Document:

Exhibit 4.13

 

 

NEITHER THIS NOTE NOR THE SECURITIES THAT
MAY BE ISSUED BY THE BORROWER UPON CONVERSION HEREOF (COLLECTIVELY, THE “SECURITIES”) HAVE BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE “1933 ACT”), OR THE SECURITIES LAWS OF ANY STATE OR OTHER JURISDICTION. NEITHER
THE SECURITIES NOR ANY INTEREST OR PARTICIPATION THEREIN MAY BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED: (I) IN THE ABSENCE
OF AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE 1933 ACT, OR APPLICABLE STATE SECURITIES LAWS; OR (II) IN THE
ABSENCE OF AN OPINION OF COUNSEL, IN A FORM ACCEPTABLE TO THE ISSUER, THAT REGISTRATION IS NOT REQUIRED UNDER THE 1933 ACT OR;
(III) UNLESS SOLD, TRANSFERRED OR ASSIGNED PURSUANT TO RULE 144 UNDER THE 1933 ACT.

 

12% CONVERTIBLE NOTE

 

Maturity
Date of December 3, 2015

 

$150,000 June
3, 2015

 

FOR VALUE RECEIVED, SGOCO Group,
Ltd., a Cayman Islands Corporation (the “Company”) doing business in Luoshan, China, hereby promises to pay
to the order of JSJ Investments Inc., an accredited investor and Texas Corporation, or its assigns (the “Holder”),
the principal amount of One Hundred and Fifty Thousand Dollars ($150,000), on demand of the Holder at any time on or after December
3, 2015 (the “Maturity Date”), and to pay interest on the unpaid principal balance hereof at the rate of Twelve
Percent (12%) per annum (the “Interest Rate”) commencing on the date hereof (the “Issuance Date”).

 

		1.	Payments of Principal and Interest. 

 

		a.	Payment of Principal. At any time before, on, or after the Maturity Date, this note has
a cash redemption premium of 150% of the principal amount, in addition to outstanding interest, which may only be exercised upon
approval and acceptance by JSJ Investments Inc. Without the Holder’s consent to repayment or demand of repayment, the Company
may not repay the Note, in whole or in part, under any circumstance.

 

		b.	Demand of Repayment. The principal and interest balance of this Note shall be paid to the
Holder hereof on demand by the Holder at any time on or after the Maturity Date.

 

		c.	Interest. This Note shall bear interest (“Interest”) at the rate of Twelve Percent
(12%) per annum from the Issuance Date until the same is paid, or otherwise converted in accordance with Section 2 below, in full
and the Holder, at the Holder’s sole discretion, may include any accrued but unpaid Interest in the Conversion Amount. Interest
shall commence accruing on the Issuance Date, shall be computed on the basis of a 365-day year and the actual number of days elapsed
and shall accrue daily and, after the Maturity Date, compound quarterly. Upon an Event of Default, as defined in Section 10 below,
the Interest Rate shall increase to Eighteen Percent (18%) per annum for so long as the Event of Default is continuing (“Default
Interest”), provided however, if Holder does not demand repayment on or after the Maturity Date the interest rate shall remain
at Twelve Percent (12%).

 

		d.	General Payment Provisions. This Note shall be made in lawful money of the United States
of America by check to such account as the Holder may from time to time designate by written notice to the Company in accordance
with the provisions of this Note. Whenever any amount expressed to be due by the terms of this Note is due on any day which is
not a Business Day (as defined below), the same shall instead be due on the next succeeding day which is a Business Day and, in
the case of any interest payment date which is not the date on which this Note is paid in full, the extension of the due date thereof
shall not be taken into account for purposes of determining the amount of interest due on such date. For purposes of this Note,
“Business Day” shall mean any day other than a Saturday, Sunday or a day on which commercial banks in the State
of Texas are authorized or required by law or executive order to remain closed.

 

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		2.	Conversion of Note. At any time prior to, upon, or after the Maturity Date, the Conversion
Amount (see Paragraph 2(a)(i)) of this Note shall be convertible into ordinary shares of the Company (the “Ordinary Shares”)
according to the terms and conditions set forth in this Paragraph 2.

 

		a.	Certain Defined Terms. For purposes of this Note, the following terms shall have the following
meanings:

 

		i.	“Conversion Amount” means the sum of (a) the principal amount of this Note to
be converted with respect to which this determination is being made, (b) Interest; and (c) Default Interest, if any, on unpaid
interest and principal, if so included at the Holder’s sole discretion.

 

		ii.	“Conversion Price” means the lower of: (i) a 43% discount to the lowest trading
price per share of the Company’s Ordinary Shares during the previous twenty (20) trading days to the date of a Conversion
Notice; or (ii) a 43% discount to the lowest trading price per share during the previous twenty (20) trading days before the date
that this Note was executed.

 

		iii.	“Person” means an individual, a limited liability company, a partnership, a
joint venture, a corporation, a trust, an unincorporated organization and a government or any department or agency thereof.

 

		iv.	“Shares” means the Ordinary Shares of the Company into which any balance on
this Note may be converted upon submission of a “Conversion Notice” to the Company substantially in the form
attached hereto as Exhibit 1.

 

		b.	Holder’s Conversion Rights. At any time or times on or after the Issuance Date, the
Holder shall be entitled to convert all of the outstanding and unpaid principal amount of this Note into fully paid and non-assessable
Ordinary Shares in accordance with the stated Conversion Price. The Holder shall not be entitled to convert on a Conversion Date
that amount of the Note in connection with that number of Ordinary Shares which would be in excess of the sum of (i) the number
of Ordinary Shares beneficially owned by the Holder and its affiliates on a Conversion Date, (ii) any Ordinary Shares issuable
in connection with the unconverted portion of the Note, and (iii) the number of Ordinary Shares issuable upon the conversion of
the Note with respect to which the determination of this provision is being made on a Conversion Date, which would result in beneficial
ownership by the Holder and its affiliates of more than 49.99% of the outstanding Ordinary Shares of the Company on such Conversion
Date. For the purposes of the provision to the immediately preceding sentence, beneficial ownership shall be determined in accordance
with Section 13(d) of the Securities Exchange Act of 1934, as amended, and Regulation 13d-3 thereunder. Subject to the foregoing,
the Holder shall not be limited to aggregate conversions of 49.99% (“Conversion Limitation”). The Holder shall have
the authority to determine whether the restriction contained in this Section 2(b) will limit any conversion hereunder. The
Holder may waive the conversion limitation described in this Section 2(b), in whole or in part, upon and effective after
61 days prior written notice to the Borrower to increase or decrease such percentage.

 

		c.	Fractional Shares. The Company shall not issue any fraction of an Ordinary Share upon any
conversion; if such issuance would result in the issuance of a fraction of an Ordinary Share, the Company shall round such fraction
of an Ordinary Share up to the nearest whole share except in the event that rounding up would violate the conversion limitation
set forth in section 2(b) above.

 

		d.	Conversion Amount. The Conversion Amount shall be converted pursuant to Rule 144 of the
Securities Act of 1933, as amended, into free trading shares at the Conversion Price.

 

		e.	Mechanics of Conversion. The conversion of this Note shall be conducted in the following
manner:

 

		i.	Holder’s Conversion Requirements. To convert this Note into Ordinary Shares on any
date set forth in the Conversion Notice by the Holder (the “Conversion Date”), the Holder hereof shall transmit
by email, facsimile or otherwise deliver, for receipt on or prior to 11:59 p.m., Eastern Time, on such date or on the next business
day, a copy of a fully executed Conversion Notice in the form attached hereto as Exhibit 1 to the Company.

