Document:

Exhibit 10.1

 

EMPLOYEE WARRANT ISSUANCE AGREEMENT

 

This Employee Warrant Issuance
Agreement (the “Agreement”) dated as of May
10, 2022 by and between Dragon Victory International Limited, an exempted company with limited liability, organized and existing
under the laws of the Cayman Islands (the “Company”, and together with and all of its direct or indirect parent companies,
subsidiaries, affiliates, and subsidiaries or affiliates of its parent companies, being collectively referred to herein as the “Group”),
and Yingjun Zhou (the “Employee,” and together with the Company, the “Parties”, and each a “Party”).

 

WHEREAS:

 

		A.	The Employee has the professional business expertise and experience to assist the Group in its business
operation and is offering his services as a trader to the LSQ Capital Limited, a subsidiary of the Company, pursuant to a certain employment
agreement entered into between the Employee and LSQ Capital Limited, on March 2, 2022, attached hereto as Exhibit A (the “Employment
Contract”);

 

		B.	The Company intends to further incentivize the Employee’s obligations under and pursuant to the
Employment Contract by entering into this written Agreement; and

 

		C.	Each Party agrees that this Agreement reflects their entire understanding and agreement of the terms among
the Parties hereto.

 

NOW, THEREFORE, in
consideration of the foregoing and the mutual representations, warranties, covenants and agreements set forth herein, as well as other
good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, each of the Parties hereto, intending to
be legally bound, agrees as follows:

 

		1.	EMPLOYEE WARRANTS. As further incentive for the employment services to be rendered by the Employee
under and pursuant to the Employment Contract, the Company hereby agrees to issue certain Warrants (as defined below) as soon as practicable
after the commencement date of the Employment Contract, subject to review by Nasdaq, as follows:

 

		a.	Warrants to Yingjun Zhou. Those certain warrants (the “Warrants”) in substantially
the form attached hereto as Exhibit B, exercisable in whole or in part, to purchase an aggregate of 200,000 ordinary shares, with
par value $0.0001 per share (“Ordinary Shares”) of the Company, with each such Warrant expiring five (5) years upon
its issuance, at an exercise price that is the lower of (i) US$1.5 per share, and (ii) 88% of the lowest daily volume weighted average
price (VWAP) of the Ordinary Share for the 10 trading day period immediately prior to the exercise of each such Warrant;

 

		b.	If there is a subdivision, split, stock dividend, combination, reclassification or similar event with
respect to any of the Ordinary Shares issuable upon exercise of the Warrants referred to in this Agreement, then, in any such event, the
numbers and type of such Ordinary Shares referred to in this Agreement shall be equitably adjusted as appropriate to the number and types
of such Ordinary Shares that a holder of such number and type of such Ordinary Shares would own or be entitled to receive as a result
of such event as if such holder had held such number of shares immediately prior to the record date for, or effectiveness of, such event;

 

		c.	Subject to compliance with the applicable U.S. securities law, each Warrant shall be transferrable by
the holder(s) of such Warrant and the Warrants can be exercised in whole or in part on a cashless basis; and

 

		d.	The Company hereby agrees that, as soon as practicable, and in no event later than sixty (60) days after
the execution of the Warrants, the Company shall file with the U.S. Securities and Exchange Commission (the “SEC”)
(at the Company’s sole cost and expense) a registration statement (the “Registration Statement”), which Registration
Statement shall be on Form F-3, if eligible, registering the resale of the Ordinary Shares issuable upon exercise of the Warrants.

 

     

     

    

 

		2.	EXPENSES. The Company and the Employee hereby agrees that each Party shall be responsible for their respective expenses in
respect of this Agreement.

 

		3.	REPRESENATIONS AND WARRANTS OF THE COMPANY

 

		a.	The Company hereby represents and warrants to the Employee the following:

 

		(i)	The Company is an exempted company, duly incorporated, validly existing and in good standing under the
laws of the Cayman Islands. Each of the Company and the Company’s subsidiaries is duly formed, validly existing and in good standing
in the jurisdiction of its organization. Each of the Company and its subsidiaries has all requisite power and authority to carry on its
business as it is currently being conducted.

 

		(ii)	The Company has all requisite legal power and authority to execute, deliver and perform its obligations
under this Agreement. The execution, delivery and performance by the Company of this Agreement and the performance by the Company of its
obligations hereunder have been duly authorized by all necessary corporate action on the part of the Company. This Agreement has been
duly executed and delivered by the Company and, assuming due authorization, execution and delivery by the Employee, constitutes (or, when
executed and delivered in accordance herewith will constitute) a legal, valid and binding obligation of the Company, enforceable against
the Company in accordance with its terms, except as enforcement may be limited by general principles of equity, whether applied in a court
of law or a court of equity, and by applicable bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and any other similar
law affecting creditors’ rights and remedies generally (the “Bankruptcy and Equity Exception”).

 

		(iii)	The Company shall ensure that it has a sufficient number of duly authorized Ordinary Shares to comply
with its obligations to issue the Ordinary Shares issuable upon exercise of the Warrants pursuant to the terms of this Agreement and the
Warrants.

 

		b.	The Employee hereby represents and warrants to the Company the following:

 

		(i)	Such Employee has all requisite power and authority to carry on his/her business as is currently being
conducted.

 

		(ii)	Such Employee has full power and authority to enter into, execute and deliver this Agreement and to perform
his/her obligations under the Employment Contract. The execution and delivery by such Employee of this Agreement and the performance by
such Employee of his/her obligations hereunder have been duly authorized by all requisite actions on his/her part.

 

		(iii)	This Agreement has been duly executed and delivered by such Employee and, assuming the due authorization,
execution and delivery by the Company, constitutes (or, when executed and delivered in accordance herewith will constitute), the legal,
valid and binding obligation of such Employee, enforceable against such Employee in accordance with its terms, subject to the Bankruptcy
and Equity Exception and except as limited by laws relating to the availability of specific performance, injunctive relief, or other equitable
remedies.

 

		4.	NO THIRD-PARTY BENEFICIARIES. A person who is not a Party has no right to enforce any term of this
Agreement.

 

		5.	ABSENCE OF WARRANTIES AND REPRESENTATIONS. Each Party hereto acknowledges that they have signed
this Agreement without having relied upon or being induced by any agreement, warranty or representation of fact or opinion of any person
not expressly set forth herein. All representations and warranties of any Party contained herein shall survive its signing and delivery.

 

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		6.	AMENDMENT. This Agreement shall not be amended, changed or modified, except by another agreement
in writing executed by the Parties.

 

		7.	ASSIGNMENT. Subject to Paragraph 1(c), neither this Agreement nor any of the rights, duties or
obligations hereunder may be assigned, as between the Employee and the Company, without the express written consent of such Employee and
the Company. Any purported assignment in violation of the foregoing sentence shall be null and void.

 

		8.	GOVERNING LAW. This Agreement and all questions concerning the construction, validity, enforcement
and interpretation of this Agreement shall be governed by, and construed in accordance with, the laws of the State of New York (“New
York”) without giving effect to any choice of law rule that would cause the application of the laws of any jurisdiction other
than the internal laws of New York to the rights and duties of the Parties hereunder.

 

		9.	ARBITRATION. Any dispute, controversy or claim arising out of or relating to this Agreement, or
the interpretation, breach, termination or validity hereof, shall be submitted to arbitration upon the request of any Party with notice
to the other Party. The arbitration shall be conducted in Hong Kong under the auspices of the Hong Kong International Arbitration Centre
(the “HKIAC”) in accordance with the HKIAC Administered Arbitration Rules then in effect, which rules are deemed to
be incorporated by reference into this Paragraph 9. There shall be three (3) arbitrators. The complainant and the respondent to such dispute
shall each select one arbitrator within thirty (30) days after giving or receiving the demand for arbitration. The Chairman of the HKIAC
shall select the third arbitrator, who shall be qualified to practice law in New York. If either Party to the arbitration does not appoint
an arbitrator who has consented to participate within the aforementioned 30-day period, the relevant appointment shall be made by the
Chairman of the HKIAC. The arbitration proceedings shall be conducted in English. Each Party irrevocably waives, to the fullest extent
it may effectively do so, any objection which it may now or hereafter have to the laying of venue of any such arbitration in Hong Kong
and the HKIAC, and hereby submits to the exclusive jurisdiction of the HKIAC in any such arbitration. The award of the arbitration tribunal
shall be conclusive and binding upon the disputing Parties, and any Party to the dispute may apply to a court of competent jurisdiction
for enforcement of such award. Any Party to the dispute shall be entitled to seek preliminary injunctive relief, if possible, from any
court of competent jurisdiction pending the constitution of the arbitral tribunal.

