Document:

Exhibit
10.1

 

SECURITIES
PURCHASE AGREEMENT

 

THIS
SECURITIES PURCHASE AGREEMENT (“Agreement”) is made as of the 2nd day of January, 2018, by and among H/Cell Energy
Corporation, a Nevada corporation (the “Company”), and each investor identified on the signature pages hereto
(each, including its successors and assigns, an “Investor” and collectively, the “Investors”).

 

Recitals

 

A.
The Company and the Investors are executing and delivering this Agreement in reliance upon the exemption from securities registration
afforded by the provisions of Regulation D (“Regulation D”), as promulgated by the U.S. Securities and Exchange Commission
(the “SEC”) under the Securities Act of 1933, as amended; and

 

B.
The Investors wish to purchase from the Company, and the Company wishes to sell and issue to the Investors, upon the terms and
conditions stated in this Agreement, debentures in the maximum principal amount of $400,000, bearing interest at the rate of 12%
per annum, in the form attached hereto as Exhibit A (the “Debenture”).

 

In
consideration of the mutual promises made herein and for other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the parties hereto agree as follows:

 

1.
Definitions. In addition to those terms defined above and elsewhere in this Agreement, for the purposes of this Agreement,
the following terms shall have the meanings set forth below:

 

“Affiliate”
means, with respect to any Person, any other Person which directly or indirectly through one or more intermediaries Controls,
is controlled by, or is under common control with, such Person.

 

“Business
Day” means a day, other than a Saturday or Sunday, on which banks in New York City are open for the general transaction
of business.

 

“Closing”
has the meaning set forth in Section 3.

 

“Closing
Date” has the meaning set forth in Section 3.

 

“Common
Stock” means common stock of the Company.

 

“Conversion
Securities” means securities issued upon conversion of all or a portion of the principal amount of the Debenture, at
the option of the Investor, upon the occurrence of certain events described in the Debenture.

 

“Company’s
Knowledge” means the actual knowledge of the executive officers (as defined in Rule 405 under the 1933 Act) of the Company,
after due inquiry.

 

    	 

    	 

    

 

“Confidential
Information” means trade secrets, confidential information and know-how (including but not limited to ideas, formulae,
compositions, processes, procedures and techniques, research and development information, computer program code, performance specifications,
support documentation, drawings, specifications, designs, business and marketing plans, and customer and supplier lists and related
information).

 

“Control”
(including the terms “controlling”, “controlled by” or “under common control with”) means
the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a Person,
whether through the ownership of voting securities, by contract or otherwise.

 

“Debenture”
has the meaning set forth in recitals.

 

“Environmental
Laws” has the meaning set forth in Section 4.15.

 

“GAAP”
has the meaning set forth in Section 4.18.

 

“Infringe”
has the meaning set forth in Section 4.15(d).

 

“Intellectual
Property” means all of the following: (i) patents, patent applications, patent disclosures and inventions (whether or
not patentable and whether or not reduced to practice); (ii) trademarks, service marks, trade dress, trade names, corporate names,
logos, slogans and Internet domain names, together with all goodwill associated with each of the foregoing; (iii) copyrights and
copyrightable works; (iv) registrations, applications and renewals for any of the foregoing; and (v) proprietary computer software
(including but not limited to data, data bases and documentation).

 

“License
Agreements” has the meaning set forth in Section 4.15(b).

 

“Material
Adverse Effect” means a material adverse effect on (i) the assets, liabilities, results of operations, condition (financial
or otherwise), business, or prospects of the Company and its Subsidiaries taken as a whole, or (ii) the ability of the Company
to perform its obligations under the Transaction Documents.

 

“Person”
means an individual, corporation, partnership, limited liability company, trust, business trust, association, joint stock company,
joint venture, sole proprietorship, unincorporated organization, governmental authority or any other form of entity not specifically
listed herein.

 

“Purchase
Price” means a maximum of $400,000.

 

“Securities”
means the Debenture and the Conversion Securities.

 

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

 

    	 	 -2-	 

    	 

    

 

“Subsidiary”
of any Person means another Person, an amount of the voting securities, other voting ownership or voting partnership interests
of which is sufficient to elect at least a majority of its Board of Directors or other governing body (or, if there are no such
voting interests, 50% or more of the equity interests of which) is owned directly or indirectly by such first Person.

 

“Transaction
Documents” means this Agreement, the Debentures and the Escrow Agreement.

 

2.
Purchase and Issuance of the Securities

 

2.1
Debentures. Upon the terms and conditions set forth herein, the Company shall issue and sell to the Investors and each
of the Investors, severally and not jointly, shall purchase from the Company, the Debentures in the amounts set forth opposite
each Investor’s name on the signature pages attached hereto.

 

3.
Closing. On or prior to the date of executing this Agreement, the Investors shall wire to the escrow account, established
pursuant to the escrow agreement in the form attached hereto as Exhibit B (the “Escrow Agreement”) in same
day funds an amount representing such Investor’s Purchase Price, as set forth on the signature page hereto (“Closing”
or “Closing Date”). The Closing shall occur upon confirmation that the conditions to Closing in Section 6 hereof have
been satisfied. The Closing of the purchase and sale of the Debentures shall take place at the offices of Sichenzia Ross Ference
Kesner LLP, 1185 Avenue of the Americas, 37th Floor, New York, NY 10036. Notwithstanding anything else to the foregoing,
the sale of the Debentures may be made in one or more Closings and on one or more Closing Dates.