 

		ii.	Company’s Response. Upon receipt by the Company of a copy of a Conversion Notice,
the Company shall as soon as practicable, but in no event later than one (1) Business Day after receipt of such Conversion Notice,
send, via email, facsimile or overnight courier, a confirmation of receipt of such Conversion Notice to such Holder indicating
that the Company will process such Conversion Notice in accordance with the terms herein. Within two (2) Business Days after the
date the Conversion Notice is delivered, the Company shall have issued and electronically transferred the Shares to the Broker
indicated in the Conversion Notice; should the Company be unable to transfer the Shares electronically, it shall, within two (2)
Business Days after the date the Conversion was delivered, have surrendered to an overnight courier for delivery the next day to
the address as specified in the Conversion Notice, a certificate, registered in the name of the Holder, for the number of Ordinary
Shares to which the Holder shall be entitled.

 

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		iii.	Record Holder. The person or persons entitled to receive the Ordinary Shares issuable upon
a conversion of this Note shall be treated for all purposes as the record holder or holders of such Ordinary Shares on the Conversion
Date.

 

		iv.	Timely Response by Company. Upon receipt by Company of a Conversion Notice, Company shall
respond within one business day to Holder confirming the details of the Conversion, and provide within two business days the Shares
requested in the Conversion Notice.

 

		v.	Penalty for Delinquent Response. If the Company fails to deliver for whatever reason (including
any neglect or failure by, e.g., the Company, its counsel or the transfer agent) to Holder the Shares as requested in a
Conversion Notice and within three (3) business days of the Conversion Date, the Company shall be deemed in “Default of
Conversion.” Beginning on the fourth (4th) business day after the date of the Conversion Notice, after the
Company is deemed in Default of Conversion, there shall accrue a penalty (the “Conversion Penalty”) of Additional
Shares due to Holder equal to Five percent (5%) of the number stated in the Conversion Notice (the “Additional Shares”),
which may be applied to the Conversion at the Holder’s election, and for each business day while a Default of Conversion
exists and is continuing a Conversion Penalty shall continue to accrue and Holder shall continue to be issued Additional Shares
for each such business day. The Additional Shares shall be issued and the amount of the Note retired will not be reduced beyond
that stated in the Conversion Notice. If the Additional Shares owed the Holder cause the Shares requested by the Conversion Notice
to exceed Conversion Limitation, the Holder may opt instead to have the Conversion Amount reduced by the value, as calculated using
the Conversion Price, of the Additional Shares owing. At any time after a Default of Conversion the Holder may, at their sole discretion,
rescind the Conversion.

 

		vi.	Penalty for Inability to Issue Shares. If the Company fails to deliver Shares requested
by a Conversion Notice due to an exhaustion of authorized and issuable Ordinary Shares such that the Company must increase the
number of authorized Ordinary Shares before the Shares requested may be issued to the Holder, the discount set forth in the Conversion
Price will be increased by 5% for the Conversion Notice in question and all future Conversion Notices until the outstanding principal
and interest of the Note is converted or paid in full. This penalty shall not render the penalties prescribed by Paragraph 2(e)(v)
void, and may be applied in conjunction with Paragraph 2(e)(v) at the Holder’s election.

 

		vii.	Rescindment of Conversion Notice. If (i) the Company fails to respond to Holder within one
business day from the date of Conversion confirming the details of Conversion, (ii) the Company fails to provide the Shares requested
in the Conversion Notice within three business days from the date of Conversion, (iii) the Holder is unable to procure a legal
opinion required to have the Shares issued unrestricted and/or deposited to sell for any reason related to the Company's standing,
(iv) the Holder is unable to deposit the Shares requested in the Conversion Notice for any reason related to the Company's standing,
(v) a Default of Conversion exists; (vi) the Holder is informed that the Company does not have the authorized and issuable Shares
available to satisfy the Conversion, (vii) the Company is delinquent in timely filing any reports required to be filed with the
Securities and Exchange Commission; (viii) the Company’s Ordinary Shares are delisted from the Nasdaq Stock Market, or (ix)
in the event that the Company’s securities are quoted for trading on the OTC Markets, then if OTC Markets changes the Company's
designation to 'Limited Information' (Yield), 'No Information' (Stop Sign), 'Caveat Emptor' (Skull and Crossbones), or 'OTC', 'Other
OTC' or 'Grey Market' (Exclamation Mark Sign) on the day of or any day after the date of Conversion, the Holder maintains the option
and sole discretion to rescind the Conversion Notice ("Rescindment") with a "Notice of Rescindment.”

 

		viii.	Transfer Agent Fees and Legal Fees. The issuance of the certificates shall be without charge
or expense to the Holder. The Company shall pay any and all Transfer Agent fees, legal fees, and advisory fees required for execution
of this Convertible Note and processing of any Notice of Conversion, including but not limited to the cost of obtaining a legal
opinion with regard to the Conversion. The Holder will deduct $3,000 from the principal payment of the Convertible Note solely
to cover the cost of obtaining any and all legal opinions required to obtain the Shares requested in any given Conversion Notice.
These fees do not make provision for or suffice to defray any legal fees incurred in collection or enforcement of the Note as described
in Paragraph 13. The Holder will deduct 3rd party due diligence fees due Wellington Shields in the amount of $12,000
from the principal payment of the Convertible Note.

 

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		3.	Other Rights of Holders: Reorganization, Reclassification, Consolidation, Merger or Sale.
Any recapitalization, reorganization, reclassification, consolidation, merger, sale of all or substantially all of the Company’s
assets to another Person or other transaction which is effected in such a way that holders of Ordinary Shares are entitled to receive
(either directly or upon subsequent liquidation) stock, securities or assets with respect to or in exchange for Ordinary Shares
is referred to herein as “Organic Change.” Prior to the consummation of any (i) Organic Change or (ii) other
Organic Change following which the Company is not a surviving entity, the Company will secure from the Person purchasing such assets
or the successor resulting from such Organic Change (in each case, the “Acquiring Entity”) a written agreement
(in form and substance reasonably satisfactory to the Holder) to deliver to Holder in exchange for this Note, a security of the
Acquiring Entity evidenced by a written instrument substantially similar in form and substance to this Note, and reasonably satisfactory
to the Holder. Prior to the consummation of any other Organic Change, the Company shall make appropriate provision (in form and
substance reasonably satisfactory to the Holders of a majority of the Conversion Amount of the Notes then outstanding) to ensure
that each of the Holders will thereafter have the right to acquire and receive in lieu of or in addition to (as the case may be)
the Ordinary Shares immediately theretofore acquirable and receivable upon the conversion of such Holder’s Note, such shares
of stock, securities or assets that would have been issued or payable in such Organic Change with respect to or in exchange for
the number of Ordinary Shares which would have been acquirable and receivable upon the conversion of such Holder’s Note as
of the date of such Organic Change (without taking into account any limitations or restrictions on the convertibility of the Note
set forth in Section 2(b) or otherwise). All provisions of this Note must be included to the satisfaction of Holder in any new
Note created pursuant to this section.

 

		4.	Representations and Warranties of the Company. In connection with the transactions provided
for herein, the Company hereby represents and warrants to the Holders the following.

 

		a.	Organization, Good Standing and Qualification. The Company is a corporation duly organized,
validly existing and in good standing under the laws of the Cayman Islands and has all requisite corporate power and authority
to carry on its business as now conducted. The Company is duly qualified to transact business and is in good standing in each jurisdiction
in which the failure to so qualify would have a material adverse effect on its business or properties.

