Document:

EX-10.1

 Exhibit 10.1 

EXECUTION VERSION 
  

 
  

STOCK PURCHASE AGREEMENT 

by and between 
 Carver
Bancorp, Inc. 
 and 

Wells Fargo Central Pacific Holdings, Inc. 

dated as of 

February 1, 2021 
  

 
  

 TABLE OF CONTENTS 
  

							
	 	 	 	  	Page	 
	 1.  Purchase of the Stock.
	  	 	1	 
	 1.1
	 	Purchase of the Stock	  	 	1	 
	 1.2
	 	Closing	  	 	1	 
	 2.  Representations and Warranties of the Company.
	  	 	2	 
	 2.1
	 	Organization, Good Standing and Authorization	  	 	2	 
	 2.2
	 	Capitalization	  	 	3	 
	 2.3
	 	No Conflicts	  	 	3	 
	 2.4
	 	Subsidiaries; Investments	  	 	3	 
	 2.5
	 	Financial Statements	  	 	4	 
	 2.6
	 	Undisclosed Liabilities	  	 	4	 
	 2.7
	 	Tax Matters	  	 	5	 
	 2.8
	 	Actions; Orders	  	 	5	 
	 2.9
	 	Compliance with Laws; Governmental Authorizations	  	 	5	 
	 2.10
	 	Investment Company Act	  	 	5	 
	 2.11
	 	No Broker	  	 	5	 
	 3.  Representations and Warranties of the Investor.
	  	 	5	 
	 3.1
	 	Organization, Good Standing and Authorization	  	 	5	 
	 3.2
	 	Investment Representations	  	 	6	 
	 3.3
	 	No Broker	  	 	7	 
	 4.  Covenants of the Company and the Investor.
	  	 	7	 
	 4.1
	 	Corporate Actions for the Issuance of the Shares and Performance of Other Obligations	  	 	7	 
	 4.2
	 	Use of Proceeds	  	 	7	 
	 4.3
	 	Access to Information	  	 	7	 
	 4.4
	 	Expenses	  	 	7	 
	 4.5
	 	Publicity	  	 	7	 
	 4.6
	 	Preemptive Rights	  	 	7	 
	 4.7
	 	BHCA Control.	  	 	8	 
	 4.8
	 	Transfer Restrictions	  	 	9	 
	 4.9
	 	FIRPTA Certificate	  	 	10	 
	 5.  Termination.
	  	 	10	 
	 5.1
	 	Termination	  	 	10	 
	 5.2
	 	Effect of Termination	  	 	10	 
	 6.  Miscellaneous.
	  	 	10	 
	 6.1
	 	Notices	  	 	10	 
	 6.2
	 	Governing Law; Consent to Jurisdiction	  	 	11	 
	 6.3
	 	Binding Effect	  	 	12	 
	 6.4
	 	Assignment	  	 	12	 
	 6.5
	 	Amendment, Waivers	  	 	12	 
	 6.6
	 	Entire Agreement	  	 	12	 
	 6.7
	 	Survival	  	 	12	 
	 6.8
	 	Severability	  	 	12	 

  
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	 6.9
	 	Headings	  	 	13	 
	 6.10
	 	Counterparts	  	 	13	 
	 6.11
	 	No Implied Rights	  	 	13	 
	 6.12
	 	Recognition of the U.S. Special Resolutions Regimes	  	 	13	 

 Schedules 

Schedule A: Term Sheet 
 Schedule B: Significant Subsidiaries

  
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 STOCK PURCHASE AGREEMENT 

THIS AGREEMENT (this “Agreement”) is made and entered into as of the 1st
day of February, 2021, by and between Carver Bancorp, Inc., a Delaware corporation (the “Company”), and Wells Fargo Central Pacific Holdings, Inc., a Delaware corporation (the “Investor”). 

W I T N E S S E T H : 

WHEREAS, the Company desires to issue and sell to the Investor, and the Investor desires to purchase from the Company, the shares of the
Company’s common stock, par value $0.01 per share (the “Common Stock” and such shares of Common Stock, the “Common Shares”) and Non-Cumulative Non-Voting Participating Preferred Stock, Series E, par value $0.01 per share (the “Series E Preferred Stock” and such shares of Series E Preferred Stock, the “Preferred
Shares” and, together with the Common Shares, the “Shares”), the terms of which are set forth in the Term Sheet attached as Schedule A hereto; 

WHEREAS, the Company operates predominately through its wholly owned banking Subsidiary (as defined below) Carver Federal Savings Bank, a
minority-owned depository institution organized under the laws of the United States as a federal savings bank (the “Bank”); and 

WHEREAS, the Investor is committed to supporting economic growth in the diverse communities in which the Company and the Bank operate and
providing direction to the Company and Bank in support of their objectives to provide financial services to underserved populations. 
 NOW,
THEREFORE, the parties hereto hereby agree as follows. 
 1. Purchase of the Stock. 

1.1 Purchase of the Stock. Subject to the terms and conditions set forth in this Agreement, the Company shall issue and sell to the
Investor, and the Investor shall purchase from the Company, the Common Shares and the Preferred Shares at the respective purchase prices set forth on Schedule A hereto (the “Purchase Price”). 

1.2 Closing. The closing of the sale and purchase of the Shares (the “Closing”) shall take place at such place, time or
date as the parties hereto may agree (the time and date of the Closing being herein referred to as the “Closing Date”). Against payment by the Investor of the Purchase Price by wire transfer of immediately available funds to the
account(s) designated by the Company, the Company will deliver to the Investor a receipt or similar record confirming that the Shares, which shall be in book-entry form, have been registered in the name of the Investor in the Company’s stock
register. 

  
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 2. Representations and Warranties of the Company. 

As used in this Article 2, (i) any reference to any event, change or effect being “material” with respect to the
Company or any of the Company Subsidiaries (as defined below) means an event, change or effect which is material in relation to the business, condition or results of operations of the Company and the Company Subsidiaries, taken as a whole, and
(ii) the term “Material Adverse Effect” means a material adverse effect on the business, condition or results of operations of the Company and the Company Subsidiaries, taken as a whole; provided, however, that,
with respect to the Company, a Material Adverse Effect shall not include an effect resulting from (a) any change in law or GAAP (as defined in Section 4.5(b) hereof) or interpretations thereof that applies to the Company or any Company
Subsidiary, (b) any change in general economic, business , financial or credit market conditions, (c) changes after the date hereof in global or United States or foreign national or regional economic, financial, regulatory or geopolitical
conditions or events, (d) disasters, calamities, weather conditions, similar events, any military conflict, act of terrorism, outbreak or escalation of hostilities or declared or undeclared war or any other force majeure event any other force
majeure event, except to the extent any such change, event, occurrence, fact, effect or condition has a disproportionate adverse effect on business, results of operations or financial condition of the Company and its Subsidiaries, taken as a whole,
as compared to other persons similarly situated in the same industry. 
 The Company represents and warrants to the Investor as of the date
hereof and at the time of payment and delivery of the Purchase Price (the “Time of Payment and Delivery”) as follows: 
 2.1
Organization, Good Standing and Authorization. 
 (a) The Company and each Company Subsidiary is an entity duly organized, validly
existing and in good standing under the laws of its jurisdiction of organization, with full power and authority to perform its obligations under this Agreement. The Company and each Company Subsidiary is duly qualified or licensed to do business as
a foreign entity and is in good standing in each jurisdiction in which either the ownership or use of the properties owned or used by it or the nature of the activities conducted by it requires such licensing, qualification or good standing, except
for any failure to be so licensed, qualified or be in such good standing which could not be reasonably expected to have a Material Adverse Effect. 

(b) The Schedule of Subsidiaries, attached hereto as Schedule B, sets forth a true and complete list of all Subsidiaries (as defined
below) of the Company (each hereinafter referred to individually as a “Company Subsidiary” and collectively as the “Company Subsidiaries”). For purposes of this Agreement, the term “Subsidiary”
shall mean with respect to any Person (as defined below), any corporation or other entity of which such Person has, directly or indirectly, ownership of securities or other interests having the power to elect a majority of such corporation’s or
other entity’s board of directors (or similar governing body), or otherwise having the power to direct the business and policies of such corporation or other entity. For purposes of this Agreement, the term “Person” shall mean
any individual, corporation (including any non-profit corporation), general or limited partnership, limited liability company, governmental entity, joint venture, estate, trust, association, organization or
other entity of any kind or nature. 

  
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 (c) The Company has the requisite corporate power and authority and has taken all corporate
action necessary in order to execute, deliver and perform its obligations hereunder. This Agreement has been duly executed and delivered by the Company and constitutes the valid and binding agreement of the Company, enforceable against the Company
in accordance with its terms, subject to bankruptcy, insolvency, moratorium, fraudulent transfer and other laws affecting creditors’ rights and to general equity principles. 

2.2 Capitalization. 
 (a)
The authorized capital stock of the Company consists of (i) 10,000,000 shares of Common Stock, of which 3,062,850 shares of Common Stock are issued and outstanding, and (ii) 2,000,000 shares of the Company’s preferred stock (the
“Preferred Stock” and together with the Common Stock, the “Capital Stock”), of which 17,601 shares of Preferred Stock designated as Convertible Non-Cumulative Non-Voting Participating Preferred Stock, Series D are issued and outstanding. All of the issued and outstanding shares of Capital Stock of the Company have been duly authorized and are validly issued, fully paid
and nonassessable. 
 (b) There are no shares of Capital Stock or other securities of the Company reserved for issuance or subject to
preemptive rights or any outstanding subscriptions, options, warrants, calls, rights, convertible securities or other agreements or other instruments outstanding or in effect giving any Person the right to acquire any shares of Capital Stock or
other securities of the Company or any commitments of any character relating to the issued or unissued Capital Stock or other securities of the Company. 

2.3 No Conflicts. The execution and delivery by the Company of this Agreement does not, and the performance and consummation by the
Company of the transactions contemplated hereby will not: 
 (a) contravene, conflict with, or constitute or result in a breach or violation
of, or a default under any of the Company’s organizational documents; 
 (b) contravene, conflict with, or constitute or result in a
breach or violation of, or a default under, any material agreement under which the Company or any of the Company Subsidiaries is bound or to which any materials assets thereof are subject; or 

(c) contravene, conflict with, or constitute or result in a breach or violation of any law, judgment, decree or order of any court,
administrative agency, governmental entity or other tribunal of competent jurisdiction (“Order”) to which the Company is subject. 