 

4.
Representations and Warranties of the Company. The Company hereby represents and warrants to the Investor that, except
as set forth in the schedules delivered herewith (collectively, the “Disclosure Schedules”):

 

4.1
Organization, Good Standing and Qualification. Each of the Company and its Subsidiaries is a corporation duly organized,
validly existing and in good standing under the laws of the jurisdiction of its incorporation and has all requisite corporate
power and authority to carry on its business as now conducted and to own its properties. Each of the Company and its Subsidiaries
is duly qualified to do business as a foreign corporation and is in good standing in each jurisdiction in which the conduct of
its business or its ownership or leasing of property makes such qualification or leasing necessary unless the failure to so qualify
has not had and could not reasonably be expected to have a Material Adverse Effect.

 

4.2
Authorization. The Company has full power and authority and has taken all requisite action on the part of the Company,
its officers, directors and stockholders necessary for (i) the authorization, execution and delivery of the Transaction Documents,
(ii) the authorization of the performance of all obligations of the Company hereunder or thereunder, and (iii) the authorization,
issuance (or reservation for issuance) and delivery of the Securities The Transaction Documents constitute the legal, valid and
binding obligations of the Company, enforceable against the Company in accordance with their terms, subject to bankruptcy, insolvency,
fraudulent transfer, reorganization, moratorium and similar laws of general applicability, relating to or affecting creditors’
rights generally.

 

    	 	 -3-	 

    	 

    

 

4.3
[Intentionally Omitted]

 

4.4
Valid Issuance. The Debenture and the Conversion Securities have been duly and validly authorized and, when issued and
paid for pursuant to this Agreement or issuance in accordance with the terms of the Debenture, will be validly issued, fully paid
and nonassessable, and shall be free and clear of all encumbrances and restrictions (other than those created by the Investor),
except for restrictions on transfer set forth in the Transaction Documents or imposed by applicable securities laws. The Company
shall reserve a sufficient number of shares of Common Stock for issuance as Conversion Securities, free and clear of all encumbrances
and restrictions, except for restrictions on transfer set forth in the Transaction Documents or imposed by applicable securities
laws.

 

4.5
Consents. The execution, delivery and performance by the Company of the Transaction Documents and the offer, issuance and
sale of the Securities require no consent of, action by or in respect of, or filing with, any Person, governmental body, agency,
or official other than filings that have been made pursuant to applicable state securities laws and post-sale filings pursuant
to applicable state and federal securities laws which the Company undertakes to file within the applicable time periods. Subject
to the accuracy of the representations and warranties of the Investor set forth in Section 5 hereof, the Company has taken all
action necessary to exempt (i) the issuance and sale of the Securities and (ii) the other transactions contemplated by the Transaction
Documents from the provisions of any stockholder rights plan or other “poison pill” arrangement, any anti-takeover,
business combination or control share law or statute binding on the Company or to which the Company or any of its assets and properties
may be subject and any provision of the Company’s Articles of Incorporation, Bylaws or other organizational or charter documents
that is or could reasonably be expected to become applicable to the Investor as a result of the transactions contemplated hereby,
including without limitation, the issuance of the Securities and the ownership, disposition or voting of the Securities by the
Investor or the exercise of any right granted to the Investor pursuant to this Agreement or the other Transaction Documents.

 

4.6
Use of Proceeds. The net proceeds of the sale of the Debentures shall be used by the Company for working capital purposes.

 

4.7
No Conflict, Breach, Violation or Default. The execution, delivery and performance of the Transaction Documents by the
Company and the issuance and sale of the Securities will not conflict with or result in a breach or violation of any of the terms
and provisions of, or constitute a default under (i) the Company’s Articles of Incorporation, the Company’s Bylaws
or other organizational or charter documents, as in effect on the date hereof, or (ii)(a) any statute, rule, regulation or order
of any governmental agency or body or any court, domestic or foreign, having jurisdiction over the Company, any Subsidiary or
any of their respective assets or properties, or (b) any agreement or instrument to which the Company or any Subsidiary is a party
or by which the Company or a Subsidiary is bound or to which any of their respective assets or properties is subject.

 

    	 	 -4-	 

    	 

    

 

4.8
Certificates, Authorities and Permits. The Company and each Subsidiary possess all material certificates, authorities or
permits issued by appropriate governmental agencies or bodies necessary to conduct the business now operated by it, and neither
the Company nor any Subsidiary has received any notice of proceedings relating to the revocation or modification of any such certificate,
authority or permit that, if determined adversely to the Company or such Subsidiary, could reasonably be expected to have a Material
Adverse Effect, individually or in the aggregate.

 

5.
Representations and Warranties of the Investors. Each Investor, for itself and for no other Investor, hereby represents
and warrants as of the date hereof to the Company as follows:

 

5.1
Organization and Existence. If the Investor is an entity, such Investor is a validly existing corporation, limited partnership
or limited liability company and has all requisite corporate, partnership or limited liability company power and authority to
invest in the Securities pursuant to this Agreement.

 

5.2
Authorization. The execution, delivery and performance by such Investor of the Transaction Documents to which such Investor
is a party have been duly authorized and will each constitute the valid and legally binding obligation of such Investor, enforceable
against such Investor in accordance with their respective terms, subject to bankruptcy, insolvency, fraudulent transfer, reorganization,
moratorium and similar laws of general applicability, relating to or affecting creditors’ rights generally.

 

5.3
No Public Sale or Distribution. The Investor is acquiring the Securities for its own account and not with a view towards,
or for resale in connection with, the public sale or distribution thereof in violation of applicable securities laws, except pursuant
to sales registered or exempted under the Securities Act; provided, however, by making the representations herein, such Investor
does not agree, or make any representation or warranty, 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 Securities Act. The Investor is acquiring the Securities hereunder in the ordinary course of its business. Such Investor
does not presently have any agreement or understanding, directly or indirectly, with any Person to distribute any of the Securities
in violation of applicable securities laws. Investor is not a broker-dealer registered with the SEC under the Exchange Act or
an entity engaged in a business that would require it to be so registered.