 

		b.	Authorization. All corporate action has been taken on the part of the Company, its officers,
directors and stockholders necessary for the authorization, execution and delivery of this Agreement. The Company has taken all
corporate action required to make all of the obligations of the Company reflected in the provisions of this Agreement, valid and
enforceable obligations. The shares of capital stock issuable upon conversion of the Notes have been authorized or will be authorized
prior to the issuance of such shares.

 

		c.	Fiduciary Obligations. The Company hereby represents that it intends to use the proceeds
of the Notes primarily for the operations of its business and not for any personal, family, or household purpose. The Company hereby
represents that its board of directors, in the exercise of its fiduciary duty, has approved the execution of this Agreement based
upon a reasonable belief that the loan provided for herein is appropriate for the Company after reasonable inquiry concerning its
financial objectives and financial situation.

 

		5.	Covenants of the Company. So long as the Company shall have any obligations under this Note,
the Company shall not without the Holder’s prior written consent pay, declare or set apart for such payment any dividend
or other distribution (whether in cash, property, or other securities) on share of capital stock solely in the form of additional
Ordinary Shares.

 

		a.	So long as the Company shall have any obligations under this Note, the Company shall not without
the Holder’s prior written consent redeem, repurchase, or otherwise acquire (whether for cash or in exchange for property
or other securities) in any one transaction or series of transactions any shares of capital stock of the Company or any warrants,
rights, or options to acquire any such shares.

 

		b.	So long as the Company shall have any obligations under this Note, the Company shall not without
the Holder’s prior written consent incur any liability for borrowed money, except (a) borrowings in existence as of this
date and of which the Company has informed the Holder in writing before the date hereof or (b) indebtedness to trade creditors
or financial institutions incurred in the ordinary course of business.

 

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		c.	So long as the Company shall have any obligations under this Note, the Company shall not without
the Holder’s prior written consent sell, lease, or otherwise dispose of a significant portion of its assets outside the ordinary
course of business. Any consent to the disposition of any assets may be conditioned upon a specified use of the proceeds thereof.

 

		6.	Issuance of Ordinary Shares Equivalents. If the Company, at any time after the Issuance
Date, shall issue any securities convertible into or exchangeable for, directly or indirectly, Ordinary Shares (“Convertible
Securities”), other than the Note, or any rights or warrants or options to purchase any such Ordinary Shares or Convertible
Securities, shall be issued or sold (collectively, the “Ordinary Share Equivalents”) and the aggregate of the
price per share for which Additional Shares may be issuable thereafter pursuant to such Ordinary Share Equivalent, plus the consideration
received by the Company for issuance of such Ordinary Share Equivalent divided by the number of shares of Ordinary Shares issuable
pursuant to such Ordinary Share Equivalent (the “Aggregate Per Ordinary Share Price”) shall be less than the
applicable Conversion Price then in effect, or if, after any such issuance of Ordinary Share Equivalents, the price per share for
which Additional Shares may be issuable thereafter is amended or adjusted, and such price as so amended shall make the Aggregate
Per Share Price be less than the applicable Conversion Price in effect at the time of such amendment or adjustment, then the applicable
Conversion Price upon each such issuance or amendment shall be reduced to the lower of: (i) the Conversion Price; or (ii) a twenty-five
percent (25%) discount to the lowest Aggregate Per Share Price (whether or not such Ordinary Share Equivalents are actually then
exercisable, convertible or exchangeable in whole or in part) as of the earlier of (A) the date on which the Company shall enter
into a firm contract for the issuance of such Ordinary Share Equivalent, or (B) the date of actual issuance of such Ordinary Share
Equivalent. No adjustment of the applicable Conversion Price shall be made under this Section 6 upon the issuance of any Convertible
Security which is outstanding on the day immediately preceding the Issuance Date. No adjustment shall be made to the Conversion
Price upon the issuance of Ordinary Shares pursuant to the exercise, conversion or exchange of any Convertible Security or Ordinary
Share Equivalent where an adjustment to the Conversion Price was made as a result of the issuance or purchase of any Convertible
Security or Ordinary Share Equivalent.

 

		7.	Reservation of Shares. The Company shall at all times, so long as any principal amount of
the Note is outstanding, reserve and keep available out of its authorized and unissued Ordinary Shares, solely for the purpose
of effecting the conversion of the Note, such number of Ordinary Shares as shall at all times be sufficient to effect the conversion
of all of the principal amount of the Note then outstanding. The initial number of Ordinary Shares reserved for conversions of
the Notes shall be calculated as four times the number of shares necessary to convert the entire value of the Note on the day it
was executed, unless the Holder stipulates otherwise in the “Irrevocable Letter of Instructions to the Transfer Agent.”

 

		a.	Capitalization. So long as this Note is outstanding, upon written request of the Holder
or via telephonic communication, the Company’s Transfer Agent shall furnish to the Holder the then-current number of Ordinary
Shares issued and outstanding, the then-current number of Ordinary Shares authorized, the then-current number of unrestricted shares,
and the then-current number of shares reserved for third parties.

 

		8.	Voting Rights. Holders of this Note shall have no voting rights, except as required by law.

 

		9.	Reissuance of Note. In the event of a conversion or redemption pursuant to this Note of
less than all of the Conversion Amount represented by this Note, the Company shall promptly cause to be issued and delivered to
the Holder, upon tender by the Holder of the Note converted or redeemed, a new note of like tenor representing the remaining principal
amount of this Note which has not been so converted or redeemed and which is in substantially the same form as this Note, as set
forth above.

 

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		10.	Default and Remedies.

 

		a.	Event of Default. An “Event of Default” is:

 

		i.	default for ten (10) days in payment of interest or Default Interest on this Note;

 

		ii.	default in payment of the principal amount of this Note when due;

 

		iii.	failure by the Company for thirty (30) days after notice to it to comply with any other material
provision of this Note;

 

		iv.	breach of any covenants, warranties, or representations by the Company herein;

 

		v.	cessation of operations by the Company or a material subsidiary;

 

		vi.	if the Company pursuant to or within the meaning of any Bankruptcy Law; (a) commences a voluntary
case; (b) consents to the entry of an order for relief against it in an involuntary case; (c) consents to the appointment of a
Custodian of it or for all or substantially all of its property; (d) makes a general assignment for the benefit of its creditors;
or (e) admits in writing that it is generally unable to pay its debts as the same become due;

 

		vii.	a court of competent jurisdiction enters an order or decree under any Bankruptcy Law that: (a)
is for relief against the Company in an involuntary case; (b) appoints a Custodian of the Company or for all or substantially all
of its property; or (c) orders the liquidation of the Company or any subsidiary, and the order or decree remains unstayed and in
effect for thirty (30) days;

 

		viii.	the Company files a Form 15;

 

		ix.	the Company’s failure to timely file all reports required to be filed by it with the Securities
and Exchange Commission;

 

		x.	the Company’s Ordinary Shares are delisted from the Nasdaq Stock Market;

 

		xi.	in the event that the Company’s Ordinary Shares are delisted from the Nasdaq Market and subsequently
quoted on the OTC Markets and the OTC Markets changes the Company's designation to 'No Information' (Stop Sign), 'Caveat Emptor'
(Skull and Crossbones), or 'OTC', 'Other OTC' or 'Grey Market' (Exclamation Mark Sign).

 

The Term “Bankruptcy
Law” means Title 11, U.S. Code, or any similar Federal or State Law for the relief of debtors. The term “Custodian”
means any receiver, trustee, assignee, liquidator or similar official under any Bankruptcy Law.