 

		10.	VALIDITY. If any paragraph, sentence, term or provision hereof shall be held to be invalid or unenforceable
for any reason, such invalidity or unenforceability shall not affect the validity enforceability of any other paragraph, sentence, term
or provision hereof. To the extent required, any paragraph, sentence, term or provision of this Agreement may be modified by the Parties
hereto by written amendment to preserve its validity.

 

		11.	NON-DISCLOSURE OF TERMS. The terms of this Agreement shall be kept confidential, and no Party,
representative, attorney or family member shall reveal its contents to any third party, except as required by law or as necessary to comply
with law or preexisting contractual commitments.

 

		12.	ENTIRE AGREEMENT. This Agreement contains the entire understanding of the Parties and cannot be
altered or amended except by an amendment duly executed by all of the Parties. This Agreement shall be binding upon, and inure to the
benefit of, the successors, assigns and personal representatives of the Parties.

 

		13.	EXECUTION IN COUNTERPARTS. This Agreement may be executed in one or more counterparts, each of
which shall be deemed to be an original, but all of which together shall constitute but one and the same instrument. Signatures in the
form of facsimile or electronically imaged “PDF” shall be deemed to be original signatures for all purposes hereunder.

 

(Signature Pages Follow)

 

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IN WITNESS WHEREOF, the Parties have caused this
Agreement to be executed on the date first above written.

 

	THE COMPANY:	 
	 	 
	Dragon Victory International Limited	 
	 	 
	By:	/s/ Limin Liu	 
	Name: 	 Limin Liu	 
	Title:	Chairman & CEO	 

 

[Signature Page to
EMPLOYEE WARRANT ISSUANCE AGREEMENT]

 

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IN WITNESS WHEREOF, the Parties have caused this
Agreement to be executed on the date first above written.

 

	THE EMPLOYEE:	 
	 	 
	By:	/s/ Yingjun Zhou	 
	Name: 	Yingjun Zhou	 

 

[Signature Page to
EMPLOYEE WARRANT ISSUANCE AGREEMENT] 

 

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Exhibit A

 

Employment Contract

 

[Exhibit A]

 

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Employment Contract 

 

LSQ Capital Limited

 

 

 

This Employment Contract is entered into on 2/3/2022 between LSQ
Capital Limited (hereinafter referred to as “Company”) and Zhou Yingjun (hereinafter referred to as “you” or “Employee”)
under the terms and conditions of employment below:

 

		1	Interpretation

 

		1.1	In this contract, save where the context otherwise requires,
the following terms shall have the meanings ascribed to them as follows:

 

“Confidential Information” means any
information, technical data, trade secrets, know-how and other information of a similar nature (whether or not originated by the Employee
and whether or not reduced to writing or designated as confidential), relating to the Company or any member of the Group or their respective
clients or otherwise obtained by the Employee in the course of performing his/her duties hereunder;

 

“Group” means the Company, its subsidiaries,
its holding company and other subsidiaries of the holding company and “member of the Group” shall be construed accordingly.

 

		1.2	In this contract, words importing the singular include the plural and vice versa, words importing gender
or the neuter include both genders and the neuter and references to persons include bodies corporate.

 

		1.3	Any words following the terms including, include, in particular, for example or any similar expression
shall be construed as illustrative and shall not limit the sense of the words, description, definition, phrase or term preceding those
terms.

 

Suite 1508,
Central Plaza, 18 Harbour Road, Wan Chai, HONG KONG

TEL: (852) 35652920 Email: info@lsqcapital.com

 

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		2	Appointment

 

		2.1	You will be appointed as Derivative Trader of the Company.

 

		2.2	Your appointment under this contract is conditional on your possession of a valid visa for work in the
Company.

 

		2.3	Your official place of work will be Hong Kong. You will, however, work at and/or travel to such places
(inside or outside Hong Kong) as the Company may reasonably require from time to time.

 

		3	Duration

 

		3.1	Your employment under this contract shall continue and be binding unless and until terminated in accordance
with the provisions herein.

 

		3.2	The first three (3) months of this contract will constitute a probationary period during which the Company
reserves the right to terminate your employment by giving no notice.

 

		4	Your Duties

 

		4.1	You shall, during the continuance of this contract:

 

		4.1.1	undertake such duties and exercise such powers as the Company shall from time to time assign to you;

 

		4.1.2	devote such time, attention and skill substantially to the performance of your duties hereunder and faithfully and diligently perform
your duties hereunder.

 

		4.2	The directors of the Company reserves the right to vary your assignment and duties from time to time.

 

		4.3	You shall at all times endeavour to promote the interests and reputation of the Company.

 

		4.4	During the term of this contract, you shall not accept any other employment whatsoever from any third party, whether for a remuneration
or not, without the prior approval of the Company.

 

Suite 1508,
Central Plaza, 18 Harbour Road, Wan Chai, HONG KONG

TEL: (852) 35652920 Email: info@lsqcapital.com

 

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		5	Working Hours

 

		5.1	The normal working hours of the Company are from 9am to 6pm on Monday to Friday during which
one hour may be taken for lunch between 1pm and 2pm.

 

		5.2	You may be required to work such hours outside normal working hours of the Company as the Company considers
necessary to meet the needs of the business and you understand and agree that your salary has been set at a level to include these further
working hours and therefore you will not be paid for such further hours.

 

		6	Pay and Benefits in Kind

 

		6.1	Your salary will be HKD120,000 per month and will be paid in arrears at the end of the month.

 

		6.2	The Company may cause any payment payable to you hereunder to be paid by any member of the Group.

 

		6.3	If you are not an exempt person as defined under the Hong Kong Mandatory Provident Fund (“MPF”)
legislation, you shall participate in Company’s MPF Scheme. Both the Company and you will contribute to the MPF Scheme at the rate
specified by relevant legislation.

 

		6.4	You will be enrolled in the medical insurance program undertaken by the Company or the Group from time
to time.

 

		7	Annual Leave

 

		7.1	Your annual leave entitlement is currently 20 working days in addition to the normal Public Holidays in
Hong Kong.

 

		7.2	Annual leave must be taken at times convenient to the Company and sufficient notice of an intention to
take leave must be given to your supervisor.

 

		7.3	Annual leave entitlement unused at the end of the year cannot be carried over into the next year.

 

Suite 1508,
Central Plaza, 18 Harbour Road, Wan Chai, HONG KONG

TEL: (852) 35652920 Email: info@lsqcapital.com

 

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		8	Sick Leave

 

		8.1	In the event of absence on account of sickness or injury you (or someone on your behalf) must inform the
Company of the reason of your absence as soon as possible and must do so no later than the end of the working day on which absence first
occurs.

 

		8.2	In respect of absence lasting one or more calendar days you must provide the Company with a medical certificate
acceptable to the Company certifying that you are advised by the doctor to take such leave in order to be entitled to any paid sick leave.

 

		8.3	You shall be entitled to paid sick leave of up to two (2) days per calendar month or otherwise in accordance
with the employment law of Hong Kong.

 

		8.4	There will be no payment in lieu of any unused sick leave entitlement.

 

		9	Notice of Termination

 

		9.1	Subject to clause 3.2 above, the period of notice to be given in writing by the Company or by you to terminate
your employment is one (1) month. Your employment may be terminated by the Company, without notice or pay in lieu for serious and willful
misconduct or in accordance with clause 12 hereof.

 

		9.2	At the end of your employment for whatever reason you must:

 

		9.2.1	on request resign from any directorship or other offices held
by you in the Company or any member of the Group by virtue of your employment and transfer to the Company or as it may direct any shares
or other securities held by you as nominee or trustee for the Company or any member of the Group without payment in either case. If you
fail to do so within seven days of request, the Company is hereby irrevocably authorized to appoint a person in your name and on your
behalf to execute any documents or do any things necessary for such purpose(s) (all of which shall be without prejudice to any claims
which you might otherwise have against the Company);

 

Suite 1508,
Central Plaza, 18 Harbour Road, Wan Chai, HONG KONG

TEL: (852) 35652920 Email: info@lsqcapital.com

 

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		9.2.2	immediately deliver up to the Company all correspondence, documents, specifications papers and other property
including, without limitation, customer lists, reports, and other materials belonging to or relating to the business of any member of
the Group in whatever form (including anything saved in any electronic media) which may be in your possession or under your control.

 

		10	Confidentiality

 

You shall not (except in the proper performance
of your duties hereunder or with the express written consent of the Company) during or after termination of your employment disclose to
any person whatsoever any Confidential Information, provided that this prohibition shall not apply to any information which shall have
come into the public domain otherwise than by your breach hereof.