 

5.4
Investment Experience. Investor acknowledges that it can bear the economic risk and complete loss of its investment in
the Securities and has such knowledge and experience in financial or business matters that it is capable of evaluating the merits
and risks of the investment contemplated hereby.

 

    	 	 -5-	 

    	 

    

 

5.5
Disclosure of Information. Investor has had an opportunity to receive all information related to the Company requested
by it and to ask questions of and receive answers from the Company regarding the Company, its business and the terms and conditions
of the offering of the Securities. Neither such inquiries nor any other due diligence investigation conducted by such Investor
shall modify, amend or affect Investor’s right to rely on the Company’s representations and warranties contained in
this Agreement.

 

5.6
Restricted Securities. Investor understands that the Securities are characterized as “restricted securities”
under the U.S. federal securities laws inasmuch as they are being acquired from the Company in a transaction not involving a public
offering and that under such laws and applicable regulations such securities may be resold without registration under the Securities
Act only in certain limited circumstances. The Investor understands that the Securities are being offered and sold to it in reliance
on specific exemptions from the registration requirements of United States federal and state securities laws and that the Company
is relying in part upon the truth and accuracy of, and Investor’s compliance with, the representations, warranties, agreements,
acknowledgments and understanding of Investor set forth herein in order to determine the availability of such exemptions and the
eligibility of Investor to acquire such securities.

 

5.7
Legends. It is understood that, except as provided below, certificates evidencing the Securities may bear the following
or any similar legend:

 

(a)
“THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT 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 TO THE HOLDER (IF REQUESTED BY THE COMPANY), IN A FORM REASONABLY ACCEPTABLE TO THE COMPANY, THAT REGISTRATION IS NOT
REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD OR ELIGIBLE TO BE SOLD PURSUANT TO RULE 144 OR RULE 144A UNDER SAID ACT.”

 

(b)
If required by the authorities of any state in connection with the issuance of sale of the Securities, the legend required by
such state authority.

 

5.8
No Governmental Review. The Investor understands that no United States federal or state agency or any other government
or governmental agency has passed on or made any recommendation or endorsement of the Securities or the fairness or suitability
of the investment in the Securities nor have such authorities passed upon or endorsed the merits of the offering of the Securities.

 

5.9
Transfer or Resale. The Investor understands that: (i) the Securities have not been and are not being registered under
the Securities Act or any state securities laws, and may not be offered for sale, sold, assigned or transferred unless (A) subsequently
registered thereunder, (B) the Investor shall have delivered to the Company (if requested by the Company) an opinion of counsel
to the Investor, in a form reasonably acceptable to the Company, to the effect that such Securities to be sold, assigned or transferred
may be sold, assigned or transferred pursuant to an exemption from such registration, or (C) the Investor provides the Company
with reasonable assurance that such Securities can be sold, assigned or transferred pursuant to Rule 144 or Rule 144A promulgated
under the Securities Act (or a successor rule thereto) (collectively, “Rule 144”); (ii) any sale of the Securities
made in reliance on Rule 144 may be made only in accordance with the terms of Rule 144, and further, if Rule 144 is not applicable,
any resale of the 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 Securities Act) may require compliance with some other exemption under the
Securities Act or the rules and regulations of the SEC promulgated thereunder; and (iii) neither the Company nor any other Person
is under any obligation to register the Securities under the Securities Act or any state securities laws or to comply with the
terms and conditions of any exemption thereunder.

 

    	 	 -6-	 

    	 

    

 

5.10
Accredited Investor. Investor is an accredited investor as defined in Rule 501(a) of Regulation D, as amended, under the
Securities Act.

 

6.
Conditions to Closing.

 

6.1
Conditions to the Investors’ Obligations. The obligation of each Investor to purchase its Debenture at the Closing
is subject to the fulfillment to each Investor’s satisfaction, on or prior to the Closing Date, of the following conditions,
any of which may be waived by Investor:

 

(a)
The representations and warranties made by the Company in Section 4 hereof qualified as to materiality shall be true and correct
at all times prior to and on the Closing Date, except to the extent any such representation or warranty expressly speaks as of
an earlier date, in which case such representation or warranty shall be true and correct as of such earlier date, and, the representations
and warranties made by the Company in Section 4 hereof not qualified as to materiality shall be true and correct in all material
respects at all times prior to and on the Closing Date, except to the extent any such representation or warranty expressly speaks
as of an earlier date, in which case such representation or warranty shall be true and correct in all material respects as of
such earlier date. The Company shall have performed in all material respects all obligations and covenants herein required to
be performed by it on or prior to the Closing Date.

 

(b)
The Company shall have obtained any and all consents, permits, approvals, registrations and waivers necessary or appropriate for
consummation of the purchase and sale of the Securities and the consummation of the other transactions contemplated by the Transaction
Documents, all of which shall be in full force and effect.

 

(c)
No judgment, writ, order, injunction, award or decree of or by any court, or judge, justice or magistrate, including any bankruptcy
court or judge, or any order of or by any governmental authority, shall have been issued, and no action or proceeding shall have
been instituted by any governmental authority, enjoining or preventing the consummation of the transactions contemplated hereby
or in the other Transaction Documents.

 

    	 	 -7-	 

    	 

    

 

(d)
The Company shall have delivered the executed Escrow Agreement to each Investor.