 

		b.	Remedies. If an Event of Default occurs, the Holder may in its sole discretion determine
to request immediate repayment of all or any portion of the Note that remains outstanding; at such time the Company will be required
to redeem all or any portion of the Note so demanded (including all accrued and unpaid interest), in cash, at a price equal to
150% of the outstanding balance, plus accrued Interest and Default Interest and any other amounts then due under this Note.

 

		11.	Vote to Change the Terms of this Note. This Note and any provision hereof may only be amended
by an instrument in writing signed by the Company and holders of a majority of the aggregate Conversion Amount of the Notes then
outstanding.

 

		12.	Lost or Stolen Note. Upon receipt by the Company of evidence satisfactory to the Company
of the loss, theft, destruction or mutilation of this Note, and, in the case of loss, theft or destruction, of an indemnification
undertaking by the Holder to the Company in a form reasonably acceptable to the Company and, in the case of mutilation, upon surrender
and cancellation of the Notes, the Company shall execute and deliver a new Note of like tenor and date and in substantially the
same form as this Note; provided, however, the Company shall not be obligated to re-issue a Note if the Holder contemporaneously
requests the Company to convert such remaining principal amount into Ordinary Shares.

 

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		13.	Payment of Collection, Enforcement and Other Costs. If: (i) this Note is placed in the hands
of an attorney for collection or enforcement or is collected or enforced through any legal proceeding; or (ii) an attorney is retained
to represent the Holder of this Note in any bankruptcy, reorganization, receivership or other proceedings affecting creditors’
rights and involving a claim under this Note, then the Company shall pay to the Holder all reasonable attorneys’ fees, costs
and expenses incurred in connection therewith, in addition to all other amounts due hereunder.

 

		14.	Cancellation. After all principal, accrued Interest and Default Interest, if any, at any
time owed on this Note has been paid in full, this Note shall automatically be deemed canceled, shall be surrendered to the Company
for cancellation and shall not be reissued.

 

		15.	Waiver of Notice. To the extent permitted by law, the Company hereby waives demand, notice,
protest and all other demands and notices in connection with the delivery, acceptance, performance, default or enforcement of this
Note.

 

		16.	Governing Law. This Note shall be construed and enforced in accordance with, and all questions
concerning the construction, validity, interpretation and performance of this Note shall be governed by, the laws of the State
of Texas, without giving effect to provisions thereof regarding conflict of laws. Each party hereby irrevocably submits to the
non-exclusive jurisdiction of the state and federal courts sitting in Texas for the adjudication of any dispute hereunder or in
connection herewith or with any transaction contemplated hereby or discussed herein, and hereby irrevocably waives, and agrees
not to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of any such court,
that such suit, action or proceeding is brought in an inconvenient forum or that the venue of such suit, action or proceeding is
improper. Each party hereby irrevocably waives personal service of process and consents to process being served in any such suit,
action or proceeding by sending, through certified mail or overnight courier, a copy thereof to such party at the address for such
notices to it under this Agreement and agrees that such service shall constitute good and sufficient service of process and notice
thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner permitted by law.
EACH PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF
ANY DISPUTE HEREUNDER OR IN CONNECTION HEREWITH OR ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY. 

 

		17.	Remedies, Characterizations, Other Obligations, Breaches and Injunctive Relief. The remedies
provided in this Note shall be cumulative and in addition to all other remedies available under this Note, at law or in equity
(including a decree of specific performance and/or other injunctive relief), and no remedy contained herein shall be deemed a waiver
of compliance with the provisions giving rise to such remedy and nothing herein shall limit the Holder’s right to pursue
actual damages for any failure by the Company to comply with the terms of this Note. The Company covenants to the Holder that there
shall be no characterization concerning this instrument other than as expressly provided herein. Amounts set forth or provided
for herein with respect to payments, conversion and the like (and the computation thereof) shall be the amounts to be received
by the Holder thereof and shall not, except as expressly provided herein, be subject to any other obligation of the Company (or
the performance thereof).

 

		18.	Specific Shall Not Limit General; Construction. No specific provision contained in this
Note shall limit or modify any more general provision contained herein. This Note shall be deemed to be jointly drafted by the
Company and the Holder and shall not be construed against any person as the drafter hereof.

 

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		19.	Failure or Indulgence Not Waiver. No failure or delay on the part of this Note in the exercise
of any power, right or privilege hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such
power, right or privilege preclude further exercise thereof or of any other right, power or privilege.

 

		20.	Partial Payment. In the event of partial payment by the Holder, the principal sum due to
the Holder shall be prorated based on the consideration actually paid by the Holder such that the Company is only required to repay
the amount funded and the Company is not required to repay any unfunded portion of this Note, with the exception of any OID contemplated
herein.

 

		21.	Entire Agreement. This Agreement constitutes the full and entire understanding and agreement
between the parties with regard to the subjects herein. None of the terms of this Agreement can be waived or modified, except by
an express agreement signed by each Party hereto.

 

		22.	Representations and Warranties. The Company expressly acknowledges that the Holder, including
but not limited to its officer, directors, employees, agents, and affiliates, have not made any representation or warranty to it
outside the terms of this Agreement. The Company further acknowledges that there have been no representations or warranties about
future financing or subsequent transactions between the parties.

 

		23.	Notices. All notices and other communications given or made to the Company pursuant hereto
shall be in writing (including facsimile or similar electronic transmissions) and shall be deemed effectively given: (i) upon personal
delivery, (ii) when sent by electronic mail or facsimile, as deemed received by the close of business on the date sent, (iii) five
(5) days after having been sent by registered or certified mail, return receipt requested, postage prepaid or (iv) one (1) day
after deposit with a nationally recognized overnight courier, specifying next day delivery. All communications shall be sent either
by email, or fax, or to the address specified on the signature page. The physical address, email address, and phone number provided
on the signature page shall be considered valid pursuant to the above stipulations; should the Company’s contact information
change from that listed on the signature page, it is incumbent on the Company to inform the Holder.

 

		24.	Severability. If one or more provisions of this Agreement are held to be unenforceable under
applicable law, such provision shall be excluded from this Agreement and the rest of the Agreement shall be enforceable in accordance
with its terms.

 

		25.	Usury. If it shall be found that any interest or other amount deemed interest due hereunder
violates the applicable law governing usury, the applicable rate of interest due hereunder shall automatically be lowered to equal
the maximum rate of interest permitted under applicable law. The Company covenants (to the extent that it may lawfully do so) that
it will not seek to claim or take advantage of any law that would prohibit or forgive the Company from paying all or a portion
of the principal or interest on this Note.

 

		26.	Successors and Assigns. This Agreement shall be binding upon successors and assigns.

 

— SIGNATURE PAGE TO FOLLOW
—

 

    	 	8	 

     

    

 

 

IN WITNESS WHEREOF, the Company has caused this
Note to be signed by its CEO, on and as of the Issuance Date.

 

	COMPANY	 	 
	 	 	 
	Signature:	 	 
	 	 	 
	By:	 	 
	 	 	 
	Title:	 	 
	 	 	 
	Address:	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	Email:	 	 
	 	 	 
	Phone:	 	 
	 	 	 
	Facsimile:	 	 

 

JSJ Investments Inc.

 

Signature:

 

 

Sameer Hirji, President

JSJ Investments Inc.