 

		11	Company Regulations

 

You must comply with all rules, regulations, procedures,
instructions, and policies of the Company or the Group, as shall apply from time to time, including without limitation, the Staff Handbook
(collectively the ‘Regulations’) and all such Regulations shall be read with and shall be deemed to form part of this contract.
In the event of any conflict between the Regulations and the provisions of this contract, this contract shall prevail. The Company reserves
the right to amend, supplement, withdraw or reissue all Regulations in its sole discretion and you shall be deemed to have agreed to all
such amendment, supplement, withdrawal or reissuance of the Regulations upon notice.

 

		12	Dismissal

 

		12.1	The Company can dismiss you without prior notice or pay in lieu
(and you will not be entitled to compensation or damages) if you:

 

		12.1.1	commit any act of gross misconduct or gross incompetence or
other repudiatory breach of this contract;

 

		12.1.2	without reasonable excuse and after prior written warning, repeat or continue any breach of this contract;

 

Suite 1508,
Central Plaza, 18 Harbour Road, Wan Chai, HONG KONG

TEL: (852) 35652920 Email: info@lsqcapital.com

 

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		12.1.3	commit such misconduct outside work or fall into such disrepute that in the opinion of the Company your
continued employment will materially prejudice the interests of the Company or any member of the Group;

 

		12.1.4	are convicted of any criminal offence (other than a road traffic offence for which you are not sentenced
to any term of imprisonment);

 

		12.1.5	become bankrupt, apply for or have a receiving order made against you or enter into any voluntary arrangement
with your creditors; or

 

		12.1.6	die or become unsound mind or be incapacitated by illness for a continuous period of more than 120 working
days.

 

		12.2	Once notice of dismissal or resignation has been given by either side, the Company may at any time and
for any period(s) require you to cease performing your job and/or exclude you from entering any premises of the Group.

 

		13	Miscellaneous

 

		13.1	Any notice to be given under this contract must be in writing and must either be delivered by hand or
courier or sent by first class pre-paid post (or facsimile if the recipient has a facsimile number). Notices to the Company must be addressed
to its registered office or sent to the company secretary’s facsimile number as the case may be. Notices to you must be addressed
to your last known home address or sent to your facsimile number (if any) at your last known home address as the case may be. A notice
shall be deemed to have been served at the time of delivery if delivered by hand or courier, two clear days after the time of posting
if sent by first class pre-paid post, and at the time of completion of transmission by the sender if sent by facsimile.

 

		13.2	No variation to this contract will be of any effect unless it is agreed in writing and signed by or on
behalf of all parties.

 

		13.3	If any provision of this contract (wholly or partly) is or becomes illegal, invalid or unenforceable,
that shall not affect the legality, validity or enforceability of any other provision of this contract. If any provision of this contract
(wholly or partly) is or becomes illegal, invalid or unenforceable but would be legal, valid and enforceable if the provision or some
part of the provision was deleted or modified, the provision or part of the provision in question shall apply with such deletions and
modifications as may be necessary to make it legal, valid and enforceable.

 

Suite 1508,
Central Plaza, 18 Harbour Road, Wan Chai, HONG KONG

TEL: (852) 35652920 Email: info@lsqcapital.com

 

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		13.4	The validity, construction and performance of this contract shall be governed by the laws of Hong Kong.

 

		13.5	All disputes, claims or proceedings between the parties relating to the validity, construction, performance
or termination of this contract shall be subject to the non- exclusive jurisdiction of the Hong Kong courts.

 

		13.6	Termination of this contract shall not affect any provisions which are intended to operate after termination.

 

		13.7	The Company reserves the right and you agree to the deduction of any debts you owe to the Company from
your wages to the extent allowed by law.

 

		13.8	This contract sets out the entire agreement and understanding between the parties relating to the matters
contemplated hereunder and supersedes all previous agreements (if any and whether in writing or not) between the parties in relation to
such matters.

 

If you agree to the above terms and conditions, please sign and return
the duplicate copy of this letter for our retention.

 

	For and On Behalf of:	 	Confirmed and Agreed by (Employee): 
	LSQ Capital Limited	 	 
	 	 	 
	/s/ Ni Ming	 	/s/ Zhou Yingjun
	Name: Ni Ming	 	Name: Zhou Yingjun
	Director	 	HKID/Passport: EH6340664

 

Suite 1508,
Central Plaza, 18 Harbour Road, Wan Chai, HONG KONG

TEL: (852) 35652920 Email: info@lsqcapital.com

 

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Exhibit B

 

Warrants

 

[Exhibit B]

 

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Warrant No.: 4

Date of Issuance: May 10, 2022 (the “Issuance Date”)

 

WARRANT TO PURCHASE 

ORDINARY SHARES OF

DRAGON VICTORY INTERNATIONAL LIMITED

 

This Warrant (the “Warrant”)
certifies that, for value received, Yingjun Zhou, and/or
such entity that such person may designate in accordance with the Employee Warrant Issuance Agreement (as defined below) (collectively
being referred to herein as the “Holder”), is entitled to purchase 200,000 ordinary shares, with par value $0.0001
per share (“Ordinary Shares”) of Dragon Victory International Limited, an exempted company incorporated with limited
liability under the laws of the Cayman Islands (the “Company”), on the terms set forth herein.

 

This Warrant is issued pursuant
to an Employee Warrant Issuance Agreement (the “Warrant Agreement”) dated as of May 10, 2022 and entered into
among the Company and the Holder. Capitalized terms used herein without definition shall have the meanings ascribed to them in the Warrant
Agreement.

 

1. Purchase
of Shares. Subject to the terms and conditions hereinafter set forth, the Company hereby grants the Holder the right to purchase from
the Company up to 200,000 Ordinary Shares of the Company (the “Warrant Shares”) at the Exercise Price (as defined
below), subject to adjustment and change as provided herein.

 

 2. Exercise.

 

(a) Exercise
Price. Unless otherwise mutually agreed by the Holder and the Company, and subject to adjustment and change as provided herein,
the per share purchase price for the Warrant Shares shall be the lower of (i) US$1.5 per Ordinary Share, and (ii) 88% of the
lowest daily volume-weighted average price (“VWAP”) of the Ordinary Share for the 10-Trading-Day period
immediately prior to the exercise of the Warrants (the “Exercise Price”).

 

For the purpose of this Warrant, “Trading
Day” shall mean any day on which the primary market on which the Company’s Ordinary Shares are listed is open for trading.
“Business Day” means any day other than a Saturday, Sunday or another day on which commercial banks in the Cayman Islands,
the People’s Republic of China (the “PRC” or “China,” which for the purpose of this Warrant
shall exclude Hong Kong, Macau SAR and Taiwan), Hong Kong or New York are required or authorized by law or executive order to be closed.
Notwithstanding any adjustment made in accordance with this Warrant or anything to the contrary in this Warrant, the aggregate Exercise
Price shall in no event be less than the aggregate par value of the Warrant Shares at the time of exercise (the “Minimum Consideration”).

 

(b) Exercise
Period. This Warrant is exercisable, in whole or in part, by the Holder on any day during the period (the “Exercise Period”)
commencing on the date of the issuance of this Warrant, and ending on the fifth (5th) anniversary date of Issuance Date.

 

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(c) Form
of Payment. Subject to Section 2(a), the aggregate Exercise Price for the Warrant Shares may be settled, in part or in whole, no later
than the close of business on the tenth (10th) Business Day following the receipt of the Notice of Exercise (as defined below) by the
Company from the Holder, by

 

(i) Cash
Exercise. The purchase rights represented by this Warrant may be exercised by the Holder, in whole or in part, by the surrender of
this Warrant (with the Notice of Exercise form attached hereto as Exhibit A duly executed) at the principal office of the Company, and
by the payment to the Company, by certified, cashier’s or other check acceptable to the Company or by wire transfer to an account
designated by the Company, of an amount equal to the aggregate Exercise Price of the Warrant Shares being purchased.

 

(ii) Cashless
(Net Issue) Exercise. In lieu of exercising this Warrant, the Holder may elect to receive Warrant Shares equal to the value of this
Warrant (or the portion thereof being canceled) by surrender of this Warrant at the principal office of the Company together with notice
of such election, in which event the Company shall issue to the Holder a number of Warrant Shares computed using the following formula:

 

	X =	Y(A-B)	 
	A	 

 

Where:

 

X = the number of the Warrant Shares to be issued to the Holder.

Y = the number of the Warrant Shares purchasable under this
Warrant.

A = the fair market value of one Ordinary Share on the date
of determination.

B = the Exercise Price (as adjusted to the date of such calculation).