 

6.2
Conditions to Obligations of the Company. The Company’s obligation to sell and issue the Debentures at the Closing
is subject to the fulfillment to the satisfaction of the Company on or prior to the Closing Date of the following conditions,
any of which may be waived by the Company:

 

(a)
The representations and warranties made by each Investor in Sections 5.1 and 5.2 hereof (the “Investment Representations”),
shall be true and correct in all material respects when made, and shall be true and correct in all material respects on the Closing
Date with the same force and effect as if they had been made on and as of said date. The Investment Representations shall be true
and correct in all respects when made, and shall be true and correct in all respects on the Closing Date with the same force and
effect as if they had been made on and as of said date. The Investor shall have performed in all material respects all obligations
and covenants herein required to be performed prior to the Closing Date.

 

(b)
Each Investor shall have delivered its Purchase Price to the Escrow Agent (as defined in the Escrow Agreement).

 

(c)
Each Investor shall have delivered the executed Escrow Agreement to the Company.

 

7.
Covenants and Agreements of the Company.

 

7.1
Delivery of Debentures. The Company shall, within five (5) business days of the Closing Date, delivery the originally executed
Debentures to the Investors.

 

7.2
Reservation of Common Stock. The Company shall at all times reserve and keep available out of its authorized but unissued
shares of Common Stock, such number of shares of Common Stock as shall from time to time equal the number of shares of Common
Stock issuable as Conversion Securities pursuant to this Agreement and the Debentures.

 

7.3
No Conflicting Agreements. The Company will not take any action, enter into any agreement or make any commitment that would
conflict or interfere in any material respect with the Company’s obligations to the Investor under the Transaction Documents.

 

7.4
Compliance with Laws. The Company will comply in all material respects with all applicable laws, rules, regulations, orders
and decrees of all governmental authorities.

 

    	 	 -8-	 

    	 

    

 

8.
Survival.

 

8.1
Survival. The representations, warranties, covenants and agreements contained in this Agreement shall survive the Closing
of the transactions contemplated by this Agreement.

 

9.
Miscellaneous.

 

9.1
Successors and Assigns. This Agreement may not be assigned by a party hereto without the prior written consent of the Company
or the Investors, as applicable, provided, however, that an Investor may assign its rights and delegate its duties hereunder in
whole or in part to an Affiliate or to a third party acquiring some or all of its Securities in a private transaction without
the prior written consent of the Company, after notice duly given by such Investor to the Company provided, that no such assignment
or obligation shall affect the obligations of Investor hereunder. The provisions of this Agreement shall inure to the benefit
of and be binding upon the respective permitted successors and assigns of the parties. Nothing in this Agreement, express or implied,
is intended to confer upon any party other than the parties hereto or their respective successors and assigns any rights, remedies,
obligations, or liabilities under or by reason of this Agreement, except as expressly provided in this Agreement.

 

9.2
Counterparts. This Agreement may be executed in two or more identical counterparts, all of which shall be considered one
and the same agreement and shall become effective when counterparts have been signed by each party and delivered to the other
party. In the event that any signature is delivered by facsimile transmission or by an e-mail which contains a portable document
format (.pdf) file of an executed signature page, such signature page shall create a valid and binding obligation of the party
executing (or on whose behalf such signature is executed) with the same force and effect as if such signature page were an original
thereof.

 

9.3
Titles and Subtitles. The titles and subtitles used in this Agreement are used for convenience only and are not to be considered
in construing or interpreting this Agreement.

 

9.4
Notices. Any notices, consents, waivers or other communications required or permitted to be given under the terms of this
Agreement must be in writing and will be deemed to have been delivered: (i) upon receipt, if delivered personally; and (ii) if
sent by overnight courier service, one (1) Business Day after deposit with an overnight courier service with next day delivery
specified, in each case, properly addressed to the party to receive the same. The addresses for such notices, consents, waivers
or other communications are as follows:

 

If
to the Company:

 

H-Cell
Energy Corporation

97
River Road

Flemington,
New Jersey 08822

Attention:
Matthew Hidalgo, Chief Financial Officer

 

    	 	 -9-	 

    	 

    

 

With
a copy to:

 

Sichenzia
Ross Ference Kesner LLP

1185
Avenue of the Americas, 37th Floor

New
York, New York 10036

Attention:
James M. Turner, Esq.

 

If
to the Investor, to the address set forth on the signature page.

 

or
to such other address and/or to the attention of such other Person as the recipient party has specified by written notice given
to each other party five (5) days prior to the effectiveness of such change. Written confirmation of receipt (A) given by the
recipient of such notice, consent, waiver or other communication, or (B) provided by an overnight courier service shall be rebuttable
evidence of personal service or receipt from an overnight courier service in accordance with clause (i) or (ii) above, respectively.

 

9.5
Amendments and Waivers. Any term of this Agreement may be amended and the observance of any term of this Agreement 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 Investors. Any amendment or waiver effected in accordance with this paragraph shall be binding upon each
holder of any Securities purchased under this Agreement at the time outstanding, each future holder of all such Securities, and
the Company.

 

9.6
Severability. Any provision of this Agreement that is prohibited or unenforceable in any jurisdiction shall, as to such
jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions
hereof but shall be interpreted as if it were written so as to be enforceable to the maximum extent permitted by applicable law,
and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in
any other jurisdiction. To the extent permitted by applicable law, the parties hereby waive any provision of law which renders
any provision hereof prohibited or unenforceable in any respect.

 

9.7
Entire Agreement. This Agreement, including the Exhibits and the Disclosure Schedules, and the other Transaction Documents
constitute the entire agreement among the parties hereof with respect to the subject matter hereof and thereof and supersede all
prior agreements and understandings, both oral and written, between the parties with respect to the subject matter hereof and
thereof.

 

9.8
Further Assurances. The parties shall execute and deliver all such further instruments and documents and take all such
other actions as may reasonably be required to carry out the transactions contemplated hereby and to evidence the fulfillment
of the agreements herein contained.