2.4 Subsidiaries; Investments. 

(a) Except for the Subsidiaries of the Company set forth in Schedule B, the Company does not own any shares of capital stock or other
equity or voting securities of, or similar interest in, any other Person. 

  
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 (b) The Company owns, either directly or indirectly through one or more subsidiaries, all of
the capital stock or other equity interests of the Subsidiaries free and clear of all Liens, other than transfer restrictions imposed by applicable Laws. All of the issued and outstanding shares of capital stock or other equity interests of each of
the Subsidiaries held directly or indirectly by the Company have been duly authorized and are validly issued, fully paid and nonassessable. There are no shares of capital stock or other securities of any of the Company Subsidiaries reserved for
issuance or subject to preemptive rights or any outstanding subscriptions, options, warrants, calls, rights, convertible securities or other agreements or other instruments outstanding or in effect giving any Person the right to acquire any shares
of capital stock or other securities of any of the Company Subsidiaries or any commitments of any character relating to the issued or unissued capital stock or other securities of any Company Subsidiary. 

(c) Each of the Company Subsidiaries is a corporation, limited liability company, partnership, business association or other Person duly
organized, validly existing and in good standing under the laws of its jurisdiction of organization and has the requisite power and authority to carry on its business as it is now being conducted except as would not, individually or in the
aggregate, reasonably be expected to have a Material Adverse Effect. Each of the Subsidiaries is duly qualified and licensed to do business, and is in good standing, in each jurisdiction where the character of its assets owned or held under lease or
the nature of the business conducted by it makes such qualification necessary except where the failures of all of such Company Subsidiaries to so qualify or be licensed has not and would not, individually or in the aggregate, reasonably be expected
to have a Material Adverse Effect. 
 2.5 Financial Statements. 

(a) The Investor has been furnished with the (i) audited consolidated balance sheet of the Company as at the end of the two most recently
completed fiscal years for which financial statements are available as of the date of this Agreement, (ii) audited consolidated statements of income, changes in stockholders’ equity and cash flows of the Company for each of the two most
recently completed fiscal years for which financial statements are available as of the date of this Agreement, (iii) unaudited consolidated balance sheet of the Company as at the end of the most recently completed quarter for which financial
statements are available as of the date of this Agreement (the “Base Balance Sheet Date”), and (iv) unaudited statements of income and cash flows for the nine-month period ended as of the Base Balance Sheet Date (collectively,
the “Financial Statements”), including the notes thereto, together with the report thereon of the Company’s independent certified public accountants. 

(b) The Financial Statements and notes fairly present the financial condition and the results of operations, changes in stockholders’
equity and cash flows of the Company as at the respective dates of and for the periods referred to in such Financial Statements, all in accordance with the United States generally accepted accounting principles (“GAAP”) applied on a
consistent basis during the periods presented. 
 2.6 Undisclosed Liabilities. The Company does not have any liabilities other than
those (i) reflected or reserved against in the Financial Statements (including the notes thereto) or (ii) incurred in the ordinary course of business since the Base Balance Sheet Date. 

  
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 2.7 Tax Matters. The Company has prepared and timely filed (including extensions that
have been duly perfected) all income tax returns and all other tax returns required to be filed by it and all such tax returns were true, correct and complete in all material respects. The Company has paid all taxes due and owing by it (whether or
not shown on any tax return). The sum of accrued but unpaid taxes of the Company did not, as of the Base Balance Sheet Date, exceed the reserve of taxes set forth on the face of the most recent financial statements. The Company has not participated
in any “listed transactions” as defined under Treasury Regulations § 1.6011-4(b)(2). 

2.8 Actions; Orders. There are no material civil, criminal or administrative actions, demands, claims or other similar proceedings
(“Actions”) or Orders issued, pending or, to the knowledge of the Company, threatened, against the Company or any Company Subsidiary or any of their respective assets, before any governmental entity. 

2.9 Compliance with Laws; Governmental Authorizations. The Company and each Company Subsidiary has complied in all material respects
with the laws applicable to it or to the conduct or operation of its business or the ownership or use of any of its assets. The Company and each Company Subsidiary possesses, all permits, licenses, franchises, approvals, certificates, consents,
waivers, concessions, exemptions, Orders, registrations, notices or other authorizations of any governmental authority necessary for the Company or Company Subsidiary to own, lease and operate its properties and to carry on its business as currently
conducted (the “Permits”) and each such Permit is in full force and effect and are currently being, and have been, complied with in all material respects. 

2.10 Investment Company Act. Neither the Company nor any of the Company Subsidiaries is an “investment company” or an
“affiliated person” thereof or an “affiliated person” of any such “affiliated person,” as such terms are defined in the Investment Company Act of 1940, as amended. 

2.11 No Broker. The Company has not retained, or authorized to act on its behalf, any broker, finder, agent or like party who would be
entitled to any fee or commission in connection with the transactions contemplated by this Agreement. 
 3. Representations and Warranties
of the Investor. 
 The Investor represents and warrants to the Company and the Bank as of the date hereof: 

3.1 Organization, Good Standing and Authorization.

(a) The Investor is an entity duly organized, validly existing and in good standing under the laws of its jurisdiction of organization, with
full power and authority to perform its obligations under this Agreement. The Investor is duly qualified or licensed to do business as a foreign entity and is in good standing in each jurisdiction in which either the ownership or use of the
properties owned or used by it or the nature of the activities conducted by it requires such licensing, qualification or good standing, except for any failure to be so licensed, qualified or be in such good standing which could not be reasonably
expected to have a material adverse effect on the Investor and its Subsidiaries, taken as a whole. 

  
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 (b) The Investor has the requisite corporate power and authority and has taken all corporate
action necessary in order to execute, deliver and perform its obligations hereunder. This Agreement has been duly executed and delivered by the Investor and constitutes the valid and binding agreement of the Investor, enforceable against the
Investor in accordance with its terms, subject to bankruptcy, insolvency, moratorium, fraudulent transfer and other laws affecting creditors’ rights and to general equity principles. 

3.2 Investment Representations. The Investor understands that the Shares have not been registered under the Securities Act of 1933, as
amended (the “Securities Act”). The Investor also understands that the Shares are being offered and sold pursuant to an exemption from registration contained in the Securities Act based in part upon Investor’s representations
contained in this Agreement, as follows: 
 (a) Information. The Investor has had an opportunity to ask the Company’s
representatives questions regarding the offer and sale of the Shares and the terms related thereto, the Company’s business and operations, and other relevant matters, and to receive answers from them. The Company has given the Investor the
opportunity to fully perform the Investor’s own due diligence. 
 (b) Accredited Investor. The Investor is an “accredited
investor” (as defined under Rule 501 of Regulation D under the Securities Act), capable of evaluating the merits and risks of an investment in the Shares and of protecting the Investor’s own interest in connection with the purchase
of Shares. 
 (c) Adequate Means. The Investor has adequate means to provide for its financial needs with no expectation of a return
on its investment in the Shares. 
 (d) No Registration. The Investor understands that the Shares have not been registered under the
Securities Act and, therefore, cannot be resold unless it is registered under the Securities Act or unless an exemption from such registration requirement is available. Investor is aware that the Company is not under any obligation to effect any
such registration with respect to the Shares or to file for or comply with any exemption from registration. 
 (e) Legend. The
Investor understands that the Shares may be notated with the following legend: 
 “THE SHARES REPRESENTED HEREBY HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), AND MAY NOT BE SOLD, ASSIGNED, PLEDGED OR OTHERWISE TRANSFERRED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT UNDER SAID ACT COVERING THE TRANSFER OR AN OPINION
OF COUNSEL OR OTHER EVIDENCE OF COMPLIANCE WITH THE ACT SATISFACTORY TO THE COMPANY THAT REGISTRATION UNDER SAID ACT IS NOT REQUIRED.” 

(f) Acquisition for Investment. The Investor is acquiring the Shares for the Investor’s own account, for investment only and not
with a view toward their resale or distribution, and Investor has no present intention of selling, granting any participation in, or otherwise distributing the same. 

  
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 3.3 No Broker. The Investor has not retained, or authorized to act on its behalf, any
broker, finder, agent or like party who would be entitled to any fee or commission in connection with the transactions contemplated by this Agreement. 

4. Covenants of the Company and the Investor. 

4.1 Corporate Actions for the Issuance of the Shares and Performance of Other
Obligations. Prior to the Closing, the Company shall take all corporate actions necessary or appropriate to validly issue, sell and deliver the Shares to the Investor in accordance with the terms of this Agreement. The Company shall ensure that
the terms set forth on Schedule A attached will be duly and promptly incorporated into the Company’s organizational documents and other agreements with stockholders, as applicable, and shall promptly share such executed documentation
with the Investor. 
 4.2 Use of Proceeds. The Company shall use the net proceeds received by it from the sale of the Shares for the
purposes set forth on Schedule A hereto. 
 4.3 Access to Information. As soon as reasonably practicable after they become
available, unless already available on the Securities and Exchange Commission’s (“SEC”) Electronic Data Gathering, Analysis and Retrieval system (“EDGAR”), the Company shall furnish to the Investor an audited
consolidated balance sheet of the Company as of the end of the fiscal year in each year after the Base Balance Sheet Date and the related audited consolidated statements of income, changes in stockholders’ equity and cash flow for the fiscal
years then ended, including the notes thereto prepared in accordance with GAAP, together with the report thereon of an independent certified public accountant. To the extent permitted by applicable law and the restrictions on sharing confidential
supervisory information, unless already disclosed in the Company’s filings with the SEC publicly available on EDGAR, the Company shall promptly provide written notice of any initiation of material litigation or regulatory action and any
developments related thereto that could reasonably be expected to result in material reputational harm to the Investor or any of its affiliates. 

4.4 Expenses. Except as otherwise expressly provided herein, whether or not the transactions contemplated hereby are consummated, all
costs and expenses incurred in connection with this Agreement and the transactions contemplated hereby shall be paid by the party incurring such expense. 