 

For purposes of this Section 2(c)(ii), the fair market
value of an Ordinary Share is defined as follows:

 

(i) if
the Company’s Ordinary Shares are traded on a securities exchange, the value shall be deemed to be the WVAP quoted for the Ordinary
Shares on such exchange for the 10- Trading Day period immediately prior to the Notice of Exercise (defined in Section 2(d)) submitted
in connection with the exercise of this Warrant;

 

(ii) if
the Company’s Ordinary Shares are quoted over-the-counter, the value shall be deemed to be the WVAP for the Ordinary Shares for
the 10-Trading Day period immediately prior to the Notice of Exercise being submitted in connection with the exercise of the Warrant;
or

 

(iii) if
there is no active public market, the value shall be the fair market value thereof, as determined in good faith by the Company’s
Board of Directors.

 

(d) Issuance
of Warrant Shares; Acknowledgement. The exercise of this Warrant shall be effected by the delivery of the Warrant, together with a
duly executed copy of the Notice of Exercise in the form attached hereto as Exhibit A (the “Notice of Exercise”), to
the Company and the payment of the Exercise Price in accordance with Section 2(c). The Company agrees that the Warrant Shares purchased
under this Warrant shall be and are deemed to be issued to the Holder as the record owner of such shares as of the close of business on
the date the purchase price for the Warrant Shares is paid to the Company. The Company shall, within three (3) Business Days after its
receipt of the executed Notice of Exercise: (i) deliver to the Holder a duly issued share certificate representing the Warrant Shares
being acquired, or, provided that the transfer agent of the Company is participating in The Depository Trust Company (“DTC”)
Fast Automated Securities Transfer Program, upon the request of such Holder, credit such aggregate number of Warrant Shares to the Holder’s,
or its designees’, balance account with DTC through its Deposit Withdrawal At Custodian (“DWAC”) system, provided
the Holder causes its bank or broker to initiate the DWAC transaction, and (ii) deliver to the Holder a certified true copy of the updated
register of members of the Company reflecting the Holder’s ownership of the Warrant Shares with the issuance date of the Warrant
Shares being the purchase price payment date, provided, however, that the aggregate Exercise Price shall be paid in accordance with Section
2(c).

 

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3. Reservation of Shares. The Company
covenants and agrees that all Warrant Shares which may be issued upon the exercise of the rights represented by this Warrant will,
upon issuance and after payment of the aggregate Exercise Price in accordance with Section 2(c), be duly authorized, validly issued,
fully paid and non-assessable and free from all preemptive rights of any shareholder and free of all taxes, liens and charges with
respect to the issue thereof, except as provided under applicable laws, this Warrant and the memorandum and articles of association
of the Company then in effect. The Company further covenants and agrees that the Company will, at all times during the Exercise
Period, have authorized and reserved a sufficient number of Ordinary Shares to provide for the exercise of the rights represented by
this Warrant.

 

4. Adjustment of
Exercise Price and Warrant. The Exercise Price and/or Warrant shall be subject to adjustment from time to time as follows:

 

(a) Share
Splits, Share Subdivisions. In the event the Company shall at any time, or from time to time, effect a split or subdivision of the
outstanding ordinary shares, the Exercise Price of this Warrant shall be proportionally decreased and the number of Ordinary Shares issuable
upon exercise of this Warrant (or any shares or other securities at the time issuable upon exercise of this Warrant) shall be proportionally
increased to reflect any such share split or subdivision of the Ordinary Shares. Conversely, if the Company shall at any time, or from
time to time, combine the outstanding ordinary shares into a smaller number of shares, the Exercise Price of this Warrant shall be proportionally
increased and the number of ordinary shares issuable upon exercise of this Warrant (or any shares or other securities at the time issuable
upon exercise of this Warrant) shall be proportionally decreased to reflect any such combination of the ordinary shares. Any adjustment
under this paragraph shall become effective at the close of business on the date the share split, subdivision or combination becomes effective.

 

(b) Dividends
or Distributions of Shares or Other Securities or Property. In the event the Company shall make or issue, or shall fix a record date
for the determination of eligible holders entitled to receive, a dividend or other distribution with respect to the Ordinary Shares (or
any shares or other securities at the time issuable upon exercise of this Warrant) payable in (i) shares or other securities of the Company;
or (ii) assets (excluding cash dividends paid or payable solely out of retained earnings), then, in each such case, the Holder upon exercise
hereof at any time after the consummation, effective date or record date of such dividend or other distribution, shall receive, in addition
to the Ordinary Shares (or such other shares or securities) issuable upon such exercise prior to such date, and without the payment of
additional consideration therefor, the shares or other securities of the Company or such other assets to which it would have been entitled
upon such date as if it had exercised this Warrant on the date hereof and had thereafter, during the period from the date hereof to and
including the date of such exercise, retained such shares and/or all other additional shares or securities available to it as aforesaid
during such period giving effect to all adjustments called for by this Section 4.

 

(c) Reclassification.
If the Company, by reclassification of shares or otherwise, shall change any of the shares as to which purchase rights under this Warrant
exist into the same or a different number of shares of any other class or classes, this Warrant shall thereafter represent the right to
acquire such number and kind of shares as would have been issuable as the result of such change with respect to the shares that were subject
to the purchase rights under this Warrant immediately prior to such reclassification or other change and the Exercise Price therefor shall
be equitably adjusted, all subject to further adjustment as provided in this Section 4.

 

(d) Capital
Reorganization, Merger or Consolidation. In case of any reorganization of the share capital of the Company (other than a
combination, reclassification or subdivision of shares otherwise provided for herein), or any merger or consolidation of the Company
with or into another corporation, or the sale or transfer of all or substantially all the assets of the Company, then, and in each
such case, as a part of such reorganization, merger, consolidation, sale or transfer, lawful provision shall be made so that the
Holder shall thereafter be entitled to receive, upon exercise of this Warrant, during the period specified herein and upon payment
in accordance with Section 2(c), the number of shares or other securities or property of the successor corporation resulting from
such reorganization, merger, consolidation, sale or transfer that a holder of the shares deliverable upon exercise of this Warrant
would have been entitled to receive in such reorganization, consolidation, merger, sale or transfer if this Warrant had been
exercised immediately before such reorganization, merger, consolidation, sale or transfer, all subject to further adjustment as
provided in this Section 4. The foregoing provisions of this Section 4(d) shall similarly apply to successive reorganizations,
consolidations, mergers, sales and transfers of the shares or securities of any other corporation that are at the time receivable
upon the exercise of this Warrant. In all events, appropriate adjustment (as determined in good faith by the Company’s board
of directors) shall be made in the application of the provisions of this Warrant with respect to the rights and interests of the
Holder after the transaction, to the end that the provisions of this Warrant shall be applicable after that event, as near as
reasonably may be, in relation to any shares or other property deliverable after that event upon exercise of this Warrant.

 

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(e) Notice
of Adjustment. The Company shall promptly give the Holder of this Warrant written notice of each adjustment or readjustment of the
Exercise Price or the number of Warrant Shares or other securities issuable upon exercise of this Warrant. The notice shall describe the
adjustment or readjustment and show in reasonable detail the facts on which the adjustment or readjustment is based.

 

5. Transfers
of Warrant. This Warrant and all rights and obligations hereunder are transferable and assignable in whole or in part by the Holder
(subject to compliance with the applicable securities laws and constitutional documents of the Company).

 

6. Loss
or Mutilation. Upon receipt of evidence reasonably satisfactory to the Company of the loss, theft, destruction, or mutilation of this
Warrant and, in the event of any such loss, theft or destruction, upon receipt of an indemnity reasonably satisfactory to the Company,
or in the event of any such mutilation upon surrender and cancellation of such Warrant, the Company will execute and deliver a new Warrant
of like tenor, in lieu of the lost, stolen, destroyed or mutilated Warrant.

 

7. Amendment
and Waiver. Any term of this Warrant may be amended and the observance of any term of this Warrant may be waived (either generally
or in a particular instance and either retroactively or prospectively), only with the written consent of the Company and the Holder.

 

8. Successors
and Assigns. This Warrant shall be binding upon and inure to the benefit of the Company, the Holder and their respective successors
and permitted assigns.

 

9. Notices.
Any notice required or permitted pursuant to this Warrant shall be given in writing and shall be given either personally or by sending
it by next-day or second-day courier service, fax, electronic mail or similar means to the address as shown below (or at such other address
as such party may designate by fifteen (15) days’ advance written notice to the Company or Holder, as applicable, given in accordance
with this Section 9). Where such notice is sent by next-day or second-day courier service, service of the notice shall be deemed to be
effected by properly addressing, pre-paying and sending by next-day or second-day service through an internationally-recognized courier
a letter containing the notice, with a confirmation of delivery, and to have been effected at the expiration of sixty (60) hours after
the letter containing the same is sent as aforesaid. Where a notice is sent by facsimile, service of the notice shall be deemed to be
effected by properly addressing, and sending such notice through a transmitting organization, with a written confirmation of delivery,
and to have been effected on the day the same is sent as provided above.