 

    	 	 -10-	 

    	 

    

 

9.9
Governing Law; Consent to Jurisdiction; Waiver of Jury Trial. This Agreement shall be governed by, and construed in accordance
with, the internal laws of the State of New York without regard to the choice of law principles thereof. Each of the parties hereto
irrevocably submits to the exclusive jurisdiction of the courts of the State of New York located in New York County and the United
States District Court for the Southern District of New York for the purpose of any suit, action, proceeding or judgment relating
to or arising out of this Agreement and the transactions contemplated hereby. Service of process in connection with any such suit,
action or proceeding may be served on each party hereto anywhere in the world by the same methods as are specified for the giving
of notices under this Agreement. Each of the parties hereto irrevocably consents to the jurisdiction of any such court in any
such suit, action or proceeding and to the laying of venue in such court. Each party hereto irrevocably waives any objection to
the laying of venue of any such suit, action or proceeding brought in such courts and irrevocably waives any claim that any such
suit, action or proceeding brought in any such court has been brought in an inconvenient forum. EACH OF THE PARTIES HERETO
WAIVES ANY RIGHT TO REQUEST A TRIAL BY JURY IN ANY LITIGATION WITH RESPECT TO THIS AGREEMENT AND REPRESENTS THAT COUNSEL HAS BEEN
CONSULTED SPECIFICALLY AS TO THIS WAIVER.

 

[signature
pages follow]

 

    	 	 -11-	 

    	 

    

 

IN
WITNESS WHEREOF, the parties have executed this Agreement or caused their duly authorized officers to execute this Agreement as
of the date first above written.

 

	The
    Company:	H/CELL
    ENERGY CORPORATION
	 	 	 
	 	By:	
	 	Name:	Matthew
    Hidalgo
	 	Title:	Chief
    Financial Officer

 

[SIGNATURE
PAGES FOR INVESTORS FOLLOW]

 

    	 	 -12-	 

    	 

    

 

Exhibit
10.1

 

[INVESTOR
SIGNATURE PAGES TO PURCHASE AGREEMENT]

 

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

 

	Name
    of Purchaser:	 
	 	 
	Signature
    of Authorized Signatory of Purchaser:	 
	 	 
	Address
    for Notice of Purchaser:	 
	 	 
	Aggregate
    Purchase Price:	 
	 	 
	Principal
    Amount of Debenture:Exhibit
10.2

 

NEITHER
THE ISSUANCE AND SALE OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE CONVERTIBLE
HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “1933 ACT”), 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 1933 ACT, 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 THE 1933 ACT OR (II) UNLESS SOLD PURSUANT TO RULE 144
OR RULE 144A UNDER THE 1933 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
PRINCIPAL AMOUNT REPRESENTED BY THIS DEBENTURE AND, ACCORDINGLY, THE SECURITIES ISSUABLE UPON CONVERSION HEREOF MAY BE LESS THAN
THE AMOUNTS SET FORTH ON THE FACE HEREOF PURSUANT TO SECTION 2.7 OF THIS DEBENTURE.

 

12%
CONVERTIBLE DEBENTURE

 

FOR
VALUE RECEIVED, H/Cell Energy Corporation, a Nevada corporation (the “Borrower”), promises to pay to _______________________
(the “Holder”) or its registered assigns or successors in interest, the sum of Two Hundred Thousand Dollars
($200,000.00) (the “Principal Amount”), together with any accrued and unpaid interest hereon, on January 2,
2020 (the “Maturity Date”) if not sooner paid.

 

Capitalized
terms used herein without definition shall have the meanings ascribed to such terms in that certain Securities Purchase Agreement
dated as of January 2, 2018, between Borrower and the Holder (as amended, modified or supplemented from time to time, the “Purchase
Agreement”).

 

The
following terms shall apply to this convertible debenture (the “Debenture”):

 

ARTICLE
I

PRINCIPAL, INTEREST & AMORTIZATION

 

1.1.
Interest Rate. The Borrower shall pay interest to the Holder on the aggregate unconverted and then outstanding principal
amount of this Debenture at the rate of 12.0% per annum in the aggregate, subject to adjustment as set forth herein, which shall
be payable monthly in cash in arrears on the first Business Day of each fiscal month, beginning on February 1, 2018 and on the
Maturity Date (each such date, an “Interest Payment Date”) (if any Interest Payment Date is not a Business
Day, then the applicable payment shall be due on the next succeeding Business Day).

 

1.2.
Interest Calculations. Interest on the outstanding Principal Amount shall be calculated on the basis of a 360-day year,
consisting of twelve 30 calendar day periods, and shall accrue daily commencing on the date of the first issuance of the Debenture
(the “Issue Date”) until payment or conversion in full of the outstanding principal, together with all accrued
and unpaid interest and other amounts which may become due hereunder, has been made.

 

    	 	 	 

     

    

 

1.3.
Prepayment. The Borrower may prepay any portion of the Principal Amount of this Debenture without the prior written consent
of the Holder, provided, however, that (i) any prepayment is done on a pro rata basis on all Debentures then outstanding; and
(ii) any prepayment requires at least five (5) Business Days prior written notice, during which time the Holder has the right
to convert this Debenture in accordance with Article II.

 

ARTICLE
II

CONVERSION REPAYMENT

 

2.1.
Optional Conversion.

 

(a)
Subject to the provisions of Section 2.2, at any time or times on or after the Issue Date, the Holder shall be entitled to convert
any portion of the outstanding and unpaid Conversion Amount (as defined below) into validly issued, fully paid and non-assessable
shares of Common Stock in accordance with Section 3(c), at the Fixed Conversion Rate (as defined below). The Borrower shall not
issue any fraction of a share of Common Stock upon any conversion. If the issuance would result in the issuance of a fraction
of a share of Common Stock, the Borrower shall round such fraction of a share of Common Stock up to the nearest whole share. The
Borrower shall pay any and all transfer, stamp, issuance and similar taxes that may be payable with respect to the issuance and
delivery of Common Stock upon conversion of any Conversion Amount.