6060 North Central Expressway, Suite 500

Dallas TX 75206

888-503-2599

 

    	 	9	 

     

    

 

 

Exhibit 1

 

Conversion
Notice

 

Reference is made to the 12% Convertible
Note issued by SGOCO Group, Ltd.(the "Note"), dated June 3, 2015 in the principal amount of $150,000 with 12% interest.
This note currently holds a principal balance of $150,000. The features of conversion stipulate a Conversion Price equal to the
lower of (i) a 43% discount to the lowest trading price per share during the previous twenty (20) trading days to the date of a
Conversion Notice; or (ii) a 43% discount to the lowest trading price per share during the previous twenty (20) trading days before
the date that this note was executed, pursuant to the provisions of Section 2(a)(ii) in the Note.

 

In accordance with and pursuant to the
Note, the undersigned hereby elects to convert $______ of the principal/interest balance of the Note, indicated below into
Ordinary Shares (the "Ordinary Shares"), of the Company, by tendering the Note specified as of the date specified below.

 

Date of Conversion: __________

 

Please confirm the following information:

 

Conversion Amount: $ ____________________

 

Conversion Price: $ ____________________ ( ____ % discount
from $ ____________________)

 

Number of Ordinary Shares to be issued: _______________________________________________________________

 

Current Issued/Outstanding: ________________________________________________________________________

 

If the Issuer is DWAC eligible, please
issue the Ordinary Shares into which the Note is being converted in the name of the Holder of the Note and transfer the shares
electronically to:

 

[BROKER INFORMATION]

 

Holder Authorization:

 

JSJ Investments Inc.

6060 North Central Expressway, Suite 500    *Do
not send certificates to this address

Dallas, TX 75206

888-503-2599

 

Tax ID: 20-2122354

 

Sameer Hirji, President

 

[DATE]

 

[CONTINUED ON NEXT PAGE]

 

    	 	10	 

     

    

 

 

PLEASE BE ADVISED, pursuant to Section
2(e)(2) of the Note, “Upon receipt by the Company of a copy of the Conversion Notice, the Company shall as soon as practicable,
but in no event later than one (1) Business Day after receipt of such Conversion Notice, SEND, VIA EMAIL, FACSIMILE OR OVERNIGHT
COURIER, A CONFIRMATION OF RECEIPT OF SUCH CONVERSION NOTICE TO SUCH HOLDER INDICATING THAT THE COMPANY WILL PROCESS SUCH CONVERSION
NOTICE in accordance with the terms herein. Within two (2) Business Days after the date of the Conversion Confirmation, the
Company shall have issued and electronically transferred the shares to the Broker indicated in the Conversion Notice; should the
Company be unable to transfer the shares electronically, they shall, within two (2) Business Days after the date of the Conversion
Confirmation, have surrendered to FedEx for delivery the next day to the address as specified in the Conversion Notice, a certificate,
registered in the name of the Holder, for the number of shares of Common Stock to which the Holder shall be entitled.”

 

Signature:

 

	 	 
	 	 
	Shi-bin Xie	 
	CEO	 
	SGOCO Group, Ltd.	 

 

    	 	11Exhibit 4.14 

 

SECURITIES PURCHASE AGREEMENT

 

This SECURITIES PURCHASE
AGREEMENT (the “Agreement”), dated as of June 10, 2015, by and between SGOCO Group, Ltd., a Cayman Islands
corporation, with headquarters located at Guanke Technology Park, Luoshan, Jinjiang City, Fujian Province, 368800 China (the “Company”),
and LG CAPITAL FUNDING, LLC, a New York limited liability company, with its address at 1218 Union Street, Suite #2, Brooklyn,
NY 11225 (the “Buyer”).

 

WHEREAS:

 

A.          The
Company and the Buyer are executing and delivering this Agreement in reliance upon the exemption from securities registration afforded
by the rules and regulations as promulgated by the United States Securities and Exchange Commission (the “SEC”) under
the Securities Act of 1933, as amended (the “1933 Act”);

 

B.           Buyer
desires to purchase and the Company desires to issue and sell, upon the terms and conditions set forth in this Agreement two 8%
convertible notes of the Company, in the forms attached hereto as Exhibit A and B in the aggregate principal amount of $231,000
(with the first note being in the amount of $115,500 and the second note being in the amount of $115,500) (together with any note(s)
issued in replacement thereof or as a dividend thereon or otherwise with respect thereto in accordance with the terms thereof,
the “Note”), convertible into shares of common stock, $0.001 par value per share, of the Company (the “Common
Stock”), upon the terms and subject to the limitations and conditions set forth in such Note. The first of the two notes
(the “First Note”) shall be paid for by the Buyer as set forth herein. The second note (the “Second Note”)
shall initially be paid for by the issuance of an offsetting $115,500.00 secured note issued to the Company by the Buyer (“Buyer
Note”), provided that prior to conversion of the Second Note, the Buyer must have paid off the Buyer Note in cash such that
the Second Note may not be converted until it has been paid for in cash.

 

C.           The
Buyer wishes to purchase, upon the terms and conditions stated in this Agreement, such principal amount of Note as is set forth
immediately below its name on the signature pages hereto; and

 

NOW THEREFORE, the
Company and the Buyer severally (and not jointly) hereby agree as follows:

 

1.           Purchase
and Sale of Note.

 

a.           Purchase
of Note. On each Closing Date (as defined below), the Company shall issue and sell to the Buyer and the Buyer agrees to purchase
from the Company such principal amount of Note as is set forth immediately below the Buyer’s name on the signature pages
hereto.

 

_____

Company Initials

 

     

     

    

 

b.           Form
of Payment. On the Closing Date (as defined below), (i) the Buyer shall pay the purchase price for the Note to be issued and
sold to it at the Closing (as defined below) (the “Purchase Price”) by wire transfer of immediately available funds
to the Company, in accordance with the Company’s written wiring instructions, against delivery of the Note in the principal
amount equal to the Purchase Price as is set forth immediately below the Buyer’s name on the signature pages hereto, and
(ii) the Company shall deliver such duly executed Note on behalf of the Company, to the Buyer, against delivery of such Purchase
Price.

 

c.           Closing
Date. The date and time of the issuance and sale of the Note pursuant to this Agreement (the “Closing Date”) shall
be on or about June 10, 2015, or such other mutually agreed upon time. The closing of the transactions contemplated by this Agreement
(the “Closing”) shall occur on the Closing Date at such location as may be agreed to by the parties. Subsequent Closings
shall occur when the Buyer Note is repaid.

 

2.           Buyer’s
Representations and Warranties. The Buyer represents and warrants to the Company that:

 

a.           Investment
Purpose. As of the date hereof, the Buyer is purchasing the Note and the shares of Common Stock issuable upon conversion of
or otherwise pursuant to the Note, such shares of Common Stock being collectively referred to herein as the “Conversion Shares”
and, collectively with the Note, the “Securities”) for its own account and not with a present view towards the public
sale or distribution thereof, except pursuant to sales registered or exempted from registration under the 1933 Act; provided,
however, that by making the representations herein, the Buyer does not agree to hold any of the Securities for any minimum
or other specific term and reserves the right to dispose of the Securities at any time in accordance with or pursuant to a registration
statement or an exemption under the 1933 Act.

 

b.           Accredited
Investor Status. The Buyer is an “accredited investor” as that term is defined in Rule 501(a) of Regulation D (an
“Accredited Investor”).

 

c.           Reliance
on Exemptions. The Buyer understands that the Securities are being offered and sold to it in reliance upon specific exemptions
from the registration requirements of United States federal and state securities laws and that the Company is relying upon the
truth and accuracy of, and the Buyer’s compliance with, the representations, warranties, agreements, acknowledgments and
understandings of the Buyer set forth herein in order to determine the availability of such exemptions and the eligibility of the
Buyer to acquire the Securities.