 

If notice to the Company:

 

Attn: Yang Lin

Address: Suite 1508, Central Plaza, 18 Harbour Road, Wan Chai,
Hong Kong, China

Email: liny@dvintinc.com

Contact No.: +86 138-6711-4559

 

If notice to Yingjun Zhou:

 

Address: 22D YiuSing Mansion, 14 Taikoo Shing Road, Quarry
Bay, Hong Kong

Email: zyj2000@gmail.com

Contact No: +852 65484365

 

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10. Headings.
The section and subsection headings of this Warrant are inserted for convenience only and shall not constitute a part of this Warrant
in construing or interpreting any provision hereof.

 

11. Governing
Law. This Warrant shall be governed by and construed in accordance with the laws of State of New York (“New York”)
without giving effect to any choice or conflict of law provision or rule thereof.

 

 12. Dispute Resolution.

 

(a) Any
dispute, controversy, difference or claim arising out of or relating to this Warrant, including the existence, validity, interpretation,
performance, breach or termination thereof or any dispute regarding non- contractual obligations arising out of or relating to it (the
“Dispute”) shall be submitted to arbitration upon the request of any party with notice to the other party. The arbitration
shall be conducted in Hong Kong under the auspices of the Hong Kong International Arbitration Centre (the “HKIAC”)
in accordance with the HKIAC Administered Arbitration Rules then in effect, which rules are deemed to be incorporated by reference into
this Section 12.

 

(b) There
shall be three (3) arbitrators. The complainant and the respondent to such dispute shall each select one arbitrator within thirty (30)
days after giving or receiving the demand for arbitration. The Chairman of the HKIAC shall select the third arbitrator, who shall be qualified
to practice law in New York. If either party to the arbitration does not appoint an arbitrator who has consented to participate within
the aforementioned 30-day period, the relevant appointment shall be made by the Chairman of the HKIAC. The arbitration proceedings shall
be conducted in English.

 

(c) Each
party irrevocably waives, to the fullest extent it may effectively do so, any objection which it may now or hereafter have to the laying
of venue of any such arbitration in Hong Kong and the HKIAC, and hereby submits to the exclusive jurisdiction of the HKIAC in any such
arbitration. The award of the arbitration tribunal shall be conclusive and binding upon the disputing parties, and any party to the dispute
may apply to a court of competent jurisdiction for enforcement of such award. Any party to the dispute shall be entitled to seek preliminary
injunctive relief, if possible, from any court of competent jurisdiction pending the constitution of the arbitral tribunal.

 

13. Interpretation. For all purposes of
this Warrant, except as otherwise expressly provided, (i) the term “or” is not exclusive, (ii) the terms defined herein
and any capitalized terms used herein without definition shall include the plural as well as the singular, (iii) unless otherwise
provided for, all references in this Warrant to designated “Sections” and other subdivisions are to the designated
Sections and other subdivisions of the body of this Warrant, (iv) pronouns of either gender or neuter shall include, as appropriate,
the other pronoun forms, (v) the words “herein,” “hereof” and “hereunder” and other words of
similar import refer to this Warrant as a whole and not to any particular Section or other subdivision, and (vi)
“include,” “including,” “are inclusive of” and similar expressions are not expressions of
limitation and shall be construed as if followed by the expression “without limitation”.

 

14. No
Presumption. The parties acknowledge that any applicable law that would require interpretation of any claimed ambiguities in this
Warrant against the party that drafted it has no application and is expressly waived. If any claim is made by a party relating to any
conflict, omission or ambiguity in the provisions of this Warrant, no presumption or burden of proof or persuasion will be implied because
this Warrant was prepared by or at the request of any party or its counsel.

 

15. Counterparts.
This Warrant may be executed in two or more counterparts and may be delivered by electronic PDF or facsimile transmission, all of
which shall be considered one and the same agreement and each of which shall be deemed an original.

 

16. Severability.
If one or more provisions of this Warrant is held to be unenforceable under any applicable law, such provision shall be excluded from
this Warrant and the balance of the Warrant shall be interpreted as if such provision were so excluded and shall be enforceable in accordance
with its terms.

 

17. Entire Agreement.
This Warrant together with the other instruments and agreements referenced herein constitutes the entire agreement between the Parties
with respect to the subject matter hereof.

 

[The remainder of this page has
been intentionally left blank.]

 

    19

     

    

 

IN WITNESS WHEREOF, the Company caused this Warrant to be executed
by a director thereunto duly authorized.

 

	 	COMPANY:
	 	 
	 	Dragon Victory International Limited
	 	 	 
	 	By:	/s/ Limin Liu
	 	Name:	Limin Liu
	 	Title:	Chairman & CEO
	 	 	 

 

 

 

	ACCEPTED BY:	 
	 	 
	Yingjun Zhou	 
	 	 
	/s/ Yingjun Zhou	 

 

[Signature Page to Warrant]

 

    20

     

    

 

EXHIBIT A

 

FORM OF NOTICE OF EXERCISE

 

To:            Dragon Victory International Limited

 

The undersigned hereby elects to purchase                                     
ordinary shares of Dragon Victory International Limited, pursuant to the terms of the attached Warrant.

 

The undersigned hereby represents and warrants that the undersigned
is acquiring such shares for its own account for investment purposes only, and not for immediate resale or with a view to distribution
of such shares or any part thereof.

 

	 	WARRANT HOLDER:
	 	 
	 	Yingjun Zhou
	 	 
	 	Address: 22D YiuSing Mansion,
	 	14 Taikoo Shing Road, Quarry Bay,
	 	Hong Kong

 

Date:                                                                          

 

	Name in which shares should be registered:	 
	 	 
	 	 

 

 

21EX-10.1

  Exhibit 10.1

  SECURITY AGREEMENT

  THIS SECURITY AGREEMENT (this “Agreement”) is made as of this 17th day of May, 2022 by CLENE NANOMEDICINE, INC., a Delaware Corporation (the “Debtor”), in favor of the DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT, a principal department of the State of Maryland (“DHCD”).

  Recitals

  The Debtor has applied to DHCD for a loan in the principal amount of $3,000,000 (the “Loan”).  The Loan is to be evidenced by, and repaid with interest in accordance with the provisions of a commercial promissory note of even date herewith from the Debtor payable to DHCD in the principal amount of the Loan (the “Note”).  The Loan is being made pursuant to the Neighborhood Business Development Program established by §§6-301 through 6-311 of the Housing and Community Development Article of the Annotated Code of Maryland, and related regulations promulgated thereunder (collectively, the “Act”).  DHCD has required, as a condition to the making of the Loan, the execution of this Agreement by the Debtor.

  NOW, THEREFORE, in order to secure (a) the prompt payment of all past, present, and future indebtedness, liabilities, and obligations of the Debtor to DHCD of any nature whatsoever in connection with the Loan (the “Liabilities”), and (b) the performance by the Debtor of all of the terms, conditions, and provisions of this Agreement, the Note, and of any other document previously, simultaneously, or hereafter executed and delivered by the Debtor, or any other person, singly or jointly with another person or persons, evidencing, securing, guaranteeing, or in connection with any of the Liabilities (collectively, the “Loan Documents”), the Debtor agrees with DHCD as follows:

  1.Collateral.  The Debtor hereby assigns, pledges, and grants to DHCD a continuing security interest in all of the personal property of the Debtor as described in Exhibit A attached hereto and incorporated herein, wherever located, whether now owned or hereafter acquired or arising, which security interest shall continually exist until all Liabilities have been paid in full.  The term “Collateral” means all of the items described in Exhibit A.