 

(b)
The number of shares of Common Stock issuable upon conversion of any Conversion Amount pursuant to Section 3(a) shall be determined
by dividing (x) such Conversion Amount by (y) the Fixed Conversion Price (the “Conversion Rate”).

 

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

 

(d)
“Fixed Conversion Price” means $0.75, as adjusted for stock splits, stock dividends, stock combinations or
other similar transactions.

 

2.2.
Conversion Limitation. Notwithstanding anything to the contrary contained in this Debenture, this Debenture shall not be
convertible by the Holder hereof, and the Borrower shall not effect any conversion of this Debenture or otherwise issue any shares
of Common Stock pursuant hereto, to the extent (but only to the extent) that after giving effect to such conversion or other share
issuance hereunder the Holder (together with its affiliates) would beneficially own in excess of 4.99% (the “Maximum
Percentage”) of the Common Stock. To the extent the above limitation applies, the determination of whether this Debenture
shall be convertible (vis-à-vis other convertible, exercisable or exchangeable securities owned by the Holder or any of
its affiliates) and of which such securities shall be convertible, exercisable or exchangeable (as among all such securities owned
by the Holder and its affiliates) shall, subject to such Maximum Percentage limitation, be determined on the basis of the first
submission to the Borrower for conversion, exercise or exchange (as the case may be). No prior inability to convert this Debenture,
or to issue shares of Common Stock, pursuant to this paragraph shall have any effect on the applicability of the provisions of
this paragraph with respect to any subsequent determination of convertibility. For purposes of this paragraph, beneficial ownership
and all determinations and calculations (including, without limitation, with respect to calculations of percentage ownership)
shall be determined in accordance with Section 13(d) of the Securities Exchange Act of 1934, as amended and the rules and regulations
promulgated thereunder. The provisions of this paragraph shall be implemented in a manner otherwise than in strict conformity
with the terms of this paragraph to correct this paragraph (or any portion hereof) which may be defective or inconsistent with
the intended Maximum Percentage beneficial ownership limitation herein contained or to make changes or supplements necessary or
desirable to properly give effect to such Maximum Percentage limitation. The limitations contained in this paragraph shall apply
to a successor Holder of this Debenture. By written notice to the Borrower, at any time the Holder may increase or decrease the
Maximum Percentage to any other percentage specified in such notice; provided that (i) any such increase will not be effective
until the 61st day after such notice is delivered to the Borrower, and (ii) any such increase or decrease will apply only to the
Holder sending such notice and not to any other holder of Debentures.

 

    	 	2	 

     

    

 

2.3.
Mechanics of Holder’s Conversion. In the event that the Holder elects to convert this Debenture into Common Stock,
the Holder shall give notice of such election by delivering an executed and completed notice of conversion (“Notice of
Conversion”) to Borrower and such Notice of Conversion shall provide a breakdown in reasonable detail of the Conversion
Amount being converted. On each Conversion Date (as hereinafter defined) and in accordance with its Notice of Conversion, the
Holder shall make the appropriate reduction to the Principal Amount and accrued Interest as entered in its records and shall provide
written notice thereof to the Borrower on the Conversion Date. Each date on which a Notice of Conversion is delivered or telecopied
to Borrower in accordance with the provisions hereof shall be deemed a Conversion Date (the “Conversion Date”).
A form of Notice of Conversion to be employed by the Holder is annexed hereto as Exhibit A. Pursuant to the terms of the
Notice of Conversion, Borrower will issue instructions to the transfer agent accompanied by an opinion of counsel to Borrower
of the Notice of Conversion and shall cause the transfer agent to transmit the certificates representing the Conversion Shares
to the Holder by physical delivery or crediting the account of the Holder’s designated broker with the Depository Trust
Corporation (“DTC”) through its Deposit Withdrawal Agent Commission (“DWAC”) system within
three (3) business days after receipt by Borrower of the Notice of Conversion (the “Delivery Date”). In the
case of the exercise of the conversion rights set forth herein the conversion privilege shall be deemed to have been exercised
and the Conversion Shares issuable upon such conversion shall be deemed to have been issued upon the date of receipt by Borrower
of the Notice of Conversion. The Holder shall be treated for all purposes as the record holder of such Common Stock, unless the
Holder provides Borrower written instructions to the contrary.

 

2.4.
Late Payments. The Borrower understands that a delay in the delivery of the shares of Common Stock in the form required
pursuant to this Article beyond the Delivery Date could result in economic loss to the Holder. As compensation to the Holder for
such loss, the Borrower agrees to pay late payments to the Holder for late issuance of such shares in the form required pursuant
to this Article II upon conversion of the Debenture, in the amount equal to $500 per business day after the Delivery Date. The
Borrower shall pay any payments incurred under this Section in immediately available funds upon demand.

 

    	 	3	 

     

    

 

2.5.
Conversion Mechanics.

 

(a)
The number of shares of Common Stock to be issued upon each conversion of this Debenture shall be determined by dividing the Conversion
Amount by the then applicable Fixed Conversion Price.

 

(b)
The Fixed Conversion Price and number and kind of shares or other securities to be issued upon conversion shall be subject to
adjustment from time to time upon the happening of certain events while this conversion right remains outstanding, as follows:

 

A.
Reclassification, etc. If Borrower at any time shall, by reclassification or otherwise, change the Common Stock into the
same or a different number of securities of any class or classes, this Debenture, as to the unpaid Principal Amount and accrued
interest thereon, shall thereafter be deemed to evidence the right to purchase an adjusted number of such securities and kind
of securities as would have been issuable as the result of such change with respect to the Common Stock (i) immediately prior
to or (ii) immediately after such reclassification or other change at the sole election of the Holder.