4.5 Publicity. This Agreement and its terms and the transactions contemplated hereby shall be kept confidential until the parties hereto
mutually agree upon the language and timing of a press release, or until such time as one such party determines, based upon the advice of counsel, that a public announcement is required by law, in which case the parties hereto shall in good faith
attempt to agree on any public announcements or publicity statements with respect thereto. 
 4.6 Preemptive Rights. The Company shall
provide the Investor with written notice of any proposed issuance (the “Issuance Notice”) by the Company of any voting Capital Stock or other equity interests in the Company or any Capital Stock or other equity interests convertible
or exchangeable into, or granting the right to purchase or otherwise receive, voting 

  
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Capital Stock or other equity interests in the Company (collectively, the “Voting Stock”) at least 15 days prior to the proposed issuance date. The Issuance Notice shall specify
the price at which such Voting Stock are to be issued and the other material terms of the issuance (including the terms of the Voting Stock proposed to be issued). The Company shall be entitled to purchase up to the number of Voting Stock such that
the Investor would maintain its percentage voting interest in the Company, on a fully-diluted and as-converted basis, as of immediately prior to the proposed issuance. If the Investor desires to purchase any
such Voting Stock, it shall deliver a written notice to the Company of such election to purchase within ten days after receipt of the Issuance Notice. 

4.7 BHCA Control. 
 (a)
Neither the Company nor the Company Subsidiary shall take any action (including any redemption, repurchase, or recapitalization of Voting Securities or Nonvoting Securities of the Company, or securities or rights, options or warrants to purchase
Voting Securities or Nonvoting Securities of the Company, or securities of any type whatsoever that are, or may become, convertible into or exchangeable into or exercisable for Voting Securities or Nonvoting Securities of the Company, except where,
solely with respect to any such redemption, repurchase or recapitalization of the Common Stock, the Investor is given the right to participate in such redemption, repurchase or recapitalization to the extent of the Investor’s pro rata
proportion), that would cause (i) the Voting Securities “owned” or “controlled,” directly or indirectly, by the Investor or any affiliate of the Investor for purposes of the Bank Holding Company Act, as amended (the
“BHC Act”) and its implementing regulations (for the avoidance of doubt, excluding any securities owned or controlled in a fiduciary capacity, solely for trading purposes, pursuant to an underwriting commitment, in inventory in
connection with market making activities, received in lieu of a debt previously contracted if disposed of within the time required by applicable law, and such other holdings as may not constitute ownership or control for purposes of the BHC Act, as
determined from time to time by interpretations or guidance from the staff of the Board of Governors of the Federal Reserve (the “Federal Reserve”)) to increase above 4.9% of the total Voting Securities outstanding, or (ii) the
Investor’s total aggregate ownership percentage of Voting Securities and Nonvoting Securities of the Company to exceed 24.9% of the total issued and outstanding equity of the Company, consistent with the restrictions set forth in the Federal
Reserve’s guidance for non-controlling equity investments, without the prior written consent of the Investor; provided, that in the event of a sale, merger, consolidation or other similar
transaction involving the Company, the Company shall not take any action that would cause the Investor to own more than 4.9% of the total Voting Securities, or more than 24.9% of the total issued and outstanding equity, of the acquirer or surviving
company, as applicable, following consummation of any such transaction. For the purposes of this Agreement, “Voting Securities” shall have such meaning as defined in 12 CFR 225.2(q)(1) and “Nonvoting Securities”
shall have such meaning as defined in 12 CFR 225.2(q)(2), as may be amended or modified from time to time. 
 (b) In the event that the
Company breaches its obligations under Section 4.7(a) or believes that it is reasonably likely to breach such obligations, it shall notify the Investor as promptly as practicable and shall cooperate in good faith with the
Investor to modify any ownership or other arrangements or take any other action, in each case, as is necessary to cure or avoid such breach, in accordance with Sections 4.7(c) and 4.7(d). 

  
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 (c) In the event of (i) a determination by the Investor, based on advice of counsel
(including internal counsel) that (A) it is impermissible under the BHC Act or other applicable law or regulatory or supervisory guidance for the Investor to continue to hold, directly or indirectly, without limitation or otherwise, any Shares,
or (B) such continued holding of the Shares would be reasonably likely to result in the imposition of conditions or restrictions on the Investor’s activities or regulatory or supervisory requirements on the Investor arising under the BHC
Act or other applicable law or regulatory or supervisory guidance (including any requirement that the Investor obtain an approval under the BHC Act); or (ii) the occurrence of any of the following: (A) a determination by the Federal
Reserve that the Investor “controls” the Company (as “control” is used for purposes of the BHC Act), or an affirmative indication that the Federal Reserve would likely take such a view (through published guidance or other
supervisory communications); (B) any other regulatory requirement, instruction or request by a governmental entity having jurisdiction over the Investor that the Investor divest or reduce its equity interest in the Company; or (B) a
determination by the Investor, based on the advice of counsel (including internal counsel) that divesting or reducing its equity interest in the Company is necessary or advisable to satisfy legal and/or regulatory requirements or supervisory
expectations) (any occurrence referred to in clause (i) or (ii) above, a “Regulatory Trigger Event”), then the Company shall use its commercially reasonable efforts to consult and cooperate with the Investor in order to
restructure the Investor’s investment in the Company in a manner that avoids or remediates the matters giving rise to the Regulatory Trigger Event to the reasonable satisfaction of the Investor, taking account of legal or regulatory
restrictions applicable to the Company. If any such avoidance or remediation involves the sale by the Investor of all or a portion of the Shares to a third party, then the Company shall use commercially reasonable efforts to facilitate such sale and
transfer, including by making the Company’s management reasonably available during normal business hours to the prospective purchaser(s) of the Shares and providing customary due diligence material, subject to customary confidentiality
undertakings. 
 (d) The Investor may, at any time following a Regulatory Trigger Event, elect to voluntarily surrender to the Company any or
all of the Shares (a “Voluntary Surrender”). The Company shall, upon written notice of the Investor’s intention to effect a Voluntary Surrender, accept the surrender of such Shares as a contribution to the Company for no
consideration payable to or by the Investor. The Company shall accept all such Shares specified in such Voluntary Surrender as soon as practicable, which shall be treated as authorized but unissued shares of the Company; provided, that to the
extent that the Company Board determines that the acceptance of such Voluntary Surrender would have a Material Adverse Effect or cause any other stockholder of the Company to be in violation of any applicable law, regulation or supervisory guidance,
then the Company, the relevant stockholder (if applicable) and the Investor shall consult and cooperate to find a mutually agreeable solution to effect the Voluntary Surrender or otherwise avoid or remediate the relevant Regulatory Trigger Event as
promptly as practicable. The exercise of a Voluntary Surrender shall be within the Investor’s sole and exclusive discretion and shall be in addition to, and not in lieu of, any other remedies available to the Investor under this Agreement. 

4.8 Transfer Restrictions. Notwithstanding anything to the contrary in this Agreement or in the Company’s organizational documents,
the Investor shall not at any time, directly or indirectly, sell, exchange, transfer, assign, pledge, encumber or otherwise dispose of the Shares without the prior written consent of the Company (such consent not to be unreasonably delayed,
conditioned or withheld). Moreover, the Investor shall not be permitted to transfer any shares of Series E Preferred Stock to the extent such transfer would cause the transferee to own in excess of 19.99% of the Common Stock (as calculated in
accordance with NASDAQ Listing Rule 5635(d)). 

  
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 4.9 FIRPTA Certificate. Prior to the Closing, the Company shall deliver to the
Investor either (i) a validly executed Internal Revenue Service Form W-9, or (ii) a statement meeting the requirements of Treasury Regulations
Section 1.1445-2(b)(2) to the effect that the Company is not a “foreign person” as defined under such Treasury Regulations. 

5. Termination. 
 5.1
Termination. This Agreement may not be terminated prior to the Time of Payment and Delivery except by the written agreement of the Company and the Investor. 

5.2 Effect of Termination. If this Agreement is terminated pursuant to Section 5.1, all further obligations of
the parties under this Agreement shall terminate, except for the obligations which are intended, expressly or impliedly, to survive the termination of this Agreement. 

6. Miscellaneous. 
 6.1
Notices. All notices, requests, demands, waivers and other communications required or permitted to be given under this Agreement shall be in writing and shall be deemed to have been duly given if (i) delivered personally,
(ii) mailed by certified or registered airmail with postage prepaid, (iii) sent by next-day or overnight mail or delivery or (iv) sent by email (provided a confirmation copy is sent by one of
the other methods set forth above), as follows: 
 As to the Company:  

Carver Bancorp, Inc. 

75 West 125th Street 

New York, NY 10027 

Attention: Isaac Torres, General Counsel 

Email: Isaac.torres@carverbank.com 

with a copy to: 

Luse Gorman PC 

5335 Wisconsin Avenue NW, Suite 780 

Washington, DC 20015 

Attention: Lawrence M. F. Spaccasi 

Email: lspaccasi@luselaw.com 

As to the Investor: 

Wells Fargo Central Pacific Holdings, Inc. 

MAC D1086-074 

550 South Tryon Street 

  
 10 

 Charlotte, NC 28202 

Attention: Jonathan Jacob 

Email: jonathan.m.jacob@wellsfargo.com 

With copy to: 

Wells Fargo Center 

90 South Seventh Street 

Minneapolis, MN 55402 

Attention: Robert L. Lee 

Email: robert.l.lee@wellsfargo.com 

with a copy to: 

Sullivan & Cromwell LLP 

125 Broad Street 

New York, New York 10004 

Attention: Mitchell S. Eitel 

Email: EitelM@sullcrom.com 

or, in each case, at such other address as may be specified in writing to the other parties to this Agreement pursuant to this
Section 6.1. 
 6.2 Governing Law; Consent to Jurisdiction. 

(a) This Agreement and any dispute, claim, suit, action or proceeding of whatever nature arising out of or in any way related to it or its
formation (including any non-contractual disputes or claims) are governed by, and shall be construed in accordance with, the internal laws of the State of Delaware, without regard to the conflict of laws
principles thereof to the extent that such principles would direct a matter to another jurisdiction. 
 (b) Each party hereto agrees that it
shall bring any action or proceeding in respect of any claim arising out of or related to this Agreement exclusively the courts of the State of Delaware and the Federal courts of the United States of America located in the State of Delaware (the
“Chosen Courts”), and solely in connection with claims arising under this Agreement (i) irrevocably submits to the exclusive jurisdiction of the Chosen Courts, (ii) waives any objection to laying venue in any such action
or proceeding in the Chosen Courts, (iii) waives any objection that the Chosen Courts are an inconvenient forum or do not have jurisdiction over any party hereto and (iv) agrees that service of process upon such party in any such action or
proceeding shall be effective if notice is given in accordance with Section 6.1. Each of the parties hereto agrees that a final judgment in any lawsuit, action or other proceeding arising out of or relating to this
Agreement brought in the Chosen Courts shall be conclusive and binding upon each of the parties hereto and may be enforced in any other courts the jurisdiction of which each of the parties is or may be subject, by suit upon such judgment. 