 

d.           Information.
The Buyer and its advisors, if any, have been, and for so long as the Note remain outstanding will continue to be, furnished with
all materials relating to the business, finances and operations of the Company and materials relating to the offer and sale of
the Securities which have been requested by the Buyer or its advisors. The Buyer and its advisors, if any, have been, and for so
long as the Note remain outstanding will continue to be, afforded the opportunity to ask questions of the Company. Notwithstanding
the foregoing, the Company has not disclosed to the Buyer any material nonpublic information and will not disclose such information
unless such information is disclosed to the public prior to or promptly following such disclosure to the Buyer. Neither such inquiries
nor any other due diligence investigation conducted by Buyer or any of its advisors or representatives shall modify, amend or affect
Buyer’s right to rely on the Company’s representations and warranties contained in Section 3 below. The Buyer understands
that its investment in the Securities involves a significant degree of risk. The Buyer is not aware of any facts that may constitute
a breach of any of the Company's representations and warranties made herein.

 

    	 	2	 

     

    

 

e.           Governmental
Review. The Buyer understands that no United States federal or state agency or any other government or governmental agency
has passed upon or made any recommendation or endorsement of the Securities.

 

f.            Transfer
or Re-sale. The Buyer understands that (i) the sale or re-sale of the Securities has not been and is not being registered under
the 1933 Act or any applicable state securities laws, and the Securities may not be transferred unless (a) the Securities
are sold pursuant to an effective registration statement under the 1933 Act, (b) the Buyer shall have delivered to the Company,
at the cost of the Buyer, an opinion of counsel that shall be in form, substance and scope customary for opinions of counsel in
comparable transactions to the effect that the Securities to be sold or transferred may be sold or transferred pursuant to an exemption
from such registration, which opinion shall be accepted by the Company, (c) the Securities are sold or transferred to an “affiliate”
(as defined in Rule 144 promulgated under the 1933 Act (or a successor rule) (“Rule 144”) of the Buyer who agrees to
sell or otherwise transfer the Securities only in accordance with this Section 2(f) and who is an Accredited Investor, (d) the
Securities are sold pursuant to Rule 144, or (e) the Securities are sold pursuant to Regulation S under the 1933 Act (or a
successor rule) (“Regulation S”), and the Buyer shall have delivered to the Company, at the cost of the Buyer, an opinion
of counsel that shall be in form, substance and scope customary for opinions of counsel in corporate transactions, which opinion
shall be accepted by the Company; (ii) any sale of such Securities made in reliance on Rule 144 may be made only in accordance
with the terms of said Rule and further, if said Rule is not applicable, any re-sale of such Securities under circumstances in
which the seller (or the person through whom the sale is made) may be deemed to be an underwriter (as that term is defined in the
1933 Act) may require compliance with some other exemption under the 1933 Act or the rules and regulations of the SEC thereunder;
and (iii) neither the Company nor any other person is under any obligation to register such Securities under the 1933 Act or any
state securities laws or to comply with the terms and conditions of any exemption thereunder (in each case). Notwithstanding the
foregoing or anything else contained herein to the contrary, the Securities may be pledged as collateral in connection with a bona
fide margin account or other lending arrangement.

 

g.           Legends.
The Buyer understands that the Note and, until such time as the Conversion Shares have been registered under the 1933 Act may be
sold pursuant to Rule 144 or Regulation S without any restriction as to the number of securities as of a particular date that can
then be immediately sold, the Conversion Shares may bear a restrictive legend in substantially the following form (and a stop-transfer
order may be placed against transfer of the certificates for such Securities):

 

    	 	3	 

     

    

 

“NEITHER THE ISSUANCE AND
SALE OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE EXERCISABLE HAVE BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT BE OFFERED
FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER
THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL (WHICH COUNSEL SHALL BE SELECTED BY THE HOLDER), IN A GENERALLY
ACCEPTABLE FORM, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD PURSUANT TO RULE 144 OR RULE 144A UNDER SAID
ACT. NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR
FINANCING ARRANGEMENT SECURED BY THE SECURITIES.”

 

The legend set forth above
shall be removed and the Company shall issue a certificate without such legend to the holder of any Security upon which it is stamped,
if, unless otherwise required by applicable state securities laws, (a) such Security is registered for sale under an effective
registration statement filed under the 1933 Act or otherwise may be sold pursuant to Rule 144 or Regulation S without any restriction
as to the number of securities as of a particular date that can then be immediately sold, or (b) such holder provides the Company
with an opinion of counsel, in form, substance and scope customary for opinions of counsel in comparable transactions, to the effect
that a public sale or transfer of such Security may be made without registration under the 1933 Act, which opinion shall be accepted
by the Company so that the sale or transfer is effected. The Buyer agrees to sell all Securities, including those represented by
a certificate(s) from which the legend has been removed, in compliance with applicable prospectus delivery requirements, if any.
In the event that the Company does not accept the opinion of counsel provided by the Buyer with respect to the transfer of Securities
pursuant to an exemption from registration, such as Rule 144 or Regulation S, within 2 business days, it will be considered an
Event of Default under the Note.

 

h.           Authorization;
Enforcement. This Agreement has been duly and validly authorized. This Agreement has been duly executed and delivered on behalf
of the Buyer, and this Agreement constitutes a valid and binding agreement of the Buyer enforceable in accordance with its terms.

 

i.            Residency.
The Buyer is a resident of the jurisdiction set forth immediately below the Buyer’s name on the signature pages hereto.

 

    	 	4	 

     

    

 

3.           Representations
and Warranties of the Company. The Company represents and warrants to the Buyer that:

 

a.           Organization
and Qualification. The Company and each of its subsidiaries, if any, is a corporation duly organized, validly existing and
in good standing under the laws of the jurisdiction in which it is incorporated, with full power and authority (corporate and other)
to own, lease, use and operate its properties and to carry on its business as and where now owned, leased, used, operated and conducted.

 

b.           Authorization;
Enforcement. (i) The Company has all requisite corporate power and authority to enter into and perform this Agreement, the
Note and to consummate the transactions contemplated hereby and thereby and to issue the Securities, in accordance with the terms
hereof and thereof, (ii) the execution and delivery of this Agreement, the Note by the Company and the consummation by it of the
transactions contemplated hereby and thereby (including without limitation, the issuance of the Note and the issuance and reservation
for issuance of the Conversion Shares issuable upon conversion or exercise thereof) have been duly authorized by the Company’s
Board of Directors and no further consent or authorization of the Company, its Board of Directors, or its shareholders is required,
(iii) this Agreement has been duly executed and delivered by the Company by its authorized representative, and such authorized
representative is the true and official representative with authority to sign this Agreement and the other documents executed in
connection herewith and bind the Company accordingly, and (iv) this Agreement constitutes, and upon execution and delivery by the
Company of the Note, each of such instruments will constitute, a legal, valid and binding obligation of the Company enforceable
against the Company in accordance with its terms.

 

c.           Issuance
of Shares. The Conversion Shares are duly authorized and reserved for issuance and, upon conversion of the Note in accordance
with its respective terms, will be validly issued, fully paid and non-assessable, and free from all taxes, liens, claims and encumbrances
with respect to the issue thereof and shall not be subject to preemptive rights or other similar rights of shareholders of the
Company and will not impose personal liability upon the holder thereof.

 

d.           Acknowledgment
of Dilution. The Company understands and acknowledges the potentially dilutive effect to the Common Stock upon the issuance
of the Conversion Shares upon conversion of the Note. The Company further acknowledges that its obligation to issue Conversion
Shares upon conversion of the Note in accordance with this Agreement, the Note is absolute and unconditional regardless of the
dilutive effect that such issuance may have on the ownership interests of other shareholders of the Company.