 

B.
Stock Splits, Combinations and Dividends. If the shares of Common Stock are subdivided or combined into a greater or smaller
number of shares of Common Stock, or if a dividend is paid on the Common Stock or any preferred stock issued by Borrower in shares
of Common Stock, the Fixed Conversion Price shall be proportionately reduced in case of subdivision of shares or stock dividend
or proportionately increased in the case of combination of shares, in each such case by the ratio which the total number of shares
of Common Stock outstanding immediately after such event bears to the total number of shares of Common Stock outstanding immediately
prior to such event.

 

2.6.
Reservation of Shares. During the period the conversion right exists, Borrower will reserve from its authorized and unissued
Common Stock a sufficient number of shares to provide for the issuance of Common Stock upon the full conversion of this Debenture.
Borrower represents that upon issuance, such shares will be duly and validly issued, fully paid and non-assessable. Borrower agrees
that its issuance of this Debenture shall constitute full authority to its officers, agents, and transfer agents who are charged
with the duty of executing and issuing stock certificates to execute and issue the necessary certificates for shares of Common
Stock upon the conversion of this Debenture.

 

2.7.
Book-Entry. Notwithstanding anything to the contrary set forth in this Article II, following conversion of any portion
of this Debenture in accordance with the terms hereof, the Holder shall not be required to physically surrender this Debenture
to the Borrower unless (A) the full Conversion Amount represented by this Debenture is being converted (in which event this Debenture
shall be delivered to the Borrower following conversion thereof) or (B) the Holder has provided the Borrower with prior written
notice (which notice may be included in a Conversion Notice) requesting reissuance of this Debenture upon physical surrender of
this Debenture. The Holder and the Borrower shall maintain records showing the Principal Amount and Interest converted and/or
paid and/or adjusted (as the case may be) and the dates of such conversions and/or payments and/or adjustments (as the case may
be) or shall use such other method, reasonably satisfactory to the Holder and the Borrower, so as not to require physical surrender
of this Debenture upon conversion.

 

    	 	4	 

     

    

 

ARTICLE
III

EVENTS OF DEFAULT

 

The
occurrence of any of the following events set forth in Sections 3.1 through 3.9, inclusive, shall be an “Event of Default”:

 

3.1.
Failure to Pay Principal, Interest or other Fees. Borrower fails to pay when due any installment of principal, interest
or other fees hereon or on any other Debenture issued pursuant to the Purchase Agreement, and such failure shall continue for
a period of ten (10) days following the date upon which any such payment was due.

 

3.2.
Breach of Covenant. Borrower breaches any covenant or other term or condition of this Debenture in any material respect
and such breach, if subject to cure, continues for a period of fifteen (15) days after the occurrence thereof.

 

3.3.
Breach of Representations and Warranties. Any representation or warranty of Borrower made herein, or the Purchase Agreement,
or in any Transaction Document shall be false or misleading in any material respect.

 

3.4.
Stop Trade. An SEC stop trade order or Principal Market trading suspension of the Common Stock shall be in effect for 5
consecutive days or 5 days during a period of 10 consecutive days, excluding in all cases a suspension of all trading on a Principal
Market, provided that Borrower shall not have been able to cure such trading suspension within 30 days of the notice thereof or
list the Common Stock on another Principal Market within 60 days of such notice. The “Principal Market” for the Common
Stock shall include the OTCQX, the OTCQB, the OTCPK, NASDAQ Capital Market, NASDAQ Global Market, NASDAQ Global Select Market,
NYSE American, or New York Stock Exchange (whichever of the foregoing is at the time the principal trading exchange or market
for the Common Stock), or any securities exchange or other securities market on which the Common Stock is then being listed or
traded.

 

3.5.
Receiver or Trustee. Any Borrower or any of its Subsidiaries shall make an assignment for the benefit of creditors, or
apply for or consent to the appointment of a receiver or trustee for it or for a substantial part of its property or business;
or such a receiver or trustee shall otherwise be appointed.

 

3.6.
Judgments. Any money judgment, writ or similar final process shall be entered or filed against any Borrower or any of its
Subsidiaries or any of their respective property or other assets for more than $50,000 in the aggregate for Borrower, and shall
remain unvacated, unbonded or unstayed for a period of thirty (30) days.

 

3.7.
Bankruptcy. Bankruptcy, insolvency, reorganization or liquidation proceedings or other proceedings or relief under any
bankruptcy law or any law for the relief of debtors shall be instituted by or against any Borrower or any of its Subsidiaries.

 

    	 	5	 

     

    

 

3.8.
Default Under Other Agreements. The occurrence of an Event of Default under and as defined in the Purchase Agreement or
any Transaction Document or any event of default (or similar term) under any other agreement evidencing indebtedness of at least
$50,000.

 

3.9.
Failure to Deliver Common Stock or Replacement Debenture. Borrower’s failure to timely deliver Common Stock to the
Holder pursuant to and in the form required by this Debenture and the Purchase Agreement, if such failure to timely deliver Common
Stock shall not be cured within five (5) days. If Borrower is required to issue a replacement Debenture to Holder and Borrower
shall fail to deliver such replacement Debenture within seven (7) Business Days.