  
 11 

 (c) WAIVER OF JURY TRIAL. TO THE EXTENT NOT PROHIBITED BY APPLICABLE LAW WHICH CANNOT
BE WAIVED, EACH OF THE PARTIES HERETO HEREBY WAIVES, AND COVENANTS THAT HE OR IT WILL NOT ASSERT (WHETHER AS PLAINTIFF, DEFENDANT, OR OTHERWISE), ANY RIGHT TO TRIAL BY JURY IN ANY FORUM IN RESPECT OF ANY ISSUE, CLAIM, DEMAND, CAUSE OF ACTION,
ACTION, SUIT OR PROCEEDING ARISING OUT OF OR BASED UPON THIS AGREEMENT OR THE SUBJECT MATTER HEREOF, IN EACH CASE WHETHER NOW EXISTING OR HEREAFTER ARISING AND WHETHER IN CONTRACT OR TORT OR OTHERWISE. ANY OF THE PARTIES HERETO MAY FILE AN ORIGINAL
COUNTERPART OR A COPY OF THIS SECTION 6.2 WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF EACH OF THE PARTIES HERETO TO THE WAIVER OF HIS OR ITS RIGHT TO TRIAL BY JURY. 

6.3 Binding Effect. Except as otherwise provided herein, this Agreement shall be binding upon and inure to the benefit of the parties
hereto and their respective heirs, successors and permitted assigns. 
 6.4 Assignment. Except as otherwise provided herein, this
Agreement shall not be assignable or otherwise transferable by any party hereto without the prior written consent of the other party hereto (such consent not to be unreasonably delayed, conditioned or withheld), and any purported assignment or other
transfer without such consent shall be void and unenforceable; provided, however, that Investor may assign all of its rights and obligations to an affiliate of the Investor or to any entity that succeeds, directly or indirectly, to
substantially all of Investor’s assets by merger or otherwise. 
 6.5 Amendment, Waivers. 

(a) This Agreement may be amended only by an instrument in writing signed by the parties. Any provision of this Agreement may be waived if, but
only if, such waiver is in writing and is signed by each party against whom the waiver is to be effective. 
 (b) No failure or delay by any
party in exercising any right, power or privilege hereunder shall operate as a waiver thereof nor shall any single or partial exercise thereof preclude any other or further exercise thereof or the exercise of any other right, power or privilege. The
rights and remedies herein provided shall be cumulative and not exclusive of any rights or remedies provided by law. 
 6.6 Entire
Agreement. This Agreement constitutes the entire agreement among the parties hereto and supersedes all prior agreements and understandings, both written and oral, among such parties with respect to the subject matter hereof. 

6.7 Survival. The covenants, agreements, representations and warranties set forth in Articles 2, 3 and 4 shall
survive the Time of Payment and Delivery. 
 6.8 Severability. If any provision, including any phrase, sentence, clause, section or
subsection, of this Agreement is invalid, inoperative or unenforceable as for or against any party hereto for any reason, such circumstances shall not have the effect of rendering such provision in question invalid, inoperative or unenforceable in
any other case or circumstance or as for or against the other parties hereto, or of rendering any other provision herein contained invalid, inoperative, or unenforceable to any extent whatsoever. 

  
 12 

 6.9 Headings. The headings contained in this Agreement are for purposes of
convenience only and shall not affect the meaning or interpretation of this Agreement. 
 6.10 Counterparts. This Agreement may be
executed in several counterparts (including by facsimile, email or other electronic means such as “.pdf” or “.tiff” files), each of which shall be deemed an original and all of which shall together constitute one and the same
instrument. 
 6.11 No Implied Rights. Except as otherwise expressly provided herein, nothing herein is intended to or shall be
construed to confer upon or give to any Person, other than the parties hereto and their affiliates, any interests, rights, remedies or other benefits with respect to or in connection with any agreement or provision contained herein or contemplated
hereby. 
 6.12 Recognition of the U.S. Special Resolutions Regimes. 

(a) In the event that the Investor is a Covered Entity and becomes subject to a proceeding under a U.S. Special Resolution Regime, the
transfer from the Investor of this Agreement, and any interest and obligation in or under this Agreement, will be effective to the same extent as the transfer would be effective under the U.S. Special Resolution Regime if this Agreement, and any
such interest and obligation, were governed by the laws of the United States or a state of the United States. 
 (b) In the event that
Investor or a BHC Act Affiliate of Investor becomes subject to a proceeding under a U.S. Special Resolution Regime, Default Rights under this Agreement that may be exercised against the Investor are permitted to be exercised to no greater extent
than such Default Rights could be exercised under the U.S. Special Resolution Regime if this Agreement were governed by the laws of the United States or a state of the United States. 

(c) Definitions. As used in this Section 6.12: 

(i) “BHC Act Affiliate” has the meaning assigned to the term “affiliate” in, and shall be
interpreted in accordance with, 12 U.S.C. § 1841(k); 
 (ii) “Covered Entity” means any of the
following: (i) a “covered entity” as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 252.82(b), (ii) a “covered bank” as that term is defined in, and interpreted in accordance with, 12 C.F.R.
§ 47.3(b) or (iii) a “covered FSI” as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 382.2(b); 

(iii) “Default Right” has the meaning assigned to that term in, and shall be interpreted in accordance with,
12 C.F.R. §§ 252.81, 47.2 or 382.1, as applicable.; and 
 (iv) “U.S. Special Resolution Regime”
means each of (i) the Federal Deposit Insurance Act and the regulations promulgated thereunder and (ii) Title II of the Dodd-Frank Wall Street Reform and Consumer Protection Act and the regulations promulgated thereunder. 

  
 13 

 IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement as of the date
first above written. 
  

			
	CARVER BANCORP, INC.
		
	 By:
	 	 /s/ Michael T. Pugh

		 	 Name: Michael T. Pugh

Title: President and Chief Executive Officer

	
	WELLS FARGO CENTRAL PACIFIC HOLDINGS, INC.
		
	 By:
	 	 /s/ Andrew DeVillers

		 	 Name: Andrew DeVillers

Title: Head of Corporate Development, SVP

 [Signature Page to Stock Purchase Agreement] 

 SCHEDULE A 

Summary of the Terms of the Shares 

This Term Sheet summarizes certain of the principal terms of the Shares to be acquired by the Investor from the Company. Capitalized terms used herein but
not otherwise defined shall have the meaning ascribed to such terms in the Stock Purchase Agreement, dated February 1, 2021, by and between the Investor and the Company (the “Agreement”). This Term Sheet should be reviewed
together with the form of Certificate of Designations establishing the Series E Preferred Stock, attached hereto as Annex 1. 
  

			
	General Terms
		
	Security Type:	  	 The Company’s common stock, par value $0.01 per share (the “Common Stock”); and

A new series of the Company’s Non-Cumulative Non-Voting Participating
Preferred Stock, Series E, par value $0.01 per share (the “Series E Preferred Stock”).

		
	Valuation & Purchase Price:	  	 Pre-Money Equity Value of the Company: $46,400,000

Aggregate Purchase Amount: $4,400,000 in consideration for (i) 157,806 shares of the Common Stock (the “Common Shares”), representing
4.9% of the Common Stock outstanding, and (ii) 3,177 shares of the Series E Preferred Stock (the “Preferred Shares” and, together with the Common Shares, the “Shares”).

Price per Share: $7.75 per Common Share and $1,000 per Preferred Share (the “Preferred Purchase Price”).

		
	Closing Date:	  	As soon as practicable following execution of the Agreement.
		
	Use of Proceeds:	  	The Company agrees that it will use the proceeds from the Investor’s purchase of the Shares for general corporate purposes and will not use such proceeds to repurchase, redeem or otherwise monetize any interests held by other
existing shareholders.
		
	Information Rights:	  	The Investor will be entitled to receive customary information rights, including the right to receive (i) the Company’s audited financial statements, (ii) such information as may be necessary for the Investor to
comply with portfolio monitoring requirements under applicable law (provided that such information will not be shared only with employees or other representatives of the Investor that require such information for compliance with such portfolio
monitoring requirements), and (iii) notice of material litigation or regulatory actions, unless publicly available in the Company’s filings with the SEC.
		
	Transfer Restrictions:	  	Investor shall not, directly or indirectly, sell, exchange, transfer, assign, pledge, encumber or otherwise dispose of Shares without the prior consent of the Company (such consent not to be unreasonably delayed, conditioned or
withheld).

  
 A-1 

			
	Covenants Related to Regulatory Matters:	  	For the avoidance of doubt, the Company will not take, or omit to take, any action, that will result in the Investor holding or controlling more than 4.9% of the aggregate voting securities, or 24.9% of the total issued and
outstanding equity of the Company, consistent with the restrictions set forth in Section 3(a)(3) of the BHC Act and the Federal Reserve Board’s guidance for non-controlling equity
investments.
	
	Common Shares Terms
		
	Ranking:	  	The Common Stock will rank junior to all of the Company’s preferred stock (the “Preferred Stock”).
		
	Dividends:	  	Each Common Share will be entitled to dividends in the amounts and at the times as determined by the board of directors of the Company in its sole discretion.
		
	Capital Treatment:	  	The Common Shares are intended to qualify as common equity Tier 1 capital, consistent with the requirements set forth at 12 C.F.R. § 217.20.
		
	Redemption Rights:	  	Not redeemable at the option of the Investor.
		
	Voting Rights:	  	The Common Shares will carry the voting rights set forth in the Company’s Articles of Incorporation and Bylaws.
		
	Preemptive Rights:	  	Subject to applicable law, the Company will ensure that Investor has pro-rata rights to participate in any subsequent equity or voting debt securities offerings to maintain its 4.9%
voting interest in the Company.
	
	Preferred Shares Terms
		
	Ranking:	  	The Series E Preferred Stock will rank (i) pari passu with the Preferred Stock and (ii) senior to the Common Stock.
		
	Conversion Upon Certain Transfers:	  	 The Series E Preferred Stock is not mandatorily convertible under any circumstance while owned by the Investor or an affiliate of an
Investor.
 With the Company’s prior written consent (not to be unreasonably delayed, conditioned or withheld), and at the unaffiliated
transferee’s option, each share of Series E Preferred Stock may be converted into the number of shares of Common Stock equal to the conversion ratio to be agreed between the Company and the Investor and set forth in the Certificate of
Designations, subject to customary anti-dilution adjustments, upon transfer of shares of Series E Preferred Stock to any person or entity other than the Investor or an affiliate of an Investor: (i) in a widespread public distribution;
(ii) in which such transferee is the Company; (iii) in which no one party or group would receive 2% or more of any class of the Company’s voting securities; or (iii) in which such transferee is a party who would control more than
50% of the voting securities of every class of the Company’s securities without any transfer by the Investor.