 

    	 	5	 

     

    

 

e.           No
Conflicts. The execution, delivery and performance of this Agreement, the Note by the Company and the consummation by the Company
of the transactions contemplated hereby and thereby (including, without limitation, the issuance and reservation for issuance of
the Conversion Shares) will not (i) conflict with or result in a violation of any provision of the Certificate of Incorporation
or By-laws, or (ii) violate or conflict with, or result in a breach of any provision of, or constitute a default (or an event which
with notice or lapse of time or both could become a default) under, or give to others any rights of termination, amendment, acceleration
or cancellation of, any agreement, indenture, patent, patent license or instrument to which the Company or any of its subsidiaries
is a party, or (iii) result in a violation of any law, rule, regulation, order, judgment or decree (including federal and state
securities laws and regulations and regulations of any self-regulatory organizations to which the Company or its securities are
subject) applicable to the Company or any of its subsidiaries or by which any property or asset of the Company or any of its subsidiaries
is bound or affected (except for such conflicts, defaults, terminations, amendments, accelerations, cancellations and violations
as would not, individually or in the aggregate, have a material adverse effect). All consents, authorizations, orders, filings
and registrations which the Company is required to obtain pursuant to the preceding sentence have been obtained or effected on
or prior to the date hereof. The Company is not in violation of the listing requirements of the OTCQB marketplace (the “OTCQB”)
and does not reasonably anticipate that the Common Stock will be delisted by the OTCQB in the foreseeable future, nor are the Company’s
securities “chilled” by DTC. The Company and its subsidiaries are unaware of any facts or circumstances which might
give rise to any of the foregoing.

 

f.            Absence
of Litigation. Except as disclosed in the Company’s public filings, there is no action, suit, claim, proceeding, inquiry
or investigation before or by any court, public board, government agency, self-regulatory organization or body pending or, to the
knowledge of the Company or any of its subsidiaries, threatened against or affecting the Company or any of its subsidiaries, or
their officers or directors in their capacity as such, that could have a material adverse effect. Schedule 3(f) contains a complete
list and summary description of any pending or, to the knowledge of the Company, threatened proceeding against or affecting the
Company or any of its subsidiaries, without regard to whether it would have a material adverse effect. The Company and its subsidiaries
are unaware of any facts or circumstances which might give rise to any of the foregoing.

 

g.           Acknowledgment
Regarding Buyer’ Purchase of Securities. The Company acknowledges and agrees that the Buyer is acting solely in the capacity
of arm’s length purchasers with respect to this Agreement and the transactions contemplated hereby. The Company further acknowledges
that the Buyer is not acting as a financial advisor or fiduciary of the Company (or in any similar capacity) with respect to this
Agreement and the transactions contemplated hereby and any statement made by the Buyer or any of its respective representatives
or agents in connection with this Agreement and the transactions contemplated hereby is not advice or a recommendation and is merely
incidental to the Buyer’ purchase of the Securities. The Company further represents to the Buyer that the Company’s
decision to enter into this Agreement has been based solely on the independent evaluation of the Company and its representatives.

 

h.           No
Integrated Offering. Neither the Company, nor any of its affiliates, nor any person acting on its or their behalf, has directly
or indirectly made any offers or sales in any security or solicited any offers to buy any security under circumstances that would
require registration under the 1933 Act of the issuance of the Securities to the Buyer. The issuance of the Securities to the Buyer
will not be integrated with any other issuance of the Company’s securities (past, current or future) for purposes of any
shareholder approval provisions applicable to the Company or its securities.

 

    	 	6	 

     

    

 

i.            Title
to Property. The Company and its subsidiaries have good and marketable title in fee simple to all real property and good and
marketable title to all personal property owned by them which is material to the business of the Company and its subsidiaries,
in each case free and clear of all liens, encumbrances and defects except such as are described in Schedule 3(i) or such as would
not have a material adverse effect. Any real property and facilities held under lease by the Company and its subsidiaries are held
by them under valid, subsisting and enforceable leases with such exceptions as would not have a material adverse effect.

 

j.            Bad
Actor. No officer or director of the Company would be disqualified under Rule 506(d) of the Securities Act as amended on the
basis of being a "bad actor" as that term is established in the September 19, 2013 Small Entity Compliance Guide
published by the Securities and Exchange Commission.

 

k.           Breach
of Representations and Warranties by the Company. If the Company breaches any of the representations or warranties set forth
in this Section 3, and in addition to any other remedies available to the Buyer pursuant to this Agreement, it will be considered
an Event of default under the Note.

 

4.           COVENANTS.

 

a.           Expenses.
At the Closing, the Company shall reimburse Buyer for expenses incurred by them in connection with the negotiation, preparation,
execution, delivery and performance of this Agreement and the other agreements to be executed in connection herewith (“Documents”),
including, without limitation, reasonable attorneys’ and consultants’ fees and expenses, transfer agent fees, fees
for stock quotation services, fees relating to any amendments or modifications of the Documents or any consents or waivers of provisions
in the Documents, fees for the preparation of opinions of counsel, escrow fees, and costs of restructuring the transactions contemplated
by the Documents. When possible, the Company must pay these fees directly, otherwise the Company must make immediate payment for
reimbursement to the Buyer for all fees and expenses immediately upon written notice by the Buyer or the submission of an invoice
by the Buyer. The Company’s total obligation with respect to this transaction is to reimburse Buyer’s expenses which
shall be $5,500 in legal fees (and similar amounts for the Second Note) which shall be deduced from each Note when funded.

 

b.           Listing.
The Company shall promptly secure the listing of the Conversion Shares upon each national securities exchange or automated quotation
system, if any, upon which shares of Common Stock are then listed (subject to official notice of issuance) and, so long as the
Buyer owns any of the Securities, shall maintain, so long as any other shares of Common Stock shall be so listed, such listing
of all Conversion Shares from time to time issuable upon conversion of the Note. The Company will obtain and, so long as the Buyer
owns any of the Securities, maintain the listing and trading of its Common Stock on the OTCQB or any equivalent replacement market,
the Nasdaq stock market (“Nasdaq”), the New York Stock Exchange (“NYSE”), or the American Stock Exchange
(“AMEX”) and will comply in all respects with the Company’s reporting, filing and other obligations under the
bylaws or rules of the Financial Industry Regulatory Authority (“FINRA”) and such exchanges, as applicable. The Company
shall promptly provide to the Buyer copies of any notices it receives from the OTCQB and any other markets on which the Common
Stock is then listed regarding the continued eligibility of the Common Stock for listing on such markets.

 

    	 	7	 

     

    

 

c.           Corporate
Existence. So long as the Buyer beneficially owns any Note, the Company shall maintain its corporate existence and shall not
sell all or substantially all of the Company’s assets, except in the event of a merger or consolidation or sale of all or
substantially all of the Company’s assets, where the surviving or successor entity in such transaction (i) assumes the Company’s
obligations hereunder and under the agreements and instruments entered into in connection herewith and (ii) is a publicly traded
corporation whose Common Stock is listed for trading on the OTCQB, Nasdaq, NYSE or AMEX.

 

d.           No
Integration. The Company shall not make any offers or sales of any security (other than the Securities) under circumstances
that would require registration of the Securities being offered or sold hereunder under the 1933 Act or cause the offering of the
Securities to be integrated with any other offering of securities by the Company for the purpose of any stockholder approval provision
applicable to the Company or its securities.