 

3.10.
Cumulative Remedies. The remedies under this Debenture shall be cumulative.

 

ARTICLE
IV

DEFAULT PAYMENTS

 

4.1.
Default Payment. If an Event of Default occurs and is continuing beyond any applicable grace period, the Holder, at its
option, may elect, in addition to all rights and remedies of Holder under the Purchase Agreement and the Transaction Documents
and all obligations of the Borrower under the Purchase Agreement and the Transaction Documents, to require the Borrowers to make
a Default Payment (“Default Payment”). The Default Payment shall be 110% of the outstanding principal amount
of the Debenture, plus accrued but unpaid interest, all other fees then remaining unpaid, and all other amounts payable hereunder.
The Default Payment shall be applied first to any fees due and payable to Holder pursuant to the Debentures or the Transaction
Documents, then to accrued and unpaid interest due on the Debentures and then to outstanding principal balance of the Debentures.

 

4.2.
Default Payment Date. The Default Payment shall be due and payable immediately on the date that the Holder has exercised
its rights pursuant to Section 4.1 (“Default Payment Date”).

 

ARTICLE
V

MISCELLANEOUS

 

5.1.
Failure or Indulgence Not Waiver. No failure or delay on the part of the Holder hereof 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 other or further exercise thereof or of any other right, power or privilege. All rights and remedies existing
hereunder are cumulative to, and not exclusive of, any rights or remedies otherwise available.

 

5.2.
Notices. Any notice herein required or permitted to be given shall be in writing and provided in accordance with the terms
of the Purchase Agreement.

 

5.3.
Amendment Provision. The term “Debenture” and all reference thereto, as used throughout this instrument,
shall mean this instrument as originally executed, or if later amended or supplemented, then as so amended or supplemented, and
any successor instrument as it may be amended or supplemented.

 

    	 	6	 

     

    

 

5.4.
Assignability. This Debenture shall be binding upon the Borrower and its successors and assigns, and shall inure to the
benefit of the Holder and its successors and assigns, and may be assigned by the Holder in accordance with the requirements of
the Purchase Agreement.

 

5.5.
Cost of Collection. If default is made in the payment of this Debenture, the Borrower shall pay the Holder hereof reasonable
costs of collection, including reasonable attorneys’ fees.

 

5.6.
Governing Law; Consent to Jurisdiction; Waiver of Jury Trial. This Debenture shall be governed by, and construed in accordance
with, the internal laws of the State of New York without regard to the choice of law principles thereof. Each of the parties hereto
irrevocably submits to the exclusive jurisdiction of the courts of the State of New York and the United States District Court
for the Southern District of New York for the purpose of any suit, action, proceeding or judgment relating to or arising out of
this Agreement and the transactions contemplated hereby. Service of process in connection with any such suit, action or proceeding
may be served on each party hereto anywhere in the world by the same methods as are specified for the giving of notices under
this Agreement. Each of the parties hereto irrevocably consents to the jurisdiction of any such court in any such suit, action
or proceeding and to the laying of venue in such court. Each party hereto irrevocably waives any objection to the laying of venue
of any such suit, action or proceeding brought in such courts and irrevocably waives any claim that any such suit, action or proceeding
brought in any such court has been brought in an inconvenient forum. EACH OF THE PARTIES HERETO WAIVES ANY RIGHT TO REQUEST
A TRIAL BY JURY IN ANY LITIGATION WITH RESPECT TO THIS AGREEMENT AND REPRESENTS THAT COUNSEL HAS BEEN CONSULTED SPECIFICALLY AS
TO THIS WAIVER.

 

5.7.
Maximum Payments. Nothing contained herein shall be deemed to establish or require the payment of a rate of interest or
other charges in excess of the maximum permitted by applicable law. In the event that the rate of interest required to be paid
or other charges hereunder exceed the maximum permitted by such law, any payments in excess of such maximum shall be credited
against amounts owed by Borrowers to the Holder and thus refunded to the Borrowers

 

5.8.
Construction. Each party acknowledges that its legal counsel participated in the preparation of this Debenture and, therefore,
stipulates that the rule of construction that ambiguities are to be resolved against the drafting party shall not be applied in
the interpretation of this Debenture to favor any party against the other.

 

[signature
page follows]

 

    	 	7	 

     

    

 

IN
WITNESS WHEREOF, Borrower has caused this Convertible Debenture to be signed in its name effective as of this 2nd
day of January, 2018.

 

	 	H/CELL
    ENERGY CORPORATION
	 	 	 
	 	By:	 
	 	Name:	Matthew
    Hidalgo
	 	Title:	Chief
    Financial Officer

 

    	 	8	 

     

    

 

Exhibit 10.2

 

EXHIBIT
A

CONVERSION
NOTICE

 

Reference
is made to the Convertible Debenture (the “Debenture”) issued to the undersigned by H/Cell Energy Corporation,
a Nevada corporation (the “Borrower”). In accordance with and pursuant to the Debenture, the undersigned hereby
elects to convert the Conversion Amount (as defined in the Debenture) of the Debenture indicated below into shares of Common Stock,
US$0.0001 par value per share (the “Common Stock”), of the Borrower, as of the date specified below. Capitalized
terms not defined herein shall have the meaning as set forth in the Debenture.

 

	Date
    of Conversion:	 

 

	Aggregate
    Principal Amount to be converted:	 

 

	Aggregate
    accrued and unpaid Interest with respect to such portion of the Aggregate Principal Amount to be converted:	 

 

	AGGREGATE
    CONVERSION AMOUNT TO BE CONVERTED:	 

 

	Please
    confirm the following information:

 

	Conversion
    Price:	 

 

	Number
    of shares of Common Stock to be issued:	 

 

Please
issue the Common Stock into which the Debenture is being converted in the following name and to the following address:

 

	Issue
    to:	 
	 	 
	 	 
	 	 
	 	 

 

	Facsimile
    Number:	 

 

	Holder:	 

 

	By:	 

 

	Title:	 

 

	Dated:	 

 

	Account
    Number:	 

	
     (if     electronic book entry transfer)	 

 

	Transaction
    Code Number:	 
	 (if
    electronic book entry transfer)

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