  
 2 

			
	Liquidation Preference:	  	In the event of a liquidation, dissolution or winding-up of the assets of the Company, the Investor will first receive an amount equal to the Purchase Price, together with declared but unpaid
dividends (the “Liquidation Amount”), before the distribution of any proceeds to holders of Common Stock.
		
	Dividends:	  	 Dividends on the Series E Preferred Stock shall not be cumulative.

On each date that dividends (other than Common Stock) are payable in respect of Common Stock, holders of the Series E Preferred Stock shall be entitled to
receive, if and as declared by the board of directors of the Company, dividends in an amount per share equal to the aggregate amount of such dividends or other distributions that would be payable on such date to a holder of the number of 399,120
shares of Common Stock, subject to customary anti-dilution adjustments.

		
	Priority on Dividends:	  	 So long as any share of Series E Preferred Stock is outstanding, no dividends may be declared on the Common Stock unless full dividends on
the Series E Preferred Stock for the corresponding dividend payment date have been declared, no dividends may be paid on the Common Stock unless full dividends on the Series E Preferred Stock for the corresponding dividend payment date have been
paid, and no dividends may be declared or paid on any other class or series of junior stock unless full dividends have been declared and paid (or declared and a sum sufficient for the payment thereof has been set aside) in the immediately preceding
calendar quarter.
 If full dividends are not paid on the Series E Preferred Stock, then any dividends declared on parity stock must be declared pro
rata so that the amount of dividends declared on the Series E Preferred Stock and the parity stock bear the same ratio to each other as all dividends accrued on the Series E Preferred Stock and all such parity stock bear to each
other.

		
	Capital Treatment:	  	The Preferred Shares are intended to qualify as additional Tier 1 capital, consistent with the requirements set forth at 12 C.F.R. § 217.20.
		
	Redemption Rights:	  	 Not redeemable at the option of the Investor.

Redeemable only at the Company’s discretion (i) in whole or in part, on or after the date that is five years following the Closing Date or
(ii) in whole but not in part within 90 days of a regulatory capital treatment event, in each case, consistent with the terms set forth in 12 C.F.R. § 217.20.

  
 3 

			
	Voting Rights (Protective Provisions):	  	 None, except that the approval of the holders of a majority of the Series E Preferred Stock, voting as a single class, will be required with
respect to certain matters, including the following:
 •  charter or bylaw amendments adversely
affecting the powers, preferences or special rights of the Series E Preferred Stock;
  

•  creation of any series of senior equity securities;

 
 •  mergers, reclassifications
and similar events, if the class would be adversely affected by such event or if the terms of any stock into which this stock converts are not substantially the same; and
  

•  as otherwise provided by law.

		
	Reorganization Event:	  	 The merger, consolidation or other business combination of the Company with or into any other corporation, including a transaction in which
the holders of the Series E Preferred Stock receive cash or property for their shares, or the sale, conveyance, lease, exchange or transfer (for cash, shares of stock, securities or other consideration) of all or substantially all of the assets of
the Company (each, a “Reorganization Event”), shall not constitute a liquidation, dissolution or winding up of the Corporation.
 Prior to a
Reorganization Event, the Company and the Investor will consult with one another in good faith regarding the Investor’s status as a stockholder of the Company.

		
	Preemptive Rights:	  	None.

  
 4 

 Annex 1 to Schedule A 

Certification of Designations 
 Attached
separately. 

  
 5 

 SCHEDULE B 

Schedule of Subsidiaries 
  

	 	1.	 Carver Federal Savings Bank (100%) 

	 	2.	 CSFB Credit Corp. (100%) 

	 	3.	 CSFB Realty corp. (100%) 

	 	4.	 Carver Asset Corp. (100%) 

	 	5.	 Carver Community Development Corporation (100%) 

	 	6.	 Sub CDE 1, LLC (100%) 

	 	7.	 Sub CDE 19, LLC (00.00%) 

	 	8.	 Sub CDE 22, LLC (99.00%) 

	 	9.	 Sub CDE 23, LLC (99.00%) 

	 	10.	 Sub CDE 24, LLC (99.00%) 

	 	11.	 Sub CDE 25, LLC (99.00%) 

	 	12.	 Alhambra Holdings Corp. (100%) 

  
 B-1Exhibit 10.1

 

IDEANOMICS,
INC.

 

Convertible
Debenture

 

	
        Face Amount: $65,000,000

         

Debenture Issuance Date: January 28,
2021

Debenture Number: IDEX-012821

 

FOR
VALUE RECEIVED, IDEANOMICS, INC., a Nevada corporation
(the “Company”), hereby promises to pay to the order of YA II PN, LTD., or its registered assigns (the
 “Holder”) the amount set out above as the Principal Amount (as reduced pursuant to the terms hereof pursuant
to redemption, conversion or otherwise, the “Principal”) when due, whether upon the Maturity Date (as defined
below), acceleration, redemption or otherwise (in each case in accordance with the terms hereof) and to pay interest (“Interest”)
on any outstanding Principal at the applicable Interest Rate from the date set out above as the Debenture Issuance Date (the “Issuance
Date”) until the same becomes due and payable, whether upon an Interest Date (as defined below), the Maturity Date or
acceleration, conversion, redemption or otherwise (in each case in accordance with the terms hereof). Certain capitalized terms
used herein are defined in Section 16. For the avoidance of doubt, the Issuance Date is the date of the first issuance of this
Debenture regardless of the number of transfers and regardless of the number of instruments, which may be issued to evidence such
Debenture.

 

(1)               
GENERAL TERMS

 

(a)  
Maturity Date. The “Maturity Date” shall be July 28, 2021, as may be extended at the option of
the Holder, and the Company has the right to prepay the Note at any time; provided that prepayment is subject to compliance with
Section 1(c) herein.

 

(b)  
Interest Rate and Payment of Interest. Interest shall accrue on the outstanding principal balance hereof at an annual
rate equal to 4% (“Interest Rate”); provided that such Interest Rate shall be increased to 18% upon an Event
of Default. Interest shall be calculated on the basis of a 365-day year and the actual number of days elapsed, to the extent permitted
by applicable law.

 

(c)   Redemption.
The Company shall have the right, but not the obligation, to redeem (“Optional Redemption”) a portion or
all amounts outstanding under this Debenture prior to the Maturity Date as described in this Section; provided that
the Company provides each Buyer with at least 15 Business Days’ prior written notice (each, a “Redemption
Notice”) of its desire to exercise an Optional Redemption and the VWAP of the Company’s Common Stock over the
10 Business Days’ immediately prior to the Redemption Notice is less than the Conversion Price. The Optional Redemption
shall be consummated by a wire transfer by the Company to the Holder of the Redemption Amount (or such lesser amount, if the
Holder has converted any part of this Debenture during the 15-Business Day notice period specified herein) on the first
Business Day following the expiration of the 15-Business Day notice period specified herein. The Holder may convert all or
any part of this Debenture after receiving a Redemption Notice, in which case the Redemption Amount shall be reduced by the
amount so converted.

 

     

     

    

 

(2)               
EVENTS OF DEFAULT.

 

(a)  
An “Event of Default”, wherever used herein, means any one of the following events (whatever the reason
and whether it shall be voluntary or involuntary or effected by operation of law or pursuant to any judgment, decree or order of
any court, or any order, rule or regulation of any administrative or governmental body):

 

(i)              
the Company's failure to pay to the Holder any amount of Principal, Interest, or other amounts when and as due under this
Debenture or any other Transaction Document within fifteen (15) Business Days after such payment is due;

 

(ii)             
The Company or any subsidiary of the Company shall commence, or there shall be commenced against the Company or any subsidiary
of the Company under any applicable bankruptcy or insolvency laws as now or hereafter in effect or any successor thereto, or the
Company or any subsidiary of the Company commences any other proceeding under any reorganization, arrangement, adjustment of debt,
relief of debtors, dissolution, insolvency or liquidation or similar law of any jurisdiction whether now or hereafter in effect
relating to the Company or any subsidiary of the Company or there is commenced against the Company or any subsidiary of the Company
any such bankruptcy, insolvency or other proceeding which remains undismissed for a period of 61 days; or the Company or any subsidiary
of the Company is adjudicated insolvent or bankrupt; or any order of relief or other order approving any such case or proceeding
is entered; or the Company or any subsidiary of the Company suffers any appointment of any custodian, private or court appointed
receiver or the like for it or any substantial part of its property which continues undischarged or unstayed for a period of sixty
one (61) days; or the Company or any subsidiary of the Company makes a general assignment for the benefit of creditors; or the
Company or any subsidiary of the Company shall fail to pay, or shall state that it is unable to pay, or shall be unable to pay,
its debts generally as they become due; or the Company or any subsidiary of the Company shall call a meeting of its creditors with
a view to arranging a composition, adjustment or restructuring of its debts; or the Company or any subsidiary of the Company shall
by any act or failure to act expressly indicate its consent to, approval of or acquiescence in any of the foregoing; or any corporate
or other action is taken by the Company or any subsidiary of the Company for the purpose of effecting any of the foregoing;

 

(iii)            
The Company or any subsidiary of the Company shall default beyond applicable grace and cured periods in any of its obligations
under any other debenture or any mortgage, credit agreement or other facility, indenture agreement, factoring agreement or other
instrument under which there may be issued, or by which there may be secured or evidenced any indebtedness for borrowed money or
money due under any long term leasing or factoring arrangement of the Company or any subsidiary of the Company in an amount exceeding
$5.000,000, whether such indebtedness now exists or shall hereafter be created and such default shall result in such indebtedness
becoming or being declared due and payable and such default is not thereafter cured within fifteen (15) Business Days, except for
the DBOT lease;

 

    2

     

    

 

(iv)            
 The Common Stock shall cease to be quoted or listed for trading, fail to have a bid price or VWAP, or fail to maintain
a trading market on any Primary Market, for a period of 10 consecutive Trading Days;

 

(v)             
The Company or any subsidiary of the Company shall be a party to any Change of Control Transaction (as defined in Section
16) unless in connection with such Change of Control Transaction this Debenture is retired;

 

(vi)            
the Company's (A) failure to cure a Conversion Failure by delivery of (I) the required number of shares of Common Stock
or (II) the Buy-In Price within five (5) Business Days after the applicable Conversion Failure or (B) notice, written or oral,
to any holder of the Debenture, including by way of public announcement, at any time, of its intention not to comply with a request
for conversion of any Debenture into shares of Common Stock that is tendered in accordance with the provisions of the Debenture,
other than pursuant to Section 3(c);

 

(vii)           
The Company shall fail for any reason to deliver the payment in cash pursuant to a Buy-In (as defined herein) within five
(5) Business Days after such payment is due;

 

(viii)          
The Company shall fail to observe or perform any other material covenant, agreement or warranty contained in, or otherwise
commit any material breach or default of any provision of this Debenture (except as may be covered by Section 2(a)(i) through 2(a)(vii)
hereof) or any Transaction Document (as defined in Section 16) which is not cured within the time prescribed.