  2.Representations and Warranties/Covenants of Debtor.

  a.Payment and Performance.  The Debtor will pay the Liabilities as and when due and payable and will perform, comply with, and observe the terms and conditions of the Loan Documents to be performed, complied with, and observed by the Debtor.

  b.Title to Collateral.  The Debtor represents and warrants that it is the owner of the Collateral (hereinafter defined) and has good and marketable title to the Collateral free and clear of all liens, security interests, and other encumbrances except those in favor of DHCD and those previously disclosed in writing to DHCD.  The security interest granted DHCD hereunder shall be a 1st priority lien against the Collateral.

  c.Further Assurances.  The Debtor will defend its title to the Collateral against all persons and will, upon request of DHCD, (i) furnish such further assurances of title as may be required by DHCD, and (ii) deliver and execute or cause to be delivered and executed, in form and content satisfactory to DHCD, any financing, continuation, termination, or security interest filing statement, security agreement, or other document as DHCD may request in order to perfect, preserve, maintain, or continue the perfection of DHCD's security interest in the Collateral and/or its priority and hereby specifically authorizes DHCD to file any financing, continuation, or security interest filing statement describing the Collateral to perfect its security interest.  The Debtor will pay the costs of filing any financing, continuation, termination, or security interest filing statement as well as any recordation or transfer tax required by law to be paid in connection with the filing or recording of any such statement.

  d.Transfer and Other Liens.  The Debtor will not sell, lease, transfer, exchange, or otherwise dispose of the Collateral, or any part thereof, without the prior written consent of DHCD and will not permit any lien, security interest, or other encumbrance to attach to the Collateral, or any part thereof, other than those in favor of DHCD or those permitted by DHCD in writing, except that the Debtor may, in the ordinary course of its business, and in the 

   

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  absence of an Event of Default (as hereinafter defined) hereunder, collect its accounts and chattel paper and sell its inventory.

  e.Name of Debtor, Place(s) of Business, and Location of Collateral.  The Debtor represents and warrants that its correct legal name is as specified on the signature lines of this Agreement, and each legal or trade name of the Debtor for the previous twelve (12) years (if different from the current legal name) is as specified in Exhibit A of this Agreement and that it is duly organized, legally existing, and in good standing under the laws of the State of Delaware and that it is in good standing under the laws of the State of Maryland.  Without the prior written consent of DHCD, the Debtor will not change its name, dissolve, merge, or consolidate with any other person.  The Debtor warrants that the address of the Debtor's chief executive office and the address of each other place of business of the Debtor are as specified below the signature lines of this Agreement.  Except for mobile equipment and motor vehicles, the Collateral and all books and records pertaining to the Collateral have been, are, and will be located at the Debtor's chief executive office specified below or at any other place of business which may be specified below.  The Debtor will immediately advise DHCD in writing of the opening of any new place of business and will not change the location of the place where the Collateral, or any part thereof, or the books and records concerning the Collateral, or any part thereof, are kept without the prior written consent of DHCD, such consent not to be unreasonably withheld or delayed. In any event, the Collateral shall be maintained within the State of Maryland.

  f.Care of Collateral.  The Debtor will maintain the Collateral in good condition and will not do or permit anything to be done to the Collateral that may impair its value or that may violate the terms of any insurance covering the Collateral or any part thereof.  The Debtor shall bear all risk of loss of the Collateral.  DHCD shall have no duty to, and the Debtor hereby releases DHCD from all claims for loss or damage caused by the failure to, collect or enforce any account or chattel paper or to preserve rights against prior parties to the Collateral.

  g.Insurance.  The Debtor will insure such of the Collateral as specified by DHCD against such casualties and risks in such form and amount as may from time to time be required by DHCD.  All insurance proceeds of the Collateral shall be payable to DHCD and all copies of all policies of insurance relating to the Collateral shall be furnished to DHCD. The Debtor will pay all premiums due or to become due for such insurance and hereby assigns to DHCD any returned or unearned premiums which may be due upon cancellation of insurance coverage.  DHCD is hereby irrevocably (i) appointed the Debtor's attorney-in-fact (which appointment is coupled with an interest and is irrevocable) to endorse any draft or check which may be payable to the Debtor in order to collect such returned or unearned premiums or the proceeds of insurance and (ii) authorized to apply such insurance proceeds in the same manner and order as the proceeds of sale or other disposition of the Collateral are to be applied pursuant to Paragraph 9 hereof.

  h.Taxes.  The Debtor will pay as and when due and payable all taxes, levies, license fees, assessments, and other impositions levied on the Collateral or any part thereof or for its use and operation.

  i.Equipment Not Fixtures.  The Debtor warrants that all equipment which constitutes a part of the Collateral is personalty and is not and will not be affixed to real estate in such manner as to become a fixture or part of such real estate.  If, in the opinion of DHCD, any such equipment is or may become part of any real estate, the Debtor will furnish to DHCD a written waiver by the record owner of such real estate of all interest in such equipment and a written subordination to DHCD's security interest and lien by any person who has a lien on or security interest in such real estate which is or may be superior to DHCD's security interest hereunder.

  j.Specific Assignments.  Promptly, upon request by DHCD, the Debtor will execute and deliver to DHCD written assignments, endorsements, and/or schedules, in form and content satisfactory to DHCD, of specific chattel paper and accounts or groups of accounts or chattel paper related to the Collateral, but the security interest of DHCD hereunder shall not be limited in any way by such assignments.  Such accounts and chattel paper are to secure payment of the Liabilities and performance of the Loan Documents and are not sold to DHCD whether or not any assignment thereof which is separate from this Agreement is in form absolute.

  k.Delivery, etc., of Chattel Paper.  The Debtor will promptly upon request by DHCD deliver, assign, and endorse to DHCD all chattel paper related to the Collateral and all other documents held by the Debtor in connection therewith.

   

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  l.Litigation.  There are no proceedings pending or, so far as any person signing below as or on behalf of the Debtor knows, threatened before any court or administrative agency which will materially adversely affect the financial condition or operations of the Debtor.

  m.No Conflicting Agreements.  There are no provisions of the Debtor's charter and by laws and no provisions of any existing mortgage, deed of trust, indenture, contract, lease, or agreement binding on the Debtor or affecting the Collateral which would materially conflict with or in any way prevent the execution, delivery, or carrying out the terms of this Agreement, the Note, or the other Loan Documents.

  n.Books, Financial Records, and Inspections.  The Debtor will at all times (i) maintain complete and accurate books and records and (ii) permit any person designated by DHCD to enter, examine, audit, and inspect all properties, books, operations, and records of the Debtor at any reasonable time and from time to time wherever such properties, books, and records are located; and (iii) furnish to DHCD financial statements in such form and from time to time as may be required by DHCD.

  o.Government Contracts.  If any account or chattel paper related to the Collateral arises out of a contract or contracts with the United States of America or any department, agency, or instrumentality thereof, the Debtor shall immediately notify DHCD thereof in writing and execute any instruments or take any steps required by DHCD in order that all moneys due or to become due under such contract or contracts shall be assigned to DHCD and notice thereof given under the Federal Assignment of Claims Act.

  p.Collateral Account.  If all or any part of the Collateral at any time consists of inventory, accounts, or chattel paper, the Debtor will, upon the request of DHCD at any time and from time to time both prior to and after the occurrence of an Event of Default hereunder, deposit or cause to be deposited to a bank account designated by DHCD and from which DHCD alone has the power of access and withdrawal (the “Collateral Account”) all checks, drafts, cash, and other remittances in payment or on account of payment of such inventory, accounts, or chattel paper and the cash proceeds of any returned goods, the sale or lease of which gave rise to an account or chattel paper (all of the foregoing herein collectively referred to as “Items of Payment”).  The Debtor shall deposit the Items of Payment for credit to the Collateral Account within two (2) business days of the receipt thereof, and in precisely the form received, except for the endorsement of the Debtor where necessary to permit the collection of the Items of Payment, which endorsement the Debtor hereby agrees to make.  Pending such deposit, the Debtor will not commingle any of the Items of Payment with any of its other funds or property but will hold them separate and apart.  At least once a week, DHCD will apply the whole or any part of the collected funds credited to the Collateral Account against the Liabilities or credit such collected funds to a banking account of the Debtor with DHCD, the order and method of such application to be in the sole discretion of DHCD.

  q.Violations of Laws, etc.  Neither the consummation of the Loan nor the use, directly or indirectly, of all or any portion of the proceeds of the Loan hereunder will violate or result in a violation of any provision of any applicable statute, regulation, or order of, or any restriction imposed by, the State of Maryland or the United States of America or by any authorized official, board, department, instrumentality, or agency thereof.

  r.Environmental Laws.  The Debtor has obtained or will obtain all permits, licenses and other authorizations (“Environmental Authorizations”) which are required under any and all federal, state, local and foreign statutes, ordinances, codes, laws, regulations and other such authorities relating to the environment or the release of any materials into the environment (“Environmental Laws”) and has delivered or will cause to be delivered copies of such permits, licenses and other authorizations to DHCD.  The Debtor is and will remain in compliance with the terms and conditions of all such permits, licenses and authorizations, and is and will remain in compliance with all other limitations, restrictions, conditions, standards, prohibitions, requirements, obligations, schedules and timetables contained in any applicable Environmental Laws or in any regulation, code, plan, order, decree, judgment, injunction, notice or demand letter issued, entered, promulgated or approved thereunder.  No notice, notification, demand, request for information, citation, summons or order has been issued, no complaint has been filed, no penalty has been assessed and no investigation or review is pending or threatened by any governmental or other entity with respect to (i) any alleged failure by the Debtor to have any Environmental Authorization required in connection with the conduct of the business of the Debtor; (ii) any generation, treatment, storage, recycling, transportation, disposal, or any release as defined in 42 U.S.C. §9601(22) (“Release”) on, at, under, about or from any property or facility now, or in the past, owned, leased or operated by Debtor of any substance regulated under any Environmental Laws 

