years from the Closing.

 

5.11 Execution.
This Agreement may be executed in two or more counterparts, all of which when taken together shall be considered one and the same
agreement and shall become effective when counterparts have been signed by each party and delivered to each other party, it being
understood that the parties need not sign the same counterpart. In the event that any signature is delivered by facsimile transmission
or by e-mail delivery of a “.pdf” format data file, such signature shall create a valid and binding obligation of
the party executing (or on whose behalf such signature is executed) with the same force and effect as if such facsimile or “.pdf”
signature page were an original thereof.

 

5.12 Severability.
If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction to be invalid,
illegal, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions set forth herein shall remain
in full force and effect and shall in no way be affected, impaired or invalidated, and the parties hereto shall use their commercially
reasonable efforts to find and employ an alternative means to achieve the same or substantially the same result as that contemplated
by such term, provision, covenant or restriction. It is hereby stipulated and declared to be the intention of the parties that
they would have executed the remaining terms, provisions, covenants and restrictions without including any of such that may be
hereafter declared invalid, illegal, void or unenforceable.

 

5.13 Rescission
and Withdrawal Right. Notwithstanding anything to the contrary contained in (and without limiting any similar provisions of)
any of the other Transaction Documents, whenever any Purchaser exercises a right, election, demand or option under a Transaction
Document and the Company does not timely perform its related obligations within the periods therein provided, then such Purchaser
may rescind or withdraw, in its sole discretion from time to time upon written notice to the Company, any relevant notice, demand
or election in whole or in part without prejudice to its future actions and rights.

 

    	 	24	 

     

    

 

5.14 Replacement
of Shares. If any certificate or instrument evidencing any Shares is mutilated, lost, stolen or destroyed, the Company shall
issue or cause to be issued in exchange and substitution for and upon cancellation thereof (in the case of mutilation), or in
lieu of and substitution therefor, a new certificate or instrument, but only upon receipt of evidence reasonably satisfactory
to the Company of such loss, theft or destruction. The applicant for a new certificate or instrument under such circumstances
shall also pay any reasonable third-party costs (including customary indemnity) associated with the issuance of such replacement
Shares.

 

5.15   Remedies. In addition to being
entitled to exercise all rights provided herein or granted by law, including recovery of damages, each of the Purchasers and the
Company will be entitled to specific performance under the Transaction Documents. The parties agree that monetary damages may not
be adequate compensation for any loss incurred by reason of any breach of obligations contained in the Transaction Documents and
hereby agree to waive and not to assert in any action for specific performance of any such obligation the defense that a remedy
at law would be adequate.

 

5.16   Payment Set
Aside. To the extent that the Company makes a payment or payments to any Purchaser pursuant to any Transaction Document or
a Purchaser enforces or exercises its rights thereunder, and such payment or payments or the proceeds of such enforcement or exercise
or any part thereof are subsequently invalidated, declared to be fraudulent or preferential, set aside, recovered from, disgorged
by or are required to be refunded, repaid or otherwise restored to the Company, a trustee, receiver or any other Person under any
law (including, without limitation, any bankruptcy law, state or federal law, common law or equitable cause of action), then to
the extent of any such restoration the obligation or part thereof originally intended to be satisfied shall be revived and continued
in full force and effect as if such payment had not been made or such enforcement or setoff had not occurred.

 