 

(b)  
During the time that any portion of this Debenture is outstanding, if any Event of Default has occurred and is continuing,
the full unpaid Principal amount of this Debenture, together with interest and other amounts owing in respect thereof, to the date
of acceleration shall become at the Holder's election given by notice pursuant to Section 9, immediately due and payable in cash.
The Holder need not provide and the Company hereby waives any presentment, demand, protest or other notice of any kind, (other
than required notice of conversion) and the Holder may immediately enforce any and all of its rights and remedies hereunder and
all other remedies available to it under applicable law. Such declaration may be rescinded and annulled by Holder at any time prior
to payment hereunder. No such rescission or annulment shall affect any subsequent Event of Default or impair any right consequent
thereon.

 

(3)               
CONVERSION OF DEBENTURE.This Debenture shall be convertible into shares of the Company's Common Stock, on the
terms and conditions set forth in this Section 3.

 

(a)   Conversion
Right. Subject to the provisions of Section 3(c), at any time or times on or after the Issuance Date, the Holder shall be
entitled to convert any portion of the outstanding and unpaid Conversion Amount (as defined below) into fully paid and
nonassessable shares of Common Stock in accordance with Section 3(b), at the Conversion Rate (as defined below). The number
of shares of Common Stock issuable upon conversion of any Conversion Amount pursuant to this Section 3(a) shall be determined
by dividing (x) such Conversion Amount by (y) the Conversion Price (the “Conversion Rate”). The Company
shall not issue any fraction of a share of Common Stock upon any conversion. If the issuance would result in the issuance of
a fraction of a share of Common Stock, the Company shall round such fraction of a share of Common Stock up or down to the
nearest whole share. The Company shall pay any and all transfer, stamp and similar taxes that may be payable with respect to
the issuance and delivery of Common Stock upon conversion of any Conversion Amount.

 

    3

     

    

 

(i)              
“Conversion Amount” means the portion of the Principal and accrued Interest to be converted, redeemed
or otherwise with respect to which this determination is being made.

 

(b)  
“Conversion Price” means $4.12.

 

(c)  
Mechanics of Conversion.

 

(i)              
Optional Conversion. To convert any Conversion Amount into shares of Common Stock on any date (a “Conversion
Date”), the Holder shall (A) transmit by facsimile with confirmation of delivery (or otherwise deliver by method set
forth in Section 6(A)(i) or (ii)), for receipt on or prior to 11:59 p.m., New York Time, on such date, a copy of an executed notice
of conversion in the form attached hereto as Exhibit I (the “Conversion Notice”) to the Company and (B)
if required by Section 3(c)(iii), surrender this Debenture to a nationally recognized overnight delivery service for delivery to
the Company (or an indemnification undertaking reasonably satisfactory to the Company with respect to this Debenture in the case
of its loss, theft or destruction). On or before the third (3rd) Business Day following the date of receipt of a Conversion
Notice (the “Share Delivery Date”), the Company shall (X) if legends are not required to be placed on certificates
of Common Stock and provided that the Transfer Agent is participating in the Depository Trust Company's (“DTC”)
Fast Automated Securities Transfer Program, credit such aggregate number of shares of Common Stock to which the Holder shall be
entitled to the Holder's or its designee's balance account with DTC through its Deposit Withdrawal Agent Commission system or (Y)
if the Transfer Agent is not participating in the DTC Fast Automated Securities Transfer Program, issue and deliver to the address
as specified in the Conversion Notice, a certificate, registered in the name of the Holder or its designee, for the number of shares
of Common Stock to which the Holder shall be entitled which certificates shall not bear any restrictive legends unless required
pursuant to rules and regulations of the Commission. If this Debenture is physically surrendered for conversion and the outstanding
Principal of this Debenture is greater than the Principal portion of the Conversion Amount being converted, then the Company shall
as soon as practicable and in no event later than three (3) Business Days after receipt of this Debenture and at its own expense,
issue and deliver to the holder a new Debenture representing the outstanding Principal not converted. The Person or Persons entitled
to receive the shares of Common Stock issuable upon a conversion of this Debenture shall be treated for all purposes as the record
holder or holders of such shares of Common Stock upon the transmission of a Conversion Notice.

 

(ii)               Company's
Failure to Timely Convert. If within three (3) Trading Days after the Company's receipt of a copy of a Conversion Notice
the Company shall fail to issue and deliver a certificate to the Holder or credit the Holder's balance account with DTC for
the number of shares of Common Stock to which the Holder is entitled upon such holder's conversion of any Conversion Amount
(a “Conversion Failure”), and if on or after such Trading Day the Holder purchases (in an open market
transaction or otherwise) Common Stock to deliver in satisfaction of a sale by the Holder of Common Stock issuable upon such
conversion that the Holder anticipated receiving from the Company (a “Buy-In”), then the Company shall,
within three (3) Business Days after the Holder's request and in the Holder's discretion, either (i) pay cash to the Holder
in an amount equal to the Holder's total purchase price (including brokerage commissions and other out of pocket expenses, if
any) for the shares of Common Stock so purchased (the “Buy-In Price”), at which point the Company's
obligation to deliver such certificate (and to issue such Common Stock) shall terminate, or (ii) promptly honor its
obligation to deliver to the Holder a certificate or certificates representing such Common Stock and pay cash to the Holder
in an amount equal to the excess (if any) of the Buy-In Price over the product of (A) such number of shares of Common Stock,
times (B) the Closing Bid Price on the Conversion Date.

 

    4

     

    

 

(iii)            
Book-Entry. Notwithstanding anything to the contrary set forth herein, upon conversion of any portion of this Debenture
in accordance with the terms hereof, the Holder shall not be required to physically surrender this Debenture to the Company unless
(A) the full Conversion Amount represented by this Debenture is being converted or (B) the Holder has provided the Company with
prior written notice (which notice may be included in a Conversion Notice) requesting reissuance of this Debenture upon physical
surrender of this Debenture. The Holder and the Company shall maintain records showing the Principal and Interest converted and
the dates of such conversions or shall use such other method, reasonably satisfactory to the Holder and the Company, so as not
to require physical surrender of this Debenture upon conversion.

 

(d)  
Limitations on Conversions / Beneficial Ownership. The Holder shall not have the right to convert any portion
of this Debenture or receive shares of Common Stock as payment of Interest hereunder to the extent that after giving effect to
such conversion or receipt of such Interest payment, the Holder, together with any affiliate thereof, would beneficially own (as
determined in accordance with Section 13(d) of the Exchange Act and the rules promulgated thereunder) in excess of 4.99% of the
number of shares of Common Stock outstanding immediately after giving effect to such conversion or receipt of shares as payment
of interest. Since the Holder will not be obligated to report to the Company the number of shares of Common Stock it may hold at
the time of a conversion hereunder, unless the conversion at issue would result in the issuance of shares of Common Stock in excess
of 4.99% of the then outstanding shares of Common Stock without regard to any other shares which may be beneficially owned by the
Holder or an affiliate thereof, the Holder shall have the authority, responsibility and obligation to determine whether the restriction
contained in this Section will limit any particular conversion hereunder and to the extent that the Holder determines that the
limitation contained in this Section applies, the determination of which portion of the Principal amount of this Debenture is convertible
shall be the responsibility and obligation of the Holder. The provisions of this Section may be waived by a Holder (but only as
to itself and not to any other Holder) upon not less than 65 days prior notice to the Company. Other Holders shall be unaffected
by any such waiver.

 

(e)  
Other Provisions.

 

(i)                 The
Company shall at all times reserve and keep available out of its authorized Common Stock the full number of shares of Common
Stock issuable upon conversion of all outstanding amounts under this Debenture; and within three (3) Business Days following
the receipt by the Company of a Holder's notice that such minimum number of Underlying Shares is not so reserved, the Company
shall promptly reserve a sufficient number of shares of Common Stock to comply with such requirement.

 

    5

     

    

 

(ii)             
All calculations under this Section 3 shall be rounded to the nearest $0.0001 or whole share.

 

(iii)            
The Company covenants that it will at all times reserve and keep available out of its authorized and unissued shares of
Common Stock solely for the purpose of issuance upon conversion of this Debenture and payment of Interest on this Debenture, each
as herein provided, free from preemptive rights or any other actual contingent purchase rights of persons other than the Holder,
not less than such number of shares of the Common Stock as shall be issuable (taking into account the adjustments and restrictions
set forth herein) upon the conversion of the outstanding principal amount of this Debenture and payment of Interest hereunder.
The Company covenants that all shares of Common Stock that shall be so issuable shall, upon issue, be duly and validly authorized,
issued and fully paid, nonassessable and, if the Underlying Shares Registration Statement has been declared effective under the
Securities Act, registered for public sale in accordance with such Underlying Shares Registration Statement.

 

(iv)            
Nothing herein shall limit a Holder's right to pursue actual damages or declare an Event of Default pursuant to Section
2 herein for the Company’s failure to deliver certificates representing shares of Common Stock upon conversion within the
period specified herein and such Holder shall have the right to pursue all remedies available to it at law or in equity including,
without limitation, a decree of specific performance and/or injunctive relief, in each case without the need to post a bond or
provide other security. The exercise of any such rights shall not prohibit the Holder from seeking to enforce damages pursuant
to any other Section hereof or under applicable law.

 

(v)              
Conversion Costs. The Company agrees to reimburse the Holder for all reasonable costs incurred by the Holder in connection
with any legal opinions paid for by the Holder in connection with sale of Underlying Shares of Common Stock (provided that the
Company has first had the opportunity to obtain such a legal opinion on behalf of the Holder). The Holder shall notify the Company
of any such costs and expenses it incurs that are referred to in this section from time to time and all amounts owed hereunder
shall be paid by the Company with reasonable promptness.