   

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  (“Hazardous Material”); or (iii) any arrangement by Debtor for disposal, treatment or transport of any Hazardous Material.  No oral or written notification of a Release of a Hazardous Material has been filed by or on behalf of the Debtor and no property or facility now or previously owned, leased or operated by the Debtor is listed or proposed for listing on the National Priorities List under the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended, or on any similar state list of sites requiring investigation or clean-up.  There are no liens arising under or pursuant to any Environmental Laws on any of the real property or properties owned or leased by the Debtor and no governmental actions have been taken or are in process which could subject any of such properties to such liens such that the Debtor would be required to place any notice or restriction relating to the presence of Hazardous Materials at any property owned by it in any deed of such property.  There are no Hazardous Materials present on, in, at, under or about any real property or properties, owned or leased by the Debtor in amounts or concentrations or under circumstances that materially adversely affect the use or value of such property or properties.

  3.Rights of DHCD and Duties of Debtor.  If all or any part of the Collateral at any time consists of inventory, accounts, or chattel paper, (a) DHCD may at any time and from time to time both prior to and after the occurrence of an Event of Default hereunder, and the Debtor hereby irrevocably appoints DHCD as its attorney-in-fact (which appointment is coupled with an interest and is irrevocable), with power of substitution, in the name of DHCD or in the name of the Debtor or otherwise, for the use and benefit of DHCD, but at the cost and expense of the Debtor and without notice to the Debtor, to (i) notify the account debtors obligated on any of the Collateral to make payments thereon directly to DHCD, and to take control of the cash and non-cash proceeds of any such Collateral; (ii) compromise, extend, or renew any of the Collateral or deal with the same as it may deem advisable; (iii) release, make exchanges or substitutions for, or surrender all or any part of the Collateral; (iv) remove from the Debtor's place of business all books, records, ledger sheets, correspondence, invoices, and documents relating to or evidencing any of the Collateral or, without cost or expense to DHCD, make such use of the Debtor's place(s) of business as may be reasonably necessary to administer, control, and collect the Collateral; (v) repair, alter or supply goods, if any, necessary to fulfill in whole or in part the purchase order of any account debtor; (vi) demand, collect, receipt for, and give renewals, extensions, discharges, and releases of any of the Collateral; (vii) institute and prosecute legal and equitable proceedings to enforce collection of, or realize upon, any of the Collateral; (viii) settle, renew, extend, compromise, compound, exchange, or adjust claims with respect to any of the Collateral or any legal proceedings brought with respect thereto; (ix) endorse the name of the Debtor upon any Items of Payment relating to the Collateral or upon any proof of claim in bankruptcy against an account debtor; and (x) receive and open all mail addressed to the Debtor and, if an Event of Default exists hereunder, notify postal authorities to change the address for the delivery of mail to the Debtor to such address as DHCD may designate; and (b) the Debtor will (i) make no material change to the terms of any sale or lease of inventory or of any account or chattel paper without the prior written permission of DHCD; (ii) on demand, make available in form acceptable to DHCD shipping documents and delivery receipts evidencing the shipment of goods which gave rise to the sale or lease of inventory or of an account or chattel paper, completion certificates, or other proof of the satisfactory performance of services which gave rise to the sale or lease of inventory or of an account or chattel paper, copies of the invoices arising out of the sale or lease of inventory or for an account, and the Debtor's copy of any written contract or order from which the sale or lease of inventory, an account, or chattel paper arose; and (iii) when requested, regularly advise DHCD whenever an account debtor returns or refuses to retain any goods, the sale or lease of which gave rise to an account or chattel paper, and of any delay in delivery or performance, or claims made, in regard to any sale or lease of inventory, account, or chattel paper, and will comply with any instructions which DHCD may give regarding the sale or other disposition of such returns.

  4.Performance by DHCD.  If the Debtor fails to perform, observe, or comply with any of the conditions, terms, or covenants contained in this Agreement or in the other Loan Documents, DHCD, without notice to or demand upon the Debtor and without waiving or releasing any of the Liabilities or any Event of Default, may (but shall be under no obligation to) at any time thereafter perform such conditions, terms, or covenants for the account and at the expense of the Debtor, and may enter upon any place of business or other premises of the Debtor for that purpose and take all such action thereon as DHCD may consider necessary or appropriate for such purpose.  All sums paid or advanced by DHCD in connection with the foregoing and all costs and expenses (including, without limitation, attorneys' fees and expenses) incurred in connection therewith (collectively, the “Expense Payments”) together with interest thereon at a per annum rate of interest which is equal to the then highest rate of interest charged on the principal of any of the Liabilities, plus one percent (1%) per annum, from the date of payment until repaid in full, shall be paid by the Debtor to DHCD on demand and shall constitute and become a part of the Liabilities secured hereby.

   

  4

  

    

  5.Information Rights.  Reference is hereby made to that certain Amended and Restated Investors’ Rights Agreement, dated as of August 23, 2018 (as it may be amended from time to time, the “IRA”), by and among the Debtor and the investor parties thereto.  Notwithstanding the fact that DHCD is not a Major Investor (as defined in the IRA), the Debtor hereby agrees, for so long as the Liabilities remain outstanding, to deliver to DHCD the financial statements and other information to be provided to a Major Investor as provided in Sections 3.1 and 3.2 of the IRA on the terms and conditions set forth therein as if DHCD were a Major Investor thereunder; provided, however, that notwithstanding the terms contained in the IRA, DHCD shall not be required to request such information and such information will automatically be provided to DHCD by Debtor within the time frames set forth in the IRA, subject to any securities laws and regulations that the Debtor and DHCD may be required to comply with as a result of the public offering of Debtor's equity securities.  DHCD agrees that any confidential information provided to or learned by it in connection with its rights under this Agreement shall be subject to the confidentiality provisions set forth in Section 3.5 of the IRA.

  6.Notice Regarding Disclosure of Information Relating to the Debtor. DHCD intends to make available to the public certain information regarding the Loan, the purpose for which Debtor uses the Loan proceeds (the “Project”), and the Debtor. In addition, DHCD is required to disclose information about the Project to the Board of Public works and the Maryland General Assembly and may desire to disclose such information to other State of Maryland officials or their staff, local government officials or their staff, and other lenders and funding sources. DHCD is also required to disclose information in response to a request for information made pursuant to the Public Information Act, General Provisions Article, Section 4-101 et seq. of the Annotated Code of Maryland (the “PIA”). Information that may be disclosed to any of the foregoing, including the public, may include, among other things, the name of the Debtor; the name, location, and description of the Project; the date and amount of financial assistance awarded by DHCD; the terms of the financial assistance; use of funds; information contained in the application for financial assistance; a copy of the application; and the sources, amounts and terms of other funding used to complete the Project, including capital contributions from the Debtor. Certain information may be exempt from disclosure under the PIA. Requests for disclosure of information made pursuant the PIA are evaluated on an individual basis by DHCD. If the Debtor believes that any of the information it has provided to DHCD is exempt from disclosure, Debtor should attach a statement to the DHCD’s commitment letter describing the information it believes to be exempt from disclosure and provide an explanation therefor. DHCD cannot guarantee non-disclosure of such information but may consider Debtor’s statement when responding to a request made pursuant to the PIA.

  7.Indemnification. The Debtor shall indemnify DHCD and hold it harmless against any loss or expense (including reasonable attorneys' fees) resulting from any and all claims, actions, settlements, or liability for any act or failure to act by Debtor in connection with the Project or the Collateral; provided that this indemnification shall not apply to any of the foregoing to the extent incurred solely as the result of DHCD’s gross negligence or willful misconduct.