5.17   Independent
Nature of Purchasers’ Obligations and Rights. The obligations of each Purchaser under any Transaction Document are several
and not joint with the obligations of any other Purchaser, and no Purchaser shall be responsible in any way for the performance
or non-performance of the obligations of any other Purchaser under any Transaction Document. Nothing contained herein or in any
other Transaction Document, and no action taken by any Purchaser pursuant hereto or thereto, shall be deemed to constitute the
Purchasers as a partnership, an association, a joint venture or any other kind of entity, or create a presumption that the Purchasers
are in any way acting in concert or as a group with respect to such obligations or the transactions contemplated by the Transaction
Documents. Each Purchaser shall be entitled to independently protect and enforce its rights including, without limitation, the
rights arising out of this Agreement or out of the other Transaction Documents, and it shall not be necessary for any other Purchaser
to be joined as an additional party in any proceeding for such purpose. Each Purchaser has been represented by its own separate
legal counsel in its review and negotiation of the Transaction Documents. For reasons of administrative convenience only, each
Purchaser and its respective counsel have chosen to communicate with the Company through the legal counsel of A.G.P. The legal
counsel of A.G.P. does not represent any of the Purchasers and only represents A.G.P. The Company has elected to provide all Purchasers
with the same terms and Transaction Documents for the convenience of the Company and not because it was required or requested to
do so by any of the Purchasers. It is expressly understood and agreed that each provision contained in this Agreement and in each
other Transaction Document is between the Company and a Purchaser, solely, and not between the Company and the Purchasers collectively
and not between and among the Purchasers.

 

5.18 [Reserved].

 

5.19 Saturdays, Sundays,
Holidays, etc. If the last or appointed day for the taking of any action or the expiration of any right required or granted
herein shall not be a Business Day, then such action may be taken or such right may be exercised on the next succeeding Business
Day.

 

5.20 Currency.
Unless otherwise stated, all dollar amounts and references to “$” in this Agreement refer to the lawful currency of
the United States.

 

    	 	25	 

     

    

 

5.21 Construction.
The parties agree that each of them and/or their respective counsel have reviewed and had an opportunity to revise the Transaction
Documents and, therefore, the normal rule of construction to the effect that any ambiguities are to be resolved against the drafting
party shall not be employed in the interpretation of the Transaction Documents or any amendments thereto. In addition, each and
every reference to share prices and Common Shares in any Transaction Document shall be subject to adjustment for reverse and forward
stock splits, stock dividends, stock combinations and other similar transactions of the Common Shares that occur after the date
of this Agreement.

 

5.22  WAIVER
OF JURY TRIAL. IN ANY ACTION, SUIT, OR PROCEEDING IN ANY JURISDICTION BROUGHT BY ANY PARTY AGAINST ANY OTHER PARTY,
THE PARTIES EACH KNOWINGLY AND INTENTIONALLY, TO THE GREATEST EXTENT PERMITTED BY APPLICABLE LAW, HEREBY ABSOLUTELY, UNCONDITIONALLY,
IRREVOCABLY AND EXPRESSLY WAIVES FOREVER TRIAL BY JURY.

 

(Signature Pages Follow)

 

    	 	26	 

     

    

 

IN WITNESS WHEREOF, the parties hereto have caused this Securities
Purchase Agreement to be duly executed by their respective authorized signatories as of the date first indicated above.

 

	MMTEC, INC	 	Address for Notice:
	 	 	 	 
	By:	 	 	 
	 	Name:  Xiangdong Wen	 	 
	 	Title:   Chief Executive Officer	 	Attention: 
	 	 	 	E-mail: 

 

[REMAINDER OF PAGE INTENTIONALLY
LEFT BLANK

SIGNATURE PAGE FOR PURCHASER
FOLLOWS]

 

     

     

    

 

[PURCHASER SIGNATURE PAGES TO
MTC SECURITIES PURCHASE AGREEMENT]

 

IN WITNESS WHEREOF, the undersigned
have caused this Securities Purchase Agreement to be duly executed by their respective authorized signatories as of the date first
indicated above.

 

	Name of Purchaser:	 

 

	Signature of Authorized Signatory of Purchaser:	 

 

	Name of Authorized Signatory:	 

 

	Title of Authorized Signatory:	 

 

	Email Address of Authorized Signatory:	 

 

	Facsimile Number of Authorized Signatory:	 
	 
	Address for Notice to Purchaser:

 

DWAC for Shares:

 

	Subscription Amount: $	 	 

 

	Shares:	 	 

 

	EIN Number:	 	 

 

     

     

    

 

Exhibit A

 

Form of Lock-Up Agreement

 

See attached.

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