 

(f)    Adjustments
to Conversion PriceAdjustment of Conversion Price upon Subdivision or Combination of Common Stock. If the Company at any
time after the Issuance Date subdivides (by any stock split, stock dividend, recapitalization or otherwise) one or more
classes of its outstanding shares of Common Stock into a greater number of shares, the Conversion Price in effect immediately
prior to such subdivision will be proportionately reduced and the number of shares of Common Stock obtainable upon conversion
of this Debenture will be proportionately increased. If the Company at any time after the Issuance Date combines (by
combination, reverse stock split or otherwise) one or more classes of its outstanding shares of Common Stock into a smaller
number of shares, any Conversion Price in effect immediately prior to such combination will be proportionately increased and
the number of shares of Common Stock issuable upon exercise of this Warrant will be proportionately decreased. Any adjustment
under this Section 4(b) shall become effective at the close of business on the date the subdivision or combination
becomes effective.

 

    6

     

    

 

(g)  
Notification of Adjustment. Whenever the Conversion Price is adjusted pursuant to Section 4 hereof, the Company shall
promptly send the Holder a notice setting forth the Conversion Price after such adjustment and setting forth a brief statement
of the facts requiring such adjustment.

 

(4)              
REGISTRATION. The Underlying Shares to be issued by the Company upon conversion of this Debenture by the Holder shall
be registered (the “Registration”) by the Company with the U.S. Securities and Exchange Commission (the “SEC”)
effective on the date hereof. All costs and expenses related to such registration shall be borne by the Company.

 

(5)              
INDEMNIFICATION.

 

With respect to Registration
of the Underlying Shares by the Company in accordance with Section 5 hereof:

 

To the fullest
extent permitted by law, the Company will, and hereby does, indemnify, hold harmless and defend the Investor, the directors,
officers, partners, employees, agents, representatives of, and each Person, if any, who controls any Investor within the
meaning of the Securities Act or the Exchange Act (each, an “Indemnified Person”), against any losses,
claims, damages, liabilities, judgments, fines, penalties, charges, costs, reasonable attorneys’ fees, amounts paid in
settlement or expenses, joint or several (collectively, “Claims”) incurred in investigating, preparing or
defending any action, claim, suit, inquiry, proceeding, investigation or appeal taken from the foregoing by or before any
court or governmental, administrative or other regulatory agency, body or the SEC, whether pending or threatened, whether or
not an indemnified party is or may be a party thereto (“Indemnified Damages”), to which any of them may
become subject insofar as such Claims (or actions or proceedings, whether commenced or threatened, in respect thereof) arise
out of or are based upon: (i) any untrue statement or alleged untrue statement of a material fact in a Registration Statement
or any post-effective amendment thereto or in any filing made in connection with the qualification of the offering under the
securities or other “blue sky” laws of any jurisdiction in which Registrable Securities are
offered (“Blue Sky Filing”), or the omission or alleged omission to state a material fact required to
be stated therein or necessary to make the statements therein not misleading; (ii) any untrue statement or alleged untrue
statement of a material fact contained in any final prospectus (as amended or supplemented, if the Company files any
amendment thereof or supplement thereto with the SEC) or the omission or alleged omission to state therein any material fact
necessary to make the statements made therein, in light of the circumstances under which the statements therein were made,
not misleading; or (iii) any violation or alleged violation by the Company of the Securities Act, the Exchange Act, any other
law, including, without limitation, any state securities law, or any rule or regulation there under relating to the offer or
sale of the Registrable Securities pursuant to a Registration Statement (the matters in the foregoing clauses (i) through
(iii) being, collectively, “Violations”). The Company shall reimburse the Investors and each such
controlling person promptly as such expenses are incurred and are due and payable, for any legal fees or disbursements or
other reasonable expenses incurred by them in connection with investigating or defending any such Claim. Notwithstanding
anything to the contrary contained herein, the indemnification agreement contained in this Section 6(a): (x) shall not apply
to a Claim by an Indemnified Person arising out of or based upon a Violation which occurs in reliance upon and in conformity
with information furnished in writing to the Company by such Indemnified Person expressly for use in connection with the
preparation of the Registration Statement or any such amendment thereof or supplement thereto; (y) shall not be available to
the extent such Claim is based on a failure of the Investor to deliver or to cause to be delivered the prospectus made
available by the Company, if such prospectus was timely made available by the Company pursuant to Section 3(c); and
(z) shall not apply to amounts paid in settlement of any Claim if such settlement is effected without the prior written
consent of the Company, which consent shall not be unreasonably withheld. Such indemnity shall remain in full force and
effect regardless of any investigation made by or on behalf of the Indemnified Person.

 

    7

     

    

 

Promptly after receipt
by an Indemnified Person or Indemnified Party under this Section 6 of notice of the commencement of any action or proceeding (including
any governmental action or proceeding) involving a Claim, such Indemnified Person or Indemnified Party shall, if a Claim in respect
thereof is to be made against any indemnifying party under this Section 6, deliver to the indemnifying party a written notice of
the commencement thereof, and the indemnifying party shall have the right to participate in, and, to the extent the indemnifying
party so desires, jointly with any other indemnifying party similarly noticed, to assume control of the defense thereof with counsel
mutually satisfactory to the indemnifying party and the Indemnified Person or the Indemnified Party, as the case may be; provided,
however, that an Indemnified Person or Indemnified Party shall have the right to retain its own counsel with the fees and expenses
of not more than one (1) counsel for such Indemnified Person or Indemnified Party to be paid by the indemnifying party, if, in
the reasonable opinion of counsel retained by the indemnifying party, the representation by such counsel of the Indemnified Person
or Indemnified Party and the indemnifying party would be inappropriate due to actual or potential differing interests between such
Indemnified Person or Indemnified Party and any other party represented by such counsel in such proceeding. The Indemnified Party
or Indemnified Person shall cooperate fully with the indemnifying party in connection with any negotiation or defense of any such
action or claim by the indemnifying party and shall furnish to the indemnifying party all information reasonably available to the
Indemnified Party or Indemnified Person which relates to such action or claim. The indemnifying party shall keep the Indemnified
Party or Indemnified Person fully apprised at all times as to the status of the defense or any settlement negotiations with respect
thereto. No indemnifying party shall be liable for any settlement of any action, claim or proceeding effected without its prior
written consent; provided, however, that the indemnifying party shall not unreasonably withhold, delay or condition its consent.
No indemnifying party shall, without the prior written consent of the Indemnified Party or Indemnified Person, consent to entry
of any judgment or enter into any settlement or other compromise which does not include as an unconditional term thereof the giving
by the claimant or plaintiff to such Indemnified Party or Indemnified Person of a release from all liability in respect to such
claim or litigation. Following indemnification as provided for hereunder, the indemnifying party shall be subrogated to all rights
of the Indemnified Party or Indemnified Person with respect to all third parties, firms or corporations relating to the matter
for which indemnification has been made. The failure to deliver written notice to the indemnifying party within a reasonable time
of the commencement of any such action shall not relieve such indemnifying party of any liability to the Indemnified Person or
Indemnified Party under this Section 6, except to the extent that the indemnifying party is prejudiced in its ability to defend
such action.

 

    8

     

    

		 	 

 

 

The
indemnification required by this Section 6 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 Indemnified Damages are incurred.

 

The
indemnity agreements contained herein shall be in addition to (i) any cause of action or similar right of the Indemnified
Party or Indemnified Person against the indemnifying party or others, and (ii) any liabilities the indemnifying party may be subject
to pursuant to the law.

 

(6)              
CONTRIBUTION. To the extent any indemnification by an indemnifying
party is prohibited or limited by law, the indemnifying party agrees to make the maximum contribution with respect to any amounts
for which it would otherwise be liable under Section 6 to the fullest extent permitted by law.

 

(7)              
REISSUANCE OF THIS DEBENTURE.

 

(a)  
Transfer. If this Debenture is to be transferred, the Holder
shall surrender this Debenture to the Company, whereupon the Company will forthwith issue and deliver upon the order of the Holder
a new Debenture (in accordance with Section 8(d)), registered in the name of the registered transferee or assignee, representing
the outstanding Principal being transferred by the Holder (along with any accrued and unpaid interest thereof) and, if less then
the entire outstanding Principal is being transferred, a new Debenture (in accordance with Section 8(d)) to the Holder representing
the outstanding Principal not being transferred. The Holder and any assignee, by acceptance of this Debenture, acknowledge and
agree that, by reason of the provisions of Section 3(c)(iii) following conversion or redemption of any portion of this Debenture,
the outstanding Principal represented by this Debenture may be less than the Principal stated on the face of this Debenture.

 

(b)  
Lost, Stolen or Mutilated Debenture. Upon receipt by the
Company of evidence reasonably satisfactory to the Company of the loss, theft, destruction or mutilation of this Debenture, and,
in the case of loss, theft or destruction, of any indemnification undertaking by the Holder to the Company in customary form and,
in the case of mutilation, upon surrender and cancellation of this Debenture, the Company shall execute and deliver to the Holder
a new Debenture (in accordance with Section 8(d)) representing the outstanding Principal.

 

(c)  
Debenture Exchangeable for Different Denominations. This
Debenture is exchangeable, upon the surrender hereof by the Holder at the principal office of the Company, for a new Debenture
or Debentures (in accordance with Section 8(d)) representing in the aggregate the outstanding Principal of this Debenture, and
each such new Debenture will represent such portion of such outstanding Principal as is designated by the Holder at the time of
such surrender.

 

(d)  
Issuance of New Debentures. Whenever the Company is required
to issue a new Debenture pursuant to the terms of this Debenture, such new Debenture (i) shall be of like tenor with this Debenture,
(ii) shall represent, as indicated on the face of such new Debenture, the Principal remaining outstanding (or in the case of a
new Debenture being issued pursuant to Section 8(a) or Section 8(c), the Principal designated by the Holder which, when added
to the principal represented by the other new Debentures issued in connection with such issuance, does not exceed the Principal
remaining outstanding under this Debenture immediately prior to such issuance of new Debentures), (iii) shall have an issuance
date, as indicated on the face of such new Debenture, which is the same as the Issuance Date of this Debenture, (iv) shall have
the same rights and conditions as this Debenture, and (v) shall represent accrued and unpaid Interest from the Issuance Date.