  8.Default.  The occurrence of any one or more of the following events shall constitute an Event of Default (“Event of Default”) under this Agreement:  (a) failure of the Debtor to pay any of the Liabilities as and when due and payable; (b) failure of the Debtor to perform, observe, or comply with any of the provisions of this Agreement, the other Loan Documents or the Act; (c) the occurrence of an event of default (as defined therein) under any of the other Loan Documents; (d) if any representation or warranty, or any information contained in any financial statement, application, schedule, report, or any other document given by the Debtor or by any other person in connection with the Liabilities, with the Collateral, or with any of the Loan Documents is not in all respects true and accurate or if the Debtor or such other person failed to state any material fact or omitted any fact necessary to make such information not misleading; (e) the filing of any petition for relief under the Bankruptcy Code or any similar federal or state statute by or against the Debtor; (f) an application for the appointment of a receiver for, the making of a general assignment for the benefit of creditors by, or the insolvency of the Debtor; (g) the dissolution, consolidation, or reorganization of the Debtor;  (h) the merger of Debtor without providing at least 30 days’ advance written notice to DHCD; or (i) any change in the ownership of the Debtor without the prior written consent of DHCD.

  9.Rights and Remedies upon Default.  Upon the occurrence of an Event of Default hereunder (and in addition to all of its other rights, powers, and remedies under this Agreement), DHCD may, at its option, declare the unpaid balance of the Liabilities to be immediately due and payable without presentment, demand for payment, protest, or notice of any kind to Debtor, all of which are hereby waived.  The occurrence or non-occurrence of an Event of Default shall in no manner impair the ability of DHCD to demand payment of any portion of the Liabilities which are 

   

  5

  

    

  payable on demand.  DHCD shall have all of the rights and remedies of a secured party under the Maryland Uniform Commercial Code and other applicable laws.  Upon the occurrence of an Event of Default hereunder, the Debtor, upon demand by DHCD, shall assemble the Collateral and make it available to DHCD at a place designated by DHCD which is mutually convenient to both parties.  Upon the occurrence of an Event of Default hereunder, DHCD or its agents may enter upon the Debtor's premises to take possession of the Collateral, to remove it, to render it unusable, or to sell or otherwise dispose of it, all without judicial process or proceedings.

  Any written notice of the sale, disposition, or other intended action by DHCD with respect to the Collateral which is required by applicable laws and is sent by certified mail, postage prepaid, to the Debtor at the address of the Debtor's chief executive office specified below, or such other address of the Debtor which may from time to time be shown on DHCD's records, at least ten (10) days prior to such sale, disposition, or other action, shall constitute reasonable notice to the Debtor.  The Debtor shall pay on demand all costs and expenses, including, without limitation, attorneys' fees and expenses incurred by or on behalf of DHCD (a) in enforcing the Liabilities, and (b) in connection with the taking, holding, preparing for sale or other disposition, selling, managing, collecting, or otherwise disposing of the Collateral.  All of such costs and expenses (collectively, the “Liquidation Costs”) together with interest thereon at a per annum rate of interest which is equal to the then highest rate of interest charged on the principal of any of the Liabilities, plus one percent (1%) per annum, from the date of payment until repaid in full, shall be paid by the Debtor to DHCD on demand and shall constitute and become a part of the Liabilities secured hereby.  Any proceeds of sale or other disposition of the Collateral will be applied by DHCD to the payment of the Liquidation Costs and Expense Payments, and any balance of such proceeds will be applied by DHCD to the payment of the remaining Liabilities in such order and manner of application as DHCD may from time to time in its sole discretion determine.

  10.Deficiency.  If the sale or other disposition of the Collateral fails to fully satisfy the Liabilities, the Debtor shall remain liable to DHCD for any deficiency.

  11.Miscellaneous.  Each right, power, and remedy of DHCD as provided for in this Agreement or in the other Loan Documents or now or hereafter existing at law or in equity or by statute or otherwise shall be cumulative and concurrent and shall be in addition to every other right, power, or remedy provided for in this Agreement or in the other Loan Documents or now or hereafter existing at law or in equity or by statute or otherwise, and the exercise or beginning of the exercise by DHCD of any one or more of such rights, powers, or remedies shall not preclude the simultaneous or later exercise by DHCD of any or all such other rights, powers, or remedies.  No failure or delay by DHCD to insist upon the strict performance of any term, condition, covenant, or agreement of this Agreement or of the other Loan Documents, or to exercise any right, power, or remedy consequent upon a breach thereof, shall constitute a waiver of any such term, condition, covenant, or agreement or of any such breach, or preclude DHCD from exercising any such right, power, or remedy at any later time or times.  By accepting payment after the due date of any of the Liabilities, DHCD shall not be deemed to have waived the right either to require payment when due of all other Liabilities or to declare an Event of Default for failure to effect such payment of any such other Liabilities.  The Debtor waives presentment, notice of dishonor, and notice of non-payment with respect to accounts and chattel paper.  The paragraph headings of this Agreement are for convenience only and shall not limit or otherwise affect any of the terms hereof.  Neither this Agreement nor any term, condition, covenant, or agreement hereof may be changed, waived, discharged, or terminated orally but only by an instrument in writing signed by the party against whom enforcement of the change, waiver, discharge, or termination is sought.  This Agreement shall be governed by the laws of the State of Maryland without regard to the principles of conflict of laws and shall be binding upon the heirs, personal representatives, successors, and assigns of the Debtor, as the case may be, and shall inure to the benefit of the successors and assigns of DHCD.  The Loan is not a Consumer Transaction as defined in the Maryland Uniform Commercial Code and none of the Collateral has been or shall be purchased or held primarily for personal, family, or household purposes.  As used herein, the singular number shall include the plural, the plural the singular, and the use of the masculine, feminine, or neuter gender shall include all genders, as the context may require, and the term “person” shall include an individual, a corporation, an association, a partnership, a trust, and an organization.  Unless varied by this Agreement, all terms used herein which are defined by the Maryland Uniform Commercial Code shall have the same meanings hereunder as assigned to them by the Maryland Uniform Commercial Code.

   

  Signature(s) on following page

   

   

  6

  

    

  The signature(s) and seal(s) of the Debtor are/is subscribed to this Agreement the day and year written above with the specific intention of creating a document under seal.

   

  					
	WITNESS:
	DEBTOR: Clene Nanomedicine, Inc., a Delaware corporation

	 
	 
	 
	 
	 

	 
	 
	 
	 
	 

	 
	 
	 
	 
	 

	 
	 
	 
	 
	 

	s/ Sally Dulin
	 
	By:
	s/ Mark Mortenson
	(SEAL)

	 
	 
	 
	Name: Mark Mortenson
	 

	 
	 
	 
	Title: Chief Science Officer

	 
	 
	 
	 
	 

	 
	 
	 
	 
	 

	 
	 
	Address of Debtor’s Principal Office:

	 
	 
	 

	 
	 
	500 Principio Parkway West

	 
	 
	Suite 400

	 
	 
	North East, MD 21901

   

   

   

  Exhibit A – Collateral

   

  7

  

   

  NBDP SECURITY AGREEMENT

  EXHIBIT A

   

  			
	Address where Collateral
	Address(es) of other place(s)

	is or is to be located:
	of business of the Debtor:

	 
	 
	 

	 
	 
	 

	100 Chesapeake Blvd.
	500 Principio Parkway Way

	Elkton, MD  21901
	Suite 400, North East, MD  21901

	 
	 
	 

	 
	 
	6550 South Millrock Drive, Suite G50

	 
	 
	Salt Lake City, Utah  84121

	 
	 
	 

	 
	 
	 

	Previous legal and/or trade name(s) of the Debtor:
	 

	 
	 
	 

	(1)
	CLENE NANOMEDICINE, LLC
	 

	 
	 
	 

	(2)
	 
	 

   

   

  COLLATERAL

  All of the equipment and other items purchased with the proceeds of the Loan (including, but not limited to, the equipment described below), both now owned and hereafter acquired (including, without limitation, all books, records and data processing materials in any form documenting, describing or in any way relating to any or all of the items purchased with the proceeds of the Loan, whether in the possession of the Debtor or any other person), together with (i) all additions, parts, fittings, accessories, special tools, attachments, and accessions now and hereafter affixed thereto and/or used in connection therewith, (ii) all replacements thereof and substitutions therefor, and (iii) all cash and non-cash proceeds and products thereof, including all proceeds of casualty insurance for loss of the items or any part thereof.

   

  			
	Equipment
	Qty.
	Note

	10,000 Gallon SS pre-production tanks
	3
	 

	4,000 Gallon SS Product Tanks
	6
	 

	10,000 Gal. SS Water Storage Tanks
	2
	For USP water storage and water recycling

	Bulk concentration equipment
	3
	SS holders for filters and associated pumps

	Final concentration equipment
	3
	SS holder for filters and SS vessel

	Filter/Bottling equipment
	1
	Automated filling line with environmental isolation

	Packaging
	1
	Packaging post fill

   

   

  Collateral includes any renewals, replacements, modifications, extensions, substitutions or amendments thereto.

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