 

e.           Breach
of Covenants. If the Company breaches any of the covenants set forth in this Section 4, and in addition to any other remedies
available to the Buyer pursuant to this Agreement, it will be considered an event of default under the Note.

 

5.           Governing
Law; Miscellaneous.

 

a.           Governing
Law. This Agreement shall be governed by and construed in accordance with the laws of the State of New York without regard
to principles of conflicts of laws. Any action brought by either party against the other concerning the transactions contemplated
by this Agreement shall be brought only in the state courts of New York or in the federal courts located in the state and county
of New York. The parties to this Agreement hereby irrevocably waive any objection to jurisdiction and venue of any action instituted
hereunder and shall not assert any defense based on lack of jurisdiction or venue or based upon forum non conveniens. The
Company and Buyer waive trial by jury. The prevailing party shall be entitled to recover from the other party its reasonable attorney's
fees and costs. In the event that any provision of this Agreement or any other agreement delivered in connection herewith is invalid
or unenforceable under any applicable statute or rule of law, then such provision shall be deemed inoperative to the extent that
it may conflict therewith and shall be deemed modified to conform with such statute or rule of law. Any such provision which may
prove invalid or unenforceable under any law shall not affect the validity or enforceability of any other provision of any agreement.
Each party hereby irrevocably waives personal service of process and consents to process being served in any suit, action or proceeding
in connection with this Agreement or any other Transaction Document by mailing a copy thereof via registered or certified mail
or overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under this Agreement
and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein
shall be deemed to limit in any way any right to serve process in any other manner permitted by law.

 

    	 	8	 

     

    

 

b.           Counterparts;
Signatures by Facsimile. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original
but all of which shall constitute one and the same agreement and shall become effective when counterparts have been signed by each
party and delivered to the other party. This Agreement, once executed by a party, may be delivered to the other party hereto by
facsimile transmission of a copy of this Agreement bearing the signature of the party so delivering this Agreement.

 

c.           Headings.
The headings of this Agreement are for convenience of reference only and shall not form part of, or affect the interpretation of,
this Agreement.

 

d.           Severability.
In the event that any provision of this Agreement is invalid or unenforceable under any applicable statute or rule of law, then
such provision shall be deemed inoperative to the extent that it may conflict therewith and shall be deemed modified to conform
with such statute or rule of law. Any provision hereof which may prove invalid or unenforceable under any law shall not affect
the validity or enforceability of any other provision hereof.

 

e.           Entire
Agreement; Amendments. This Agreement and the instruments referenced herein contain the entire understanding of the parties
with respect to the matters covered herein and therein and, except as specifically set forth herein or therein, neither the Company
nor the Buyer makes any representation, warranty, covenant or undertaking with respect to such matters. No provision of this Agreement
may be waived or amended other than by an instrument in writing signed by the majority in interest of the Buyer.

 

f.            Notices.
All notices, demands, requests, consents, approvals, and other communications required or permitted hereunder shall be in writing
and, unless otherwise specified herein, shall be (i) personally served, (ii) deposited in the mail, registered or certified, return
receipt requested, postage prepaid, (iii) delivered by reputable air courier service with charges prepaid, (iv) via electronic
mail or (v) transmitted by hand delivery, telegram, or facsimile, addressed as set forth below or to such other address as such
party shall have specified most recently by written notice. Any notice or other communication required or permitted to be given
hereunder shall be deemed effective (a) upon hand delivery or delivery by facsimile, with accurate confirmation generated by the
transmitting facsimile machine, at the address or number designated below (if delivered on a business day during normal business
hours where such notice is to be received) or delivery via electronic mail, or the first business day following such delivery (if
delivered other than on a business day during normal business hours where such notice is to be received) or (b) on the second business
day following the date of mailing by express courier service, fully prepaid, addressed to such address, or upon actual receipt
of such mailing, whichever shall first occur. The addresses for such communications shall be:

 

If to the Company,
to:

SGOCO Group,
Ltd.

Guanke Technology Park, Luoshan,

Jinjiang City, Fujian Province,

368800 China

Attn: Shi-bin Xie, CEO

 

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If to the Buyer:

LG CAPITAL FUNDING, LLC

1218 Union Street,
Suite #2

Brooklyn, NY
11225

Attn: Joseph Lerman, Manager

 

Each party shall provide
notice to the other party of any change in address.

 

g.           Successors
and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their successors and assigns.
Neither the Company nor the Buyer shall assign this Agreement or any rights or obligations hereunder without the prior written
consent of the other. Notwithstanding the foregoing, the Buyer may assign its rights hereunder to any person that purchases Securities
in a private transaction from the Buyer or to any of its “affiliates,” as that term is defined under the 1934 Act,
without the consent of the Company.

 

h.           Third
Party Beneficiaries. This Agreement is intended for the benefit of the parties hereto and their respective permitted successors
and assigns, and is not for the benefit of, nor may any provision hereof be enforced by, any other person.

 

i.            Survival.
The representations and warranties of the Company and the agreements and covenants set forth in this Agreement shall survive the
closing hereunder notwithstanding any due diligence investigation conducted by or on behalf of the Buyer. The Company agrees to
indemnify and hold harmless the Buyer and all their officers, directors, employees and agents for loss or damage arising as a result
of or related to any breach or alleged breach by the Company of any of its representations, warranties and covenants set forth
in this Agreement or any of its covenants and obligations under this Agreement, including advancement of expenses as they are incurred.

 

j.            Further
Assurances. Each party shall do and perform, or cause to be done and performed, all such further acts and things, and shall
execute and deliver all such other agreements, certificates, instruments and documents, as the other party may reasonably request
in order to carry out the intent and accomplish the purposes of this Agreement and the consummation of the transactions contemplated
hereby.

 

k.           No
Strict Construction. The language used in this Agreement will be deemed to be the language chosen by the parties to express
their mutual intent, and no rules of strict construction will be applied against any party.

 

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l.            Remedies.
The Company acknowledges that a breach by it of its obligations hereunder will cause irreparable harm to the Buyer by vitiating
the intent and purpose of the transaction contemplated hereby. Accordingly, the Company acknowledges that the remedy at law for
a breach of its obligations under this Agreement will be inadequate and agrees, in the event of a breach or threatened breach by
the Company of the provisions of this Agreement, that the Buyer shall be entitled, in addition to all other available remedies
at law or in equity, and in addition to the penalties assessable herein, to an injunction or injunctions restraining, preventing
or curing any breach of this Agreement and to enforce specifically the terms and provisions hereof, without the necessity of showing
economic loss and without any bond or other security being required.

 

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IN WITNESS WHEREOF, the undersigned
Buyer and the Company have caused this Agreement to be duly executed as of the date first above written.

 

	SGOCO Group, Ltd.
	 	 	 
	By:	 	 
	 	Shi-bin Xie	 
	 	Chief Executive Officer 	 
	 	 	 
	LG CAPITAL FUNDING, LLC.
	 	 	 
	By:	 	 
	Name: 	Joseph Lerman 	 
	Title: 	Manager	 

 

AGGREGATE SUBSCRIPTION AMOUNT:

 

	Aggregate Principal Amount of Note:	 	$	231,000.00	 
	 	 	 	 	 
	Aggregate Purchase Price:	 	 	 	 

 

Note 1: $115,500 less $5,500.00 in legal fees
and $9,240.00 in third party fees to Wellington Shields & Co., LLC

 

Note 2: $115,500 less $5,500.00 in legal fees
and $9,240.00 in third party fees to Wellington Shields & Co., LLC

 

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EXHIBIT A

144 NOTE - $115,500

 

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EXHIBIT B

BACK END NOTE 

$115,500

 

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