 

    9

     

    

 

(8)              
NOTICES.Any notices, consents, waivers or other communications
required or permitted to be given under the terms hereof must be in writing and will be deemed to have been delivered: upon the
later of (A) either (i) receipt, when delivered personally or (ii) one (1) Business Day after deposit with an overnight courier
service with next day delivery specified, in each case, properly addressed to the party to receive the same and (B) receipt, when
sent by e-mail. The addresses and e-mail addresses for such communications shall be:

 

	If
    to the Company, to:	Ideanomics,
        Inc.

        1441
        Broadway, Suite #5116

        New
        York NY 10018

        Telephone: 212-206-1216

        Attention:  Chief Executive Officer

        E-Mail:  

         

	If
    to the Holder:	YA
        II PN, Ltd

        c/o
        Yorkville Advisors Global, LLC

        1012
        Springfield Avenue

        Mountainside,
        NJ 07092

        Attention:
        Mark Angelo

        Telephone:
        201-985-8300

        Email:

         

or
at such other address and/or e-mail address and/or to the attention
of such other person as the recipient party has specified by written notice given to each other party three (3) Business Days
prior to the effectiveness of such change. Written confirmation of receipt (i) given by the recipient of such notice, consent,
waiver or other communication, (ii) electronically generated upon sending the e-mail or (iii) provided by a nationally recognized
overnight delivery service, shall be rebuttable evidence of personal service, receipt by e-mail or receipt from a nationally recognized
overnight delivery service in accordance with clause (i), (ii) or (iii) above, respectively.

 

(9)              
Except as expressly provided herein, no provision of this Debenture
shall alter or impair the obligations of the Company, which are absolute and unconditional, to pay the principal of, interest
and other charges (if any) on, this Debenture at the time, place, and rate, and in the coin or currency, herein prescribed. This
Debenture is a direct obligation of the Company.

 

(10)          
This Debenture shall not entitle the Holder to any of the rights
of a stockholder of the Company, including without limitation, the right to vote, to receive dividends and other distributions,
or to receive any notice of, or to attend, meetings of stockholders or any other proceedings of the Company, unless and to the
extent converted into shares of Common Stock in accordance with the terms hereof.

 

    10

     

    

 

(11)          
After the Issuance Date, without the Holder’s consent, the
Company will not and will not permit any of their subsidiaries to, directly or indirectly, enter into, create, incur, assume or
suffer to exist any indebtedness of any kind, on or with respect to any of its property or assets now owned or hereafter acquired
or any interest therein or any income or profits therefrom that is senior in any respect to the obligations of the Company under
this Debenture.

 

(12)          
This Debenture shall be governed by and construed in accordance
with the laws of the State of New York, without giving effect to conflicts of laws thereof. Each of the parties consents to the
jurisdiction of the Courts of the State of New York sitting in New York County, New York and the U.S. District Court for
the Southern District of New York sitting in New York County, New York in connection with any dispute arising under this Debenture
and hereby waives, to the maximum extent permitted by law, any objection, including any objection based on forum non conveniens
to the bringing of any such proceeding in such jurisdictions.

 

(13)          
If the Company fails to strictly comply with the terms of this
Debenture, then the Company shall reimburse the Holder promptly for all fees, costs and expenses, including, without limitation,
attorneys’ fees and expenses incurred by the Holder in any action in connection with this Debenture, including, without
limitation, those incurred: (i) during any workout, attempted workout, and/or in connection with the rendering of legal advice
as to the Holder’s rights, remedies and obligations, (ii) collecting any sums which become due to the Holder, (iii) defending
or prosecuting any proceeding or any counterclaim to any proceeding or appeal; or (iv) the protection, preservation or enforcement
of any rights or remedies of the Holder.

 

(14)          
Any waiver by the Holder of a breach of any provision of this
Debenture shall not operate as or be construed to be a waiver of any other breach of such provision or of any breach of any other
provision of this Debenture. The failure of the Holder to insist upon strict adherence to any term of this Debenture on one or
more occasions shall not be considered a waiver or deprive that party of the right thereafter to insist upon strict adherence
to that term or any other term of this Debenture. Any waiver must be in writing.

 

(15)          
If any provision of this Debenture is invalid, illegal or unenforceable,
the balance of this Debenture shall remain in effect, and if any provision is inapplicable to any person or circumstance, it shall
nevertheless remain applicable to all other persons and circumstances. If it shall be found that any interest or other amount
deemed interest due hereunder shall violate applicable laws governing usury, the applicable rate of interest due hereunder shall
automatically be lowered to equal the maximum permitted rate of interest. The Company covenants (to the extent that it may lawfully
do so) that it shall not at any time insist upon, plead, or in any manner whatsoever claim or take the benefit or advantage of,
any stay, extension or usury law or other law which would prohibit or forgive the Company from paying all or any portion of the
principal of or interest on this Debenture as contemplated herein, wherever enacted, now or at any time hereafter in force, or
which may affect the covenants or the performance of this indenture, and the Company (to the extent it may lawfully do so) hereby
expressly waives all benefits or advantage of any such law, and covenants that it will not, by resort to any such law, hinder,
delay or impeded the execution of any power herein granted to the Holder, but will suffer and permit the execution of every such
as though no such law has been enacted.

 

    11

     

    

 

(16)          
Whenever any payment or other obligation hereunder shall be due
on a day other than a Business Day, such payment shall be made on the next succeeding Business Day.

 

(17)          
THE PARTIES HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE
THE RIGHT ANY OF THEM MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION BASED HEREON OR ARISING OUT OF, UNDER OR IN CONNECTION
WITH THIS AGREEMENT OR ANY TRANSACTION DOCUMENT OR ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER VERBAL OR WRITTEN)
OR ACTIONS OF ANY PARTY. THIS PROVISION IS A MATERIAL INDUCEMENT FOR THE PARTIES’ ACCEPTANCE OF THIS AGREEMENT.

 

(18)          
CERTAIN DEFINITIONS For purposes of this Debenture,
the following terms shall have the following meanings:

 

(a)  
“Bloomberg” means Bloomberg Financial Markets.

 

(b)  
“Business Day” means any day except Saturday,
Sunday and any day which shall be a federal legal holiday in the United States or a day on which banking institutions are authorized
or required by law or other government action to close.

 

(c)  
“Change of Control Transaction” means the occurrence
of (a) an acquisition after the Issuance Date by an individual or legal entity or “group” (as described in Rule 13d-5(b)(1)
promulgated under the Exchange Act) of effective control (whether through legal or beneficial ownership of capital stock of the
Company, by contract or otherwise) of in excess of fifty percent (50%) of the voting securities of the Company (except that the
acquisition of voting securities by the Holder or any other current holder of convertible securities of the Company shall not
constitute a Change of Control Transaction for purposes hereof), (b) a replacement at one time or over time of more than one-half
of the members of the board of directors of the Company (other than as due to the death or disability of a member of the board
of directors) which is not approved by a majority of those individuals who are members of the board of directors on the Issuance
Date (or by those individuals who are serving as members of the board of directors on any date whose nomination to the board of
directors was approved by a majority of the members of the board of directors who are members on the Issuance Date), (c) the merger,
consolidation or sale of fifty percent (50%) or more of the assets of the Company or any subsidiary of the Company in one or a
series of related transactions with or into another entity, or (d) the execution by the Company of an agreement to which the Company
is a party or by which it is bound, providing for any of the events set forth above in (a), (b) or (c). No transfer to a wholly-owned
subsidiary shall be deemed a Change of Control Transaction under this provision.

 

(d)  
“Closing Bid Price” means the price per share
in the last reported trade of the Common Stock on a Primary Market or on the exchange which the Common Stock is then listed as
quoted by Bloomberg.

 

    12

     

    

 

(e)  
“Convertible Securities” means any stock or
securities (other than Options) directly or indirectly convertible into or exercisable or exchangeable for Common Stock.

 

(f)   
“Commission” means the Securities and Exchange
Commission.

 

(g)  
“Common Stock” means the common stock, par
value $0.001, of the Company and stock of any other class into which such shares may hereafter be changed or reclassified.

 

(h)  
“Exchange Act” means the Securities Exchange
Act of 1934, as amended.

 

(i)     “Options”
means any warrants or other rights or options to subscribe for or purchase Common Stock or Convertible Securities.

 

(j)    
“Person” means a corporation, an association,
a partnership, organization, a business, an individual, a government or political subdivision thereof or a governmental agency.

 

(k)  
“Primary Market” means any of the New York
Stock Exchange, the NYSE MKT, the Nasdaq Global Market, the Nasdaq Global Select Market, the Nasdaq Capital Market, or the OTC
QB, and any successor to any of the foregoing markets or exchanges.

 

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

 

(m) 
“Trading Day” means a day on which the shares
of Common Stock are quoted or traded on a Primary Market on which the shares of Common Stock are then quoted or listed; provided,
that in the event that the shares of Common Stock are not listed or quoted, then Trading Day shall mean a Business Day.

 

(n)  
“Transaction Documents” means any existing
or future agreement between the Company and the Holder.

 

(o)  
“Underlying Shares” means the shares of Common
Stock issuable upon conversion of this Debenture or as payment of interest in accordance with the terms hereof.

 

(p)  
“VWAP” means, for any security as of any date,
the daily dollar volume-weighted average price for such security on the Primary Market as reported by Bloomberg LP through its
 “Historical Prices – Px Table with Average Daily Volume” functions, or, if no dollar volume-weighted average
price is reported for such security by Bloomberg.

 

    13

     

    

 

IN
WITNESS WHEREOF, the Company has caused this Convertible Debenture
to be duly executed by a duly authorized officer as of the date set forth above.

 

	 	COMPANY:
	 	IDEANOMICS, INC.
	 	 	 
	 	By:	              
	 	Name:	 
	 	Title:	 

 

     

     

    

  

EXHIBIT
I

CONVERSION NOTICE

 

(To
be executed by the Holder in order to Convert the Debenture)

 

 

	TO:
    

 

The
undersigned hereby irrevocably elects to convert $                                    of
the principal amount of Debenture No. IDEX-011521 into Shares of Common Stock of Ideanomics,
INC., according to the conditions stated therein, as of the
Conversion Date written below.

 

	Conversion
    Date:	
	Conversion
    Amount to be converted:	$
	Conversion
    Price:	$
	Number
    of shares of Common Stock to be issued:	
	 	 
	Please
    issue the shares of Common Stock in the following name and to the following address:
	Issue
    to:	  

         

	 	 
	Authorized
    Signature:	
	Name:	
	Title:	
	Broker
    DTC Participant Code:	 
	Account
    Number:

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